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3 years ago

A comparative financial statement:

Business

1 answer:

andrew-mc [135]3 years ago

8 0

Answer:

The answer is B

Explanation:

A comparative financial statement compares places two or more years financial statement together in order to compare.

It is always referred to as horizontal analysis because it is the same company and we are only comparing the previous years and the current year result which are placed side by side. Hence, the reason why it is called horizontal analysis.

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As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the re

k0ka [10]

The appropriate journal entry to record the transactions from the purchase through the end of the year, including any adjustment for the investment are:

1. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. No journal entry required

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. Debit Fair value adjustment $15,000

Credit Net unrealized holding gains and losses- OCI $15,000

($375,000-$360,000)

(To record fair value adjustment)

2. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. Debit Investment in Midlin common shares $27,000

Credit Investment revenue $27,000

($135,000×20%)

(To record investment revenue)

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. No journal entry required

Learn more here:brainly.com/question/15422359

5 0

2 years ago

Hubert lives in San Francisco and runs a business that sells boats. In an average year, he receives $842,000 from selling boats.

aev [14]

Answer:

Explicit costs are normal costs of operating a business.

Implicit costs are opportunity costs meaning that they are the benefits foregone by engaging in a certain course of action.

The wholesale cost for the pianos that Hubert pays the manufacturer ⇒ EXPLICIT COST.

The salary Hubert could earn if he worked as an accountant ⇒ IMPLICIT COST.

The wages and utility bills that Hubert pays ⇒ EXPLICIT COST

The rental income Hubert could receive if he chose to rent out his showroom. ⇒ IMPLICIT COSTS

Accounting Profit = Revenue - Explicit costs

= 842,000 - 452,000 - 301,000

= $89,000

Economic Profit = Revenue - Explicit costs - Implicit costs

= 842,000 - 452,000 - 301,000 - 38,000 - 48,000

= $3,000

If Hubert's goal is to maximize his economic profit, he should stay in the piano business because the economic profit he would earn as an accountant would be -$3,000.

Economic profit as accountant = Salary + rental income - accounting profit from piano

= 48,000 + 38,000 - 89,000

= -$3,000

6 0

3 years ago

Hofstede studied how culture influences consumer behavior. When a Japanese company decides that it will be willing to lose money

4vir4ik [10]

Answer:

The correct answer is letter "C": Temporal orientation.

Explanation:

Holland psychologist Geert Hofstede (1928-2020) proposed there are five dimensions of culture among societies. Those are: Power Distance Index, Individualism Versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance Index, and Long- Versus Short-Term Orientation.

Long- Versus Short-Term Orientation or Temporal Orientation represents the time horizon individuals of a given society display. Long-term oriented countries are pragmatic, modest and emphasize virtues. Therefore, the Japanese company of the case would be displaying this type of culture by prioritizing objectives for over twenty years rather than two years.

3 0

3 years ago

Which product is most likely to be the most price elastic?

Elina [12.6K]

Answer:

automobiles

Explanation:

Price elastic describes the relationship between changes in demand as a result of changes in the price. Price elasticity describes how a product's demand responds to a change in its price. Goods or services are price elastic if a small change in price causes considerable differences in their demand.

In this case, automobiles will be more elastic. Changes in their prices will result in significant changes in demand. An increase in the price of automobiles will result in consumers considering other means of transportation. When price decrease, many commuters will opt to but cars. Milk, housing, and clothing are basic needs. People need them for survival. An increase or a decrease in their prices will not change their demand in a big way. They are price inelastic.

5 0

3 years ago

The effect of substitution bias is that the rise in the price of a fixed basket of goods over time tends to ___________________

luda_lava [24]

Answer:

overstate.

Explanation:

An unchanging basket of goods assumes that consumers are restricted from purchasing exactly the corresponding goods, without caring for changes of the price which are not a very likely hypothesis. The result of substitution bias is that the increase in the price of a fixed basket of goods over time tends to overstate the rise in the true cost of living of the consumer because it does not take into consideration that the person can substitute away from goods whose corresponding prices have increased.

5 0

3 years ago