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3 years ago

When private ownership rights are well-defined and enforced, owners of physical assets and resources

Business

1 answer:

sukhopar [10]3 years ago

8 0

Answer:

b. incur the opportunity cost of ignoring the wishes of others.

Explanation:

Opportunity cost in economics is seen as the forgone cost of doing something.

So in this instance where private ownership rights are well defined, everyone knows what is his own and what belongs to others.

The opportunity cost of this will be to ignore the wishes of others. They must now consider the wishes of others.

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This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, th

wlad13 [49]

Answer:

Both of these must be included in the gross income.

Explanation:

The reason is that the employee income that is taxable includes all the benefits in monetary amount and benefits in kind. These benefits are paid to employee as a share of salary to manage his motivation. These incomes must be included in the gross income to calculate his gross income.

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3 years ago

Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability to hold the bonds until the

VashaNatasha [74]

Answer:

Since Bloom plans to sell the bonds, it must record the entire loss as credit loss (loss on sale of bonds)

Dr Other than temporary impairment loss 400,000

Cr Discount on bond investment - Taylor bonds 400,000

Credits losses must be recognized as a loss in earnings in the income statement.

Journal entry to record credit loss:

Dr Other than temporary impairment loss 250,000

Cr Discount on bond investment - Taylor bonds 250,000

Journal entry to record non-credit loss:

Dr Other than temporary impairment loss 150,000

Cr Fair value adjustment - Taylor bonds 150,000

Non-credit losses must be recognized as part of other comprehensive income/loss and must be disclosed separately than credit losses. They must be reported in the balance sheet (they lower retained earnings directly), not the income statement.

3 0

2 years ago

A Chinese exporter sells $200,000 of toys to a French importer. The Chinese exporter requires the French importer to obtain a le

GuDViN [60]

Answer:

0.0416483 or 4.16%

Explanation:

Annual percentage rate, APR = 4%

Value of toys sold = $200,000

Note period = 90 day

N = 365 ÷ 90

= $200,000 × [1 - (0.04 × 90/360)]

= $198,000

Effective annual financing cost:

$=(\frac{Value\ of\ toys\ sold}{Calculated\ value} )^{\frac{365}{90} }-1$

$=(\frac{200,000}{198,000} )^{\frac{365}{90} }-1$

= 1.0416483 - 1

= 0.0416483 or 4.16%

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2 years ago

Ferguson corp. purchased inventory on account for $20,000. the entry to record this transaction would include?

Marianna [84]

The entry to record this transaction would include:

Dr. Inventory $20,000

Cr. Accounts payable $20,000

What does it mean to purchase inventory on account?

Purchasing the inventory on account for $20,000 means that Ferguson corp. did not make payment for the inventory immediately, it rather purchased the inventory on credit with a promise to pay later.

As a result, the liability of Ferguson corp. has increased, specifically, the company would credit accounts payable with $20,000 such that inventory, which is the receiving account is debited with the same amount

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2 years ago

The given statements are about monopolistic competition. Indicate whether each statement is true or false. A monopolistically co

Nuetrik [128]

Answer:

1. A monopolistically competitive firm may be able to distinguish itself from other firms by adjusting the physical attributes of its product, by offering a distinctive level of service, or by selecting a convenient location.- True

2.Product differentiation enables a monopolistically competitive firm to have some control over the price of its product- True

3.In the long run each monopolistically competitive firm produces a level of output that results in allocative efficiency.- False

4. In the long run each monopolistically competitive firm produces a level of output that results in productive efficiency- False

5.To maintain a competitive edge and earn economic profits, a monopolistically competitive firm has an incentive to improve its product. -True

6. Compared with purely competitive markets, under monoplistic competition consumers with a diversity of tastes can benefit from the opportunity to choose from a greater range of products and services. -True

7.In order to maximize its profits, each monopolistically competitive firm must determine the price of its product, how to differentiate its product, and how much it will spend on advertising.True

Explanation:

3 0

3 years ago