Answer:
The journals entry to record depreciation on the equipment for 2016 will be:
Debit Depreciation expense $14,000
Credit Accumulated depreciation $14,000
<em>(To record depreciation expense for Year 2016)</em>
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.
The change in the estimate in Year 2017 will not affect the depreciation expense for 2016 based on the previous parameters,
Answer:
a. Debit to variable overhead efficiency variance
d. Credit to variable overhead spending varian
Explanation:
Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.
Therefore the journal entry will include a:
a. Debit to variable overhead efficiency variance
d. Credit to variable overhead spending Variance
Answer:
debit to Sales allowance of $50
Explanation:
When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.
It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.
Following journal entry is recorded for recording sales allowance
Sales Allowance A/C Dr. $ 50
To Accounts Receivable $50
(Being allowance for defects recorded)
Sales allowance is deducted from gross sales before the customer makes payment.
Answer:
The correct answer is false.
Explanation:
A firm incurs both variable cost and fixed cost in the short run. If the firm is able to cover the variable cost in the short run it will continue operating. However, if it is not able to cover its variable cost it will stop operating.
So, if the demand falls such that total revenue is not able to cover total cost but the variable cost is being covered, the firm will not stop production.
In the long run, all the costs are variable. So when the revenue is not able to cover cost, the firms will stop operating.
Answer:
Example of not a natural experiment an economist might use to evaluate a theory is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Explanation:
Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.
Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.
So, the right option is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
