Answer:
Correct option is (c)
Explanation:
An accountant will record only those cost in the financial statements that have incurred on account of carrying out the business.
In this case, option (a) and (b) are opportunity cost of carrying out shoe shine business. These are the income that John could have earned if he did not start shoe-shine business.
Cost of shoe polish is an operating expense incurred to run his shoe-shine business. So this cost will be included by the accountant in the financial statements.
Answer:
The correct answer is B
Explanation:
Organizational decline happen or occur when the companies or the firms does not anticipate, acknowledge, adapt the external or the internal pressures or neutralize, which threaten the survival of the company or firm.
And in the stage of the faulty action, it arises because of the increasing costs and the decreasing profits and the market share. The management states the plans of the belt tightening, which is established or designed in order to cut the costs, restore the profits and to increase the efficiency.
The stage of crisis, where the dissolution or the bankruptcy is likely to happen unless the firm completely acknowledge the way it does the business. But the companies lack the resources required to fully change how they should run their business.
Answer:
$560,000
Explanation:
We can only amortize the $1,400,000 that the company spent after technological feasibility was reached. Research and development costs prior to June 30th must be treated as expenses.
Since the software s expected to generate $10 million during its lifetime, we can amortize 1/10th of the software development cost for each million sold:
($1,400,000 / 10) x 4 = $560,000
Answer:
The correct answer is option a.
Explanation:
Pizzas and burgers are substitutes. This implies that they are used in place of each other. If the price of pizza increases, its quantity demanded will decrease. This will be indicated by an upward movement to the left on the same demand curve.
The consumers will prefer a cheaper substitute, as a result, the demand for burgers will increase. This will be indicated by a rightward shift in the demand curve for burgers.
Answer: $70
Explanation:
Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price
Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)
= (3.50 * 1.30³ * 1.04) / (13% - 4%)
= $88.856
Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴
= $69.97
= $70
