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3 years ago

Asset retirement obligations:

Business

1 answer:

koban [17]3 years ago

5 0

Answer:

The correct answer is D

Explanation:

ARO stands for Asset retirement obligations, it is a legal obligation which is linked or associated with the retirement of the tangible as well as long lived asset in which the method of the settlement could be conditional on the future event.

So, these are the liabilities linked with the long term asset restoration, evaluated at the fair value in the balance sheet and also increase the balance in the related account of asset.

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An advantage of absorption cost transfer pricing arises from the fact that Select one: A. This method keeps the purchasing divis

Roman55 [17]

Answer:

This method encourages the selling division to operate efficiently.

Explanation:

Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.

Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.

7 0

3 years ago

Consider the recorded transactions below.

AnnZ [28]

Answer:

1. T-accounts:

Accounts Debit Credit

Accounts Receivable

Balance $4,200

Service Revenue 8,400

Cash 10,200

Accounts Debit Credit

Service Revenue

Accounts Receivable 8,400

Accounts Debit Credit

Supplies

Balance $400

Accounts Payable 2,300

Balance c/d $2,700

Accounts Debit Credit

Accounts Payable

Balance $3,500

Supplies 2,300

Cash $3,700

Balance c/d $2,100

Accounts Debit Credit

Cash Account

Balance $3,400

Accounts Receivable 10,200

Advertising $1,000

Accounts Payable 3,700

Deferred Revenue 1,100

Balance c/d $10,000

Accounts Debit Credit

Advertising Expense

Cash 1,000

Accounts Debit Credit

Accounts Payable

Cash 3,700

Accounts Debit Credit

Deferred Revenue

Balance $300

Cash 1,100

Balance c/d $1,400

Explanation:

a) Data:

General Entries:

Accounts Debit Credit

1. Accounts Receivable 8,400

Service Revenue 8,400

2. Supplies 2,300

Accounts Payable 2,300

3. Cash 10,200

Accounts Receivable 10,200

4. Advertising Expense 1,000

Cash 1,000

5. Accounts Payable 3,700

Cash 3,700

6. Cash 1,100

Deferred Revenue 1,100

b) The beginning balance of each account before the transactions is:

Cash, $3,400

Accounts Receivable, $4,200

Supplies, $400

Accounts Payable, $3,500

Deferred Revenue, $300

6 0

3 years ago

The following two graphs show the markets for smartphones in Sweden and Norway. Use the graphs to answer the questions that foll

zalisa [80]

Answer:

Assume there are no transportation costs. With trade, the price of $22.5 brings about balance in exports and imports. At this price, 600 smartphones are traded. With trade, Sweden produces 900 smartphones and consumes 300 smartphones, and Norway produces 300 smartphones and consumes 900 smartphones.

Now suppose the per-unit transportation cost from Sweden to Norway is $5. With trade, the transportation cost changes the price of smartphones in Sweden to $25 and in Norway to $25. Sweden will produce 800 smartphones and consume 400 smartphones, thus exporting 400 smartphones. Norway will produce 400 smartphones and consume 800 smartphones, thus importing 400 smartphones.

Explanation:

With no transportation costs, Sweden shall export smartphones and Norway shall import smartphones because the market price is lower in Sweden than in Norway.

The demand and supply functions for smartphones in Sweden, derived from the given values, are:

$Q_{D} = 1200 - 40P\\$

$Q_{S} = 40P$

The export supply (ES) equation is:

$ES = Q_{S} - Q_{D}$

ES = 40P - (1200 - 40P)

ES = 80P - 1200

The demand and supply functions for smartphones in Norway, derived from the given values, are:

$Q_{D} = 1800 - 40P$

$Q_{S} = 40P - 600$

The import demand (ID) equation is:

$ID = Q_{D} - Q_{S}$

ID = 1800 - 40P - (40P - 600)

ID = 2400 - 80P

The equilibrium price and quantity traded is determined where ES = ID.

80P - 1200 = 2400 - 80P

This simplifies to P = 22.5

Q = 2400 - 80(22.5) = 600

Next, a transaction cost of $5 per unit is imposed from Sweden to Norway. This changes the ES function as follows.

New ES = 80(P - 5) - 1200

New ES = 80P - 1600

The new equilibrium is where New ES = MD.

80P - 1600 = 2400 - 80P

This simplifies to P = 25

Q = 80(25) - 1600 = 400

7 0

4 years ago

Anita and Roger, two senior members of Bloncert Inc., and Wilma, their subordinate, are having a discussion about the company's

Ksenya-84 [330]

Answer:

Strategic conversation

Explanation:

The above scenario exemplifies a strategic conversation. The strategic conversation is all about deliberating the company's vision and mission. In the bigger picture, managers and CEO's usually interact quarterly or once a year to discuss and explore different strategies in order to improve the company's operations. Strategic conversations are important because they help to identify problems and their remedial solutions.

8 0

3 years ago

A problem that the Fed faces when it attempts to control the money supply is that a. since the U.S. has a fractional-reserve ban

NeTakaya

Answer:

A) since the U.S. has a fractional-reserve banking system, the amount of money in the economy depends in part on the behavior of depositors and bankers.

Explanation:

Since US banks operate under a fractional reserve banking system, they have the capacity to create money through the money multiplier, e.g. you deposit $1,000 in bank A, then bank A borrows $850 to Steven and he purchases a new bike from Sarah. Then Sarah deposits the money in bank B, and bank B borrows $722 to George who buys a laptop from Henry. Henry then deposits the money in bank C, and bank C borrows $614 to Susan, and this goes on and on.

The problem that the Fed faces is that in order for the fractional reserve system to work, households must hold their money in banks. Ans that is something that the government cannot control, specially the amount or portion that is deposited. The other players are banks, that ideally should borrow all the money that they are allowed to.

5 0

3 years ago