Answer:
I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.
II. The seller wants to avoid future lost sales.
III. The seller wants to keep a customer happy.
IV. Sold merchandise was defective or unacceptable.
Explanation:
Sales allowance can be defined as a reduction in the price of goods that a seller gives to a customer due to quality issues, incorrect pricing, shipping, etc.
The statements which best summarize why a seller would give a sales allowance are;
I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.
II. The seller wants to avoid future lost sales.
III. The seller wants to keep a customer happy.
IV. Sold merchandise was defective or unacceptable.
Answer:
(a)overstated
(b)overstated
(c)no effect
Explanation:
(a) As there is an expense account (utilities expense) which, is not included in the income statement, result for the year will be higher than if was.
(b)The revenues account will be oaky. But, the total expenses will be lower, as there are cost of the period which are not included.
So the Net incoem will be higher than a correct income as their expenses do not include this utilities expense
(c) The balance sheet will have no effect in the total Asset or Total Liaiblities+SE but, it is a change in the composition.
The income (reained earnings) should be lower as the income will be lower and a liability will be create (utilities payable) to fill this so:
with the mistake:
liab 0 equity (+400)
ammending the mistake
liab 400 equity 0
the net effect is zero.
It will decrease equity and increase liability, but the su of both will be the same
The tax you pay when making a profit from selling a house is an example of Capital Gains Tax because you are selling it for more than what you paid for it. Capital Gains Tax is defined as a tax on a profit from the sale of property or a investment.
Answer:
<h2>The law of diminishing returns in Production Economics,states that as more variable resources are employed in the production process by any firm or company,while keeping other resources constant or fixed,the marginal product will begin declining at some point in the production.Hence,the correct answer here would be option 1.</h2>
Explanation:
Law of diminishing returns basically advocates that as any firm or company increases the employment of any variable resource in the production process,while keeping the other factors/inputs of production fixed or constant,the additional productivity obtained from that particular resource employment decreases gradually at some point in the production process or in other words,its marginal product diminishes.In the initial phase of production,the company or firm usually experiences increasing returns to scale or higher productive efficiency from any variable resource but as it increasingly concentrates on employing only one particular variable keeping all other resources or factor inputs constant,it will gradually experience diminishing marginal product or return.At some point in production phase,every variable resource such as labor requires assistance from other supporting resources to maintain superior productivity and without additional or supplementary support it cannot function.For example,after some point in production,manual labor requires additional support such as machinery,equipment,computers,technical tools and other physical inputs to perform productively and efficiently.Therefore,without the fixed resources,variable resources are not able to function productively beyond some production level,thereby exhibiting diminishing marginal returns for the firm.
