Answer and Explanation:
The computation is shown below
a. Total book value is
= Equity par value + retained earnings + net income
= 20,000 shares × $20 + $5,000,000 + $70,000
= $5,470,000
b. The book value per share is
= Equity book value ÷ number of shares
= $5,470,000 ÷ 20,000shares
= $273.50
Hence, the total book value and book value per share is $5,470,000 and $273.50 respectively
Answer: D. marginal product; increasing; average variable cost; decreasing
Explanation:
The Marginal product curve is hump-shaped and the marginal cost curve is U-shaped because these two move in opposite directions to each other.
If the marginal cost is decreasing therefore, the marginal product must be increasing. If the marginal cost is decreasing and the marginal product is increasing, average variable cost will have to fall because every additional unit produced incurs less cost so the average has to fall as well.
Answer:
For chain stores, prices are uniform in all branches while for departmental stores, each department sets its own price. Chain stores sell similar goods while departmental stores deal with different line of goods.
Explanation:
Answer:
debit to Sales allowance of $50
Explanation:
When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.
It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.
Following journal entry is recorded for recording sales allowance
Sales Allowance A/C Dr. $ 50
To Accounts Receivable $50
(Being allowance for defects recorded)
Sales allowance is deducted from gross sales before the customer makes payment.
Answer:
The convenience yield is always positive or zero
Explanation:
the convenience fields measure the benefit of owning an asset rather than having a forward/futures contract on an asset . For an investment asset it is always zero . For a consumption asset it is greater than or equal to zero.
