Answer:
A. True
Explanation:
Gas and electricity are called necessity goods. They are deemed too important to do without. They are essential to life. These categories of goods are insensitive to changes in income level.
Two primary characteristics that define perfectly competitive markets that necessity goods deviate from are:
· Demand is elastic. In perfect competition demand is inelastic i.e. Increase in price will lead to a significant change in quantity demanded. This is not so in necessity goods because these goods are essential to life. So increase in price of these categories of goods or decrease in income level of households will not have effect on the consumption of the goods.
· Bargaining Power of Supplier is high. In perfect competition, bargaining power of supplier is low i.e. suppliers have little power in influencing the price of goods but for necessity goods, reverse is the case. The bargaining power of suppliers is a little bit higher. Suppliers can influence price while consumers adjust.
Answer:
Entries are shown below.
Explanation:
To record the journal entries, we first need to calculate interest payment and principal as per the present value. This is done below:
PV Factor Present Value
Interest Payment $6,400 1.7125 $10,960
Principal $80,000 0.8116 $64,928
$75,888
<u>Journal Entries</u>
Date Particular Debit ($) Credit ($) Working
Jan 1, 2020 Note Receivable 80,000
Discount on Receivable 4,112
Land 75,888
Dec 31, 2020 Cash 6,400
Discount on Receivable 1,948 (8348-6400)
Interest Revenue 8,348 (75888*11%)
Dec 31, 2021 Cash 6,400
Discount on Receivable 2,162 (4279-3600)
Interest Revenue 8,562
(75888+1,948)*11%
Dec 31, 2021 Cash 80,000
Notes Receivable 80,000
Answer:
(A) in the summary of significant accounting policies.
Explanation:
It has the company's financial statements and also describes the key policies that are being followed by the accounting department. This policy summary is mandated by the accounting framework like IFRS or GAAP.
Answer:
true is the answer I think