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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.

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The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following

swat32

Answer:

$174,500.

Explanation:

Budgeted sale in June would made up of the collections:

Month of sale collection

45% × June = 45% × 170,000 = 76500

Month following sale

50% × May sales = 50% × 180,000 = 90000

Second month following sales

= 5% × April sales = 5% × 160,000 = 8000

Budgeted cash collection for June

= 76,500 +90,000 +8,000

= $174,500.

3 0

3 years ago

Generally, an income amount that relates to a future period and therefore can be set aside and included in income for that perio

Ket [755]

The term that is referred by the description above is RESERVES. The reserve is the amount that is being kept for future periods. This amount is separated to the current period's income, but is part of the next period if this is applicable. The answer is D.

6 0

3 years ago

China produces many products at the lowest cost possible, even though Chinese consumers do not desire many of these products (e.

Setler79 [48]

Answer:

Production efficiency.

Explanation:

It's production is efficient because produces products at a lower cost that the competition.

It's not allocative efficiency, because when this happens, production represents costumers preferences.

3 0

3 years ago

Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt.

posledela

Answer:

Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares

EPS for all equity plan:

($80,000 x 60%) / 18,000 = $2.67 per share

EPS for Plan I:

[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share

EPS for Plan II:

[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share

3 0

3 years ago

1.Which of the following occurs when wages increase? a. The number of workers employed by the government increases b. The quanti

Oliga [24]

1.c. The quantity of labor supplied decrease.

2.d. Businesses demand labor in the labor market.

3.b. Inverse.

4.a. A decrease in the number of qualified car mechanics.

5.d. Decrease the wages of carpenters.

6.a. Higher wages for workers.

7.a. Marginal revenue product.

Explanation:

1. The demand for labour will decrease because

Increasing wages increases the cost value of businesses which produces the products, and leading to hike in their selling prices, due to which consumers will buy now lesser.

A increase in the wages can also make labour even more expensive relative to the capital so businesses can substitute capital for labour.

This means that less labour will be used.

2. The labor market is defined as the job market in which employees such as workers provide the supply to the market and employers like businesses provide the demand to the market.

3. As the wages increases,number of workers decreases and vice versa thus showing an inverse relationship between them.

4. A decrease in the number of qualified car mechanics will eventually increase the demand for them and hence it will lead to increasing wages of car mechanics.

5. A decreasing demand for carpenters would lessen the need of carpenters, leading to decrease the wages of carpenters.

6. Education and training might lower the wages of workers since the need and demand of workers get decreased.

7. The change in total profits to the change in the no. of inputs provided is defined as Marginal Revenue Product also known as MRP.Theoretically, it is the additional revenue generated during hiring an additional worker which is equivalent to usage of one more units of the input .

7 0

3 years ago