Answer:
it promotes specialization by overcoming the problems with barter.
Explanation:
When economies are specialised workers focus on producing what they have competitive advantage in, and all other goods are purchased with the use of money. This increases economic efficiency and improves quality of products.
On the other hand the barter system involves exchange of goods between people. To get what I want I must provide the other person what they want. This promotes diversity of production with one person producing wide range of goods he does not have competitive advantage in.
So money increases economic efficiency.
The correct answer is B. deducting liabilities from assets and dividing the remainder by the number of shares of stock outstanding.
Answer:
A) Allowance method of accounting bad debts
Explanation:
Based on the allowance method, the bad debts should be calculated on either credit sales i.e. income statement method or receivable aging method i.e. balance sheet method. Also, the account receivable should be recognized at net realizable value
Therefore the allowance method of accounting bad debts is an answer
Answer:
<u>Direct labor hours.</u>
Explanation:
An activity base is considered every activity used in overhead allocation.
In service industries, it is more likely that the base of activity is direct working hours, to use this indirect cost allocation base, there must be an estimated amount of the total direct working hours that are used during the period. , using the estimate of a previous period as a projection for retraction or business growth. Once the estimate has been determined, the predetermined indirect rate used for indirect cost allocation can be found by dividing the estimated total indirect cost by the estimated total direct working hours.
