Answer:
Economic systems as a type of social system must confront and solve the three fundamental economic problems: What kinds and quantities of goods shall be produced, "how much and which of alternative goods and services shall be produced?" How shall goods be produced? ..by whom and with what resources
Answer:
a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned
Explanation:
When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).
Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.
Answer:
The euro has gained strength against the dollar.
Explanation:
Exchange rate is a measure of the value of one countrie's currency compared with another. For example how many dollars can be exchanged for a euro.
Most exchange rates are free floating, meaning their value is determined by market forces (demand and supply).
Some countries however peg their currency value.
So in this scenario Thomas is giving more dollars for fewer euros because the euro has more value.
Listening, checking for understanding
Answer:
The company report on its balance sheet at December 31, 2010, as accounts receivable before the allowance for doubtful account is $590,000
Explanation:
The computation of the accounts receivable before the allowance is shown below:
= Beginning account receivable balance + bad debt expense - uncollectible accounts receivable
= $540,000 + $90,000 - $40,000
= $590,000
The bad debt is an expense so it will be added whereas the account receivable which is not yet collected should be deducted in the computation part.
