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Evgen [1.6K]
3 years ago
11

Marginal utility is the: select one:

Business
1 answer:
garri49 [273]3 years ago
3 0

Marginal utility is the <u>"change in total utility obtained by consuming one more unit of a good".</u>

Marginal utility evaluates the additional satisfaction a customer earns from consuming extra units of products or services. The idea of marginal utility is utilized by economists to decide the amount of a thing buyers are happy to buy. Positive peripheral utility happens when the utilization of an extra thing builds the total utility, while negative marginal utility occurs when the utilization of an extra thing diminishes the total utility.  

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Which type of bankruptcy requires the liquidation of most of the debtor's assets?
8_murik_8 [283]
Chapter 7 bankruptcy is a type of bankruptcy that requires the liquidation of most of the debtor's assets. It is the most common of the bankruptcy were may debts are forgiven and a variety of assets are sold, Chapter 7 bankruptcy is favored by individuals. Under of this bankruptcy, the debtor's assets are sold off to pay the lenders.
5 0
2 years ago
Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent ac
Nataly [62]

Answer:

Kumi Emiko Co.

a) Adjusting Journal Entries:

Debit Sales Salaries expense $1,800

Credit Sales Salaries Payable $1,800

To record accrued sales salaries.

Debit Selling expense $2,900

Credit Prepaid selling expense $2,900

To record expired selling expense.

Debit Cost of goods sold $5,300

Credit Merchandise Inventory $5,300

To record determined shrinkage in merchandise inventory.

b) Closing Journal Entries:

Debit Sales revenue $ 609,000

Credit Sales returns and allowances $21,500

Credit Sales discounts $7,000

Credit Income summary $580,500

To close the net sales revenue to the income summary.

Debit Income Summary $526,000

Debit:

Cost of goods sold             $257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

To close cost of goods sold and expenses to the income summary.

Debit Income Summary $54,500

Credit Retained Earnings $54,500

To close the income summary to retained earnings.

Debit Retained Earnings $53,000

Credit Dividends $53,000

To close the dividend to retained earnings.

Explanation:

a) Data and Calculations:

                                                    Debit       Credit

Merchandise inventory         $ 40,000

Prepaid selling expenses           7,600

Dividends                                 53,000

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               252,000

Sales salaries expense          68,000

Utilities expense                    25,000

Selling expenses                   46,000

Administrative expenses    125,000

Analysis of additional Information:

Sales Salaries expense $1,800 Sales Salaries Payable $1,800

Selling expense $2,900 Prepaid selling expense $2,900

Cost of goods sold $5,300 Merchandise Inventory $5,300

Adjusted accounts:

                                                    Debit       Credit

Merchandise inventory         $ 34,700

Prepaid selling expenses           4,700

Dividends                                 53,000

Sales Salaries Payable                                   1,800

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

4 0
3 years ago
Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided yo
viktelen [127]

Answer:

Black Sparrow Aviation, Inc.

1. Indications from ratios about Black Sparrow Aviation:

The current ratio of 4.5 is higher than the industry's norm of 4.0.  This indicates that working capital elements are not being managed properly.  This is supported by the the remaining four ratios.  Inventory level is not optimal.  More inventory is held without being sold to customers.  Obviously, from the inventory turnover of 6.0 translating to approximately 61 days that it takes the company to sell its inventory as against the industry average of 35 days, it shows that the marketing and sales forces lack stamina.  Debt collection from customers is over-delayed, showing poor credit policy and management.  Perhaps, it takes the company many days to issue invoices.  More time than necessary is allowed to customers to pay compared to the industry norm.  In addition, payments are made to suppliers 11 days earlier than the industry average.  Advantage is not being taken of trade credit offered by suppliers.   Trade credit is an important source of funding operations, which every company should utilize to the maximum.

2A.  Based on the above ratios, I would recommend:

1. Minimum inventory should be maintained.

2. Sales efforts should be intensified, so that more sales are made each year than it is currently the case.

3. Debt collection is an important activity for every company that sells on account.  This activity should be taken seriously.  Credit extension to customers should not exceed 50 days.

4. Payments to suppliers can be delayed by more 10 days without offending suppliers.

2B. Results from Recommendations:

1. Working capital is not tied in inventory.

2. More debts are recovered from customers and on time.  Delay increases credit default.

3. More sales are made to customers, increasing the turnover.  The profit is always in the frequency of turnover.

4. Short-term financing is obtained from suppliers, which strengthens liquidity.

Explanation:

Liquidity management is a financial management tool, which describes a company's ability to meet financial obligations through cash flow, funding activities, and capital management in order to minimize the risks associated with illiquidity.

Calculation, analysis, comparison of ratios are some of the ways to make informed decisions on liquidity management.  Ratios should be compared over many periods, with best performing competitors, and the industry norm to ascertain the position of the reporting entity.

8 0
3 years ago
ano sa inyong palagay Ang kalakal na dapat maging pyrirodad ng produksyon ng acting ekonimiya ? ipaliwanag Kung bakit​
Ksenya-84 [330]

Answer:

huh?what?

Explanation:

thannnnkkkkks for points

6 0
3 years ago
Pretax accounting income for the year ended December 31, 2021, was $42 million for Truffles Company. Truffles' taxable income wa
Zielflug [23.3K]

Answer:

$13million

Explanation:

7 0
3 years ago
Read 2 more answers
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