Answer:
True
Explanation:
There are two columns in the trial balance, namely columns of debits and columns of credits. It is always important to balance the total debit and credit columns. The debit columns reflect assets and expenses side while sales, stockholder equity, and the liability side are listed in the credit column.
After passing the adjusting entries, the account balances are updated which we called a post-closing trial balance
So, the given statement is true
Answer:
Explanation:
From the information given:
(a)
The total production available for the professional computers at the time Mexico uses all resources for production = 30
The total production of computer games at this time = 3 × 30 = 90
Thus, from above, the production possibility curve can be seen in the image attached below.
(b)
The opportunity cost of one professional computer is three computer games. This because, for them to produce one more computer, it is required that they give up three computer games.
(c)
Yes, it is subject to Increasing.
This because the opportunity cost of 1 computer = 3 games
For two computers = 2 × 3 games = 6 games
For three computers = 3 × 3 games = 9 games ... and so on.
(d)
Professional computer production is considered a Capital good.
(e)
Mexico should increase the production of professional computers because they help in more rapid economic growth.
Answer:
B. The payback is approximately three years
Explanation:
The computation of payback period for this equipment purchase is shown below:-
<u>Year Cash flow Cumulative cash flow</u>
0 -$600,000 -$600,000
1 $250,000 -$350,000
2 $200,000 -$150,000
($250,000 - $50,000)
3 $150,000 0
($200,000 - $50,000)
4 $100,000 $100,000
($150,000 - $50,000)
5 $50,000 $150,000
($100,000 - $50,000)
Here, Cumulative cash flow in the year o is -$600,000 and as we can see that cumulative cash flow in year 3 is 0.
Therefore the payback period lies in 3 years.
Answer:
The company’s inventory be reported on the balance sheet as $3,150.
Explanation:
GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.
According to given data
Available Inventory = 210 units
Cost of Inventory = 210 units x $20 = $4,200
Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.
So,
Net realizable value is = 2,100 units x $15 = $3,150
As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.
