Answer:
D.
Revenues to be understated
Explanation:
Understated amounts indicate a reported amount is not correct and the reported amount is less than the true amount.
Answer:
148.31
Explanation:
The normal price in dollars is (87.89)(2.25), and the 25% discount corresponds to multiplying this result by 0.75. Carrying out the arithmetic, the price is (87.89)(2.25)(0.75) = 148.31.
Answer:
lower; higher.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).
This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.
Answer:
The firm should increase output and reduce price
Explanation:
For a monopolist, there can be one of the following three scenarios at a time point in time:
Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.
Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.
Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.
From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.
Answer: 12.72%
Explanation:
Given the following information ;
50 Shares of AAA at $20 and expected returns of 12%
25 Shares of BBB at $60 and expected returns of 10%
75 Shares of CCC at $50 and expected returns of 14%
Total value of the portfolio ;
Total Portfolio Value = ( 50×20 ) + ( 25×60 ) + ( 75×50 )
= 1000 + 1500 + 3750 = $6,250
Weight of each share in the portfolio;
Weight of Stock AAA = ( 50×20 ) / 6250 = 0.16
Weight of Stock BBB = ( 25×60 ) / 6250 = 0.24
Weight of Stock CCC = ( 75×50 ) / 6250 = 0.60
Expected return on portfolio is calculated thus;
Expected Portfolio Return = ( Weight of AAA×Expected Returns ) + ( Weight of BBB×Expected Returns ) + ( Weight of CCC×Expected Returns )
Expected Portfolio Return = ( 0.16×0.12 ) + ( 0.24×0.10 ) + ( 0.60×0.14 )
Expected portfolio return = (0.0192+0.024+0.084) = 0.1272
0.1272 = 12.72%
