Answer: There would be an increase on return on investment (ROI) if current assets decrease while everything else remains the same
Explanation: This is because when the profit(returns) is constant, but the assets drops in value, the new ROI will be relative drop in value of asset.
If both consumers and producers are experiencing a surplus the market is efficient
Answer:P value = 1 - 0.9793 = 0.0207
Explanation:
we can use Z value and normal distribution to find P value. P value is the area of beyond the value of Z value
sample mean (x.bar) = $52.20
Population mean (U) = $50
Sample Standard deviation (Sd) =$ 6.10
sample (n) = 25
Z =
=
Z = 2.50/1.22 = 2.049280328 = 2.049
area (normal distribution table) = 0.9793
P value = 1 - 0.9793 = 0.0207
Answer:
Dr Impairment Loss $8,000
Cr Truck $8,000
Explanation:
Preparation of journal entry
Based on the information given we told that the new delivery truck cost the amount of $30,000 in which the company intend to sell the delivery truck for the amount of $2,000 after using it for 7 years and secondly we were told that in the 5th year of using the truck the truck was considered as illegal in which the company is expected to sell the truck later this year for the amount of $6,000 which means journal entry should be recorded as:
Dr Impairment Loss $8,000
Cr Truck $8,000
($6,000+$2,000)
