Answer:
Option 4 is definitely correct: Whether real GDP increased cannot be determined with the information given.
Explanation:
The information that is given only states that there has been an increase in the market value of final goods and services in two years. So, we cannot conclude that production increased in Rushya or average price levels increased there as per Option A and C respectively, because market value can be increased by both increase in production or price levels. Even Option B cannot be concluded as the real GDP is dependent on other variables as compared to the total market value.
Thus, only appropriate statement is option D: we cannot determine increase in real GDP with the given information.
Answer:
See below
Explanation:
Given the above information, first we'll compute net proceeds
Cash received $7,200,000 × 86%
$6,192,000
Add:
Due from factors $7,200,000 × 9%
$648,000
Less;
Recourse obligation
($5,000)
Net proceeds
$6,835,000
Answer:
A corporation
Explanation:
A business is an agency–typically a group of individuals or a firm–allowed by the government to operate as a single body (a legal entity) and recognized as being for other functions of law.
Early constituted institutions were created by charter (i.e. through an arbitrary act issued by a sovereign or enacted by a statute or house of commons).
Corporations come in various forms but are typically separated by the statute of authority in which they are subcontracted on the grounds of two dimensions: that they are willing to issue securities or if they are founded to turn a profit.
Answer:
The annual depreciation under SL is $16000 per year.
Explanation:
The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.
The straight line depreciation per year = (Cost - SV) / estimated useful life
Annual depreciation under SL = (100000 - 20000) / 5 = $16000 per year
Answer:
Stock is valued at lower of : cost or market price [prudence principle]
Explanation :
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.
