Answer: c. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.
Explanation:
Closing entries are the journal entries that are made at the end of an accounting period in order to be able to transfer temporary accounts to the permanent accounts.
The primary purpose of closing entries is to reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.
Therefore, the correct option is C.
Answer:
Profit is higher, and output level is lower in Cournot.
Explanation:
Cournot competition is a type of economic model which describes an industry setting whereby firms that produce the same product compete on the amount of product to manufacture.
This type of competition involves more than one firm in which each firm's output decision affects the price of the product in the market. In cournot equilibrum each firm decide on the quantity of products to produce inorder to maximise profit.
Answer:
The correct answer is letter "A": company sales potential; market potential.
Explanation:
Company sales potential is the expected amount of sales of a company given a specific sector in the market. It is presumed that the company has carried out marketing strategies and investment for the levels desired to be achieved. In the example, that level is 20%.
The market potential is the size of the market for a given product within a period of time. It is usually expressed in monetary terms since it expresses the number of sales value or volume during the period. In the example, that amount is $30 million dollars.
Answer:
Year 1
Incremental earnings = EBIT * ( 1 - Tax)
EBIT = Revenue - Operating expense - Depreciation
= 121.6 - 37.7 - 26.6
= $57.3 million
Incremental earnings = 57.3 * ( 1 - 35%)
= $37.245 million
Year 2
EBIT = 169.3 - 50.4 - 28.2
= $90.7 million
Incremetal earnings = 90.7 * (1 - 35%)
= $58.955 million
Answer:
31,500
Explanation:
Cost function, C (x) = 2 x + 4500
Revenue function, R (x) = 5 x
Profit = Total revenue - Total cost
= R(x) - C(x)
= 5 x - [2 x + 4500]
= 3 x - 4,500
If company sells 12,000 boxes, then profit will be:
= 3 x - 4,500
= 3(12,000) - 4,500
= 36,000 - 4,500
= 31,500
Therefore, 31,500 is the profit earn by the company by selling 12,000 boxes of cereal.
