Answer:
The normal balance of each account will depend on the type on account involved.
Explanation:
The double-entry system of accounting imlpies that transactions recorded shlooud involve two movements; a corresponding debit entry for a credit entry, though some transactions have more than two entries.
However, by way of rule, a normal balance increases the account and on the opposite of that account, the amount decreases so as to obtain a balance in its rightful position.
Thus, asset accounts will have debit balances, liabilities and capital accounts will have credit balances, income account will have credit balances due to its additional effect on capital, while expenses and withdrawals will have debit balances because they reduce capital.
Answer:
To evaluate the choice, we have to calculate the present value of future cash flows and compare it with the cost. We use the following formula
present value = C × [ ]
where
C = yearly payments = 75000
i = interest rate = 8%
n = no. of years = 15
put the given values in above equation, we get
Present value = 75000 ×8.559478688
= 641,961
Since the present value of cash flow 641,961 is less than the cost 750,000, I would not recommend it.
If Interest rate = 5%, then:
Do the same procedure as above but take i=5%
Present value = 75000 × 10.37965804
= 778,474
Since the present value of future cash flows 778,474 is greater than the cost 750,000, I would recommend it.
Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.
Pricing refers to the process of determining the value that a producer will receive in the exchange of services and goods produced with final consumers or middle men.
- The aim of generating profit is one of the element considered for price fixing.
- Competition levels with other companies in the industry will influence price fixing because consumers pocket have to be considered.
- Level of Cost incurred during production of the goods and services also play a great role in price fixing.
- Demand from the market also influence price setting on a product.
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Answer:
Accounts Payable: Describes all money a business owes to vendors and suppliers for purchases of goods and services made on credit. Often listed in sum on the balance sheet as “current liability"
Answer: False
Explanation: The marginal social benefit curve defines the benefits society get from the production of an additional unit. It occurs when consumers are the only group deriving benefit from a product and the steepness of the curve shows the increasing or decreasing benefits derived; describes the net social value of any product, activity or service. When the curve is relatively steep but there exists uncertainty about the marginal social benefit curve, a dead weight loss is created which is the same for price and quantity instruments.