Answer:
Management might opt for other than the most economical choice because:
- Controlling. E.g. Franchise can be helpful to increase earnings fast but the uncertainly of quality supplied by franchisees can hurt a firm in the long run.
- Branding. E.g. Some firms have a reputation for their hand-made products. Industrialized production can reduce cost per unit and increase productivity but the brand surely is affected.
Explanation:
Answer:
Darby Company
The amount of interest payable at December 31, Year 1 is:
$76.67
Explanation:
a) Data and Calculations:
Cash Revenue = $1,300
Bank Note Payable = $2,300
Interest rate on Bank Note = 10%
Issue date of bank note = September 1, Year 1
Term of bank note = 1 year
Amount of interest payable on December 31, Year 1:
= $2,300 * 10% * 4/12 = $76.67
b) The amount of interest payable on the loan totals $230 ($2,300 * 10%). However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67. This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2. In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.
Answer: D. net demander of funds because it borrows more than it saves
The government incurs more debts than gain profits as shown by most financial reports. The government is viewed similarly to that of business firms being net demanders by loaning huge amounts to financial institutions indirectly. The indirect borrowing done by government is done through debt security selling.
Answer:
$136
Explanation:
Date Transaction Units Cost Total
3 Purchase 5 $20 $100
10 Sale 3
17 Purchase 10 $24 $240
20 Sale 6
23 Sale 3
30 Purchase 10 $30 $300
using the first in, first out method, the COGS is calculated based on the oldest price of the units in merchandise inventory:
6 units were sold on May 20th, 2 of them costed $20 (May 3rd purchase) per unit = $40, while 4 of them costed $24 (May 17th purchase) = $96. Total COGS = $40 + $96 = $136.
Are there multiple choice answers to choose from? There could be a myriad of answers if not.
