Answer:
The correct answer is c) rises.
Explanation:
Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally participate in the international market. In this sense, it can boost its foreign trade.
It is then the basic idea that countries choose to specialize in order to trade in activities where they have a certain advantage. That is, instead of producing what they do best in an absolute way, they produce what they do best in a relative way. Therefore, the difference with the theory of absolute advantage is that it does not produce what the country costs less, but the one with lower comparative costs.
Accrued Net Income will be calculated as below:
Sales $72800
Less Expenses $20400
Cash Income $52400
Less: Depreciation $4900
Add: Accounts Receivable Inc $4500
Less: Reduction in Prepaid Exp $1900
Add: Reduction in Acc Liab $1700
Accrued Income $51800
Depreciation will be reduced as its an expense and all expenses will be reduced.
Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added
Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses
Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.
Answer:
A) Diffusion of responsibility; escalation of commitment.
Explanation:
Diffusion of responsibility relates to the concept of psychology in which the individual tends to create the responsibility of some different person, because the group size is to large and then the individual thinks not to take the responsibility.
Escalation of commitments relates to the fact that an individual continues with all the previous decisions and do not alter his actions, in consideration to the current circumstances.
In the given instance, John Walker the CEO never met any of the employees of third-world nation, and therefore, he continues his decision, that this plant shall be closed as he once again do not study all the plants, but believes illogically that the close of this plant will be beneficial to company.
Answer:
d. The statement of cash flows shows how much the firm's cash, the total of currency, bank deposits, and short-term liquid securities (or cash equivalents), increased or decreased during a given year.
Explanation:
In a statement of cash flows , what we have shown is a summary of cash and also all equivalents if cash that goes into and also goes out if a firm or company. It provides to what extent that cash is being managed by a firm. Therefore option D is the answer to this question since it talks about how cash increases or decreases in a firm in a particular year
