For Any Business, Both the _______ and ________ Are Needed

question 53

Multiple Choice

For any business, both the _______ and ________ are needed to determine a business's financial position.

• A)statement of profit and loss and other comprehensive income; statement of financial position
• B)statement of profit and loss and other comprehensive income; statement of cash flows
• C)statement of financial position; line of credit
• D)statement of cash flows; statement of financial position

Comprehend the importance of input markets and their relation to output markets.

Evaluate the effects of shifts in demand and supply on resource allocation and industry costs.

Understand the concept of Pareto Optimality and efficiency in market outcomes.

Distinguish between general equilibrium and partial equilibrium analysis.

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Definitions:

Gross Profit Method

An estimating technique used to determine the cost of goods sold and ending inventory, based on the gross profit margin.

Goods Available

Refers to the total quantity or cost of goods that a company has ready for sale at any given time, including both its beginning inventory and the cost of goods purchased or manufactured during the period.

Inventory Estimate

An approximation of the value or quantity of inventory, used for accounting or planning purposes.

Retail Method

An accounting method to estimate ending inventory and cost of goods sold by using a proportional relationship between the retail value and cost of goods.