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The steps you will follow for this project are as follows: Using your Excel worksheet, what would the accounting equation for MyMenu Food Delivery be as of January 31,2020. A. $5,295 $783 + $4,512 B. $12,438 = $9,860 + $2,578 C. $2,578 $1,850 + $783-$55 D. $783-$5,295-$4,512

asked
User Cytrinox
by
8.6k points

1 Answer

1 vote

Final answer:

To calculate the accounting profit for MyMenu Food Delivery as of January 31, 2020, the explicit costs must be subtracted from the revenues, following the formula ‘Accounting profit = total revenues minus explicit costs’. However, without specific figures for MyMenu Food Delivery, we cannot determine their exact accounting equation from the provided options (A, B, C, or D).

The correct option is not given.

Step-by-step explanation:

The accounting equation, which is fundamental in the world of finance, reflects that all assets are either financed by borrowing money or paying with the money of the company's shareholders. It is expressed as Assets = Liabilities + Owners' Equity. Using the provided information from the steps, we can determine what the accounting equation would be for MyMenu Food Delivery as of January 31, 2020.

To calculate the accounting profit, we follow Step 2 which involves subtracting explicit costs from the revenues. From the examples provided, we can see the formula applied as follows: Accounting profit = total revenues minus explicit costs. For instance, if the total revenues were $1,000,000 and the explicit costs were $950,000 ($600,000 + $150,000 + $200,000), the accounting profit would be $50,000 ($1,000,000 - $950,000).

However, since we do not have the exact figures for MyMenu Food Delivery, we cannot determine which of the options (A, B, C, or D) accurately reflects their accounting equation. The hypothetical example shows that the correct format for an accounting equation is to have the total assets equal to the sum of liabilities plus owner's equity, but without the correct figures we cannot solve it for MyMenu Food Delivery.

The correct option is not given.

answered
User Irfan Ayaz
by
9.4k points
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