Answer:
c. Net income will be overstated for the current year.
Explanation:
Depreciation is defined as the reduction in the value of an asset over the period of it's useful life.
The deductions are calculated and taken out of the asset value on the balance sheet.
The adjusting entry for depreciation at the end of year is a debit to Depreciation Expense and a credit to Accumulated depreciation.
If this entry is no passed it means that Depreciation Expense is not recognised for that year.
Net income will be overstated because generally expenses will be understated.
Answer: (a) Fall
(b) Increase
(c) Increase
(d) Unchanged
Explanation:
Suppose there is a competitive market with a downward sloping demand curve and horizontal supply curve. In a competitive market there are large number of buyers and sellers. So, if there is a downward shift in the supply curve, as a result equilibrium price will fall, equilibrium quantity will increase, consumer surplus now become larger and producer surplus remains the same because of the horizontal supply curve.
Answer:
False
Explanation:
Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).
What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.
Answer:
Explanation:
The journal entries are shown below:
On September 9
Petty cash A/c Dr $350
To Cash A/c $350
(Being fund is established)
On September 30
Merchandise inventory A/c Dr $40
Postage expense A/c Dr $123
Miscellaneous expenses A/c Dr $80
Cash shortage A/c Dr $3
To Cash A/c $246
(Being fund is reimbursed)
On October 1
Petty cash A/c Dr $50 ($400 - $350)
To Cash A/c $50
(Being fund is increased by $50)
Answer:
The correct answer to the following question is option (II), (III), (IV).
Explanation:
The APT stands for Arbitrage pricing theory, which is the alternative to the CAPM (Capital Asset Pricing Model ) for explaining the returns of the portfolio or the assets.
It is the multiple factors of CAPM which is base on the idea that the returns of assets can predict by using linear relationships in between a number of the macroeconomics variables that capture the systematic risk and the asset's expected return.
