In Your Own Words, Explain the Idea of a Prima

question 73

Essay

In your own words, explain the idea of a prima facie obligation.

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Definitions:

Straight-Line Method

A method of calculating depreciation or amortization by equally distributing the cost of an asset over its expected useful life.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.

Gross Margins

A company's revenue minus its cost of goods sold, expressed as a percentage, indicating the percentage of sales revenue that turns into profit.

Opening Inventory

The value of a company's inventory at the beginning of its accounting period, which includes raw materials, work-in-progress, and finished goods ready for sale.