Differentiate Between Static Reports and Dynamic Reports

question 98

Essay

Differentiate between static reports and dynamic reports.

Prepare a cost of goods sold section of the income statement under periodic inventory system.

Calculate gross profit and prepare related sections of the income statement.

Develop skills in journalizing adjusting entries for inventory shrinkage under perpetual inventory system.

Interpret and journalize transactions involving sales taxes, credit terms, and payment discounts.

---

Definitions:

Economic Rent

It is the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In other words, it's the extra income earned from a resource without investing in additional effort or cost.

Net Productivity

The actual output after subtracting the inputs used in the production process, indicating the efficiency of production.

Capitalization

The total market value of a company's outstanding shares, representing the investment community's perception of its worth.

Recognizing

The act of identifying, acknowledging, or understanding something as being true or valid.