Answer:
A company purchases inventory on credit.
Explanation:
Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.
So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.
Answer: c.
In a competitive market, there are many producers competing to provide consumers the products they needed and thus they cannot dictate prices.
If a surplus occurs, there is an excess of quantity supplied and since producers won't be able to sell all their products, they tend or are forced to lower their price.
The reverse happens when there is a shortage. When there is less supply in the market, price increases.
Surplus and shortage in a competitive market, therefore, will cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage.
Answer:
$69
Explanation:
Calculation for Central Park's taxable income
Pretax accounting income $80
Less Temporary differenceDepreciation (15)
($35 – $20)
Bad debt expense $4
($6 – $2)
Taxable income$69
($80-$15+$4)
Therefore Central Park's taxable income will be $69
Answer:
Explanation:
The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.
Answer:
Dr. Employee Benefits expense $22,700
Cr. Medical Insurance payable $13,500
Cr. Employee retirement program payable $9,200
Explanation:
The cost of fringe benefit provided to the employee of the company and any tax component attached to it is known as the employee benefit expense.
Total employee benefit expense is the sum of medical insurance and employee retirement program. As medical insurance and retirement program is payable until now so, it is recorded as a liability.
Employee benefit expense = $13,500 + $9,200 = $22,700
