Answer:
An economic union
Explanation:
Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;
I. Customs union
II. Free trade area
III. Common market
IV. Political union
VI. Economic union
An economic union can be defined as a trade bloc which comprises of both customs union and a common market.
In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.
However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.
Answer:
D. The breakeven point decreases.
Explanation:
Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.
The formula for break-even is
Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)
Since sales price and variable cost is constant, let's say
(Sales price per unit- Variable cost per unit)= constant (k)
So when we cross-multiply in the formula
Breakeven* k= Total fixed cost
It shows that Breakeven point is directly proportional to Total fixed cost.
So a reduction in Total fixed cost will result in a reduction in Breakeven point.
Answer:
Assets= 15,000
Liabilities= 10,000
Owner's equity= 5,000
Explanation:
When he invests 5,000 of his own money that 5,000 is an asset as it is cash and the 10,000 he borrows is also an asset as it is cash. The liabilities are 10,000 as he has to pay 10,000 back and it is a loan so it is a liability also.
The owners equity is 5,000 as he invested 5,000 of his own money in the business and that is owners equity.
Answer:
Debit side $29,660
Credit side $29,660
Explanation:
Preparation of a correct trial balance
DOMINIC COMPANY
Corrected Trial Balance May 31, 2015
DEBIT SIDE
Cash $5,023
($5,050 +$450 - $477)
($530-$53=$477)
Accounts Receivable $2,030
($2,570 - $540)
Prepaid Insurance $930
($830 + $100)
Supplies $450
Equipment $12,750
($13,200 - $450)
Salaries and Wages Expense $4,530
($4,330 + $200)
Advertising Expense $1,447
($970 + $477)
($530-$53=$477)
Utilities Expense $900
($800 + $100)
Dividends $1,600
TOTAL $29,660
CREDIT SIDE
Accounts Payable $5,510
($5,700 - $100 + $450 - $540)
Unearned Service Revenue $690
Common Stock $14,500
($12,900 + $1,600)
Service Revenue $8,960
TOTAL $29,660
Therefore the CORRECTED TRIAL BALANCE will be:
Debit side $29,660
Credit side $29,660
