Answer:
Yes, I do agree with the statement
Explanation:
The statement which is stating that the company net income as well as the statement of the owner's equity both are included or shown indirectly in the company balance sheet . As balance sheet is that statement which tells the financial position or performance of the company at a specific time period.
Because the net income is the outcome of income statement and directly shown or stated in the income statement whereas owner's equity is the capital of the business which is shown in the balance sheet. Net income is already included in retained earnings which means shown indirectly in the balance sheet.
Answer:
In the given case we need to tell the most correct option for the statements:
For Statement 1 = F Joint cost
Whenever two or more products are produced in the process by default without separation it is called joint cost.
For Statement 2 = B. Opportunity Cost
Opportunity Cost is not a cost and is the value of revenue forgone, for choosing the current opportunity.
For Statement 3 = C. Relevant Information
This refers to the future data as it is relevant for decision making, and will differ for each alternative.
For statement 4 = G. Sunk Cost
Sunk Cost is the cost which has already been incurred in the past and cannot be changed, or its impact will be same in no manner it can be avoided.
For Statement 5 = A. Target Full Product Costs
Under Target Full Product Cost the cost of a product from its very initial stage to the stage until its sold is calculated and called as target cost to be achieved.
Answer:
$21,964
Explanation:
Present Value = 1200 × cumulative pv factor for year 1 to 4 (9%, 4y) +
Present value = 1200 × 3.2397 + 1236/.06
Present Value = 3887.64 + 20,600 = $21,964 approx.
For the first four years, cash flows can be computed by multiplying $1200 by cumulative present value factor at 9% rate for 4 years.
Fifth year onwards, the cash flows are expected to increase by 3% whereas discounting factor is 9%. So the value 5th year onwards till perpetuity would be increased cash flow for year 5 discounted by excess of present value factor over growth rate (9% - 3 %)
Answer:
elastic.
Explanation:
A monopolynis defined as a situation where a single supplier produces a good and so control quantity supplied and price of the product. Monopoly maximises profit when price is elastic and marginal revet is positive. When profit is maximised increase in price from that point does not result in increased profit.
On the other hand when a firm is not maximising profit, it is making profit but can take step to earn more. In this situation increase in price will result in higher profits
Answer:
B.
Explanation:
It shields the new owner of the property from losses that could result unexpected claim to the property by a third party.