Answer:
A business owner pays for rent and equipment at their office ⇒ FIXED COSTs since the amount of rent paid should be the same year after year
An airline considers the costs of serving food and beverages to its passengers ⇒ VARIABLE COSTS since the cost of serving food will increase as the number of passengers increase, or will decrease if the number of passengers decrease
A company considers the costs it pays to its employees ⇒ VARIABLE COSTS since the number of employee can vary and the number of hours worked can also vary
A clothing manufacturer buys new machines for its factory ⇒ FIXED COSTS since the machines are depreciated at a predetermined rate that doesn't depend on the factory's output
Answer:
$360,000
Explanation:
Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.
An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.
The loss reported in May will be reported for that quarter in June.
Answer:
The rate of return is 7.20%
Explanation:
a) Assuming you purchased the bond for $880, in order to calculate the rate of return you earn if you held the bond for 25 years until it matured with a value $5,000 we would have to calculate the following formula:
Rate of Return = [FV/PV]1/n - 1
Rate of Return= [$5,000 / $880]1/25 - 1 = [5.6818]0.04 - 1 = 1.0720 - 1 = 0.0720, or 7.20%
Rate of Return= [5.6818]0.04 - 1
Rate of Return= 1.0720 - 1
Rate of Return=0.0720, or 7.20%
The rate of return is 7.20%
Answer and Explanation:
The indication of the following transactions for the cash flow statement is given below:
a. Operating activities
b. Operating activities
c. Financing activities
d. Financing activities
e. None
f. Financing activities
g. Investing activities
h. Investing activities
i. Operating activities
j. OPerating activities
Answer:
Businesses that produce good products are rewarded with profits
Explanation:
In the free enterprise system, governments do not interfere with economic activities in the country. The private sector does all the production and distribution of goods and services.
No restrictions are put in place on the type or number of businesses that entrepreneurs can operate. Due to this reason, business competition is very intense. Customers choose their preferred products from a wide variety offered by the many suppliers. Producers who make products that satisfy customers' needs are rewarded with profits.
