Answer:
The correct answer is variable expense will also be eliminated of the segment which got eliminated.
Explanation:
The segment in the business which is not profitable anymore, then that segment would be eliminated or removed, which will result in net income will always increase or rise. And the variable costs of that eliminated segment will be absorbed through other segments or will be eliminated.
Though the segment is removed, the fixed costs which is allocated to the segment will be covered still.
So, when the segment is eliminated, then the variable expense of that segment would be eliminated.
Answer:
Dr Unrealized Holding Gain or Loss – Income 45,500
Cr Estimated Liability on Purchase Commitments 45,500
Explanation:
Concord Company
Journal entry
Dr Unrealized Holding Gain or Loss – Income 45,500
Cr Estimated Liability on Purchase Commitments 45,500
Estimated Liability on Purchase Commitments = ($1,024,100 – $978,600) = $45,500
Answer:
(d) Mental accounting
Explanation:
Mental accounting is an idea in the field of conduct financial aspects. it battles that people order reserves distinctively and hence are inclined to nonsensical basic leadership in their spending and speculation conduct.
As indicated by the hypothesis of mental bookkeeping, individuals treat cash in an unexpected way, contingent upon elements, for example, the cash's root and expected use, as opposed to considering it regarding the "reality" as in formal bookkeeping
Answer:
Amount of Grey tea = 275 pounds
Amount of Orange Pekoe tea = 25 pounds
Explanation:
let G = amount of Grey tea
let 300 - G = amount of Orange Pekoe tea
4G + 2 (300 - G) = 3.5 x 300
4G + 600 - 2G = 1,050
2G = 1,050 - 600 = 550
G = 550 / 2 = 275
300 - G = 300 - 275 = 25
Compound interest means earning interest on the interest and principal balance from previous years!
After 1 year, $200 x 1.02 = $204
After 2 years, $204 x 1.02 = $208.08
After 3 years, $208.08 x 1.02 = $212.24