Ummmmm I will go with answer A cause at my house its always like that.
Answer:
a. net income= understated, retained earnings= understated
Explanation:
In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>
Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.
Answer:
False. There is no legal contract without value consideration.
Explanation:
The following elements must be present to declare a contract legally binding and valid.
An offer for a good or service that is being exchanged, An acceptance of this offer, A consideration which is usually the value of the goods and services that are being exchanged.
While this transaction fulfills the offer and acceptance elements, the consideration or value specification is unfulfilled and as such there is no legally binding valid contract as the prices have not been specified before agreeing to transact.
There might not be any need be for specifying prices if there is a trade, which is both parties exchange goods but in this case there is just one party delivering goods.
Hope this helps.
Answer:
Wealth will be redistributed from creditors to debtors
Explanation:
Deflation refers to the general fall in the price level of goods and services when rate of inflation becomes lesser than 0%.
Due to the fall in the price level, goods and services become cheaper, credit providers reduce the quantum of credit provided.
Fall in the prices leads to lower expenditure by the purchasers owing to lower level of confidence and such buyers delay their purchases.
Deflation increases the purchasing power of consumers since at the same level of income, buyers can now buy more compared to previously.
Hence, those who earn fixed pension observe an increase in the value of such pension.
