Logout Open In App
Open In App
Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 1: Q11PSB_2 (page 46)

AT&T and Verizon produce and market telecommunications products and are competitors. Key financial figures (in \( millions) for these businesses for a recent year follow.

Key Figures (\) millions) AT&T Verizon

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . \(126,723 \)110,875

Net income . . . . . . . . . . . . . . . . . . . . . . . 4,184 10,198

Average assets . . . . . . . . . . . . . . . . . . . . 269,868 225,233

Required 2. Which company is more successful in the total amount of sales to consumers?

Short Answer

Expert verified

AT&T is more successful in terms of sales revenue than Verizon.

Step by step solution

01

Definition of Revenue

Revenue is defined as the amount received by the business in exchange for goods or services to its customers.

02

Comparison of Sales Revenue

The sales revenue of AT&T is $126,723 and the sales revenue of Verizon is $110,875. This clearly shows that the sales revenue is of AT&T is more than that of Verizon. This makes AT&T more successful.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Determine the missing amount from each of the separate situations a, b, and c below.

A B C Assets 1 2 3 4 (b) (a) ?\( (c) 154,000 100,000 \) 20,000 ? 34,000 $ 45,000 40,000

The fraud triangle asserts that the following three factors must exist for a person to commit fraud:

A. Opportunity B. Pressure C. Rationalization Identify the fraud risk factor (A, B, or C) in each of the following situations:

1. The business has no cameras or security devices at its warehouse.

2. Managers are expected to grow business or be fired.

3. A worker sees other employees regularly take inventory for personal use.

4. No one matches the cash in the register to receipts when shifts end.

5. Officers are expected to show rising income or risk dismissal.

6. A worker feels that fellow employees are not honest.

Use the information in Exercise 1-15 to prepare an October 31 statement of cash flows for Ernst Consulting. Assume the following additional information.

a. The owner’s initial investment consists of \(38,000 cash and \)46,000 in land in exchange for its common stock.

b. The company’s \(18,000 equipment purchase is paid in cash.

c. The accounts payable balance of \)8,500 consists of the \(3,250 office supplies purchase and \)5,250 in employee salaries yet to be paid.

d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.

e. No cash has been collected on the $14,000 consulting fees earned

Question: Match each of the numbered descriptions 1 through 5 with the term or phrase it best reflects. Indicate your answer by writing the letter A through H for the term or phrase in the blank provided. A. Audit B. GAAP C. Ethics D. Tax accounting E. SEC F. Public accountants G. Net income H. IASB

1. An examination of an organization’s accounting system and its records that adds credibility to financial statements.

2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues.

3. An accounting area that includes planning future transactions to minimize taxes paid.

4. Accounting professionals who provide services to many clients.

5. Principles that determine whether an action is right or wrong.

Sanyu Sony started a new business and completed these transactions during December.

Dec. 1 Sanyu Sony transferred \(65000 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock.

2 The company rented office space and paid \)1000 cash for the December rent.

3 The company purchased \(13000 of electrical equipment by paying \)4800 cash and agreeing to pay the \(8200 balance in 30 days.

5 The company purchased office supplies by paying \)800 cash.

6 The company completed electrical work and immediately collected \(1200 cash for these services.

8 The company purchased \)2530 of office equipment on credit.

15 The company completed electrical work on credit in the amount of \(5000.

18 The company purchased \)350 of office supplies on credit.

20 The company paid \(2530 cash for the office equipment purchased on December 8.

24 The company billed a client \)900 for electrical work completed; the balance is due in 30 days.

28 The company received \(5000 cash for the work completed on December 15.

29 The company paid the assistant’s salary of \)1400 cash for this month.

30 The company paid \(540 cash for this month’s utility bill.

31 The company paid \)950 cash in dividends to the owner (sole shareholder).

Required 1. Create the following table similar to the one in Exhibit 1.9
See all solutions

Recommended explanations on Business Studies Textbooks

Managerial Economics

Read Explanation

Strategic Analysis

Read Explanation

Intermediate Accounting

Read Explanation

Business Development

Read Explanation

Organizational Communication

Read Explanation

Organizational Behavior

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free