Answer: d. A company paid for an insurance premium of $6,000 on January 1. The insurance is for a year. Failing to make adjustments for the month of January would overstate assets and stockholder's equity by $6,000.
Explanation:
If a company were to pay $6,000 for Insurance for the YEAR in January, this would be recorded as a PREPAID EXPENSE.
This Prepaid Expense will then be apportioned per month over the year to each month as expenses of $500.
Failing to make adjustments for the month of January would not overstate assets and stockholder's equity by $6,000 but by $500.
Answer:
Increase quantity to where AC = MC = D=AR=MR
Explanation:
A perfectly competitive market is where there are many firms in the industry producing homogeneous products. There is ease of entry and exit into and out of the market. They are price takers and earn normal profits in the long-run. In order to maximize profits, a firm in a perfectly competitive industry should produce an the quantity where its average cost is equal to marginal cost when AR = MR = D. In other words, when the AC and MC curves intersect with AR = MR = D curve.
<em><u>Please refer diagram</u></em>
The firm is currently producing at a point where AC > MC at quantity 1000. In order to reach AC = MC, the firm has to increase its quantity to Qe. As it increases quantity, although marginal cost increases, average cost falls because now fixed costs are spread over a larger quantity of output.
At Qe, the three curves intersect and is the point where this firm can maximize its revenue (Price = Pe). At a price higher than this, it would lose customers since there are many others producing the same product and customers can easily shift to another.
Answer:
Return on investment = 50%
Explanation:
Return on Investment is the proportion of investment cost that an investor earns as as return in dollar
For a mutual fund= total return in dollar/investment cost
= (48-32)× 500/(500× 32) × 100
=50%
<em>Note that the gains in dollar is the difference between the selling price at the end and the selling price at the beginnin</em>g.
Net income serves as the beginning point for the indirect technique of preparing the operating activities section.
<h3>What does "net income" mean?</h3>
Net income is the amount of money left over after all costs, such as salaries and wages, the cost of commodities or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.
<h3>How is net income demonstrated?</h3>
Operating income for the business was $23,000 after operating costs of $12,500. After deducting interest expense of $1,500 and adding interest income of $1,700, ABYZ arrived at a net income before taxes of $23,200.
<h3>What is net income post-tax?</h3>
A person's income after taxes and deductions is referred to as their net income.
learn more about net income here <u>brainly.com/question/15530787</u>
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Answer:
Accounting can be tough. ... The course load is quite intense, with classes in mathematics, finance, business, and accounting. While some concepts can be challenging, by studying the material and taking the time to make sure you fully understand accounting principles, you can be successful.
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