Answer:
The correct answer is c. Marginal analysis
Explanation:
Marginal analysis is a technique you can apply when you are comparing some options. We can say this analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Using this technique you can maximize the potential profits.
The additional cost versus the additional benefit of a decision. In this case, Bill and Alma are analyzing if living 10 miles closer to their workplaces ( benefit) is worth the extra $25,000 in the cost of the house(cost). This is marginal analysis.
The answer for the first question is D.
Many organization adopting a societal stance to social responsibility respond to requests for donations to Little League, Girl Scouts, and youth soccer programs.
Answer:
B
Explanation:
Money has several functions, one of its principal function is using it as unit of account. By comparing the amount in dollars spent on running a car yearly to annual earnings instead of keeping track in terms of gasoline cost and quarts of oil shows that money has been used as a unit of account.
This means that the amount of gasoline gallons bought and quarts of oil has been essentially replaced by the cost of these purchases and hence avail is the power to use money as a unit of account
Answer:
Correct option is (a)
Explanation:
Adjusting journal entries are passed before financial statements are prepared to so as to confirm if revenue recognition and matching principles are complied with. Adjusting entries are required to be passed if transactions is spread over multiple financial periods. For example, adjusting entry is passed if goods are received this year but payment will be made next year.
Before income statement and balance sheet is prepared, these entries are passed. Thereafter, adjusting trial balance is prepared and finally financial statements are prepared.
Answer:
$12,500
Explanation:
Differential revenue = Alternative A revenue - Alternative B revenue
Differential revenue = $75,000 - $62,500
Differential revenue = $12,500
Thus, the differential revenue for this decision is $12,500
