Answer:
The company is benefiting from Economies of Scale.
Explanation:
Economies of Scale is an economic term that describes the advantages obtained by increasing output, which reduces the average cost of production. This happens because there are fixed costs and variable costs involved in production. The fixed costs do not increase with increased production, most times. With efficiencies obtainable from increased production, the average cost per unit decreases.
Answer:
<em>Cristano</em><em> </em><em>ronaldo</em>
<em>Lionel </em><em>Messi</em>
<em>Donald </em><em>trump</em>
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer:
b. $325,000
Explanation:
The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.
Given;
Inventory = $84,000,
Long-term Debt = $125.000;
Common Stock $60,000;
Accounts Payable $44,000;
Cash $132,000,
Buildings and Equipment $390,000:
Short-term Debt $48.000:
Accounts Receivable $109,000,
Retained Earnings $204,000 Notes Payable $54.000:
Accumulated Depreciation $180.000
Total current asset = $84,000 + $132,000 + $109,000
= $325,000
Answer:
D. conservative
Explanation:
Historical cost method relates to recording of assets at their historical i.e original cost instead of recording them at their increased/revalued values.
Such a method ensures compliance with law of conservatism or prudence which simply states, "do not anticipate a profit, but provide for all possible losses".
Preparing financial statements based upon historical cost assumption ensures reliability and avoids overstatement of assets. This means investors, government and other stakeholders can place better reliance upon credibility of such financial statements.