Answer:
B. Switzerland has the comparative advantage in watches.
Explanation:
Comparative Advantage is when an economy can produce a commodity with comparatively less opportunity cost in terms of other good sacrifised, than other economy.
It can also be denoted as an economy's more relative productivity in consumption, compared to other economy.
Watch Chocolate
Switzerland 1 50
Germany 1 100
Switzerland can produce a watch by sacrifising lesser units of chocolate i.e 50, than Germany - which sacrifises 100 watches chocolates for a watch production.
Switzerland is 0.02 (1/50) times productive in watch than chocolate. Germany is lesser i.e 0.01 (1/100) time productive in watch than chocolate. Also, Germany is more productive in chocolate than watch 100X > 50X.
So, Switzerland has comparative advantage in Watches & Germany in Chocolate.
Answer: A purchase of supplies for cash is recorded in the cash payments journal.
<span>The answer is true friends
True friends are best customer group for the company in the loyalty vs profit graph they have high loyalty and also high profit. So it can be said that they are profitable and at the same time loyal.Their need completely match with the products of the company. They should be nurtured so they can become true believers who spread positive words about company.</span>
Answer:
1. Jim Marley is the sole owner of Marley's Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence This liability was not recorded in the records of Marley's Appliances
- ECONOMIC ENTITY PRINCIPLE: the activities of a business must be kept separate form the activities of its owners
2. Apple Inc. distributes an annual report to its shareholders
- TIME PERIOD PRINCIPLE: companies must report their financial statements over standard or fixed periods of time, e.g. monthly, quarterly or annually
3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives
- EXPENSE RECOGNITION: expenses must be recorded during the time periods that they actually occur
4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value
- HISTORICAL COST PRINCIPLE: assets must be recorded at purchase cost and the only adjustment can be accumulated depreciation
5. delivered to customers, even though the cash has not yet been
- THIS PART IS INCOMPLETE, BUT I BELIEVE IT REFERS TO THE REVENUE RECOGNITION PRINCIPLE: revenue must be recognized once the earning process has been completed and not necessarily when the cash is received.
6. Liquidation values are not normally reported in financial statements of $200,000 Honeywell International Inc. records revenue when products are received even though many companies do go out of business
- GOING CONCERN PRINCIPLE: this principle assumes that the business will continue to operate in the foreseeable future
7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense
- MATERIALITY: a company must record all the transactions that may affect the decision making processes. In this case, a tool will not make any difference on a multibillion dollar company.
<span>1. Find a good spot to store your records--neither too cool, too hot, or exposed to direct light / water.
2. Make use of the original sleeves.
3. Make your own sleeve out of wax / butcher paper if the original is inaccessible.
4. Intersperse records with rigid cardboard inserts to keep from accidental bending.
5. Keep records tightly compacted to avoid wiggle room / slippage.
6. Return to sleeve immediately after use, and have fun!</span>
