Answer & Explanation:
Most balance sheets are arranged according to this equation:
Assets = Liabilities + Shareholders’ Equity
The equation above includes three broad buckets, or categories, of value which must be accounted for:
1. Assets
An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.
Assets can be further broken down into current assets and noncurrent assets.
- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.
2. Liabilities
A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.
As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.
- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.
3. Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:
Shareholders’ Equity = Assets - Liabilities
— Courtesy of Harvard Business School
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The note may lack the essential requisites of being a negotiable instrument, that is why it is dishonored. And also if the consent of on of the parties is not clear or they have no meeting of minds when executing such promissory note then it can be dishonored because of its substantial insufficiency of the reason to give its consent.
Answer:
D.
Explanation:
Aggregate Planned Expenditure (AE) can be defined as the sum value of all the finished products and services in an economy. This value is calculated by adding all the expenditures that are considered in an economy. These components are household consumption (C), planned investments (I), Government expenditures or purchases (G), and net exports (NX) [net exports is the difference between the total exports and total imports].
<u>The sum value or the aggregate planned expenditure is calculated by adding all these components</u>.
So, the correct answer is option D.
Answer:
Material Price Variance= $ 11640 favorable
Material Quantity Variance= $6800 Unfavorable
Explanation:
Becton Labs, Inc.
Standard Quantity= 2.6ounce * 3600 units = 9360 ounces
Actual quantity used: Purchases Less Ending Inventory 13000 ounces- 3300 ounces= 9700 ounces
Actual price : $244,400/13,000= $ 18.8
Standard price : $ 20.00
Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)
Material Price Variance= ($ 18.80 * 9700)-($20.0 *9700)= $ 182360- $ 194000= 11640 Favorable
Material Price Variance= $ 11640 favorable
Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)
Material Quantity Variance=($20 *9700)-($ 20 * 9360)
Material Quantity Variance=$ 194000-187200= 6800
Material Quantity Variance= $6800 Unfavorable
Total direct materials variance= $ 11640 favorable
-$6800 Unfavorable
Total direct materials variance= 4840 favorable
2. Yes they should as he is offering less price than the standard price.
Even if more material is used the total material variance is favorable indicating a gain not a loss.
Absolute advantage is beyond the firm's capabilities to produce domestically, but could be achieved by trading with another country.
<h3>What is Absolute advantage?</h3>
Adam Smith, an economist from the 18th century, introduced the idea of absolute advantage in his book The Wealth of Nations to explain how nations might profit from trade by specializing in producing and exporting the things that they can manufacture more successfully than other nations.
International trade is the trade where countries import and export the goods to the other countries so that all the countries have some resources.
Thus, it is absolute advantage.
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