Property plant and equipment are tangible capital

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Property, plant and equipment are tangible capital assets used in day-to day operating activities to produce or sell  products and services and are used for more than one accounting period or operating cycle. Intangible assets are long-term resources used to produce or sell products and services. They lack physical form  and their benefits are uncertain. Current liabilities are obligations due within one year or the company’s operating cycle, whichever is longer. Long-term liabilities are obligations not due within the longer of one year or the company’s operating cycle. Owner’s equity is the owner’s claim on the assets of a company.   Chapter 5: Explain how a business can earn a positive gross profit on its sales and still have a net loss? Gross Profit is the earnings left over after the cost of obtaining or making the good has been subtracted from the selling price of the good. Operating expenses such as the heating and lighting in your office are subtracted from the Gross Profit to give you an "Operating Income/Loss" figure. Finally, things such as Interest revenue or Interest expense are added or deducted from Operating Income to give you a Net Income/Loss.
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For example. I buy 6 widgets at a cost of $1.10 each from my supplier, and resell them for $3.50 each. My bank statement shows interest revenue of $2, and I have a telephone bill for $60. -Income Statement- Sales $21 .00 ($3.50 x 6 widgets sold) Cost of Goods Sold 6.60 ($1.10 x 6 widgets sold) ---------- Gross Profit $14.40 Operating Expenses: Telephone Bill 60.00 ---------- Operating Loss $(45.60) Non-Operating Expenses: Interest Revenue 2.00 ---------- Net Loss $(43.60) ====== Why do companies offer a cash discount?
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