Answer:
7.8% increase in revenue
Explanation:
Revenue is given by the number of units sold 'n' multiplied by the price of sale 'P'. The revenues before and after the price drop are:
The change in revenue is given by:
Therefore, there was a 7.8% increase in revenue when price falls by 2%.
Answer:
December 31, 2022, amortization expense of copyright
Dr Amortization expense 19,500
Cr Copyright 19,500
December 31, 2022, amortization expense of patent
Dr Amortization expense 10,000
Cr Patent 10,000
No journal entry required for the Goodwill since its useful life is indefinite
Answer:
The correct answer is letter "B": reported on the balance sheet as a deduction from the cost of the mineral deposit.
Explanation:
Depletion refers to an accounting method used to allocate extraction costs for quarrying minerals or any other natural resource such as oil. Only when the costs of the resource were capitalized, the costs of the extraction are allocated over the periods when they were extracted. The allowance can be registered as a percentage or a cost.
<em>On the balance sheet, depletion is deducted from the cost of the mineral deposit of the firm.</em>
Answer:
True
Explanation:
Modigliani and Miller or MM hypothesis states that dividend policy of a firm plays no role in the determination of the market value of it's stock or the market value of the firm.
As per the theory, dividend policy of a firm is irrelevant and does not affect the value of the firm.
The theory maintains that under specific set of assumptions, the capital structure of a firm and it's composition does not play any role in determining the value of a firm and no capital structure can be termed as optimal.
It further states, the value of a firm is determined by capitalizing it's expected return with the firm's average cost of capital. Also, a firm cannot change the total value of it's securities by splitting it's cash flows into different streams such as dividends or retained earnings.
A firm's value is determined by a firm's real assets and not by it's issued securities.
The correct option is B. Participative leaders take steps to ensure that their employees take part in making decisions that affect the company. This type of leadership is especially effective when the employees have high degree of ability and when the decisions are personally relevant to them.