Answer:
The correct answer is letter "B": The statement presents the fallacy of composition.
Explanation:
The Fallacy of composition refers to a fallacy by which an individual believes that something is true just because part of the whole is true. Typically, this type of belief leads to mistaken conclusions because what might be right for one person does not necessarily is right for others.
Answer:
Option B is correct (17.6)
Price-earnings ratio=17.6
Explanation:
option B is correct (17.6)
Given Data:
Net income=$90,000
Weighted-average common shares outstanding=18,000
Market price per share=$88
Book value per share=$76
Required:
Price-earnings ratio=?
Solution:
Formula:
Price-earnings ratio=
Price-earnings ratio=
Price-earnings ratio=17.6
Answer:
Endowment effect
Explanation:
Endowment effect also referred to as divestiture aversion occurs where individual places or ascribes much higher value than market value on product they already have. where endowment effect is at play the owner of an asset will refuse to sell the asset owned at a the market price higher than the initial cost. and even not ready to buy same item at the market price when offered.
This surprising behavioural pattern was discovered by a psychologist Richard Thaler in the 1970s
Answer and Explanation:
The journal entries are shown below
On Dec. 31, 2018
Interest receivable $600
To Interest income $600
(Being accrued interest earned is recorded)
On Dec. 31, 2018
Interest income $2,400
To Retained earnings $2,400
(Being the closing of interest income is recorded)
On Jan. 31, 2019
Cash $900
To Interest receivable $600
To Interest income $300
(Being cash receipt of interest is recorded)
Answer:
A. CPAs work for government agencies and corporations.
Explanation:
Certified public accountant (CPA) is the title for skilled, competent, and professionally trained accounts. Accountants play a significant role in any organization's success, be it a business-oriented, government institution, or not-for-profit organization. Employers seek and employ qualified and certified accountants to work in their organizations.
Both the public and private sector engage the services of certified account to take charge of accounting and financial management. The objective is to ensure that financial transactions are recorded correctly, and the financial statement reflects the true picture of the organization as per the generally accepted accounting principles.
