Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a certified public accountant.
He decides not to rent office space downtown but instead sets up shop in his converted garage apartment, which he could rent out for $300 a month if he wasn't using it as his own office.
He must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office.
After six months of working from home, Barney has earned an average of $12,000 per month.
a. What are Barney's average monthly accounting profits?
b. What are Barney's average monthly economic profits?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a certified ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:
Answers (1)
Which best describes the nature of cause and effect in the context of the business cycle? Each effect has other effects. Os Causes and effects cannot be easily defined. O A cause has multiple independent effects. O Each effect has a cause.
Answers (1)
One of the greatest concerns associated with capitalism is that: A. It is not very successful at creating wealth. B. Some businesspeople may let greed guide their behavior. C. The amount of economic freedom enjoyed by consumers is very limited. D.
Answers (1)
Suppose Mexico's opportunity cost for producing 1 unit of food is 3 units of clothing and the United States' opportunity cost for producing 1 unit of food is 0.5 units of clothing. Trade at a ratio of 1:1 is beneficial to both countries.
Answers (1)
Boatler Used Cadillac Co. requires $1,030,000 in financing over the next two years. The firm can borrow the funds for two years at 10 percent interest per year. Ms.
Answers (1)
New Questions in Business
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost.
Answers (1)
Cullumber Company has issued three different bonds during 2019. Interest is payable annually on each of these bonds. 1. On January 1, 2019, 1,000, 6%, 5-year, $1,000 bonds dated January 1, 2019, were issued at face value. 2.
Answers (1)
All of the following are true regarding deferred revenues except: They are payments received in advance of services performed. The adjusting entry for deferred revenues increases assets and increases revenues.
Answers (1)
Exercise 16-05 a-b (Video) In Waterway Company, materials are entered at the beginning of each process.
Answers (1)
Who provides on-the-spot short term loans for up to 50 percent of an item's estimated value? Choose one answer. a. pawnbroker b. credit card c. ATM d. payday loan
Answers (1)