The effect on the financial reporting of the company is that the liabilities on the balance sheet would be understated. This is because at the end of the year, a possible event was calculated. The management felt from the calculation of that event that it is possible that the event could become an actual liability and that the amount could be estimated explainably. So it would become understated if these calculations of probable events cannot be written down in the balance sheet or in the notes of the final statements. It is like a forecasting of possible events that may happen in the future to prevent losses in the company.
Based on the selling price of the car and the cost to work on it, Savion should sell the car now for $3,800.
<h3>Why should Savion sell the car?</h3><h3 />
The profit if he works on the car is:
= Selling price - Addtional work cost
= 5,800 - 2,400
= $3,400
The profit from selling the car is $3,800 which is more than the profit if additional work is done of $3,400.
The $4,000 is irrelevant as it is a sunk cost.
Find out more on sunk costs at brainly.com/question/13695005.
#SPJ1
Answer:
The use of data aggregation leads to overstatement of the concentration and Herfindahl indices
while the use of National/state data leads to understatement of the degree of concentration in local markets.
Explanation:
The ratio of concentration and Herfindahl indices computed are mainly made up of foreign players while the contributions of small local unorganized players are not considered, which leads to the increase in the value of indices and ratios been used, ( i.e. The use of data aggregation ) . hence the overstatement of the actual level.
The understatement of the degree of concentration in local markets happens because of the use of national and state data while computing the concentration in the local markets like gasoline and this is mainly caused by the presence of fewer industries in the market. The state and national data does not reflect the true concentration in the local market hence the degree of concentration is understated at the local level.
Answer:
The answer is III. political instability.
Explanation:
Political instability has been a major factor for the decline of economic growth in Latin America. Constant protests, conflicts and lack of consistency in political policies have hindered the development of the economy in this region.
The primary objective in terms of holding inventory is to ensure that customer service targets can always be met without compromising cash flow or running out of stock. When customers cannot purchase what they need, when they need it, they often cease to be customers
