Raw materials are goods that are for processing which will result in finished products which are for sale.
The raw materials inventory includes the metal of $13,000 and the cloth of $6,000 or a total of $19,000. The $2,000 cleaning supplies do not fall under the classification of raw materials, instead, this falls under prepaid supplies and later reclassified to supplies expense once consumed.
Answer: a. At the end of Year One, the company's liabilities are understated.
Explanation:
Under the Accrual basis of Accounting, revenue should be recorded for only jobs that have been completed. In other words, only earned revenue should be recorded. Revenue that has not been earned but yet received, is to be termed Deferred revenue and should be treated as a current liability.
In this scenario, there are steps that have not been completed so some of the revenue received should be termed deferred revenue. These should therefore be in current liabilities and because they were not, the liabilities for the end of year 1 will be understated.
Answer: c.disruptive
Explanation: A disruptive Innovation is one that leverages new technologies to attack existing markets from the bottom up (existing market/new technology).
Answer:
$1,100.86 ≈ $1,101
Explanation:
Prorated annual lease value per publication 15-b = $7,750 x (150 / 365) = $3,185
McNale's personal use lease value = $3,185 x (6,500 / 27,850) = $743.36
Personal use fuel: 6,500 miles x $0.055 per mile = $357.50
McNale's total personal use taxable income: $743.36 + $357.50 = $1,100.86
Answer:
The correct answer is option c.
Explanation:
Prisoner's dilemma is a common concept in the game theory. It shows why two rational individuals will not cooperate. Two prisoner's have the choice to cooperate with each other and remain silent or blame the other.
The Nash equilibrium for both the payers here will be to betray each other. But this will incur cost on both of them. If the players could cooperate with each other, they would not agree to this.