Secondarily, decreases in accrued revenue accounts indicates that cash was collected in the current period but was recorded as revenue on a previous period’s income statement. In both scenarios, the net income reported on the income statement was lower than the actual net cash effect of the transactions. To reconcile net income to cash flow from operating activities, add decreases in current assets. The specific journal entries will depend on […]

The marginal cost curve is given below for your better understanding. Before we turn to the analysis of market structure in other chapters, we will analyze the firm’s cost structure from a long-run perspective. As production increases, we add variable costs to fixed costs, and the total cost is the sum of the two. Figure 7.7 graphically shows the relationship between the quantity of output produced and the cost of […]

It is the portion of the business’s profits that are not distributed to shareholders as dividends but are kept within the company to be reinvested in the business. The balance sheet details the assets, liabilities and the value of the owner’s http://www.cowboysjerseysedge.com/free-accounting-software-program-for-new-small-companies.html equity. It’s called a balance sheet because both sides balance out — i.e. the assets must equal the liabilities plus the owner’s equity. Ownership equity is a key […]