"The US Home Mortgage market initiated the 'global economic recession' of 2008-2009."
Biggest economic recession since the Great Depression back in the '30s.
Answer:a The corporation can make a public issue of shares to obtain capital to make the purchase. ( B) The accountant will open a temporary account called the business purchase account and the vendor account to record the purchase
Explanation:
a. When a corporation want to purchase a existing business ,the purchase price may be paid either totally in cash or partly in cash and partly in shares or in some cases totally in shares. The method of payment is arranged between the corporation and the existing business. If the company makes a public issue of shares to raise funds for the purpose of acquisition of the business. A statement in the prospectus to issue the shares that the vendor will be paid either totally or partly in shares boost the investors confidence in the business because they see it as a sign that the vendor has faith in the future prospect of the business under the new ownership. The shares allotted as consideration for the purchase becomes part of the issued capital of the company.
b. The temporary account and the vendor account would include the following
1.Dr the business purchase account
Cr the vendor account
With the agreed purchase price,and the allotment of shares or debenture as part of the purchase price
2. Dr the asset, including Goodwill if any to their respective account,
Cr the total value of asset taken over in one amount to the business purchase account
3. Dr the total value of liabilities taken over in one amount to the business purchase account
Cr the liabilities to their respective account
4. Dr vendor account
Cr the corporation capital account both with the purchase price when paid
Answer:
A. The firm's Executives
Explanation:
External Sources to a firm are those sources that are related to be not part of the day to day running of the affairs of the firm. As such the firm's executives are internal sources because they represent the interest of the firm.
In case of a sole proprietorship or partnership business, these executives are the owners of the business while in the case of listed firms, they represent the interest of the owners of the firm. They cannot therefore be regarded as external sources
Competitors are related as they are within the same product line but they are not involved in the daily affairs of the firm, suppliers make raw materials available while customers patronise the business. Trade shows magazine on the other hand independently report the progress of all firms within the industry. These are the external sources.
Answer:
The correct answer is C. are incurred even if nothing is produced.
Explanation:
Fixed costs are the cost of an organization that don´t change with the amount of production. So , if the production is 0, this cost will exist anyway. For example: taxes, rental
Then, Fixed costs can be defined as costs that are incurred even if nothing is produced.
Answer: $12
Explanation:
In selling the obsolete goods, the company will incur Variable Marketing costs and the alternative will be to throw the goods away.
The relevant costs they will incur are therefore the Variable Marketing costs alone.
The lowest amount that a company should accept for a good is the price that equals it's cost so that they may at least Break-Even.
Seeing as the Variable Marketing Costs are the only relevant cost then the lowest they should accept is the Variable Marketing Costs of $12.
