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sdas [7]
3 years ago
14

A contingency was evaluated at year-end. management felt it was probable that this would become an actual liability and the amou

nt could be reasonably estimated. if this was not reported on the balance sheet or in the notes to the financial statements, what is the effect on the financial reporting of the company? the information about the transaction would be inadequately disclosed in the notes. there would be no effect. the liabilities on the balance sheet would be understated. the net income of the company would be understated.
Business
1 answer:
yanalaym [24]3 years ago
8 0
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.  
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Most markets are not monopolies in the real world because
tresset_1 [31]

Answer:

D. there are reasonable substitutes for most goods.

Explanation:

A monopoly is when there is only one firm operating in the industry. There are also no subsituites for goods and services produced by the monopoly. The monopoly sets the price for his product and earns economic profit in the long and short run.

There aren't a lot of monopolies in the real world because most goods have substitutes. Therefore, consumers can substitute the monopoly product for another product and there isn't just one firm operating in the industry.

4 0
3 years ago
Which of the following is​ true? A. Both microeconomics and macroeconomics deal with same economic issues of​ inflation, unemplo
Sergio039 [100]

Answer:

the correct answer is D. Macroeconomics is the study of the economy as a​ whole, while microeconomics deals with the individual​ decision-making units.

Explanation:

Macro economics emerged as a seperate disclipline in the late 1930's witht eh influence of the prominent british economist John Meynard Keynes. it looks at the economy as a whole and tries to solve major economic issues affecting the national economy such as the unemployment, inflation, GDP and current rate changes.

Micro economics on the contrary, looks at how the individuals and firms behave in an economy and tries to explain their decisions and how they react.

3 0
3 years ago
Purple Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000
Sloan [31]

Answer:

The basic earnings per share is $4.15

Explanation:

Earning Per Share : Earning Per share shows a ratio between net income and weighted average outstanding shares.

In mathematically,

Earning Per Share = Net income ÷ weighted average outstanding shares

where,

Net income = $269,915

And, On Jan 1, 2018 the share is 50,000 whereas on April, 2018 the shares is 20,000. But we have to calculated for the December period. From April to December there are 9 months.

So, April 2018 shares = 20,000 × 9 ÷ 12 months = 15,000 shares

Hence, total weighted average outstanding shares is  

= 50,000 +15,000

= 65,000 shares

Now, apply the above formula for computation

=  $269,915 ÷ 65,000 shares

= $4.15 per share

Thus,  the basic earnings per share is $4.15

5 0
2 years ago
Which of the following antitrust acts would make it illegal for a board member of Microsoft to sit on the board of Apple?
saw5 [17]
I think its the Sherman Act
3 0
2 years ago
When the US government becomes aware of economic changes, the discovery is most likely to influence 1. how the nation allocates
snow_tiger [21]

Answer:

1. How the nation allocates resources

Explanation:

Government is the chief decision maker in any economic model because their power enables to allocate nation`s resources among economic unit. As such they keep watch on the economic changes and trends in order to make the best economic decision for the nation. When government becomes aware of economic changes, it will try to allocate resources efficiently and effectively based on signal given by the changes.

For example, if US government is aware that the economy is nearing recession, it will be put in preventive measures to escape the intending recession and make sure it allocates its scarce in efficient way among the economic units by spending more on capital projects, raising social empowerment spending and doing other necessary things.

So the discovery of economic changes will most likely influence how the nation allocates resources.

5 0
3 years ago
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