Answer:
5.52%
Explanation:
Cost of Furniture= $150,000
discount= 5.25% (120-day note)
To get the exporter's true effective annual financing cost, we have:
![150,000*[1-(0.0525*120/360)] = 147,375](https://tex.z-dn.net/?f=%20150%2C000%2A%5B1-%280.0525%2A120%2F360%29%5D%20%3D%20147%2C375%20)
=(150,000/147,375) 365/120-1 = 5.52%
Therefore, the exporter's true effective annual financing cost is 5.52%
Answer:
Debit Credit
Interest Expense 5,157
Long term Bonds 5,157
Explanation:
The 7%bond is issued by the Whispering Corporation on November 1, 2017 and the Whispering Corporation is using effective interest method with an interest rate of 6%, therefore the adjusting entry shall be recorded as at December 31,2017 in respect of interest accrued for two months i.e. November and December 2017 by following amount:
515,707*6%*2/12=5,157
The following adjusting entry shall be recorded in accounts of Whispering Corporation in respect of interest accrued as at December 31, 2017:
Debit Credit
Interest Expense 5,157
Long term Bonds 5,157
The right answer for the question that is being asked and shown above is that: "B. debit to Sales Returns and Allowances for $125.00. " Five necklaceswere returned prior to payment. The entry to record the return would include a B. debit to Sales Returns and Allowances for $125.00.
<u>Explanation:</u>
Classified balance sheet presents information about assets,liabilities and shareholder's equity of an entity.Order in which they are presented is as follows"
- Current assets-it includes cash and cash equivalents like prepaid expenses,inventories,assets held for sale.
- Long term investments-it includes investment made in other companies
- Property,plant and equipment-it includes all the fixed assets.
- Intangible assets-it includes assets which cannot be touched like goodwill.
- Current liabilities-it includes trade and other payables, accrued expenses,liabilities held for sale
- Long term liabilities-It includes long term loans,Deferred tax liabilities.
- Stockholder's equity-It includes share capital.additional paid up capital,retained earnings.
Answer:
a.
FALSE
<em>The argument above is in part inaccurate. In the long run, the monopoly dominant firms gain no economic profit at the profit generating production as their LRAC= LRAR at.
</em>
The firm is not effective economically (productively) though.
A monopolistically dominant firm is not successful effective because it does not achieve the average cost curve at the minimum level. The difference between supply and supply of the equilibrium at the minimum average cost is called overcapacity.
b.
FALSE
The monopolist has the power to make the price to maximize the profit. The monopolist, however, always has to respect demand rule of law. Its AR-curve is a sloping downward curve.
<em>It indicates that if the monopolist decides to increase production, he will have to lower the price. It shows that to increase income, the monopolist can set its price but can not set any price.</em>
c.
FALSE
The shut down point for reasonably competitive firms is Price= AVC.
When the price falls below the average cost of the product, otherwise the business must shut off.
<em>Otherwise, the business must continue to manufacture until the price falls below the average cost of the product. It will still deliver, even if the average income or price is below the average output.</em>
