Answer:
True
Explanation:
The matching principle states that only those payments and receipts which actually are paid or received. the interest accrued is not included unless it is paid
Answer:
$7,167
Explanation:
Assets are resources held by an entity as a result of a past event, for which future economic benefits will flow to the entity. it is further classified as current and non-current.
Examples include inventory, cash, accounts receivable, Fixed assets or Property plant and Equipment.
Given
Inventory = $1,378
Net fixed asset = $4,827
Accounts receivable = $664
Cash = $298
Total assets = $1,378 + $4,827 + $664 + $298
= $7,167
Answer:
$651,300
Explanation:
Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.
<u>Calculation of the cost of purchase of the land:</u>
Purchase price $ 620,000
Demolition of the old building $ 23,000
Land preparation and leveling $ 8,300
Cost of purchase of the land $651,300
Answer:
Neoclassic economists believe that both wages and prices are sticky (hard to change) only int he short run. In the long run, both prices and wages will adjust to new economic conditions.
In this particular case, neoclassic economists will predict that even though wages are starting to rise, in the long run the equilibrium wage will be higher.
Long run and short run are economic concepts that do not refer to a given time period, e.g. long term in accounting means more than 1 year, but long run in economics may take years to come.
Long run refers to the amount of time it takes for an economic variable to adjust to economic changes.
If Canada's increase in labor costs is paired with an increase in productivity (usually new technologies), then the economy should be able to grow since private consumption and investment will increase due to higher wages.
Explanation:
