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3 years ago

Which of the following statements about adjusting entries is NOT true?

Business

1 answer:

vfiekz [6]3 years ago

8 0

Answer:

4. Adjusting entries are typically recorded on the last day of the accounting period.

Explanation:

They aer recorded on the last day of the accounting period as we do adjustment for accrual accounting like:

expired prepaid rent, expired prepaid insurance, accrued wages payable, accrued revenues, accrued interest revenues or interest expense, depreication on assets, amortization and other.

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problem 08-07 (algo) you are the manager of a monopolistically competitive firm, and your demand and cost functions are estimate

Ad libitum [116K]

Demand function: Q = 48 - 2P

a) 2P = 48 - Q

Therefore the inverse Demand function is

P = 24 - Q/2

b) P = 24 - Q/2

Total Revenue = PQ = (24 - Q/2)*Q

TR = 24Q - Q2/2

MR = differentiating TR with respect to Q

MR = 24 - Q

We know a firm will maximize profit at MR = MC

TC = 6 + 3Q + Q2

MC = 3 + 2Q

Putting MR = MC, we have

24 - Q = 3 + 2Q

24 - 3 = 2Q + Q

21 = 3Q

Q = 21/3 = 7

Q = 7

Putting the value of Q in the equation P = 24 - Q/2

P = 24 - 7/2

P = 24 - 3.5

P = 20.5

Therefore the profit-maximizing output is 7 and the price is $20.5

c) TR = PQ = 20.5*7 = $143.5

TC = 6 + 3Q + Q2 = 6 + 3*7 + 7*7 = 6 + 21 + 49 = $76

Profit = TR - TC = 143.5 - 76 = $67.5

Therefore the firm's maximum profit is $67.5

d) a) entry will occur until profits are zero

In the long run, more and more firms will enter the market and the economic profit will be zero in the long run.

In economics, a Demand function is a graph depicting the connection between the price of a sure commodity and the amount of that commodity that is demanded at that fee. call for curves may be used both for the price-amount courting for a person client, or for all purchasers in a selected marketplace.

Learn more about the Demand function here: brainly.com/question/24384825

#SPJ4

5 0

1 year ago

Cromley Corporation reports annual sales of $1,800,000. Its accounts receivable throughout the year averaged $150,000. a. Comput

Mandarinka [93]

Answer:

a. accounts receivable turnover rate is 12 times

b. Average days sales outstanding is 30 days

Explanation:

Computation of accounts receivable turnover rate

The accounts receivable turnover rate is determined by dividing the credit sales with the average receivables.

Credit Sales = $ 1,800,000

Average Receivables = $ 150,000

Receivables Turnover rate = $ 1,800,000/ $ 150,000 = 12 times

Computation of Average Days outstanding

Average days outstanding is computed by dividing the annual credit sales by 365 and using that as a divisor with the average receivables

Annual Credit Sales = $ 1,800,000

No of days 365

Average daily credit sales = $ 1,800.000/365 = $ 4,931.50

No of days sales = Average receivables/ Average daily credit sales

= $ 150,000/ $ 4,931.5 = 30.4 days rounded to 30 days

6 0

3 years ago

Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not requi

Verizon [17]

Answer:

The correct answer is C) Employment-at-will

Explanation:

Under the employment-at-will doctrine, employers can dismiss an employee for any reason as long as the reason is not illegal (for example, firing someone because of his race or sex, which would be illegal discrimination), and employees can leave the job at anytime at will. Under this doctrine, if you do not want to keep working, you just stop going to your job.

The benefit of this doctrine is that it gives more labor flexibility and avoids the existence of lawsuits. The con of this doctrine is that it reduces labor protections.

6 0

3 years ago

If the Budgetary fund balance account was debited when the budget was recorded in the City of Mustangville's General Fund, then:

Marysya12 [62]

Answer: a. appropriations exceed estimated revenues

Explanation:

A Budgetary Fund Balance is simply an account that Government agencies and Departments have to calculate the difference between expected inflows and Outflows for the period that a budget covers.

It is a temporary account with it's balance going to the General fund. If it is debited in the General fund then that means that Appropriations approved for the period are more than the revenues expected. The reverse is true.

6 0

3 years ago

What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%

Semmy [17]

Answer:

Current price of the share common stock will be $30

So option (c) will be correct answer

Explanation:

We have given expected dividend $D_1=$3$

Required rate of return = 15 % = 0.15

Tax rate = 30 %

Growth rate = 5 %

Beta = 2

We have to find the price of the share

Price of the share is given by $p_0=\frac{D_1}{R_E-g}=\frac{3}{0.15-0.05}=$30$

So current price of the share stock will be equal to $30

So option (C) will be correct answer

3 0

3 years ago