Answer: Option (C) is correct.
Explanation:
Correct Option: Political business cycle
If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.
These cycles are present in macroeconomic variables such inflation rate, output and unemployment. There are two types of regime follow in this cycle are as follows:
(i) Regime A consist of expansionary polices which results in a economic growth and inflation. If the inflation rate is high enough then there is a withdrawal of policy.
(ii) Regime B consist of contractionary polices which results in reducing economic growth and inflation. It will become voted out if the unemployment is too high, replaced by Regime A. It generally lead to downward movement of the cycle.
The number of units that Starling Co. sold was 11200
<u>Explanation:</u>
Given -
Operating income = $28,800
Fixed cost = $38,400
Selling price of one unit = $12
Variable cost = $12
Number of units sold, n = ?
Contribution margin per unit = $18 - $12
= $6
Therefore, number of units that Starling Co. sold was 11200
Answer: A - Emphasizes the external financial statements
Explanation: The characteristic of management accounting information are what makes the accounting information relevant and they include:
1. Verifiability: Management Accounting information must be verifiable that is one must be able to confirm the information on the accounts using other source documents.
2. Objectivity: Management Accounting information must be useful in decision making and planning for the future of an organisation.
3. Relevance: Management Accounting information must be reliable for decision making. The owners and decision makers must be able to rely on the information presented in the management account
4. Understandability: Management Accounting information must be understood by any user of the information presented therein. Information therein must be simple and not complex.
5. Comparability: Management Accounting information must be easy to compare with others in the same industry and also from year to year to enhance a good decision making process.
Answer:
The answer is option (D) Assess property, plant & equipment values based on current comparable prices.
Explanation:
From the given question, Evaluating the likelihood and level of expected warranty claims or Estimating the collectibility of accounts receivable balances is is not a good example for analytics and financial statements.
Therefore, the best example from the given options is assess property, plant, and equipment values based on current comparable prices for analytics and financial statements.
Answer:
$254,000
Explanation:
First and foremost,the cash of $9,200 collected in respect of debt already written off as uncollectible would not affect the balance in accounts receivable since the debt would reinstated and also taken out of accounts receivable simultaneously.
The change in accounts is the difference between the sales on account of $596,000 and collections in respect of accounts receivable of $342,000
change in accounts receivable=$596,000-$342,000=$254,000
