The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. A business cycle<span> is basically defined in terms of periods of expansion or recession.
</span>From a conceptual perspective, the business cycle<span> is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions in the level of economic activities (</span>business<span> fluctuations) around a long-term growth trend .</span>
Answer:
Depreciation expense for 2021 will be $14700
Explanation:
The straight line method charges a constant depreciation expense each period throughout the useful life of the asset. The depreciation expense per period under the straight line method is calculated as follows,
Depreciation expense = (Cost - Residual value) / Useful life of the asset
Depreciation expense = (81000 - 7500) / 5
Depreciation expense = $14700
Answer: d. all of these answer choices are correct
Explanation:
Available for sale securities are held by a firm with the intention of selling it before it reaches its maturity date.
So as not to report on the income statement wrongly, the Unrealized gains(losses) which are any fluctuations from the original price, throughout the Security's lifetime is posted to the Other Comprehensive Income account in the Equity section of the balance sheet. That along with the Realized gains when the security is sold.
Reclassification adjustments are also included to account for the reclassification of a security to either a profit or a loss.
All of the above are correct.
1.
The cause of a surplus is when quantity that are
produced are not equivalent with the demanded quantity and by this, there is
likely an effect of the supply or demand to be in excess, creating surplus.
2.
It can be quickly resolved if the quantity
produced is as equal with demand quantity.
3.
The determinants of inelastic demand are the
following;
<span>·
</span>Categories of product
<span>·
</span>Substitutes (few)
<span>·
</span>Less time given
<span>·
</span>Necessities
<span> </span>
Answer:
The correct answer is option
Explanation:
A firm operating in a perfectly competitive market is producing 800 units. The marginal cost is $3.50. The minimum average variable cost is $3. The market price is $4.
The firm will be able to maximize its profit at the point where the price of the product is equal to marginal cost and is able to cover the average variable cost of the product.
This firm should thus increase its production to more than 800 units till the marginal cost is equal to the price which is $4.
