Answer:
Helmut's basis at year-end is $3,900.
Explanation:
Beginning Basis = $2,000
Add: January 1 Liabilities at the rate of 10% = $20,000 × 10% = $2,000
Add: Increase in liabilities by the rate of 10% = $5,000 × 10% = $500
Less: Loss incurred at the rate of 10% = ($6,000 × 10%) = $600
Basis at the end of the year = $2,000 + $2,000 + $500 - $600
Basis at the end of the year = $3,900.
Answer: b. Economies of Scope
Explanation:
Economies of Scope refers to a situation where a company is able to reduce the cost of producing two or more goods by combining their production thereby leading to savings in the production process.
Economies of Scope in effect points out that there are some goods that when produced in tandem with another, lead to a cost reduction which means that its savings is <em>based on variety</em>.
Goods that usually achieve Economies of Scope are goods that are compliments, produced by similar methods or use similar inputs for production.
Firm A merging with Firm B produced the 5 radios and batteries cheaper so the new company is experiencing Economies of Scope.
Answer:
no cash was collected during the period
or
cash collections during the year are less than the amount of revenue recognized
Explanation:
For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total Accounts receivable will be $ 750,000.
But out of the $ 500,000 sales only $300,00 cash is collected and the remaining $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.
So there are two possibilities either cash collections during the year are less than the amount of revenue recognized.
or
no cash was collected during the period.
Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized
Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.
Choice no 3 is also wrong if cash collections are more than the ending accounts receivable balance would be less
Answer:
There is a positive linear relationship between the frequency of advertising and the sales of the advertised product.
Explanation:
A linear relationship is stablished between 2 quantitative variables that have constant proportionality. In this case, the variables are directly proportional to eachother as they move in the same direction. In addition, they are both increasing. So, we can conclude these variables have a positive linear relationship.
