Answer:
Short Run Aggregate Supply SRAS is the total goods and services available in an economy at different price levels with respect to fixed production resources.
Explanation:
A) When the price level increases, aggregate supply increases as well because demand is high and manufacturers will produce more.
B) When Input prices decrease, short run aggregate supply is not affected.
C) When firms and workers expect the price level to fall, aggregate supply decreases to cushion the effect of imminent loss due to fall in prices.
D) When the price level decreases, supply also decreases since it is an indication that the market is approaching saturation,
E) New policies increase the cost of meeting government regulations and does not necessarily influence SRAS.
F) The number of workers in the labor force does not affect SRAS.
Answer:
D. $375,000
Explanation:
given data
Purchases during the year = $12.0 million
Shipping costs from overseas = 1.5 million
Shipping costs to export customer = 1.0 million
Inventory at year end = 3.0 million
solution
we get here Seafood Trading’s year-end inventory valuation.
and we know here that shipping cost to export to customers is selling expense but not include the inventory.
so
shipping costs = ( Inventory at year-end ÷ Purchases during the year ) × Shipping costs from overseas ..................1
put here value and we get
shipping costs = [($3.0 million ÷ $12.0 million) × $1.5 million]
shipping costs = $375,000
Answer: b. Reporting the current portion of a long-term note as long-term debt is a misrepresentation of the financial position of the company.
Explanation:
According to US GAAP, the current portion of a long term liability (the portion that is to be paid in the current period) should be recorded as a Current Liability.
The Current portion of a long term liability thus shows us the amount is the current Liability that a company is due to pay in the current operating cycle.
To therefore put that amount that the company is supposed to pay in the current cycle as a long term liability is a misrepresentation of the books aimed at primarily deceiving lenders as the text shows.