Answer:
D) $25,000.
Explanation:
The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.
Net Income is derived by subtracting Expenses from Revenue.
N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.
So, The Net Income can be calculated as follows;
Revenue $60,000
Less: Expenses $35,000
Net Income $25,000
Hence Option D will be correct answer.
#NETINCOME
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Answer:
The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.
Explanation:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.
Answer:
236.25
Explanation:
Calculation to determine X
First step is to calculate the 6 months Yield
6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)
6 month Yield=(40/60) (80/60) (157.60/160)-1
6 month Yield=5%
Second step is to calculate the Annual equivalent
Annual equivalent=(1.05)^2-1
Annual equivalent=10.25%
Third step is to calculate the 1 year yield
1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)
1 year yield=(40/50) (80/60) (175/160) (x/250)-1
1 year yield=0.1025
Now Let calculate X
x(0.004667)=1+.1025
x(0.004667)=1.1025
x=1.1025/0.004667
x=236.25
Therefore X is 236.25
Answer:
O A. allows us to compare the values of goods and services.
Explanation:
Money has three primary functions which include a medium of exchange, unit of account, and store of value.
As a unit of account, money is used to give value to other assets. In other words, money provides a medium through which assets and products are valued. Money is divisible into smaller units which makes its application in valuation easy.
The value of goods and services is expressed in monetary terms. Buyers and seller, therefore, can determine how much is needed to transact.
Answer:
A. Opportunity Cost
Explanation:
Choice affecting an economic system, market can be studied by : Macro Economics which studies Economy as 'a whole'.
On contrary, Microeconomics studies individual units of economy & marginal analysis is a tool used frequently in it. And ,Normative Economics reflects subjective non verifiable statements about how economy 'should be'.
So , all of three are not apt to analyse the above statement.
However, Opportunity Cost reflects cost of next best alternative sacrifised while making an economic choice. So ,it is useful to analyse 'choice' affecting an economic system, market. Eg :Opportunity cost is an important tool used in determining comparative advantage of a country in producing a good based on its opportunity cost (other good sacrifised to produce it).
