Answer:
option 2) smaller
As CE is the amount which if the agent gets with certainty, then agent will be indifferent between playing lottery or getting that amount with certainty
So L2 is more risky, & agent is risk averse, so agent will be ready to accept a lower amount with certainty ( as compared to the amount for a safer option : L1)
So CE of L2 will be lower
Answer:
net income = $31,500
Explanation:
given data
collect tailoring fees = $43,300
paid expenses = $12,300
Depreciation expense= $2,500
Accounts receivable = $1,050
supplies increased = $4,300
liabilities increased = $2,350
to find out
accrual basis net income
solution
we get here net income by given expression that is
net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1
put here value
net income = $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500
net income = $31,500
Answer:
The correct answer is letter "A": receiving report.
Explanation:
A receiving report is the document in which the goods purchased and received from a supplier are recorded. The document contains the details of the supplier, the type, price, and quantity of the goods being exchanged, and the conditions of the items. It is useful to keep the inventory updated and to eliminate the pending job orders from the records.
Answer:
bond interest expense is deductible for tax purposes, while dividends paid on stock are not.
Explanation:
Bonds may be defined as the instrument of the indebtedness of bonds issuers to holders. A bonds helps a company to save to taxes as the bond's interest is tax deductible whereas on equity the dividend is paid after the tax profits. Thus bonds are an popular source of financing.
Answer:
E. Being influenced by initial impressions
Explanation:
It is well known and practically proven that initial or first impressions have long-lasting effects. This is clearly seen in the scenario presented before us. The managers at Big Bend Inc. were thoroughly impressed by the wonderful presentation of the company such that even when the company's gross incompetence was uncovered, the managers opted to still choose the aforesaid company
The managers decision was not influenced by data, because the data clearly showed the company's incompetency but yet they were chosen. Hence, <u>option A is wrong</u>
The managers decision was not perpetuating the status quo, because this company had a bad reputation but they chose them nonetheless. Hence, <u>option B is wrong</u>
The managers were not seeking to defend prior decisions, their decision was based solely on the wonderful presentation. Hence, <u>option C is wrong</u>
The managers were not justifying past decisions, their decision was based solely on the wonderful presentation. Hence, <u>option D is wrong</u>
The managers decision was based solely on the wonderful presentation. Hence, the error made by these managers is apparent. Hence, <u>option E is correct</u>
