Answer:
D. ceteris paribus condition
Explanation:
The Latin words “Ceteris paribus”, means “all other things remain the same”. It is an assumption usually included when by economists when stating laws or concepts such as demand and supply. Because, actually in the real word, it is feasible to eliminate other variables that might influence an outcome, aside the variables under study. So therefore, we assume all other variables remain constant, when stating the relationship between two variables. For example, when constructing a demand curve showing the relationship between price and quantity demanded, we assume that all other variables that can influence demand other than price, remain the same, which in reality might be difficult to isolate.
Answer:
a. Net income - Operating
b. Paid cash dividends - Financing
c. Issued common stock - Financing
d. Issued bonds - Financing
e. Redeemed bonds - Financing
f. Sold long-term investments - Investing
g. Purchased treasury stock - Financing
h. Sold equipment - Investing
i. Issued preferred stock - Financing
j. Purchased buildings - Investing
k. Purchased patents - Investing
Explanation
The statement of cash flows is basically made up of three sections: operating, financing and investing activity.
Statement of cash flows, using indirect method is simply a statement that records the cash inflows and outflows after adjusting for non-cash items.
- Operating activities comprise the adjustment of non-cash items that were already added or subtracted from the net income in preparing the income statement in line with accrual accounting. Then, it records the movement in current assets and liabilities.
- The Financing section comprises those activities that are geared towards improving the capital structure of the company like issuance of stocks, cash dividend payment, etc.
- Finally, the Investing activities are those activities involving purchase of equipment or any other assets that would be used in the course of the business to generate revenue.
Answer:
C. The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
Explanation:
The given table shows the inflation rates and price movement over the years. The hamburger had inflation effect and its price increased by almost $1. The price change will create burden on the consumer and they will have to pay for inflation differential.
Answer:
Here no loss would be recognized by Julian on the transfer of shares and his basis inn Apricot corporation would be $400,000.
Explanation:
In the case of transfer of share made by Julian ( from Lemon company to Apricot company ) , no loss would be recognized by him, as the loss or gain would have been recognized only when the sale was made but that didn't happened.
His basis in the Apricot corporation would be equal to his tax basis in the Lemon company, so therefore his basis is equal to $400,000.
