Answer:
b. Continue operating as the firm is covering all the variable costs and some of the fixed costs
Explanation:
A firm should shutdown operations if its price is less than average variable cost.
The price the firm sells is $15
Average variable cost is $10.
Price is greater than average variable cost in excess of $5.
The $5 covers some of the average fixed cost.
I hope my answer helps you
Answer:
Statement of retained earnings.
Explanation:
The prior period adjustment refers to the adjustment in which there is an accounting error in the previous period and i.e to be reported in past year period but now it would be corrected in the financial statement. This adjustment we called prior period adjustment
Moreover, it should be reported in the statement of retained earnings
Hence, the second last option is correct
Answer:
April 1 The company issued 9,000 stocks at $11 per stock
- Dr Cash account 99,000
- Cr Common Stock account 99,000
June 15 Cash dividends are declared $1.50 per stock
- Dr Retained Earnings account 103,500
- Cr Dividends Payable account 103,500
July 10 The company paid the dividends
- Dr Dividends Payable account 103.500
- Cr Cash Account 103,500
December 1 The company issued 4,000 stocks at $12 per stock
- Dr Cash account 48,000
- Cr Common Stock account 48,000
December 31 Cash dividends are declared $1.60 per stock
- Dr Retained Earnings account 116,800
- Cr Dividends Payable account 116,800
Answer:
b, c and a
Explanation:
Ability to pay principle refers to an economic principle that states that the amount of tax an individual pays should be <u>dependent on the level of burden the tax will create relative to the wealth</u> of the individual.
Based on the above definition, the first category will be:
1. Local property taxes support elementary and secondary schools. <em>This tax will definitely generate the biggest tax burden of the 3 cases in the scenario.</em>
2. An airport trust fund collects a tax on each plane ticket sold and uses the money to improve airports and the air traffic control system. <em>Obviously this tax will be of a higher burden than paying national park entrance fees but will not be as heavy as local property taxes</em>
3. Visitors to many national parks pay an entrance fee. <em>Park entrance fees will be of the lightest burden of the three cases in the scenario.</em>
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Answer:
d. through bonds
Explanation:
Debt financing is a way of raising money by selling debt instruments to investors such as bills, notes or bonds. The company will pay back the debt instrument with some interest after a certain time. Debt financing is the opposite of equity financing where the company selling stocks and share ownership of the business.
