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2 years ago

When consumed, many goods and services have an impact on other people not using the product. which word describes this impact?

1 answer:

7 0

The substitution effect is defined as the outcome of consuming various goods and services on those who do not use them.

<h3>What do you understand about the Substitution effect?</h3>

The substitution effect is the decline in product sales that results from customers switching to less expensive substitutes when the product price increases. Alternately, the term "substitution effect" describes the shift in demand for a commodity brought on by a change in the price of the well relative to other substitutes. For instance, when beef costs increase people tend to buy more chicken or turkey. Customers purchase store-brand coffee in response to an increase in the price of premium coffee at a coffee shop. Consumers choose generic substitutes as designer prescription drug prices rise.

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The costs attached to products that have not been sold are included in ending inventory on the balance sheet. True or false?.

e-lub [12.9K]

The statement is true. The costs attached to the products that have not been sold are included in ending inventory on the balance sheet.

The ending Inventory formula calculates about the value of goods available for sale at the end of an accounting period. Usually, it is used recorded in the balance sheet at a lower cost or the market value. It is also Known as Closing Stock. It includes the products getting processed or are being produced but not sold. The ending inventory figure is recorded under the assets column in a company's balance sheet. The value of the asset reflects about the current cost of goods held for sale in the future periods.

Learn more about Ending inventory

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8 0

2 years ago

The balance in Jahapp Inc.’s Cash account was $6,320 at April 30, 2019 before reconciliation. The April 30, 2019 balance shown i

Citrus2011 [14]

Answer:

$6,240.

Explanation:

Reconciliation Statement

Bank balance before reconciliation $4,590

Add: Deposits in transit 2,600

Less: Outstanding Checks (950)

Reconciled Bank Balance at April 30, 2019 $6,240

Cash balance before reconciliation $6,320

Add: Interest Revenue 60

Less: Bank service charges (140)

Reconciled Cash Balance at April 30, 2019 $6,240

<u>Notes</u>

- Deposit in transit and Outstanding checks are already recorded in company's books but not yet recorded with the bank because these checks might have reached bank after working hours. So, we have to update the bank's record.

- We have to update the cash balance with the information that is with the bank and has been provided to us at the period end. This include the interest revenue, already updated in the bank balance, and bank service charges.

7 0

4 years ago

Your company has spent $290,000 on research to develop a new computer game. The firm is planning to spend $49,000 on a machine t

Maslowich

Answer:

$132,745.82

Explanation:

required investment = $290,000 + $49,000 + $5,900 + $59,000 = $403,900

depreciable amount = $49,000 + $5,900 = $54,900

Research and development costs are expensed, they cannot be capitalized. Increase in net working capital cannot be capitalized either.

MACRS depreciation expense for year 1 under 8 year class life = 14.29%

depreciation expense year 1 = $54,900 x 14.29% = $7,845.21

net cash flow year 1 = [($390,000 - $190,000 - $7,845.21) x (1 - 35%)] + $7,845.21 = ($192,154.79 x 0.65) + $7,845.21 = $124,900.61 + $7,845.21 = $132,745.82

5 0

3 years ago

Price floors and ceiling prices both:

Murrr4er [49]

Answer:

The correct answer is letter "D": interfere with the rationing function of prices.

Explanation:

While talking about price floors and price ceiling, <em>the rationing function of prices</em> refers to the fact that both governmental measures are imposed to protect sellers and buyers from unfair practices driven by supply and demand. Thus, price floors protect producers from prices that could go below their production costs and price ceilings protect buyers from prices that could be set above their income.

The rationing function of prices can be also understood as the measures taken to discourage demand to keep resources to use them over a determined period.

3 0

3 years ago

Which of the following is a reason cash flows may differ from accounting income? The total number of units sold will be differen

Inessa05 [86]

Answer:

1. Depreciation is a tax-deductible expense but is not a cash outlay.

2. They are the difference between the cash flows the firm will have if it accepts the project versus the cash flows it will have if it rejects the project.

Explanation:

1. Depreciation as a non-cash outlay is removed from the Net Income when it is calculated for tax purposes. However, when calculating the Net Cash-flow, it is added back because the Cash-flow statement deals with how much actual money the business has and because depreciation does not actually take any money, it would need to be added back in the cash-flows as opposed to Accounting income where it is removed.

2. Incremental Cash-flows get their name from the fact that they will add income to a firm. This cash-flow comes if the company accepts a project as opposed to rejecting it and the cash they get from this increases their cash-flow making it <em>incremental. </em>

5 0

4 years ago