I feel like we should but your teachers want more education time at my school we have 40 minutes of P.E
Answer:
This situation is an example of cross Price elasticity of Demand
Explanation:
If change in Price in Rental Company A doesn't necessitate change in prices in Rental companies B.C.D.E & F
Then the products A has on offer are not close substitutes to the rival companies
However where Rental company G lowers his price and it immediately triggers a Price reduction in Companies B to F, then obviously they offer similar products that are close substitutes and serve similar segment or channel of the Market Size. Thus failure to lower their Price will automatically see Customers rent cars more from Company G.
This situation is an example of cross Price elasticity of Demand
Answer:
Option (b) is correct.
Explanation:
(a) Net Income:
= Revenues - Expenses
= $77,000 - $48,600
= $ 28,400
(b) Retained earnings :
= Net Income - Dividend
= $ 28,400 - $7,700
= $20,700
(c) Stockholders' Equity:
= Total assets - Total Liabilities
= 185,000 - $105,000
= $80,000
Therefore, the retained earnings at December 31, 2016 were $20,700.
Explanation:
a.)
In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.
Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.
the cash equivalent is the same as the fair market value of the assets that were given or received..
b )
the account title that expenditure should be debited
1. 5000 paid for land
2. 200 paid is for factory machine equipment
3. 850 paid for delivery truck is for equipment
4. 17500 paid for parking lot is for land improvement
5. 250 paid for companies name to be printed on truck is equipment
6. 8000 paid for installation is for equipment
7. 900 paid for insurance policy on truck is prepaid insurance
8. 75 paid as license fee is for license insurance
