Answer:
Yes the company must recognise the effects of this ruling.
Explanation:
As provided the law suit was initiated in the year 20x2, because of the activity happened in April 20x2.
Accordingly, company was already prepared for a liability of $100,000.
Whenever an event that occurs after the balance sheet is a mere confirmation to what was expected on balance sheet date, or is in alignment with things on record on the balance sheet date, it shall be provided in the balance sheet of that year.
In the given case the law suit was pending on the balance sheet date and was recorded as a liability then, now after the declaration by the judge, the additional liability of $20,000 shall be provided in the financial books of year 20x2.
Answer:
Reorder point
Explanation:
A company or organization making use of fixed-order quantity model which is a model where the REORDER POINT has been fixed and has already been set automatic in which once it reach the minimum inventory level it will remind the company that inventory level has reach the limit for the company to restore the stock inventory or order more product, which is why this inventory level is called the REORDER POINT.
Therefore REORDER POINT can be defined as the point which serve as a reminder that the stock inventory level has dropped to the minimum reorder level and need to be replaced or reorder.
The deadweight loss from a tax is likely to be greater with a good that has many substitute.
<h3>What is deadweight loss?</h3>
This refers to scenario, tax imposed create loss of economic sufficiency; when the supply of goods and services aren't met.
Dead weight loss is the inefficiency that occurs when the market is not in equilibrium.
Learn more about deadweight loss here: brainly.com/question/26362939
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Answer:
Encumbrances $1000
Reserved for encumbraces $1000
Explanation:
Encumbrance is in the debit because is the money that we have destined for the purchase and since we have to get the money from our funds Reserved for encumbrances is in the credit.
Answer:
35000
A, d
Explanation:
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
If $3500 is deposited and reserve requirement is 10%
reserves would increase by $3500 x 0.10 = $350
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
3500 / 0.1 = 35000
If the banks keep excess reserves, the amount of money available to be loaned out would reduce and this would reduce the increase in money supply.
Also, if individuals keep the money at home, it would reduce the amount of money that can be loaned out by banks
