Answer:
The amount of revenue that will be reported on the income statement for the month ended July 31 is equal to $5,300.
Explanation:
The applicable accounting concept here is accrual concept.
Accrual concept states that revenue is recognized when it is earned and expenses are also recognized when they are incured no matter when cash is received or paid.
Based on the accrual concept, only transactions 1 and 4 will be used in calculating the amount of revenue for July as follows:
July revenue = Cash received for services performed during July + Billing of customers for services performed on account in July = $1,200 + $4,100 = $5,300
Therefore, the amount of revenue that will be reported on the income statement for the month ended July 31 is equal to $5,300.
Answer:
The demand for cereal is elastic.
The demand for the magazine is inelastic.
Explanation:
The price elasticity of demand is the degree of responsiveness of quantity demanded to change in price. A negative price elasticity implies that the product is a normal good.
The price elasticity of demand for cereal is −1.03. This means that the demand is price elastic. An elastic demand implies that a change in price will cause more than proportionate change in quantity demanded.
The price elasticity of demand for a particular magazine is −0.72. This means that the demand is price inelastic. An inelastic demand implies that a change in price will cause less than proportionate change in the quantity demanded.
Answer:
Money Paid
Overall Sacrifice
Explanation:
The two major dimensions of pricing are Monetary and Non- Monetary pricing.
Monetary pricing is the liquid asset like cash that is spent to acquire goods and services while the non monetary are other costs apart from money like time , stress , distance that it costs to acquire an item .
The individual perception of pricing has a way of affecting its choice when it comes to purchasing.
Earl did not consider the cost of stress in travelling 30 miles in order to save a $1 in his purchase decision as his mindset is programmed to the price paid being the real price while most other customers considers the sacrifice involved before making a purchase decision.
Answer:
Cash outflow will be $1300
So option (C) will be correct answer
Explanation:
We have given overhead expense = $2000 per month
Depreciation expenses = $500
And allocated insurance expense = $200
So non cash expense = depreciation expense + allocated insurance expense = $500+$200 = $700
We have to fond the cash out flow
Cash outflow is equal to = Overhead expense - non cash expense = $2000 - $700 = $1300
So cash outflow will be $1300
So option (C) will be correct answer
Answer:
Stronger
Explanation:
Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.
Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.
