Answer:
E) A sole proprietor is not personally liable for the obligations of the business.
Explanation:
Sole proprietorship is a kind of business owned by one man. Characteristics of a sole proprietorship includes;
- A sole proprietorship requires few legal formalities.
- A sole proprietor has complete control of the management of the business.
- The sole proprietor keeps all the profits from the business.
- Profits are taxed as the personal income of the sole proprietor.
It is the oldest and simplest form of business.
The answer is a sole proprietor is not personally liable for the obligations of the business.
Answer:
a debit to Interest Expense for $36,000
Explanation:
Data provided in the question
Note payable amount = $800,000
Interest payment = $80,000
Interest rate = 5%
So, the amount is
= (Note payable amount - interest expense) × interest rate
= ($800,000 - $80,000) × 5%
= $720,000 × 5%
= $36,000
This amount would be debited to interest expense while recording the annual payment on December 31, 2017
Answer:
<u>Mixed economy</u>
Explanation:
Note that the command forces here represents socialism implying Governmental control of land resources, labor, capital and control of some industries.
The factors of production (land, labour, capital) in a mixed economy would indeed depend on the relative distribution of market forces versus command forces.
Answer:
$157,000
Explanation:
The calculation of estimated cash receipts from accounts receivable collections in May is shown below:-
Collections from sales of may = $200,000 × 20%
= $40,000
Collections from sales of April = $150,000 × 70%
= $105,000
Collections from sales of prior period = $12,000
Estimated Collections in May month = Collections from sales of may + Collections from sales of April + Collections from sales of prior period
= $40,000 + $105,000 + $12,000
= $157,000
So, for computing the estimated collection in may month we simply applied the above formula.
Answer:
equity, freedom, security, efficiency, growth
Explanation:
The economic goals include:
1. Equity: occurs in an economy when income and wealth are fairly distributed within a society.
2. Efficiency (efficiency freedom): is achieved when society is able to get the greatest amount of satisfaction from available resources in an economy
3. Economic growth: when there is an increase in the economy's ability to produce goods and services, often indicated by measuring the growth rate of production.
The other economic goals are:
Economic Stability, balance of payment, Price Stability or Controlling Inflation and Full Employment.
