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In a short essay, explain why exporting is often more advantageous for SMEs than large MNEs. Provide an example of an SME that has seen significant growth since exporting.
Pretax Income
The income earned by a company before deducting taxes, representing the company's profitability after all expenses except taxes.
Accrued Expenses
Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.
Depreciation Expense
Distributing the expense of a physical asset throughout its lifespan.
Accrue Interest Expense
The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.
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