The effect on the financial reporting of the company is that the liabilities on the balance sheet would be understated. This is because at the end of the year, a possible event was calculated. The management felt from the calculation of that event that it is possible that the event could become an actual liability and that the amount could be estimated explainably. So it would become understated if these calculations of probable events cannot be written down in the balance sheet or in the notes of the final statements. It is like a forecasting of possible events that may happen in the future to prevent losses in the company.
Answer:
The statement is: True.
Explanation:
Fruit thinning is the process by which farmers remove some of the fruits growing on a tree so that the remaining can grow bigger and better. This practice is usually performed during the spring and it is useful to prevent limbs to break due to excessive weight.
Answer:
The correct answer is letter "A": an increase in the price of the firm’s output.
Explanation:
Externalities are costs paid by individuals who are not involved in causing it. The typical example of an externality is a company's pollution. Governments set regulations and penalties to corporations provoking pollution but to mitigate those costs the fined entities rise the price of their products. Thus, eventually, the consumer is the affected of the situation.
However, <em>externalities can be positive. Just like in the example, the green cover of Tampa Power and Light Company benefits Tampa citizens. To incorporate the cost of this benefit will imply rising the price of the firm's output (electricity) so resources can be efficiently allocated.</em>
Answer:
$116 million
Explanation:
January 1 8,000,000*(15-1) =$112,000,000
December 28 Treasury stock sold 2,000,000*(20-18)=$4,000,000
Paid in Capital At December 31,2016 $116,000,000
