Answer:
Common stock dividend distributable = Par * Number of shares * % dividend
= 13 * 46,500 * 15%
= $90,675
Stock Dividend = Number of shares * market price * % dividend
= 46,500 * 18 * 15%
= $125,550
Date Account Title Debit Credit
Dec, 1 Stock Dividend $125,550
Common Stock Dividend Distributable $90,675
Paid in Capital in excess of Par- $34,875
Common stock
Date Account Title Debit Credit
Dec, 31 Common Stock Dividend Distributable $90,675
Common Stock $90,675
Answer:
c. percentage change in price and percentage change in quantity demanded.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
The price-elasticity of demand coefficient, Ed, is measured in terms of percentage change in price and percentage change in quantity demanded.
The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.
Answer: A.exceed units sold
Explanation:
In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.
Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.
This difference in consideration of costs under each method leads to difference in income determination under each method.
Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.
This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.
Answer:
B. Purchasing inventory on account
Explanation:
The Purchase of inventory on account is not recorded when the cash basis of accounting is recorded but where as it is recorded when accrual basis of accounting is used.
