Answer:
(a) $93,000
(b) $55,600
(c) $54,600
(d) -$1,000
Explanation:
An explicit cost refers to the costs that are incurred to run a business such as rent, wages and materials.
Explicit costs:
= Rent + supplies + Office staff + salary + Telephone expenses
= $18,000 + $1,000 + $50,000 + $20,000 + $4,000
= $93,000
Implicit cost is also known as opportunity costs.
Implicit cost:
= (Amount of saving × Rate) + Salary from consulting firm
= ($12,000 × 0.05) + $55,000
= $600 + $55,000
= $55,600
Accounting profit = Revenues - Explicit cost
= $147,600 - $93,000
= $54,600
Economic profit = Accounting profit - Implicit costs
= $54,600 - $55,600
= -$1,000
Answer:
D
Explanation:
Foreign exchange rate is the rate at which one currency is exchanged for another currency.
If there is a surplus in the market for foreign-currency exchange, it means that the supply of foreign currency exceeds the demand. This would lead to the exchange rate appreciating and the domestic goods been more expensive.
If the foreign currency is moving from a surplus to equilibrium, it means that the supply is falling and is almost equal to demand. This would lead to a depreciation of the exchange rate and domestic good would become less expensive
Answer:
Expected return of portfolio = 12.3%
Beta of portfolio = 1.28
Explanation:
investment value in alpha = 100*10 = $1000
Total value of portfolio = 9000 + 1000 = $10000
The expected return and beta would be the weighted average.
Expected return of portfolio = 9000/10000 * 12% + 1000/10000 * 15%
Expected return of portfolio = 12.3%
Beta of portfolio = 9000/10000 * 1.20 + 1000/10000 * 2
Beta of portfolio = 1.28
Answer: Utilities Expense 540 Cash 540
Explanation:
Journal entry simply refers to the recording of transactions in a company's books. It should be noted that every transaction entered in the general ledger begins with a journal entry.
With regards to the question, the journal entry will be:
Debit Utilities expense $540
Credit Cash $540
Answer:
false
Explanation:
A statement of cash flows on tracks Cash, not credit, expenses, or any of that jazz. There are other financial reports to account for them.
