All categories

3 years ago

Which of the following statements is true? Multiple Choice

Business

1 answer:

ser-zykov [4K]3 years ago

5 0

Answer: Option D

Explanation: Accounting profit is always equals to or greater than the economic profit of an entity. This is due to the fact that, while computing accounting profit the accountant do no take implicit cost into consideration.

Whereas, economic profit is the amount of profit remaining after deducting both explicit and implicit cost.

Implicit cost refers to the cost of loosing profits by choosing one alternative over other.

You might be interested in

Einstein Motors, has a capacity to produce 25,000 electric cars. Due to a temporary subsidy announced, there is a sudden increas

kaheart [24]

Answer:

Total Contribution margin: 107,500,000

Explanation:

Contribution: sales revenue - variable cost

normal price 5,000

peak-load price: 5,000 + 20% = 5,000 x 1.2 = 6,000

revenue

20,000 units at 5,000 100,000,000

5,000 untis at 6,000 30,000,000

Total revenue 130,000,000

variable cost:

25,000 units x 900 = (22,500,000)

Total Contribution margin: 107,500,000

5 0

3 years ago

JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $65 million, $55 million, and $37

Kitty [74]

Answer:

a) $28 Million

b) -$24 Million

Explanation:

The first part of the question is to determine the pension liability tht should be reported in the balance sheet

To do this, we use the following formula

Projected Benefit Obligation - The Plan Assets

= $65 million - $37 Million = $28 Million

Part B) This part says to dettermine the amount JDS would report if the planned asset increase to $89 million

The formula Projected Benefit Obligation - The Plan Assets still should be used but there is a difference as follows

$65 million - $89 Million = -$24 Million

6 0

3 years ago

Which of the following is NOT a type of bank?

tensa zangetsu [6.8K]

The answer is b-savings back

6 0

3 years ago

Read 2 more answers

Increasing the amount of money in the economy results in

Elena-2011 [213]

Answer:

By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.

Explanation:

It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.

7 0

3 years ago

the federal advisory council of the federal reserve decides of any changes to the money supply are needed/true or false

Licemer1 [7]

True, true, true. (:

7 0

3 years ago

Read 2 more answers