The best answer is D. The sector that will have a very limited influence in a pure market economy is the government. A pure market economy is an economic system that solely relies on the markets to distribute the resources. A theoretical pure market economy has no involvement of the government, only the markets decides on everything.
Answer:
False
Explanation:
The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.
For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.
Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.
Answer:
ROE is 0.1571 or 15.71%
Explanation:
The ROE or return on equity is a measure of a business's profitability in relation to its equity. The Dupont equation breaks down the ROE into three components which are used to calculate the ROE. The formula fro ROE under dupont equation analysis is,
ROE = Net Profit/Sales * Sales/Total Assets * Total Assets/Total Equity
- The part of Net Profit/Sales is also known as profit margin.
- The part of Sales/Total Assets is also known as Assets Turnover
- The part of Total Assets/Total equity is also known as equity multiplier
ROE = 0.03 * 110/42 * 2
ROE = 0.1571428571 rounded off to 0.1571
Answer:
$8,800 favourable
Explanation:
The computation of direct material quantity variance is seen below;
= Standard price × ( Standard quantity - Actual quantity)
= $4 × [(2 gallons × 7,200 units) - 12,200 gallons)
= $4 (14,400 gallons - 12,200 gallons)
= $4 × 2,200 gallons
= $8,800 favorable
Therefore, the direct materials quantity variance for last month is $8,800 favourable
Answer: Long-term assets are assets with a duration of more than one year. From the list the parties classified as long-term assets are three:
- Land
- Buildings
-Equipment
The rest of the games are classified as:
Accounts receivable (short-term assets)
Notes payable (due in three years) (Long-term liabilities)
Accounts payable (Short-term liabilities)
Retained Revenue (Equity)
Prepaid rental (Short-term assets)
Unearned Renvenue (Short-term liabilities)
Notes payable (due in six months) (Short Term Liabilities)