Answer:
The quality of Income ratio is 0.56
Explanation:
Here in this question, we are interested in computing the quality of income ratio
Mathematically;
Quality Income Ratio = Cash flow from Operating Activity/Net Income
= 53,700/96,000 = 0.56
So what does this ratio tell us?
The indication we have from this calculation is that it is the operating activities that is supplying the bulk of the cash needed by the company (0.56 is 56%).
The remaining cash needs of 0.44 or 44% is sourced from other activities of the company and not its operating activities
Answer:
The correct answer is option b.
Explanation:
The doubling of inputs would increase the cost of production. It would also increase the quantity of output produced. If the average cost of production is decreasing with the increase in output level, this is an indicator of the economies of scale.
Economies of scale is the cost advantage due to large scale of production.
Answer:
B. knowledge capital is both nonrival and nonexcludable; other firms can freely access the research and development of one particular firm.
Explanation:
Knowledge and capital are non-exclusive, firms may in the long run have access to research and development by other firms. In the short term, companies may be protected by patents. However, in the long run, patents expire and scientific knowledge becomes a common good, so everyone can have access. This acts as a disincentive for firms to invest in research and development. For economic growth the effect is very bad, since if all firms invested in knowledge, productivity would tend to increase significantly, increasing the GDP and wealth of nations.
Answer:
From all indications,the two rents received have been posted wrongly, I want to believe that you are required to post the adjusting entries,hence my answer below:
The first $9000 was posted to deferred revenue,whereas only two months should have been
First rent:
DR Deferred revenue $3000
CR Revenue $3000
Second Rent
DR Revenue $6000
CR Deferred revenue $6000
Explanation:
The first $9000 was posted to deferred revenue,whereas only two months should have been deferred and December rent recognized as rent.
As far as the second rent is concerned only one month has been earned,as a result the revenue should be credited with just $3000 for December.
This then mean that revenue from the second property has been overstated in December by $6000,this necessitated by adjustment above.
