Explain the difference between accounting income and economic income.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (19 reviews)
Economic income is based on the events approach whereas accounting income is ba...View the full answer
Answered By
Jeff Omollo
As an educator I have had the opportunity to work with students of all ages and backgrounds. Throughout my career, I have developed a teaching style that encourages student engagement and promotes active learning. My education and tutoring skills has enabled me to empower students to become lifelong learners.
5.00+
5+ Reviews
42+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Question Posted:
Students also viewed these Accounting questions
-
Explain the difference between accounting profit and economic profit. Which should business owners be more concerned with and why?
-
A. Briefly explain the main differences between Financial Accounting and managerial Accounting. (5 marks) B. Briefly distinguish between (i) a variable cost, (ii) a fixed cost (iii) and a mixed cost....
-
Explain the difference between accounting profit and economic profit and give examples of implicit and explicit costs.
-
Ava bought a house on 1 July 2000 for 62,000. She occupied the entire property as her PPR until 1 August 2007 when she began using one-quarter of the house for business purposes. This continued until...
-
What is e-waste? How is most of it disposed of, and what are some strategies for improving recycling rates?
-
Suppose that we have p = 3 quality characteristics, and in correlation form all three variables have variance unity and all pairwise correlation coefficients are 0.8. The in-control value of the...
-
A car rental agency has 19 compact cars and 12 intermediate-size cars. If four of the cars are randomly selected for a safety check, what is the probability of getting two of each kind?
-
Heller Manufacturing has two production facilities that manufacture baseball gloves. Production costs at the two facilities differ because of varying labor rates, local property taxes, type of...
-
What would be the annual percentage yield for a savings account that earned $54 in interest on $750 over the past 365 days?
-
Discuss the psychological aspects associated with how Groupons board and executives analyzed whether or not they should accept Googles offer. Consider the notion of transaction utility. How does this...
-
On 1 August 20X5, Fischer Ltd. decided to discontinue the operations of its services division. The services division is not a separate corporation, but it is a major operating segment, financially...
-
What general types of changes in assets and liabilities are not reported as part of net income? Where are such excluded items reported?
-
Explain the principle of information hiding. What does the term black box refer to?
-
Give an example each of how a manager can decrease variable costs while increasing fixed costs and increase variable costs while decreasing fixed costs.
-
What is the main component of sales variance if a flexible-sales budget is used?
-
Differentiate between breakeven analysis and CVP analysis.
-
Inaccurate costing can result in two deviations. Name the two deviations and explain how they can impact a business.
-
How can ABC help with cost reduction and process improvement decisions?
-
The Treasury conducts auctions of money market treasury securities at regular intervals. Go to http:// treasurydirect.gov/instit/instit.htm?upcoming and locate the schedule of auctions. When is the...
-
Grace is training to be an airplane pilot and must complete five days of flying training in October with at least one day of rest between trainings. How many ways can Grace schedule her flying...
-
A butterfly net hangs from a circular loop of diameter \(400 \mathrm{~mm}\). You hold the loop horizontally in a region where the electric field is \(150 \mathrm{~N} / \mathrm{C}\) downward, as shown...
-
A work sheet is a permanent accounting record, and its use is required in the accounting cycle. Do you agree? Explain.
-
A work sheet is a permanent accounting record, and its use is required in the accounting cycle. Do you agree? Explain.
-
Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis accounting acceptable for most business enterprises and the cash basis unacceptable in the preparation of...
-
The hydrogen spectrum shows 4 lines in the region visible spectral (this series is called the Balmer series: H (red): =656.3 nm, H(blue-green): = 481.1 nm, H (purple): = 434.1 nm, and H(purple): =...
-
A ring-shaped conductor with radius a = 2.50 cm has a total positive charge Q=0.123 nC uniformly distributed around it. (Eigure 1) What is the magnitude of the electric field at point P, which is on...
-
What are the main role of a businessmen to build the good business relation and communication to make the business better everyday?
Study smarter with the SolutionInn App