Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
Answer:
Using the Direct Write-off method means that bad debts are removed from the Accounts Receivable as they occur instead of using an Allowance account.
Bad debts will be debited as this is an expense. Accounts Receivable will be credited to reflect that the account is reducing in value.
The relevant journal entry will therefore be;
DR Bed Debts $650
CR Accounts Receivable $650
Answer: No impact on Net Cash from operations.
Explanation:
There are three main sections in the cash flows statement and these are the operating activities which includes the cash transactions which has an effect on the net income; the investing activites which are the cash transactions that has to do with non-current assets and the financing activities which are the cash transactions that involves the non current liabilities and equity.
It should be noted that the purchase of the long-term assets is an investing activities. Therefore, the item will be recorded in the Investing activities in the cash flow statement.
There will be a reduction in cash while there'll be an increase in the fixed. The income statement is also affected due to the fact that there will be an increase in the depreciation expense that's recorded.
Therefore, there'll be no impact on the net cash from operations.
Answer:
b. does not relieve Bill of the potential obligation to perform.
Explanation:
An obligation is a legal bond (vinculum iuris) by which one or more parties (obligants) are bound to act or refrain from acting.
An obligation thus imposes on the obligor a duty to perform, and simultaneously creates a corresponding right to demand performance by the obligee to whom performance is to be tendered
Answer:
D. an increase in potential GDP.
Explanation:
when the aggregate demand increases and output also increases, the potential GDP increases as well because the GDP measures the value of gross domestic products produced in an economy in a period of time.
it also means that an economy can produce more, and the potencial GDP will show that.
