Answer:
Reallocate spending from magazines to newspapers.
Explanation:
We are only given the utility provided by the last newspaper and the last magazine, but in order to answer the question I will consider that the utility remains the same from the first to the last unit.
Frank obtains 10 utils from purchasing each magazine and each newspaper:
- magazine = $5 / 10 utils = $0.50 per util
- newspaper = $2.50 / 10 utils = $0.25 per util
Frank obtains twice the utils from each dollar spent on newspapers than on magazines, so he should spend more money on newspapers.
This shorter payback period is positive and beneficial to the consumer, as it allows for harmony with amortization expenses.
We can arrive at this answer because:
- A short payback period is beneficial because of its relationship to amortization, as long-term debt allows this amortization to take place.
- These amortization expenses allow the cost of long-term assets to be represented in the payment.
- However, when the short-term payback period allows for amortization, causing the asset's value to be reduced by the amount that will be paid by the consumer.
In this case, we can state that in cases like the one shown in the question above, the short payback period is very beneficial and interesting to the consumer, as it can promote economic benefits.
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I believe the answer is 4. The purpose of ethics training is to enable employees to identify and deal with ethical problems developing their moral intuitions which are implicit in every day choices of action. That is to train the employees on how to address every ethical situation they encounter in daily operations of the organization. This involves learning how to solve ethical dilemmas, identifying causes of unethical behaviors and learning how to develop a code of ethics among others.
Answer:
Office Supplies T-account
<u>Debit :</u>
Beginning Balance $600
Purchases $2,300
Totals $2,900
<u>Credit:</u>
Ending Balance $500
Used (<em>Balancing Figure</em>) $2,400
Totals $2,900
Adjusting Entry
Supplies Expenses $2,400 (debit)
Office Supplies $2,400 (credit)
Posting Entries.
1. Supplies Expense = $2,400 (Debit Balance)
2.Office Supplies = $500 (Debit Balance)
Explanation:
As the supplies are used during the period, recognize an expense : Supplies Expense and de-recognize the Office Supplies Asset account to the extend of the amount of inventory used during the period.
In other words we are taking out an expense (Increasing it) and decreasing an asset : Office Supplies.
