The price index was 136 in one year and 142 in the next year. what was the inflation rate between the two years?

Inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of

jasenka [17]

Answer:

B net income is overstated, assets are overstated, and stockholders' equity is overstated

Explanation:

The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as

Opening balance + purchases - cost of goods sold = closing balance

Hence, where ending inventory balance is overstated, cost of goods sold is understated. When cost of goods sold is understated, gross and net incomes are overstated. Hence owner's equity is overstated and asset overstated.

6 0

3 years ago

Which statement concerning monopolistic competition is false? a. Long-run equilibrium under monopolistic competition and pure co

11111nata11111 [884]

Answer:

b. Monopolistic competition is likely to result in a greater variety of product brands than pure competition.

Explanation:

Monopolistic competition is a competitive structure in which few companies operate in an industry that offers the same type of service or product, but differences. In this way each firm holds the relative monopoly of the product. For example, in the toothpaste market, companies sell the same product (toothpaste) but each company tries to differentiate their product from others.

In the competitive structure, several companies sell various products in a free competitive regime, having no monopoly power. Thus, the number of companies and products is infinitely larger than in monopolistic competition.

5 0

3 years ago

In one hour. Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Sue's opportunity cost of produc

Marina CMI [18]

Answer:

both Sue and Tessa gain 0.3; 0.50

Explanation:

Sue's production possibilities frontier:

70 caps
21 jackets

Sue's opportunity cost:

opportunity cost of producing caps = 21 / 70 = 0.3 jackets
opportunity cost of producing jackets = 70/21 = 3.33 caps

Tessa's production possibilities frontier:

50 caps
25 jackets

Tessa's opportunity cost:

opportunity cost of producing caps = 25 / 50 = 0.5 jackets
opportunity cost of producing jackets = 50/25 = 2 caps

Sue should produce caps and Tessa jackets:

total production = 70 caps (Sue) + 25 jackets (Tessa), if they trade they will both win because each specialized in producing the good in which they have a comparative advantage (lower opportunity costs). If Sue traded and received 21 jackets, she would still have 28 caps left. If Tessa traded and received 50 caps, she would still have 10 jackets left.

6 0

4 years ago

McCaffrey Corporation owned 15,000 shares of Harper Corporation’s $5 par value common stock. These shares were purchased in 2015

Alinara [238K]

Answer:

Net reduction in retained earning = (304,267)

Explanation:

No. Of shares outstanding of McCaffrey = 280,000 shares

No. Of shares issued as property Dividend = 280,000/20×1 = 14,000 shares.

Market price of shares issued as property Dividend = 14000× 34 = $476,000

Cost of 14000 shares of Harper corporation = $ 326,000/15000×14000= $ 304,267

Net gain = 476,000- 304267 = $171,733

Property Dividend = $ 476,000

So, net reduction in retained earning = 171,733- 476,000 = (304,267)

Note:

Due to gain on issue of shares as property Dividend , retained earning increases . Because these shares are issued at more than they actually purchased.

Due to issue of shares as property Dividend , retained earning decrease because property divided decreases is declared from retained earning .

8 0

3 years ago

Engineer Fatima and Cal Client executed a contract that included a provision that Cal could not file a lawsuit for professional

Zanzabum

Answer:

Express condition

Explanation:

An Express condition may be defined as the conditions or the terms that is explicitly mentioned or written in the contract. It occurs when the two or more parties signing the contract agrees that an event must occur before the burden of the responsibility to be completed the contract arises.

In the context, a contract signed between two parties, Fatima and Cal that states that Cal cannot file a case against Fatima after the final inspection of the Building Department for two years of Cal's building.

The contract provision used under this agreement between Cal and Fatima is referred to as express condition.

6 0

3 years ago