Answer: D. Both A and B are correct.
Explanation: Amortization is the reduction or paying off debt over time in a series of payments of interest and principal sufficient to repay the loan in full by its maturity date. As an accounting technique, it is used to periodically lower the book value of a loan or intangible asset over a period of time. Amortization related to overvalued equipment increases consolidated net income and under the equity method (a method used in the valuation of a firm's investment in another when it holds significant influence over the firm being invested in), it increases the parent's reported net income.
Answer:
e. Increase by $4,500.
Explanation:
<u>Analysis of the effect of discontinuing Product Line C</u>
Income :
Rent Income $6,000
Savings : Fixed Costs - Avoidable $3,000
Total Income $9,000
Costs :
Opportunity Cost - Contribution Margin $4,500
Total Costs $4,500
Net Income (Loss) $4,500
therefore,
By discontinuing Product Line C, operating income for the company will likely Increase by $4,500
Answer:
Charles is classified in the adopter category called "Latecomers"
Explanation:
Latecomers are traditional consumers. For them, buying a new product brings a feeling of extreme psychological discomfort. They do not like news, even flee from it, and consider it immature to buy an innovative article in the market.
Latecomers represent 16% of consumers, are insecure to adopt new things, do not like to try new things and do not follow fads. Being traditionalists, they always perform the same way and only adopt innovation when there is no other alternative. Like Charles, who only bought the color TV because his old tv stopped working.
Answer:
Increase
fall
Explanation:
A recession occurs when the gross domestic product of a country for two consecutive quarters is negative.
Annually balanced budget is a budget where at the end of every year, revenue must equal expenditure.
If in a recession, a government is under pressure to maintain a balanced budget, the government would need to increase taxes. this is because income would be less than government expenditure as a result of the recession. In order to maintain a balanced budget, the government can either increases taxes are reduce expenditure.
When taxes are increased, disposable income falls and this causes aggregate demand to fall
