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3 years ago

The difference between zero profit and zero economic profit is that:

Business

1 answer:

Marianna [84]3 years ago

8 0

Answer:

The correct answer is letter "A": economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero profit.

Explanation:

Normal profit is an economic term that means zero economic profits. To an economist, this is normal since total revenue equals total cost which includes both explicit and implicit costs. It differs from the accounting profit or zero profits since the latter does not take into consideration implicit cost.

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A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is t

quester [9]

Answer:

Option E (143) is the appropriate solution.

Explanation:

According to the question,

The modified duration will be:

= $\frac{Macaulay \ duration}{(1+yield)}$

= $8\times 1.064$

= $8.512$

The percentage change in price will be:

= $-0.6\times 8 \ percent$

= $-4.8$ (%)

Now,

The EMOD will be:

= $112955\times (1-4.8 \ percent)$

= $107533.2$ ($)

Or,

The EMAC will be:

= $112955\times (\frac{1.064}{1.07} )^{8.512}$

= $107675.7$ ($)

Hence,

⇒ $EMOD-EMAC=107533.2-107675.7$

$=-142.5$

⇒ $EMAC-EMOD=143$

5 0

3 years ago

Tom’s T.V.’s sold one of their premium products, a new 60" flat screen 3D T.V. to a customer who paid $2,000 in cash. How would

nikdorinn [45]

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

5 0

3 years ago

Place and convenience are connected by a core linkage. While GoPro was able to get the product into locations where customers co

Serggg [28]

Question Completion with Options:

a. ignore convenience stores in its distribution network.

b. deliver fewer cameras than were needed during a holiday season.

c. miss the customer connection by emphasizing place over convenience.

d. exert too much power in the distribution network.

Answer:

GoPro

production problems forced it to

b. deliver fewer cameras than were needed during a holiday season.

Explanation:

Shortages are avoided by producers as much as possible in order not to cause disequilibrium in the market. Shortages are not the same as scarcity. They are temporary setbacks when the quantity demanded outstrips the quantity supplied at the equilibrium market price. The backlashes result in lost sales and revenue for suppliers. Shortages may clear ways for competitors to enter the market to meet the unsatisfied demand.

5 0

3 years ago

The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at each of the follo

zubka84 [21]

Answer:

The correct answer is ENRON.

Explanation:

Going back to December 2, 2001, is going back to one of the biggest scandals in economic history. That day, the energy company Enron declared bankruptcy. First global energy distributor, invoiced 100,000 million dollars annually.

Jeffrey Skilling, the mind behind accounting, did his last master move badly. Before the bankruptcy they were seen coming, he resigned his position alleging family reasons and sold the shares he had in the company. Four months later came bankruptcy. Supposedly, he didn't know anything about the critical situation of the company. He did not strain.

In 2004 he was charged with about thirty charges, including operating with confidential information, by selling about 60 million dollars in Enron shares before bankruptcy, deceiving the auditor or conspiracy.

7 0

3 years ago

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor

Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return = 10% × ( 1 - 0.20 )

rate of return = 8 %

5 0

3 years ago