Answer:
$2200
Explanation:
The accrual basis recognizes revenues and expenses when the event warranting the income or expenditure occurs. In this case, the expenditure to be recognized is for the 11 months of insurance coverage.
For 24 months, the premiums are $4800. premiums for one month will be
= $4800/24
=$200
Premiums for 11 months
= $200 x 11
=$2200
Answer:
A, absolutely liable for any collapse.
Explanation:
In the cause of excavation of mineral resources on the land Umberto has mineral and excavation rights for, the surface of the land collapses. This makes Umberto liable for the collapse of the surface of the land and Abigail can have a case against him for destruction of property.
Cheers.
Answer:
Stage 1
Stage one is the period of most growth in a company's production. In this period, each additional variable input will produce more products. This signifies an increasing marginal return; the investment on the variable input outweighs the cost of producing an additional product at an increasing rate. As an example, if one employee produces five cans by himself, two employees may produce 15 cans between the two of them. All three curves are increasing and positive in this stage.
Stage 2
Stage two is the period where marginal returns start to decrease. Each additional variable input will still produce additional units but at a decreasing rate. This is because of the law of diminishing returns: Output steadily decreases on each additional unit of variable input, holding all other inputs fixed. For example, if a previous employee added nine more cans to production, the next employee may only add eight more cans to production. The total product curve is still rising in this stage, while the average and marginal curves both start to drop.
Stage 3
In stage three, marginal returns start to turn negative. Adding more variable inputs becomes counterproductive; an additional source of labor will lessen overall production. For example, hiring an additional employee to produce cans will actually result in fewer cans produced overall. This may be due to factors such as labor capacity and efficiency limitations. In this stage, the total product curve starts to trend down, the average product curve continues its descent and the marginal curve becomes negative.
Answer with Explanation:
Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.
The impact on the financial statements can be as under:
- The fluctuation in currency value can under or over statement of assets. liabilities and Income & Expenses.
- The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.
- It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.
- The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.
