Decrease in price of a substitute. Increase in price of a complement. Decrease in income if good is normal good.
Your answer will be; It includes all of the costs related to the product.
Answer:
The answer is B.
Explanation:
Some business transactions are so huge or large to the extent that there might be omission or error in recording transactions when they occur.
Adjusting entries are done to update entries for previously unrecorded expenses or revenues. They are usually done at the end of the months.
Since accrual methods are the most preferred, they are done to make Financial statement achieve the objective of 'completeness'
The hindsight bias and overconfidence, plus our eagerness to perceive patterns in random events, can cause tendencies that may lead us to overestimate our intuition. Intuition and intellect are not always accurate, therefore these factors are not trustworthy compared to scientific facts or scientific inquiry which can help us overcome our intuition’s biases and shortcomings.
Answer:
Fox Resources
Units of common stock in issue = $5,000,000 divided $20 = 250,000 units
A. Earnings per share = Net income (after deducting preferred stock interest) divided by number of outstanding shares in issue
We assume the Net income provided already has deducted interest on preferred stock
= 600,000/250,000
= $2.4
B. Price Earning Ratio
= share price divided by the Earnings per share
= 20/2.4
= 8.33
C. Dividend Per share
= Dividend paid divided by number of common stock issued & outstanding
= $125,000/250,000
= $0.50
