The answer is C. sole proprietorships.
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
The correct answer is A. Because if you want to start a new business is more convenient do it as solo proprietorship
Answer:
Explanation:
The adjusting entry for interest expense is shown below:
Interest expense A/c Dr $1,134
To interest payable $1,134
(Being interest expense is adjusted)
The interest expense is computed by
= Note payable amount × interest rate × (number of months in a year ÷ total number of months in a year)
= $75,600 × 9% × (2 months ÷ 12 months)
= $1,134
The two months is computed from the November 1 to December 31
Answer:d. LIFO will result in higher income taxes than FIFO
Explanation:
A period of rising prices means price will be higher on the latter goods than the former, inventory sold on Last in first out method (LIFO) will be costlier in this period than inventory sold on First in First out ( FIFO) this invariably means LIFO will result in lower net income due to high cost of inventory compared to FIFO and the lower the net income the lower the income tax this invariably means LIFO will result in lower income tax.
Average costing will yield result that are between those of LIFO and FIFO since it can an average of two price with one LIFO and the other on FIFO, LIFO will result in higher cost of goods sold since the latter goods will be costlier, FIFO will result in higher net income since the goods will be cheaper than LIFO.
