Answer:
c) $13,000
Explanation:
According to the accounting equation, Total equity is the difference between the assets and liabilities. The total equity is however made of two elements namely; common stock and retained earnings.
Given;
assets = $50,000
liabilities = $22,000
equity = assets - liabilities
= $50,000 - $22,000
= $28,000
common stock of $15,000
Equity = common stock + retained earnings
$28,000 = $15,000 + retained earnings
retained earnings = $28,000 - $15,000
= $13,000
Answer:
M1 = $3000
Explanation:
Below is the given values:
Given the currency = $1000
The balance of checking account = $2000
In order to find the M1, just add the balances of currency and balances of the checking account.
Thus M1 = Currency + Balance of checking account
M1 = 1000 + 2000
M1 = 3000
Therefore, the M1 = $3000
Answer:
c. Companies using LIFO will report the smallest cost of goods sold. TRUE, Companies using LIFO method will increase profits (smaller COGS) but will over estimate inventories.
d. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold. TRUE, it averages costs.
Explanation:
If purchase costs are decreasing, then the LIFO method is more appropriate, instead if purchase costs are steadily increasing, the FIFO method is more appropriate. The weighted average cost is better when purchase costs are relatively stable.
When the purchasing costs are decreasing, the LIFO method under estimates COGS, over estimates inventories, increases profits but also increases taxes.
Answer:
Demand will rise.
Explanation:
Complement goods are products used together to meet a particular need. Examples of complementary goods include tea and sugar, printer and Ink Cartridges, cars and petrol.
If the prices of a complement good fall, then the demand for the other commodity increases. It will be cheaper for consumers to use both goods together. For instance, if the price of sugar falls, consuming tea will be less expensive, which increases its demand.
Answer:
135.3
Explanation:
GRM stands for Gross rent multiplier.
The formula and the computation of the gross rent multiplier are shown below:
Gross rent multiplier = Appraisal value ÷ rent for each four plex
= $460,000 ÷ 3,400
= 135.3
The rent for 4 units is computed below:
= Rent per month × number of four plex
= $850 × 4
= $3,400
