Answer:
A firm will continue to be in business for the foreseeable future (A)
Explanation:
According to the accounting concept, a firm is a going concern if its financial statement (i.e Income Statement, Cash flow Statement and Statement of financial position ) and other relevant indicators show that it has the ability to continue in the business in the next 12 months (foreseeable future) and there is no intention to shut-down .
However, if there are indicators that show that the firm can't continue in the operation for the next 12 months, its financial statement should be prepared on break-up basis.
<span>A: to set interest rates</span>
Answer:
Answer A is correct
Explanation:
Step 1 find how much Steve will have when he retires:
financial calculator steps
press g 7 (to set the calculator to assume payments are made at the beginning of the period)
8 i (interest earned)
46 n (periods remaining)
-2500 pmt (payment made into the account each period)
0 PV (starting balance of account)
solve for FV
FV = $1,129,750.38
We can now use this value to solve backwards
8 i
41 n (only 41 more payments here)
0 PV (starting balance)
1,129,750.38 FV (ending value)
solve for pmt
pmt = 3,725.55 ~ 3,726 so answer A
Answer:
d. the firm will lose $750
Explanation:
marginal cost is the derivate of the cost function: It represent the cost of producting an additional unit
cost: 750 + 5q
dC/dQ = 5
We have determinate that marginal cost is $5 thus, we should price at the same value. The mistake from the goverment is to equalize marginal cost with price instead of marginal revenue.
This will make the firm loss the fixed component of the cost as will sale to pay up the variable cost.
The fixed cost is $750 so that is the loss from operations
