Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
Answer:
The answer is Yes
Explanation:
Contingent liability is the type of liability that is dependent on some uncertain future events or occurrences. The 90-day warranty gives rise to contingent liability. This liability should be recognized when it can be reasonably estimated. For example, The estimation of contingent liability is 6percent of the sales of computers.
Therefore, contingent liability should be recognized.
Answer:
The correct answer is letter "C": Landscaping around the doctor's office.
Explanation:
Cost recovery is an accounting method by which the expenses incurred in an organization -for its own benefits- is tried to be recovered. Depreciation is taken into consideration in the process but the least possible so that the return is maximized.
In that sense, only the <em>landscaping of a doctor's office </em>can be considered as a beneficial asset for the business.
Answer: (1) $5,290
(2) $3,470
Explanation:
Net Income from Accrual method:
= Served a banquet account - received and paid electricity bill + Received cash meals to customers - Accrued salary expense - Prepaid insurance expired
= $2,810 - $140 + $3,610 - $800 - $190
= $5,290
Net Income from Cash method:
= Received cash meals to customers - received and paid electricity bill
= $3,610 - $140
= $3,470
Answer:
d. a union representative urging management to avoid a strike by raising wages
Explanation:
The persuasive speaking includes some important elements, its principal objective is to convince the listener about an specific point of view. It may include three principal methods: pathos, ethos and logos.
In this case the Union representative is trying to persuade the management to rise salaries, he can be appealing to Logos strategy. Logos is to use logical arguments to convince the audience, they will be evaluating if the argument of the speaker makes sense.
