Answer:
`- In a sole proprietorship, there is no legal distinction between the individual and the business.
`- Examples include writers and consultants, local restaurants and shops, and home-based businesses.
`- A sole proprietor may use a trade name or business name other than his or her legal name.
Answer: Create incentives to expand output when resource prices are unresponsive to price-level changes
Explanation:
High price levels indeed create incentives to expand output if resource prices are unresponsive to price changes.
What this means is that, when price levels rise, suppliers tend to take advantage of this rise by producing more if, their INPUTS DON'T increase in price as well.
For example, price of steel goes up by $5 but the price of Iron Ore remains the same.
Suppliers and Producers will produce more steel because they can make a high profit because iron ore prices have not changed.
Answer:
Materials:
price 800U
quantity 510 F
Labor:
rate 1,860 F
efficiency 1,740 U
Explanation:
DIRECT MATERIALS VARIANCES
std cost $5.10
actual cost $5.30
quantity 4,000
price variance $(800.00)
std quantity 4000.00
actual quantity 3900.00
std cost $5.10
quantity variance $510.00
DIRECT LABOR VARIANCES
std rate $8.70
actual rate $8.40
actual hours 6,200
rate variance $1,860.00
std hours 6000.00
actual hours 6200.00
std rate $8.70
efficiency variance $(1,740.00)
Answer:
According to IAS 36 Impairment of assets says that the asset must be recorded at the lower of:
- Net realizable Value $23,000
The lower value is $23,000, which must write off value of inventory with an amount of $3000. So the journal entry would be:
Dr Impairment Losses $3000
Cr Advances paid for inventory $3000
This entry is the fair presentation of the actual value of the advances paid.
Answer:
a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store.
Explanation:
Maria has been in restaurant firm, for more than 5 years until the current year. So, she is an active participant. Hence, her active loss in her active activity - restaurant loss 80000 can be offset against $150,000 income from the retail store.