Answer:
The correct answer is C
Explanation:
Liabilities is the legal financial debts or the obligation of the company which arise during the course of the operations of the business.
The debit increases the following accounts which are expense or the assets accounts. And decreases the equity, liability and revenue accounts.
In other words, the accounts which are decreased through debits are the liabilities which involve Interest Payable, Notes Payable and Accounts Payable. And Stockholders' Equity which involve retained earnings and common stock.
Answer:
a. there will be a positive change in income if the product line is dropped
Explanation:
The decision regarding whether a product line should be continued or dropped should take into consideration all the relevant costs and net income before and after dropping such a product line.
While considering costs, unavoidable fixed costs need not be considered as those would be incurred irrespective of the product line getting dropped or continued.
A Product line should be dropped only when it results into a positive change in the net income which means, the net income after dropping such a product line should be more than the net income before dropping.
Answer:
a. Overstate b. Understate c. Understate d. Understate
Explanation:
a. As the environment becomes dirtier, the broad standard of living declines, but it is not included in GDP. GDP includes final goods and services produced. So, here GDP will be overstated.
b. Similarly, the decline in crime rates are not included in GDP, though cause the standard of living to improve. So, here GDP is understated.
c. Availability of variety of goods improves the standard of living but is not included in GDP, so it is understated.
d. A decline in the infant mortality rate means the broad standard of living is improving. But since it is not included in the GDP, it is understated.
<span>Mr. King performs the service of painting his own house instead of paying someone else to do it. This activity is excluded in GDP.
</span><span>GDP stands for Gross Domestic Product.
</span>It measures the market value of all final goods and services produced in a country during a given time period . In other words GDP <span>measures an economy's performance. If Mr. King pays someone to paint his house, then it will be included in the GDP.</span>
Do you mean a bank account or a literal bank?
