Answer:
If the return on capital is 12% and the price for loanable funds is 14%, then:____.
a. currently businesses will not borrow loanable funds to invest in capital goods.
Explanation:
This simply means that the costs of borrowing exceed the returns. This makes borrowing and investment unattractive to businesses. The resulting effect on the economy will be disastrous. Many economic variables will be affected negatively, especially output and employment. At such times, the central bank needs to intervene with monetary policies to move the economy out of recession.
Answer:
1. Expenses of the current period --> Period Cost
2. Applied overhead is more than actual overhead incurred -->
d. Overapplied overhead
3. Typically used by companies that make custom products -->
a. Job order cost system
4. Typically used by companies whose products are indistinguishable from each other. -->
b. Process cost system
5. Applied overhead is less than actual overhead incurred. -->
c. Underapplied overhead
Explanation:
1) as are not capitalzied throught an asset account are considered expense of the period
2) and 5) When we apply above then, there capitalization of cost that weren't incurred so we have to reduced.
When we apply below, we need to capitalize more
3) Job Order makes each job account for their materials and labor making more possible the itemization
4) process cost works with equivalent units to detemrinate the production of the period as it is constant the product from one bathc to another have no difference.
Answer:
The correct answer is letter "A": operating activities.
Explanation:
Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.
When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Answer: d. All of the above.
Explanation:
The marginal revenue for hiring the workers will be:
= 100 × $20
= $2000
Marginal cost of hiring Tom is $1500. Likewise, the firm should hire Tom since marginal revenue of $2000 is greater than the marginal cost of $1500.
Therefore, the correct option is All of the above.
Answer:
$1,600,000
Explanation:
Given the following parameters:
Patent = $8,000,000
Trademark = $6,000,000
Goodwill= $9,000,000
Given that both the trademark and goodwill cannot be amortized as they were impaired or revealed.
Therefore, in this situation, only patents will be amortized over a five-year service life
Hence, the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items is = 8,000,000 divided by 5 = $1,600,000