<span>If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the prices for the firm's product will be lower than the prices that have been set in the present. In the present case as the supply is increased, the prices are higher as the demand is higher. Then at later point of time when the supply is decreased, then demand also decreased, then the prices are likely to come down.</span>
Answer:
The first 3 transactions only.
Explanation:
Accrual basis of accounting requires that expenses and revenue are recognized in the books as soon as they are incurred and earned respectively.
The cash basis required that transactions of expenses and revenue be recognized only when cash has been paid and received respectively.
Considering the transactions using cash-basis accounting,
1. Pay employees' salaries for the current period- Yes an expense will be recognized.
2. Pay rent in advance - Yes an expense will be recognized for the full amount paid.
3. Pay dividends to stockholders in the current period - Yes an expense will be recognized for the full amount paid.
4. Receive (but do not pay) a utility bill - No, this will be recognized when cash is paid
5. Use supplies previously purchased - This would have been recognized previously. No
(b) False
Explanation:
Fixed-cost fallacy or Sunk-cost fallacy
- considers irrelevant costs
- considers overhead and depreciation costs to make short-run decisions
The price of the movie ticket is a fixed-cost fallacy or sunk-cost fallacy
- It does not change with the decision to stay for the remainder of the movie
- To consider irrelevant costs into consideration when making decisions is an example of fixed-cost fallacy
Explanation:
I don't understand the question. Maybe elaborate more.
Answer:
These elements are definable risk, a fortuitous event, an insurable interest, risk shifting and risk distribution. in addition, there is a very important legal difference between a reserve and an insurance company.