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3 years ago

The law of supply relates to opportunity cost because:__________

Business

2 answers:

uranmaximum [27]3 years ago

4 0

Answer:

both options are the same.

A) The opportunity cost to suppliers is the value of the next-best alternative they had when they supplied that good.

G) The opportunity cost to suppliers is the value of the next-best alternative they had when they supplied that good.

Explanation:

The law of supply states that the opportunity cost of a supplier not supplying the product will increase as the price of the product increases, therefore the supplier will be more likely to supply the product. As the price of the product decreases, the opportunity cost of not supplying the product also decreases, therefore, the supplier will be less likely to supply the product.

erastovalidia [21]3 years ago

4 0

Answer:C when a consumer chooses to purchase a product, then the consumer gives up opportunity cost

Explanation: opportunity cost ,is the cost of the alternative given up to purchase a particular good by a consumer while supply is the amount of good or services that a supplier is ready to sell at a particular price and time.

So the opportunity cost of an alternative or substitute determine the amount of goods that will be in demand ,i.e the higher the opportunity cost of an alternative,the more goods that will be required for purchase and the higher the the goods required to be sold by the supplier.

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Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to

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Answer: See explanation

Explanation:

a. Record the warranty accrual at the time of sale in 2020.

Debit Warranty expense = $250,000 × 1% = $2,500

Credit Warranty Liability $2,500

(To record the warranty accrual)

b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.

Debit Warranty Liability $800

Credit Cash and Payables $800

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3 years ago

The following are selected 2017 transactions of Sean Astin Corporation.

Vadim26 [7]

Answer and Explanation:

The Journal entries are shown below:-

A. a. Purchase Dr, $50,000

To Accounts payable $50,000

(Being purchase of inventory is recorded)

b.Accounts payable Dr, $50,000

To Notes payable $50,000

(Being issuance of notes is recorded)

c.Cash Dr, $50,000

Discount on notes payable Dr, $4,000

To Notes payable $54,000

(Being amount borrowed from bank and issued notes is recorded)

B. a. Interest expenses Dr, $1,000 ($50,000 × 8% × 3 ÷ 12)

To Interest payable $1,000

(Being interest expenses is recorded)

b. Interest expenses Dr, $1,000 ($4,000 × 3 ÷ 12)

To Discount on notes payable $1,000

(Being interest expenses is recorded)

C. The Computation of interest-bearing note and the zero-interest-bearing note is shown below:-

Interest-bearing note = Note payable + Interest payable

= $50,000 + $1,000

= $51,000

Zero-interest-bearing note = Note payable - Discount

= $54,000 - ($4,000 - $1,000)

= $54,000 - $3,000

= $51,000

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3 years ago

A study was done on the campus of a major state institution to measure attitudes of students to-wards the recent fee increase. O

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Answer: Ordinal scale.

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3 years ago

Discuss national income

Anni [7]

Explanation:

The overall amount of a government's finished product of any and all additional goods produced and services provided with one year is national revenue. The guiding principle for economics and finance is recognizing how national income is produced.

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3 years ago

The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjus

White raven [17]

Answer:

Woods Company

Accounts Requiring Adjustment, Type of Adjusting Entry, and the Related Account:

Account Type of Adjustment Related Account

a) Account receivable Accrued revenue Service revenue

b) Prepaid insurance Prepaid expense Insurance expense

c) Equipment Not required Not required

d) Accumulated depreciation Accrued expense Depreciation expense

e) Notes Payable Not required Not required

f) Interest Payable Accrued expense Interest expense

g) Unearned service revenue Unearned revenue Service revenue

Explanation:

End of period adjustments are made to accounts in order to bring them in line with the accrual concept and matching principle of accounting. These principles require that expenses and revenues for the period are matched in order to determine the appropriate profit generated for the period. The implication is that transactions are recorded when they are incurred and not when cash is exchanged. For example, if rent expense is incurred for the year and payment is made in the following year, the expense must be recognized in the current year. The same applies to revenue.

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3 years ago