Answer:
The correct answer is B: The investment has a future value of $8,053
Explanation:
Giving the following information:
A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.
We need to calculate the final value of the investment. We will use the following formula:
FV= PV*(1+i)^n
FV= 5,000*1.10^5= $8,052.55
Answer is d. all of the above
Answer:
Doubtful
Explanation:
The company will record the uncollectible $5,670 of its accounts receivable as a debit to uncollectible accounts expense and a credit to the DOUBTFUL account.
This is evident in the fact that the bad debt allowance method has three main principles which are:
1. Calculate uncollectible receivables
2. Debit bad debt expense and credit allowance for doubtful accounts in the journal entry
3. Debit allowance for doubtful accounts and credit the corresponding receivables account when it is time to write off the account.
Answer:
1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.
Explanation:
Externalities are benefits or harms to other parties , without payment received or made for them respectively.
Positive Externalities : Externalities positively effecting others. Eg-Education
Negative Externalities : Externalities positively effecting others . Eg-Pollution.
1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.
2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.
3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money
Answer:
The correct answer is option c.
Explanation:
Autarky can be defined as a situation where a nation is self-sufficient and does not trade internationally. Consumer surplus is the difference between the maximum price a consumer is willing to pay and the price he actually has to pay.
In the case of autarky, the consumer surplus id the area below the demand curve and above the equilibrium price. The producer surplus is the area above the supply curve and below the equilibrium price.
