Answer:
Annual depreciation for the first year = $15,500
Annual depreciation for the second year = $7,500
Explanation:
Data provided in the question;
Cost of the delivery truck = $31,000
Salvage value = $4,000
Useful life = 4 years
Now,
The Rate of depreciation under declining-balance = 2 × straight-line rate
= 2 × 
= 0.5
or
= 0.5 × 100% = 50%
Therefore,
Annual depreciation for the first year = cost of truck × Rate of depreciation
= $31,000 × 0.5
= $15,500
Annual depreciation for the second year
= Book value at the end of first year of truck × Rate of depreciation
= $15,500 × 0.5
= $7,500
Answer: The law of demand
Explanation: The law of demand states that everything else being equal, the demand and price of a commodity will reflect a negative relationship.
This negative relationship occurs due to the income effect. As per the income effect when the price of a commodity rises, many of its existing customers stops consuming it as the price of the commodity exceeds their purchasing power.
Hence, from the above we can conclude that the right option is B.
Answer:
$703,575
Explanation:
The computation of the net realizable value of accounts receivable is shown below:-
Net realizable value of accounts receivable = Accounts Receivable - Allowance for doubtful accounts
= $726,887 - $23,312
= $703,575
So, for computing the net realizable value of accounts receivable we simply applied the above formula.
Answer:
d. Revenues increase, so total equity is increased.
Explanation:
Consulting Revenue of $700 will increase the total revenue of the business and total equity of the business as the revenue will increase the net profit which will ultimately be added to the equity balance. Increase in revenue will result in increase in equity and Increase in expenses will decrease the equity.
Answer:
Cost Containment
Explanation:
The reason is that the cost is the main factor when the the market players have equivalent capabilities and the firm then tries to manage the overall cost of the organization so that it can offer the product at the discount to the competitor's product. This lower cost gives the competitors advantage which the company utilizes in their best interest.
