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1 year ago

What is financial economies of scale

Business

1 answer:

nekit [7.7K]1 year ago

4 0

Answer:

Financial economies of scale are a type of internal economy of scale. They are economies of scale enable more favourable rates of borrowing. That is, larger businesses are seen by lenders as more reliable or worthy of credit due to their size, whereas smaller businesses will tend to pay higher rates of interest.

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On October 31, 2016, the following data was accumulated to assist the accountant in preparing the adjusting entries for Dependab

strojnjashka [21]

Journal entries record all transactions for a business. Transactions made on October 31, 2016 are recorder in the journal.

<h3>What is journal entry?</h3>

A journal entry is used to record a business transaction in the accounting records of a business.

The following journal entries are as follows-

A). Accounts Receivable Dr. $9,670

To Fees Earned Cr. $9,670

(Accrued fees earned)

B). Supplies Expenses Dr. $2270

To supplies Cr. $2270

(Supplies used $3,180- $910)

C). Wages expenses Dr. $1,220

To wages payable Cr. $1,220

(Accrued wages)

D). Unearned rent Dr. $3,160

To Rent revenue Cr. $3,160

(Rent earned 9,480/3 months)

E). Depreciation expenses Dr. $1,610

Accumulated Depreciation - Equipment $1,610

(Depreciation expenses)

Above mentioned are the journal entries to be made for Dependable Realty.

Learn more about the journal entries here:-

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3 0

1 year ago

Problems and applications q6 darnell loves playing rock 'n' roll music at high volume. jacques loves opera and hates rock 'n' ro

mafiozo [28]

Answer:

false

Explanation:

The Coase theorem states that parties in dispute should seek an optimal solution to their problem regardless of how property rights were initially distributed.

In this case, you need to find an agreement that satisfies both Darnell and Jacques regardless of who initially would have been considered to be right about the argument. Conflicts over rights to use property can be solved when parties settle on the efficient use of inputs. E.g. they could establish hours at which Darnell can listen to rock n' roll, and other hours when he shouldn't. That way both of them can enjoy the music they like and not bother the neighbors.

An optimal solution can always be reached regardless of initial distribution of rights.

7 0

3 years ago

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given

JulsSmile [24]

Answer: account receivable

Explanation:

The forecast in sales growth will most likely affect growth of the account receivable. Accounts receivable refers to the amount that's due to a business for the goods or services that were delivered to.a customer but.habent been paid for. It's s current asset.

The sale growth forecast will have an effect on the account receivable. An increase in sales growth will ultimately lead to an increase in the accounts receivable which implies that there will be more customers buying on credit.

6 0

3 years ago

A PR firm in Chicago explores census data, reads market research reports,searches for blogs or news stories on the Web, or revie

LenKa [72]

Answer:

b. Secondary research

Explanation:

Based on the scenario being described within the question it can be said that this type of research is an example of secondary research. This is a research method that focuses on using already existing data in order to support the research by summarizing and organizing that data. Such as the PR firm is doing with the cencus data, in order to support the trends in teen clothing that they are researching.

7 0

3 years ago

D. Shahi and K. Vaughn organize a partnership. Their partnership agreement states that Shahi will receive 40% of the partnership

Softa [21]

Answer:

$8,000 by Shahi and $12,000 by Vaughn.

Explanation:

Given that,

Investment of Shahi = $80,000 with 40% share

Investment of Vaughn = $90,000 with 60% share

Investment of Williams = $80,000 with 40% interest

Total capital after admission of Paul Williams:

= Investment of Williams + Investment of Shahi + Investment of Vaughn

= $80,000 + $80,000 + $90,000

= $250,000

Williams's share in new capital:

= Total capital after admission of Paul Williams × Interest

= $250,000 × 40%

= $100,000

Bonus paid to Williams:

= Williams's share in new capital - Investment of Williams

= $100,000 - $80,000

= $20,000

Therefore, the bonus paid to Williams will be contributed by old partners:

D. Shahi Contributed = $20,000 × 40%

= $8,000

K. Vaughn contributed = $20,000 × 60%

= $12,000

6 0

3 years ago

What is financial economies of scale​

What is financial economies of scale