Answer:1. Make provision for warranty claims.
2. Disclosure of contingent liability
3. No cost should be recorded.
Explanation:
Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.
Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.
The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.
Cab services are the best option for transportation in the UK.
Cabs are a type of personalized transport that works in the United Kingdom, this service offers several advantages compared to taxis such as:
- It is cheaper than taxis.
- It is more comfortable and less disturbing.
- They have several options for the number of people traveling.
- They can be booked easily and quickly
- Offers a much faster transportation service than buses or black taxis
- It is available 24 hours a day, 7 days a week.
Based on the above, it can be inferred that Cabs are the best transport service in the UK.
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Answer:
Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
Explanation:
Expected return= free return + Beta (Expected rate of return – risk free rate)
Portfolio A
6%+ +.8*6%
= 6%+4.8%= 10.8%
Portfolio B
6%+1.5(6%)
6%+9%= 15%
It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
This is true, it is a misunderstandment
Answer:
Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7
Explanation:
The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.
So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.