All categories

3 years ago

Economic theory Group of answer choices

Business

1 answer:

Elis [28]3 years ago

3 0

Answer:

Explanation:

Economic theory provides economists with a common language and way of thinking about how the world works

Is a set of definitions, postulates, and principles assembled in manner that helps make cause-and-effect relationships clear in economics?

Is like a guidebook in that it points out what to look for

You might be interested in

Lewelling Company issued 101,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 4,100 hour

GenaCL600 [577]

Answer:

Paid in capital excess of par is $$309,000

Explanation:

<u>Journal Entries</u>

Debt: Legal services (4,100 hours × $100 per hour) = $410,000

Credit: Common stock (101,000 shares × $1 par) = $101,000

Credit: Paid-in capital - excess of par (Remainder) = $309,000

To record the 101,000 shares compensated by 4,100 legal hours with $1 par value)

In the above transaction common stock issued in excess of par for legal services as compensation instead cash. Hence "legal services" have been debited as issuing company benefited for legal services. "Common stock" and "paid in capital in excess of par" has been credited as this issuing company issuing common stock.

Paid in capital excess of par is $$309,000

3 0

2 years ago

A mortgage is a legal agreement between a borrower and a

djyliett [7]

Lender
which is usually the bank

7 0

2 years ago

Read 2 more answers

T/F If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20 billion in year 2, t

pogonyaev

Answer: False

Explanation:

In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.

Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.

4 0

2 years ago

Identify each statement as true or false. If false, indicate how to correct the statement.

bekas [8.4K]

Answer:

1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

3. False: When a corporation is formed, organization costs are recorded as an asset. It is false because organization costs are recorded as expenses.

4. True: Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

5. False: The number of issued shares is always greater than or equal to the number of authorized shares. It is false because the number of issued shares is always less than or equal to the number of authorized shares.

6. False: A journal entry is required for the authorization of capital stock. It is false because journal entry is not required for the authorization of capital stock but for issuance.

7. False: Publicly held corporations usually issue stock directly to investors. It is false because publicly held corporations issue stock indirectly to investors via investment banking institutions while privately held corporations issues stock directly.

8. True: The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

9. False: The market price of common stock is usually the same as its par value. It is false because there isn't any relationship between market value of common stock and its par value.

10. False: Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. False because retained earnings refer to the total amount of net income held by a corporation for its future use.

3 0

2 years ago

Sheffield Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 a

Sphinxa [80]

The journal entry to record the purchase of the raw materials by Sheffield Company is as follows:

Debit Purchases $1,031,600

Credit Accounts Payable $1,031,600

To record the purchase of the raw materials in 2021.

The December adjusting entry can be revised with:

Debit Estimated Liability $53,300

Credit Unrealized holding Loss $53,300

To reverse the December 31 adjusting entry.

<h3>What is an unrealized holding loss?</h3>

In this instance, the unrealized holding loss arose from the fact that the market value of the raw materials is less than the purchase amount because of the noncancelable commitment.

Thus, the unrealized holding loss arose as the difference between the market value and the purchase amount.

<h3>Data Analysis:</h3>

Purchases $1,031,600 Accounts Payable $1,031,600

Estimated Liability $53,300 Unrealized holding Loss $53,300

Thus, the entry to record the purchase is a debit to the purchases account and a credit to accounts payable.

Learn more about recording purchases at brainly.com/question/24179237

3 0

1 year ago