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gayaneshka [121]
3 years ago
11

By shutting​ down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

sly earned profits. C. stops receiving revenue but continues to pay variable costs. D. avoids its sunk costs as well as its variable costs. g
Business
1 answer:
wel3 years ago
4 0

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

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D

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CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

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When a firm can depreciate its capital equipment over a shorter period, it cuts its taxes now.

A capital asset's value dropping is referred to as capital depreciation. To determine the recovery cost incurred on fixed assets over the course of their useful lives, assets are depreciated. When the asset reaches the end of its useful life or you need to sell it, this is used as a sinking fund to replace it. Depreciation lowers the taxable income, which lowers the tax burden. Capital assets are listed as an asset on the balance sheet and are depreciated over the course of their useful lives. Businesses typically have to spread out the costs of capital investments over a number of years in accordance with predetermined depreciation schedules.

More about depreciation brainly.com/question/15178885

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Henry conducted a survey on an ad done by his company. In the survey, he asked people to evaluate the ad and state whether they
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A concentration of minerals that could now be legally mined at a profit is called a.
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Reserve. resource

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On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies
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Answer:

a. February 15, 20y9, supplies purchased on account

Dr 15-Supplies 2,250

    Cr 21-Accounts payable 2,250

b.

Supplies                                                                               Account N. 15

Date         Particulars        Journal     Debit      Credit        Balance

                                          ref.                                             Debit      Credit

2/11           purchase           1               2,250                       2,250

c.

Accounts payable                                                               Account N. 21

Date         Particulars        Journal     Debit      Credit        Balance

                                          ref.                                             Debit      Credit

2/11           supplies             1                              2,250                       2,250

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