Answer:
The correct word for the blank space is: lower; buyers to offer higher prices.
Explanation:
In a market driven by supply and demand laws, shortages are caused because of excess in demand as a result of lower prices. Thus, that price is lower than the equilibrium price. Besides, if there is a need to push that price to its equilibrium level, sellers will have to increase the price implying buyers will have to offer higher prices.
Answer:
71.57 days
Explanation:
For computing the average collection period first we have to determine the account receivable turnover ratio which is shown below:
Account receivable turnover ratio = Credit sales ÷ average accounts receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($75,000 + $83,000) ÷ 2
= $79,000
And, the net credit sale is $403,000
Now put these values to the above formula
So, the answer would be equal to
= $403,000 ÷ $79,000
= 5.10 times
Now
Average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 5.10 times
= 71.57 days
The increasing returns would be a situation in which the
firm increases their workforce and other inputs in a matter of having to
increase the workforce by five percent and having to increase the output in a
total of eight percent.
Answer:
1. Cash in hand and at bank balance
2. Is there land and buildings available
3. Are there any accumulated debt owed by the church
4. Collections or record of church document.
Explanation:
1. Cash in hand and at bank balance. This an example of a current asset. The first question is how much does the church have as cash and bank balance. The reason is to ascertain whether the fund will be sufficient for the new building project.
2. Land and Buildings availability. This is a fixed asset. The board would enquire whether there is an already existing building or land with which to begin the building project.
3. Debt or loan owed by the church. Loan forms part of liability in a balance sheet. Another question to be asked is whether the church is indebted to a bank or financial institution. This will determine whether or not to continue with the building project.
4. Record of church document. Does the church have any existing document with which to support the new building? This is pertinent as to begin or abandon the plan to build a new church.
