The movement from point B to point A is due to the price that companies can charge for the product decreases. Therefore the 3rd option is correct.
<h3>What is supply?</h3>
Supply is the economic concept which refers to the availability of the products and commodities in the market in order to satisfy the needs of the consumers.
According to the Graph, The prices of the commodity is decreased from $20 to $5 and output is also decreased from 200 units to 100 units which implies the decrease in the prices of the product which further implies the decrease in the level of supply.
Therefore the 3rd option is correct.
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Answer:
c,d and e
Explanation:
The correct statements given in the options are as stated below:
(c)-Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.
<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped.</em>
(d)-When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.
<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped, hence the shipping costs are the buyers responsibility and will form part of the costs of the goods</em>
(e)-Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.
<em>This is true because Free on Board destination means that the seller bears all liability whatsoever till the goods are delivered, hence the revenue for the goods can only be recognized upon successful delivery</em>
Answer: Please refer to Explanation.
Explanation:
a. The company regularly follows up with customers who pay late.
This is GOOD.
Cash Management Strategy - Collection of Accounts Receivables on time to maintain cash balance.
b. Excess cash is put into short-term investments to earn extra income.
This is GOOD.
Cash Management Strategy - Earning extra income on idle cash by investing in short-term liquid investments.
c. Cash receipts and cash payments are regularly planned and reviewed.
This is GOOD.
Cash Management Strategy - Cash Planning to establish a correct balance between payments and receipts.
d. Rarely used equipment is rented rather than purchased.
This is GOOD
Cash Management Strategy - Saving money by spending economically only when needed.
e. Bills are paid as soon as they are received.
This is BAD
Cash Management Strategy - Paying bills when due to ensure that operating cash balance is maintained at a healthy level.
If you need any clarification do comment.
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Explanation:
The Journal entry is given below :-
Bonds payable $2,000,000
To common stock $1,000,000
To Discount on common stock $30,000
To Paid in capital $970,000
The calculation of bonds payable, common stock is below:-
For bonds payable
= 2,000 × $1,000
= $2,000,000
For common stock
= 2,000 × 50 × $10
= $1,000,000
For paid in capital
= $2,000,000 - ($1,000,000 - $30,000)
= $970,000