Answer:
Impact of $2,000 sale on accounting equation is as follow:
Accounting Equation
Asset = Equity + Liabilities
Cash+2000 Sales+2,000 No Effect
As cash an asset for the business, so the receipt will increase the balance of assets of the company. The revenue is ultimately adjusted to equity in the form of net income after deducting all the expenses. This transaction will result in increase of equity balance by the sale amount.
Explanation:
The Following journal Entry will support my answer:
Sales amount = 2,000
As this transaction is made on cash basis the following Journal entry will be recorded for this event.
Dr. Cr.
Cash $2,000
Sales $2,000
Answer:
(a) DM
(b) DL
(c) MO
(d) MO
Explanation:
(a) Frames and tires used in manufacturing bicycles.
This is cost directly related to the materials used in manufacturing a product and, thus, should be classified as a direct material cost (DM).
(b) Wages paid to production workers.
This cost is directly related to pay for the labor required to manufacture a product and, thus, should be classified as a direct labor cost (DL).
(c) Insurance on Factory equipment and machinery.
Although this is a cost incurred from manufacturing, it can't be directly linked to either materials or labor since it is an structural cost and, therefore, should be classified as a manufacturing overhead cost (MO).
(d) Depreciation on factory equipment
For the same reason as the previous item, this should be classified as a manufacturing overhead cost (MO).
Answer:
According to the data provided the opportunity costs is detailed below:
Initial Balance $20,000
Monthly interst $200
Investment $500
________________________
The Opportunity cost is $500
Explanation:
The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:
1. Spending the money
2. Save the money
3. Invest the money
Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.
Answer:
$2 per-unit cost of production
Explanation:
since 20 units are produced and 10 units of input are used so,
divide 20/ 10 to get per unit cost of production.
20/10 = $2
Answer
C. The government spending to strengthen the economy
Explanation
The fiscal policy is applied by the government to influence the economy through adjusting revenue and spending levels. The Fiscal policy is applied with the monetary policy to give a direction of the economy and reach the set economic goals. In this case, taxation and money transfers has been applied.
