Explanation

If partners do not have any agreement, profits or losses should be shared equally.

In the absence of a partnership agreement, the default legal rule is to divide profits and losses equally among the partners.

Explanation

To calculate the gross profit, use the formula:

Gross Profit = Net Sales - Cost of Goods Sold

First, calculate net sales:

Net Sales = Sales - Sales Returns

Net Sales = $300,000 - $45,000 = $255,000

Then, calculate gross profit:

Gross Profit = Net Sales - Cost of Goods Sold

Gross Profit = $255,000 - $152,000 = $103,000

So, Austin Sound reported a gross profit of $103,000.

Explanation

A key factor is one which restricts the volume of production.

It is the limiting factor in a business process that determines the maximum output or capacity of production.

Explanation

Statement of financial position or balance sheet is the expanded accounting equation

Explanation

Consumption goods refer to those goods which satisfy the wants of the consumer directly.

These are not used in the production of other goods.

For example, food, shirts, shoes, etc.

Explanation

Depreciation helps to tie the cost of an asset with the benefit of its use over time.

In other words, each year, the asset is put to use and generates revenue, the incremental expense associated with using up the asset is also recorded.

Depreciation arises due to physical wear and tear of the asset.

Explanation

A method used in a comparative analysis of financial statement is Common size analysis

Explanation

Cost accounting is primarily concerned with  Analyzing and controlling costs

Explanation

Explanation