Answer: Option A
Explanation: In a free market structure, the majority of resources in the economy are owned and controlled by the private owners. The prices of commodities produced in such a market structure are determined by the market forces of demand and supply.
The rules and restrictions imposed by the govt. in such a market structure exists but at a very small extent. The govt. in such a market structure controls only those industries which are important for national security and development.
Answer: The correct answer is "b) the lessor records a receivable for the present value of lease payments.".
Explanation: In an operating lease <u>the lessor records a receivable for the present value of lease payments.</u>
In this case, only the lessor must register its credit with the lessee because the operating leases are determined as financing outside the balance sheet, therefore a leased asset and associated liabilities of future rental payments should not be presented in the general balance of a company, with the objective of keeping the debt to capital ratio low.
Answer:
Materiality of the assets
Explanation: Materiality is known to as misstatements, including omissions, and these are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Answer:
d.factory overhead and direct labor
Explanation:
The conversion cost is a mix of the direct labor and the factory overhead or the manufacturing overhead
In mathematically,
Conversion cost = Direct labor + factory overhead
It is that cost which includes direct labor cost and manufacturing overhead cost only. It means that it excludes the direct material cost. Like - depreciation, factory rent, factory supplies, etc
The answer to this question is the last item in the choices which is "decrease consumer surplus". Thus, we have it like along a given downward-sloping demand curve, an increase in the price of a good will also result to decrease consumer surplus. Also, when decrease consumer surplus is happening it will effect also to increase producer surplus.
