Indicate Whether Each of the Following Independent Events Would Be

question 18

Essay

Indicate whether each of the following independent events would be included in a calculation of net income on the cash basis, the accrual basis or both.Provide a brief explanation for your treatment.Use the following format. $\begin{array}{ll}&\text { Net income on the } & \text { Net income on the } \\\text { Transaction }&\text { cash basis \& explanation } & \text { accrual basis \& explanation }\end{array}$
A)
B) Transactions:
A) Company sells goods for cash.
B) Company pays wages for work done last period.
C) Inventory is purchased in current period and sold, but not yet paid for.
D) Purchased and paid for a 5-year license for exclusive rights to sell a product.E) Company agrees to hire a new salesman to start work next period.

• A)
• B) Transactions:
• A) Company sells goods for cash.
• B) Company pays wages for work done last period.
• C) Inventory is purchased in current period and sold, but not yet paid for.
• D) Purchased and paid for a 5-year license for exclusive rights to sell a product.E) Company agrees to hire a new salesman to start work next period.

Identify and understand the use of euphemisms in communication.

Recognize the importance of avoiding biased language in professional settings.

Implement the "you" attitude effectively in business communication.

Understand the significance of being fair and objective in communication and how it is perceived.

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Definitions:

Raisins

Dried grapes often used in cooking and baking or eaten as a snack.

Mark-up

The gap between the acquisition cost of a product or service and the price at which it's sold, calculated as a fraction of the initial cost.

Operating Profit

Income generated by the primary activities of a business before tax and interest deductions are taken into account.

Discount

A reduction from the usual cost of something, often expressed as a percentage off the regular price.