The correct answer is market price.
Market price is the price that you normally pay when you want to buy something. This price is usually higher than what the store that is selling it got it from the manufacturer, because it is buying the product in bulks. You as a consumer will have to pay this price when all discounts, allowances, and rebates are subtracted.
Answer: $770.22
Explanation:
If she makes equal contributions then those would be annuities. The $9,000 she wants to have will be the future value of the amount currently in her account and the annuity.
9,000 = 5,000 ( 1 + r) ^ n + ( annuity * future value interest factor of an annuity, 9%, 3 years)
9,000 = 5,000 ( 1 + 9%) ^ 3 + ( Annuity * 3.2781)
9,000 = 6,475.145 + 3.2781 * Annuity
Annuity = (9,000 - 6,475.145) / 3.2781
Annuity = $770.22
Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
Explanation:
Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.
It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.
Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.
It goes to the stockholders
Answer:
If Morocco produces 120 belts and exports 70 belts:
- it will receive 105 swords (= 70 x 1.5)
- it will consume 50 belts (its domestic consumption of belts will decrease by 10)
Explanation:
Without trade, Morocco will produce 60 swords and 60 belts and consume them all, but if it engages in trade, it will produce 120 belts.
- Morocco's opportunity cost of producing one belt = 60 / 60 = <u>1</u>
- Morocco's opportunity cost of producing one sword = 60 / 60 = 1
- Estonia's opportunity cost of producing one belt = 100 / 40 = 2.5
- Estonia's opportunity cost of producing one sword = 40 / 100 = <u>0.25</u>
If Morocco produces 120 belts and keeps current consumption level:
- it consumes 60 belts
- it can trade 40 belts for 60 swords
- it will have a 20 belt surplus production
If Morocco produces 120 belts and exports 70 belts:
- it will receive 105 swords (= 70 x 1.5)
- it will consume 50 belts