All categories

3 years ago

Which of the following is most likely to be characterized by substantial asymmetric information?

Business

1 answer:

Black_prince [1.1K]3 years ago

5 0

Answer:

Explanation:

Asymmetric information refers to when one party in a transaction has a substantial more amount of information than the other party. This being the case it can be said that the scenario that would most likely be classified as this is a wireless service that includes unlimited minutes and texting. This is because the buyer is most likely thinking that they are getting a great deal when in fact the seller/provider has access to information that the buyer does not know, which allows them to provide this deal and still make a great profit.

You might be interested in

you own 100 shares in each of three companies, each company pays a dividend. gillete pays 1.15 per share in dividends, general e

Elena-2011 [213]

Answer:

$278

Explanation:

100 * 1.15 = $115

100 * .79 = $79

100 * .84 = $84

$278

Hope this helps

3 0

3 years ago

The allowance for doubtful accounts currently has a debit balance of $200. The company's management estimates that 2.5% of net c

lidiya [134]

Answer:

Bad debt expense (w/o allowance) = $2,875

Bad debt expense ( with allowance) = $2,675.

Explanation:

According to the scenario, the given data are as follows:

Net credit sales = $115,000

Uncollectible percentage = 2.5%

So, we can calculate the bad debt expense without Allowance for doubtful accounts by using following method:

Bad debt expense ( W/o allowance) = $115,000 × 2.5%

= $2,875

After Allowance for doubtful expense

Bad debt expense = $2,875 - $200

= $2,675

4 0

3 years ago

"if you change the units of one of the variables, the value of correlation will increase or decrease. "

brilliants [131]

That statement is False

If we change units in one of the variables the value increase, decrease, or stay the same
The value of the correlation is the result of the interractions of all the units in that variable, so changing onle one of the variables does not necessarily change the end result of the value.

7 0

3 years ago

Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that

BartSMP [9]

<span>Pay off college loans and create a stable financial future for my family. School loans are a necessity for most in order to get a education, while the benefits out weight the consequences it can't be over looked that this can out you in a bad spot. To pay off my student loans and also create a stable future for my family I will need to get a good paying job and open a 401k. The 401k will provide a safety net for when I retire and I can pay $500 everytime I get paid to pay off my student loans.

Hope this helps you again :D</span>

8 0

3 years ago

Goiter's Delight, Inc., carries a line of titanium putters. Golfer's Delight, Inc., uses the FIFO method and a perpetual invento

GREYUIT [131]

Answer:

Explanation:

Perpetual Inventory Record

Date Description Qty Unit price Dr Cr

July 1 Balance B/f 6 $110 $660

July 7 Purchases 12 $112 $1,344

July 11 Sales 17 $195 $3,315

July 19 Purchases 15 $114 $1,710

July 28 Sales 12 $195 $2,340

Ending Inventory using FIFO is 4 @ $114 = $456

Cost of goods sold using FIFO = $660+ $1,344+$1,254 = $3,258

Journal Entries

Purchases A/c Dr Cr

July 7 Purchases $1,344

July 19 Purchases $1,710

Sales A/c Dr Cr

July 11 Sales $3,315

July 28 Sales $2,340

Account Receivable a/c Dr Cr

July 11 Sales $3,315

July 28 Sales $2,340

Account Payable a/c Dr Cr

July 7 Purchases $1,344

July 19 Purchases $1,710

6 0

3 years ago

Read 2 more answers