Answer:
The correct options are "A, C, and D".
Explanation:
- GAAP becomes regarded as a relatively 'rules-based' management framework, seems to be the accounting technique used throughout the United States
- IFRS becomes quite 'principles-based', although this would be the accounting framework used in more than 110 countries throughout the globe.
- These allow the same approach being used for international and domestic section reporting, which generate reconciliation issues.
Answer:
This firm's <u>Shut down price</u>, That is, the price below which it is optimal for the firm to shut down is <u>$40</u>.
Explanation:
Shut down point is the point at which a firm or business is not able to gain any profit or benefit from the operations. Firm try to stay in the market until they reach the shut down point in business. It is a point where a business revenue just covers the variable expenses.
Answer: Zero
Explanation: As per the subject matter of cost accounting and economics. Variable cost can be defined as the cost which changes its level with the level of output produced unlike fixed cost which remain constant at all levels.
Electricity bill, raw materials and packaging are some common examples of variable cost.
So from the above explanation we can conclude that if Bev produce no bags there variable cost would be zero.
Answer:
The statement is true.
Explanation:
Unit elastic is described as the demand or supply curve that is perfectly responsive to the changes in the price. In other words, the demand or the quality supplied will change or vary in accordance with the same percentage as the change in price.
The curve which has elasticity of 1 will be called as unit elastic.
Answer:
Dr cash $303,500
Cr common stock $133,500
Cr paid in capital in excess of par value $170,000
Second issue of shares:
Dr cash $74,000
Cr common stock $74,000
Explanation:
The cash received from the issuance of 44,500 at $3 par value is $303,500 which is to debited to cash and credited to common stock for$133,500 ($3*44,500) while the balance of $170,000 ($303,500-$133,500) is credited to paid in capital in excess par value account.
On the issuance of no par value common stock for cash of $74,000,the cash account is debited as usual with $74,000 while the common stock account is credited with same amount.
