<span>Choice (A) is the correct answer. When an economy is expanding, the country will be able to purchase more products from foreign businesses, while also being able to produce more products. This will, in turn, cause the trade deficit to rise while still keeping productivity at the required high level.</span>
Answer:
$2,380,500 and $357,500
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
As such, when inventory is overstated at the start of the year, the ending inventory would also be overstated by the same amount, the cost of goods sold would be overstated and net income understated.
Correct amount of asset
= $2406000 - $25500
= $2,380,500
net income for the year
= $332000 + $25500
= $357,500
Explanation:
The adjusting entry is shown below:
Insurance expense Dr $1,800
To Prepaid insurance $1,800
(Being the insurance expense is recorded)
For recording the adjusting entry for advance purchase of insurance policy we debited the insurance expense and credited the prepaid insurance account so that the correct posting could be done
Answer:
option (b) 3
Explanation:
Data provided in the question:
AC = 2Q + 3,
MC = 4Q + 3
Here,
Q represents the firm's output in units
and costs are measured in dollars
Market price = $15
Now,
At the condition of profit-maximizing
Market price = MC
or
⇒ $15 = 4Q + 3
or
⇒ $15 - $3 = 4Q
or
⇒ 4Q = $12
or
⇒ Q = 3 units
Hence,
The answer is option (b) 3
