Answer:
Share capital in the shareholders equity section
Explanation:
The balance sheet is structured according to the accounting formulae
Asset = Liabilities + Owners Equity
When a company raises capita by the issuing of securities or is referred to as share capital.
The securities issued are common stock or preferred stock.
There is a maximum amount that a company can raise from the sale of shares and this is called authorised share capital.
Share capital is a line item that is reported under Owner equity section of the balance sheet.
Answer: Trade creation
Explanation:
Trade creation is the increase in economic welfare which occurs when a country joins a free trade area, like the customs union. Trade creation will happen when the ltariff barriers has been reduced which leads to lower prices.
Trade creation leads to lower cost on producers which will lead to a rise in economic welfare and consumer surplus. Trade creation also leads to expansion of trade.
Answer:
Option (a) is correct.
Explanation:
Given that,
Sales = $700,000
Beginning total assets = $240,000
Ending total assets = $280,000
The asset turnover ratio refers to the ratio of sales to the average total assets.
Average total assets:
= (Beginning total assets + Ending total assets) ÷ 2
= ($240,000 + $280,000) ÷ 2
= $260,000
Therefore, the asset turnover ratio is as follows:
= Sales ÷ Average total assets
= $700,000 ÷ $260,000
= 2.69
Answer:
Difficulty managing public investment so it's done in a cost effective way
Explanation:
An Economy
This is simply known as a well arranged means by which nations supply or provide for the needs and wants of its people.
Resources
This are simply all the materials or things that is put in place that is used in producing goods and services.
Factors of production includes land, labor, capital, and entrepreneurship.
The reasons for government intervention is due to the allocation function, market failure occurs in case of Public Goods, externalities, Insufficient Competition; distribution function and stabilization function. Government influences decision making by establishing legal framework within which businesses and households operate.
Answer:
Debit : Cash $2,400
Debit : Account Receivables $3,300
Credit : Revenue $5,700
Explanation:
Revenue is recognized when a firm transfers the control of goods or services not when paid.
So this journal must both recognize the Assets in Cash and Assets in Trade Receivables since control for the services has already been transferred.
The journal entry at the end of the month to record this transaction would be :
Debit : Cash $2,400
Debit : Account Receivables $3,300
Credit : Revenue $5,700
