Answer:
A firm shuts down in the long run when the price of the good it is producing falls below the minimum average total cost, because in the long run the firm wont be able to make any profit. In the short run the firm only shuts down if the the price of the good falls below the minimum average variable cost because in the short run the firm has already payed the fixed costs and these costs are sunk costs so if the price of the good is more than the variable cost then they can minimize their losses. So in this case the firm has a minimum average variable cost of $90 so the firm will shut down in the short term when the price falls below $90.
Explanation:
Answer:
It will be reported as gain.
Explanation:
If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>
It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment
Answer:
False
Explanation:
The trial balance is prepared at the end of a counting period after all the accounts have been closed. The trial balance captures all the debits on one side and credits on the other. If the trial balance does not balance, it signifies errors in the general ledger. A balanced trial balance does not guarantee the absence of errors.
In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger. It is not a requirement that either debits or credits come first.
Coverage bias is not considered one of the potential biases in calculating the consumer price index.
<h3><u>
Explanation:</u></h3>
A price index refers to the weighted average in the prices of certain goods or services in certain region at certain time. In the consumer price index calculation, the biases arises from four different sources in which coverage bias is the major one. There are two price indices such as producer and consumer price index.
In the calculation of the consumer price index the potential bias which is a coverage bias can be reduced with BLS. The BLS has collected price information form extended stores number in order to reduce the coverage bias.
Answer:
The answer is letter D.
Explanation:
The correct is Zaney’s is not liable for the injuries sustained by the patron.
