Answer:
b. the many competitors will focus on product differentiation.
Explanation:
In monopolistic competition, firms are price takers, that is to say, the price is given by the market (by the many forces of supply and demand: that is to say, firms and consumers), and as result, firms cannot influence the price of the goods.
For this reason, the firms try to distinguish themselves from their competitors by the product differentiation strategy: they try to offer a product that is different in some way: either of higher quality, or that provides more benefit, or that is more aesthetically pleasing, and so on.
Answer:
$0
Explanation:
When the closing entries are recorded, so the net profit or net loss would be transferred to the retained earning account with the help of the closing entries
Therefore after closing entries posting, the balance in the income summary account would be zero and the same is to be considered
hence, the balance would be zero
Answer:
Reflected in current and future years' financial statements, not in prior statements.
Explanation:
A change in accounting estimate can be defined as a necessary adjustment of the book value or carrying value (cost of an asset in the balance sheet minus its depreciation) of an asset, which usually arises as a result of the assessment of its current status, expected benefits in a future date and obligations with respect to the assets.
Hence, a change in an accounting estimate is reflected in current and future years' financial statements, not in prior statements. This simply means that, a change in accounting estimate should be accounted for prospectively by the accountants; this is in accordance with the International Accounting Standards Board (IASB), International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP).
Also, note that a change in an accounting estimate is not necessarily a correction of errors, rather it arises as a result of change in information or a new development regarding the asset or liability. Examples of informations that are being changed in an accounting estimate are; depreciation, warranty liability, bad-debt allowance etc.
<em>Additionally, a change in an accounting estimate does not require the accountant or financial expert stating the previous financial statement. </em>
Answer:
The answer is the first one: The property taxes on a fixed-rate mortgage never get any higher.
