Answer:
Option (B) is correct.
Explanation:
When there is an increase in the interest rate then as a result this will shift the aggregate demand curve leftwards. This is because of the fall in one of the component of aggregate demand curve that is investment.
Increased interest rate will reduce the investment demand and hence shifts the aggregate demand curve rightwards. This increase in the interest rate will also increase the reserves of the banks.
When there is a leftward shift in the AD curve then as a result there is a fall in both real GDP and Price level in an economy.
Businesses use copyright, patents, and trademarks, to keep other companies from taking their idea or product. Copying a trademarked or patent product is illegal. (piracy)
Answer:
The misstatement would result in the overstatement of assets by $9,000 and also an overstatement of stockholders equity by the same amount.
Explanation:
When the balance of year end inventory is overstated, the cost of goods sold will be understated and this will result in an overstatement of the net income (and by extension, owners equity).
Given that a company inadvertently counted its inventory as $98,000 instead of the correct amount of $89,000
Amount overstated = $98,000 - $89,000
= $9,000
Answer:
When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:
- income statement: costs increase, decreasing profits
- balance sheet: assets and equity decrease
- cash flow statement: cash from operating activities increases
- owners' equity: decreases
Answer: (A) Labor-intensive technology
Explanation:
The labor- intensive technology is one of the type of process in which an organization or any type of industry require maximum labors for producing the various types of products and the services.
The main objective of the labor-intensive technology is that expanding the business and this type of industry is basically determine by the actual requirement of the capital for producing the maximum goods and the services.
According to the given question, the given production process of the Schlage lock factory is best describe as the labor intensive technology process. Therefore, Option (A) is correct answer.