As prepaid rent is used, the asset becomes a liability.
Liability because it becomes the responsibility of someone who uses the prepaid. Since the prepaid rent was used, it needs money to be able to pay them. It becomes the responsibility for someone to be able to use his money to pay the prepaid rent that was used.
Answer: the correct option is E.
Explanation: Direct marketing can be referred to as an advertising strategy that implements an individual distribution of a sales pitch directly the to potential customers. The delivery systems used here, include, mail, e-mail, texting, and calls.
This method of marketing is called direct marketing because it is usually carried out without the use of middleman such as advertising media. This is because it will make no economical sense to utilize the media to market to just one particular customer.
Therefore, the direct method of marketing is not used in combination with other forms of promotional media.
Answer:
$17.04
Explanation:
Book value per share of equity = $5,125,000 / 490,000 = $10.46
Market price per share = $27.50
$27.50 - $10.46 = $17.04
Answer:
$1,200
Explanation:
For this question, we use the unitary method that is shown below:
Given that
Conversion price = $1,000 par
And, the subordinated debentures is $40
And the present market price is $48
So, the present conversion value is
= Conversion price × the present market price ÷ the subordinated debentures
= $1,000 × $48 ÷ $40
= $1,200
Answer: B. In the short run, the typical firm increases its output and makes an above normal profit.
Explanation:
I have attached a graph to explain.
Originally the Perfectly Competitive Market is in a long run Equilibrium.
This means that at 5000 units the $20 selling price was as a result of Marginal Revenue being equal to Marginal Cost.
Now a sudden change in Demand has taken the price up which then forces the Marginal Revenue Curve upwards.
This will culminate with the Marginal Revenue Curve now intersecting the Marginal Cost curve at a higher point being point F so that profit can be maximised.
This higher level will thus lead to a higher output than 5000 units at point Q as the firm will increase output.
Notice that at that point the Marginal Revenue is higher than Average Total Cost meaning that an Above normal profit is being made.
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