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Alborosie
2 years ago
11

ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle

ge. The business has cash of​ $8,000 and furniture that cost​ $9,000 and has a market value of​ $13,000. The business debts include accounts payable of​ $6,000. Michael's personal home is valued at​ $400,000, and his personal bank account has a balance of​ $1,200. Identify the principle or assumption that best matches the​ situation: a. ​Michael's personal assets are not recorded on the Apartment​ Exchange's balance sheet. b. The Apartment Exchange records furniture at its cost of​ $9,000, not its market value of​ $13,000. c. The Apartment Exchange reports its financial statements in U.S. dollars.
Business
1 answer:
sertanlavr [38]2 years ago
5 0

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Business Entity Assumption state that businessman and business are a different entity.

Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.

In the case of Michel McNamee his bank account and personal home in not recorded in the company's book.

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Answer:

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Explanation:

Perfectly Competitive Market

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Perfectly Competitive Industry

This is simply an industry where producers are said to be price takers.

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These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.

Implicit Costs

These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.

It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.

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3 years ago
In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will inc
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3 years ago
What does difficult to find finance mean?
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a condition or state of affairs almost beyond one's ability to deal with and requiring great effort to bear or overcome. "grappling with financial difficulties"

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2 years ago
“A business organization requires both long term and short term capital which can
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hope this helps
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