Answer:
Answer B.
Explanation:
EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.
Answer and Explanation:
Perfect competition is a competitive market where there is a very wide number of buyers and sellers who offer the same or similar goods with great product and service information. Furthermore, this sector has free entry and exit
So it is a perfectly competitive market, also it cannot influence the market price also there are price takers
Also the given statement is false as it represents the monopoly market not the perfect competition market
Answer and Explanation:
a. This is a fundamental risk case since there is a loss possibility. As the attack is done by the terrorists and the loss is definite in terms
b. It is a property risk as the house is damaged in a fire that resulted into a financial loss
c. It is a personal risk case as the head of the family is totally disabled that directly impact the family which leads to non-fulfillment of the financial liabilities so ultimately its an income loss.
d. It is a case of speculative as the investor purchase 100 shares that resulted in either profit or loss
e. This is a case of fundamental risk as the overflow of the river impacts the property of thousands people
f. This is a case of financial risk as the risk impacted the opposite changes in the price of the commodity, rate of interest, etc
g. It is a speculative case as the worker could either win or loss
Answer:
From the buyer's point of view, the delivery charge would he referred to as “carriage inwards”. Any such carriage charges should be debited to the carriage inwards account in the general ledger. The carriage inwards account is written off to the trading account at the end of the accounting period.
Explanation:
Carriage inwards refers to the transportation costs required to be paid by the purchaser when it receives merchandise it ordered with terms FOB shipping point. Carriage inwards is also known as freight-in or transportation-in. Carriage inwards is considered to be part of the cost of the items purchased.
