Debit to utility expense and a credit to cash. Therefore the answer is C.
Answer:
b. 1/R, where R represents the reserve ratio for all banks in the economy
Explanation:
The reserve ratio can be define as the part of reservable liabilities that commercial banks must hold onto or have, rather than investing or borrowing out. This can be said to be a necessary requirement determined by every central bank of a particular country, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.
Commercial banks in the U.S are required to hold reserves against their total reservable liabilities (deposits) which cannot be borrowed out by the bank. Example of reservable liabilities include non personal time deposits, net transaction accounts and Eurocurrency liabilities.
Answer:
<u>c. Credence attributes</u>
Explanation:
- Credence is a good that has attributes that cannot be observed by the consumer even after purchasing the thus makes it difficult for them to access its utility such as expert services and medical procedures, automobile repairs, etc.
- Here the seller has the option to change the quality ad quantity of the price by using his tactics and hence can cheat buyers with an inferior good. Like the automobile repair may be insufficient.
Answer:
It should accept the special order at the price of $36 as the total marginal cost will be $28.5 (27 variable cost + 1.15 shipping cost).
Explanation:
Special orders are accepted only if marginal revenue increases the marginal cost. Marginal cost is the total cost incurred to fulfill any order.
In the given scenario, since the Company already has adequate capacity and it will not incur any additional fixed cost, therefore the order can be accepted by taking variable cost in to consideration.
Marginal Revenue 36
Less: Marginal Cost
Variable Cost (27)
Shipping Cost <u> (1.15)</u>
Total Profit from Order <u> 7.85</u>
Answer is Mucus Fleming as he is a sports player. (:
