Which of the following statements ignores the concept of opportunity cost?

mart [117]

The answer to this question is letter D. The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.

Closing costs are fees paid at the closing of a real estate transaction. It is called the closing when the title to the property is conveyed to the buyer. Closing costs then are incurred by the buyer or the seller, either of the two.

5 0

4 years ago

Blue Sky Company’s 12/31 balance sheet reports assets of $65,893 and liabilities of $28,686. All of Blue Sky’s assets’ book valu

padilas [110]

Answer:

Goodwill is $ 50,166.00

Explanation:

Goodwill is the excess of purchase price consideration over the fair value of net assets of the business acquired.

Purchase price consideration is the proceeds received by the owners of the business acquired in a business combination arrangement like this.

The net assets is the fair value of assets minus the fair value of the liabilities.

Purchase price consideration is $97,109

Net assets =$65,893+$9,736-$28,686=$ 46,943.00

Goodwill=$97,109-$46,943.00 =$ 50,166.00

3 0

3 years ago

Lois wants to start an art gallery. However, because of lack of adequate funds, she decides to borrow money from a bank. The ban

IRINA_888 [86]

Answer: Loan

Explanation: In simple words, loan refers to lending of money by one entity or a group of entities to some other party. The individual or organisation taking the loan have to repay it in installments in a specified period. The installment repaid is a sum of principal and the interest charged.

In the given case, Lois borrowed money from a bank and is liable to repay that loan within a specified time period.

Hence from the above we can conclude that the correct option is B.

8 0

4 years ago

Essay of circular flow

Setler79 [48]

Circular flow is a model of economy in which major exchanges are showed as flow of money, food, goods, services and etc between economic agents. In circular flow, the flows of money and goods exchanges in a closed circuit but runs oppositely. Circular flow analysis is the basis of national accounts.

5 0

4 years ago

Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the produ

True [87]

Answer:

C) $25,177

Explanation:

Spoiled units = (22,300 units + 76,400) - (72,900 units + 19,000)

=$98,700units -$91,900 units

= 6800 units

Normal spoilage = 5% × 72,900 units

= 3,645 spoiled units

Abnormal spoilage = 6800 units - 3645 units

= 3,155 units

Direct Materials ,Conversion Costs

WIP, beginning inventory$156,000$77,200

Costs added

during period 224,400 299,000

Total cost to account for 380,400 376,200

Divide by equivalent units*98,700 91,100

Equivalent-unit costs $3.85 $4.13

Equivalent unit

Direct Materials: 22,300 + 76,400 = 98,700 units

Conversion Costs: 72,900 + (19,000 x 60%) + 6800 = 91,100 units

Total cost per equivalent unit = $3.85 + $4.13 = $7.98

3155 units × $7.98 = $25,177

Therefore the cost allocated to abnormal spoilage using the weighted-average process-costing method will be $25,177

4 0

3 years ago