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Alchen [17]
3 years ago
12

Dinosaur Junior Corporation purchased a one-year insurance policy in January 2013 for $60,000. The insurance policy goes into ef

fect April 30, 2013. If the company neglects to make the proper year-end adjustment for the expired insurance:_________
Business
1 answer:
kozerog [31]3 years ago
5 0

Answer:

Net income and the assets will be overstated by the amount of $40,000

Explanation:

On purchasing the insurance, the accounts which got affected are the Net income as as the net income will decrease because the cash is paid against the insurance. And the assets will be affected on buying the insurance.

If the company neglects to make proper adjustment for the insurance, it will lead to overstated balance of the assets account as well as the net income of the company with the balance of $40,000 because it came in effect on April 30.

Working:

Amount = $60,000 / 12

= $5,000

For 4 months,it will be:

= $5,000 × 4

= $20,000

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If the economy is initially at long-run equilibrium and aggregate demand declines, then in the long run the price level:
ahrayia [7]

Answer:

The correct answer is option c.

Explanation:

In an economy, in the long run, the aggregate supply is fixed. The aggregate supply curve is a vertical line. This is because, in the long run, supply remains unaffected by price level. The increase in product price is balanced by an increase in input prices. So the supply does not change with change in the price level.  

In the long run, the supply changes with change in the availability of resources and change in technology. So when the aggregate demand declines, the demand curve shifts to the left. The equilibrium quantity remains the same but the price level declines.

It is also evident in the figure attached.

3 0
3 years ago
Fox, Inc. reported net income of $300,000 for the current. Changes occurred in several balance sheet
Kitty [74]

Answer:

$347,000

Explanation:

Cash flow, operating activities:

Net income                                                              $300,000

Depreciation expense                                                 52,000

Gain on sale of equipment                                    <u>      (5,000)   </u>  

Cash provided by operations                                 $347,000

Depreciation expense ($52,000) does not indicate any cash being paid, hence it must be added to Net Income.

The $5,000 must be subtracted from Net Income in the Operating Section, because the $18,000 ($25,000-$12,000+$5,000) contains the $5,000 of cash received, and it should be shown increasing the Net Income only in the Investing Section.

Hope this helps!

5 0
3 years ago
How many members sit congress
BigorU [14]

Answer:

535 members of Congress.

Explanation:

100 serve in the U.S. Senate 435 serve in the U.S. House of Representatives.

I hope this is right sorry if I am not

5 0
3 years ago
Read 2 more answers
A U.S. company (like Jelly Belly) makes its gourmet jelly beans in the United States, and sugar is about half the cost of produc
Svetradugi [14.3K]

Answer: Highly doubtful.

Explanation:

U.S. sugar protection policies save producers in the U.S. billions of dollars so those companies continually lobby for the government to keep up the policies.

A company such as Jelly Belly is not influential enough to fight off the various sugar interests unless there are other players like Jelly Belly in the game. The text makes no mention of them however so it must just be Jelly Bean and they do not have the influence to get the government to reverse policy.

3 0
3 years ago
Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constr
seraphim [82]

Answer: competitive inertia

                       

Explanation: Competitive inertia or corporate inertia refers to a company that is rigid in its way of operations and refuses to change its way of thinking as per the changing norms in the industry.

In the given case, Cajemp inc. is refusing to start making building from concrete blocks in place of brick and mortar due to their positive past experiences.

Hence from the above we can conclude that the given case illustrates competitive inertia.

8 0
3 years ago
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