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sergey [27]
3 years ago
13

Faust Company uses the perpetual inventory system. Faust sold goods that cost $2,300 for $3,600. The sale was made on account. W

hat is the net effect of the sale on the company’s financial statements? (Consider the effects of both parts of this event.)
Business
1 answer:
mario62 [17]3 years ago
4 0

Answer:

increase total assets by $1,300.

Explanation:

The net effect is shown below

The first entry is

Cost of goods sold  Dr $2,300

          To Merchandise Inventory $2,300

(Being the cost of inventory is recorded)

Now the second entry is

Account receivable Dr 3,600

       To Sales revenue 3,600

(Being the sales is recorded)

Now the net effect is

= 3,600 - 2,300

= 1,300

This 1,300 reflect the increase in the total assets

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A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th
agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

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3 years ago
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KonstantinChe [14]

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As a customer acquisition technique, events are considered mostly ineffective compared to mobile advertising or social media promotions.

8 0
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Why is 'task complexity' an issue in the process of goal setting?
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The more complex the task the more difficult it is to reach goals. People are more likely to achieve goals when tasks are easier. Simplifying tasks can help goal setting.

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