Answer:
S/n Account Title and Explanation Debit Credit
a. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
b. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development
Explanation:
Unrelated Diversification is regarded as a diversification which takes place when a company adds an unrelated product to its business. For example, when an television manufacturer enters into a clothing business.
A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons except when the firm can acquire other firms with innovative products instead of allocating capital to research and development.
Answer:
The correct answer is option D.
Explanation:
Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication.
These employees work on several books simultaneously so a change in quantity demanded of books published in a year.
Since the number of people employed is fixed and does not change with the quantity of output. The cost incurred on these workers will be fixed cost. So the salaries and benefits of people in these people will be included in fixed costs and total costs. But since it does not change with change in the output it will not be included in variable costs.
Answer:
The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19
Explanation:
Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.
Where:
A = equal annual savings into the sinking fund (that is $627.45)
r = effective rate of the sinking fund (14%)
n = 10 years
Everything should look like this.
Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.
Best of luck.
<u>Explanation:</u>
A. This is the case of Cyclical unemployment here lorraine is just graduated and does not find any job inspite of applying with many of the employers. Here the economic condition of the country is below its full capacity.
B. It is example of potential frictional unemployment as George takes time to move on from current job to a part time job. Frictional unemployment is the time taken to move from one job to another.
C. This is an example of structural and technological unemployment as there is a mismatch between the labor market required skills and the skills of the candidate. Christine has bank teller skills but it is not matched with skills expected by banks.
D. It is called as frictional unemployment where Ricardo is out of job due to lay off by the company. The period between a jobless situation and job is frictional unemployment.
