Question 3 of 10

7) Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago for $100,000. He also ob

Natasha2012 [34]

Answer:

hey sorry i just want points YOSHII :3

Explanation:

8 0

3 years ago

Aicpa auditing standards address the confirmation of accounts receivable for private company audits. what are the circumstances

alina1380 [7]

Answer:

Confirmation of accounts receivables is not required when the account information is immaterial.

An account is said to have immaterial information when the account doesn't reflect any important or relevant information that can affect the opinions or decisions of shareholders, potential investors or creditors of the company.

The auditors have the responsibility of deciding what information is relevant and important and what is immaterial

4 0

3 years ago

Tobit Financing offers short-term financing plans to other companies. It buys the accounts of other companies at a discount and

NARA [144]

Answer:

C) Factoring

Explanation:

In factoring, the Companies shall sell the accounts receivables to Tobit Financing at a discounted rate when they are apprehensive about receiving the same from their debtors in time. Once received by Tobit Financing, it shall recover the dues from those accounts at the full rate. The difference shall be the earning of Tobit Financing. This may also be true when such Companies are in urgent need of cash and this option seems to be the most viable.

3 0

4 years ago

Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its

raketka [301]

The correct option is: maximizing its profit, but not necessarily the maximum profit.

<h3>What is Profit Maximization in a Perfectly Competitive Market ?</h3>

The perfectly competitive firm can choose to sell any quantity of output at exactly the same price. This implies that the firm faces a perfectly elastic demand curve for its product: buyers are willing to buy any number of units of output from the firm at the market price.

When the perfectly competitive firm chooses what quantity to produce, then this quantity—along with the prices prevailing in the market for output and inputs—will determine the firm’s total revenue, total costs, and ultimately, level of profits.

A perfectly competitive firm has only one major decision to make—namely, what quantity to produce. To understand why this is so, consider the basic definition of profit:

Profit=Total revenue−Total cost

(Price) (Quantity produced)−(Average cost) (Quantity produced)

According the question scenario,

Given:

Firm is selling = 200 units

output = $3 each

fixed cost = $100

variable cost = $350

solution:

Total average cost = variable cost + fixed cost .........(1)

Total average cost = 350 + 100

Total average cost = $450

Cost per unit = average cost ÷ no of unit ...................(2)

Cost per unit = 450 ÷ 200

Cost per unit = $2.25

So here firm is incurring per units is $2.25 but here earning per unit is $3.

So that here firm is earning economic profit as here market price is greater than earning maximum profit.

Therefore, we can conclude that the correct option is : maximizing its profit, but not necessarily the maximum profit.

Learn more about Profit Maximization on:

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8 0

2 years ago

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credi

Leya [2.2K]

Answer:

No. Account Type Likely account entries

1. Fees Earned , normal balance is credit (b) Credit entries only

2. Utilities Expense , normal balance is debit (a) Debit entries only

3. Accounts Payable , normal balance is credit (c) both debit and credit entries

4. Supplies , normal balance is debit (c) both debit and credit entries

5. Cash , normal balance is debit (c) both debit and credit entries

6. Accounts Receivable , normal balance is debit (c) both debit and credit entries

Explanation:

Accounts that normally have debit entries include assets (both long-term and current), expenses, and losses. Accounts that normally have credit entries are liabilities, equity, revenue, income or gains. Most accounts have debit and credit entries before their normal balances are indicated. The accounts with debit entries are mainly expenses and losses, while revenues and income have mainly credit entries.

6 0

3 years ago