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Rudik [331]
3 years ago
7

Clarion Corp. invested cash in a 6-month certificate of deposit (CD) on November 1, 2015. If Clarion Corp. has an accounting per

iod that ends on December 31, 2015, when should Clarion recognize interest revenue from the CD?
a. On December 31, 2015 only
b. On May 1, 2016 only
c. Both December 31, 2015 and May 31, 2016
d. On the date when its income tax return is filed
Business
1 answer:
Ira Lisetskai [31]3 years ago
5 0

Answer:

A is the correct option

Explanation:

Revenue or income is recognized based on accrual concept of accounting where revenue or income is recognized when earned and expenses when incurred not when received or paid in  cash.

As a result,on the 31st December Clarion Corp. has earned two months' interest on the 6-month certificate of deposit as it has invested for two months.

The correct option is A,Clarion recognizes interest revenue on 31st December ,2015 only.

It is also important to note that the since 2015 came to end the fraction of interest revenue relating to  year 2015 needs to be recognized by debiting accrued income account and crediting investment on the face of the income statement

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When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
aleksley [76]

Answer:

correct answer is Option D

Explanation:

Option D - elastic, and the demand curve will be horizontal.

The quantity would be changed infinitely with a samll change in the the price. It means that demand is perfectly elastic and the curve is horizontal as the small change up decreases the quantity to zero and small change down increases the quantity infinity. Thus, option D is the correct ams of this questionwer

6 0
3 years ago
--IMPORTANT--
lina2011 [118]

Answer:

See explanation

Explanation:

Some of the advantages and conveniences of buying internationally are as follows:

1. Revenues are expanding;

2. Competition among firms will be decreasing;

3. Diversifying the risk management;

4. Getting the chance to specialize (1);

The difference between buying a shirt made in Canada, but find the same one made in China is the availability of raw materials. The same raw materials can be found in various countries with the help of international trade. Transportation makes the difference either. The final difference is where you are staying. If you stay in Canada, you might get the Canadian shirt cheaper than the Chinese one. Again, if you stay in China, you might find the cheaper price in China. If you do not stay in both of the countries, it will be difficult to assume.

References:

1. Martinuzzi, B. (2018). What Are the Advantages of International Trade? Retrieved from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/advantages-international-trade/

2. Herrera, S. (2018). International e-commerce: Advantages and disadvantages of marketplaces. Retrieved from https://www.handelskraft.com/2018/09/international-e-commerce-advantages-and-disadvantages-of-marketplaces-5-reading-tips/

5 0
3 years ago
A __________________ exists when the quantity demanded in the market is less than the quantity at the bottom of the long-run ave
kobusy [5.1K]

Answer:

Natural monopoly

Explanation:

A natural monopoly refers to a type of monopoly that occurs when the start-up costs or infrastructural costs are high or economies of scale in an industry are very powerful in such a way that only the largest supplier in the industry which is usually the first supplier in the market has a great advantage over potential competitors and therefore becomes the only supplier in the industry.

On the long-run average cost (LRAC) curve, a natural monopoly exists when the quantity demanded is less than the minimum quantity that is required to be at the bottom of the LRAC curve.

Therefore, a <u>natural monopoly</u> exists when the quantity demanded in the market is less than the quantity at the bottom of the long-run average cost curve.

6 0
3 years ago
A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the
Irina-Kira [14]

Answer:

A. Lowest Total Cost:

A. 315,550 or more

B. Lowest total cost of annual volume of 120 boats

C. C

Explanation:

The lowest total cost among the three alternatives is b.

If the company goes for new location it will have to incur fixed cost of $270,000 and variable cost per boat will be $600.

If the company Subcontracts then Total cost per boat is $2,620

If a company goes for expanding existing facility then it will incur fixed cost of $57,000 and variable cost will be $1,030 per boat.

If company produces 315,000 or more boats then it will have lowest possible cost for the boat.

For an output of 120 bots the best possible alternative is option C. The fixed cost will be $475 per boat ($57,000 / 120 boats)

The total cost will be $1,505 ($475 + $1,030)

5 0
3 years ago
Why would a small business conduct less marketing research than a larger, established firm?
labwork [276]
The reason is <span>Marketing research is expensive.
</span>The established firm usually has a large amount of capital at its disposal, so they could do market research in order to strengthen their position.
Small business on the other hand, usually struggle to even barely continuing their operation for the next month.
8 0
3 years ago
Read 2 more answers
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