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3 years ago

A basic concept in economics is that all resources are scarce. Allocated. Valuable. Renewable.

Business

2 answers:

DIA [1.3K]3 years ago

7 0

A basic concept in economics is that all resources are scarce.

<h3><u>Explanation:</u></h3>

There are wants, needs and desires that are unlimited in nature with respect to humans. Resources are very essential for the survival of human beings. The distribution of these scare resources is studied by the Economics. Free goods refer to those goods that come without any cost associated with that.

The resources that are available naturally is scarce because there are only finite quantity available for the utilisation. Some of the examples of scarce resources include raw materials, workers, etc that are very essential for the production of the scarce goods.

maksim [4K]3 years ago

3 0

Answer: scarce

Explanation: edg 2020

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Identify the accounting concept, assumption, or principle that best applies to each of the following situations: a. Inflation

lianna [129]

Answer:

The list is follows:

a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption

b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle

c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle

d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption

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3 years ago

Carl Critic has just announced his choices of the worst Hollywood actresses of the year, and Stella Starr has been named the wor

Alekssandra [29.7K]

Answer: No, this was merely Carl's opinion.

Explanation:

Labelling a statement as an opinion generally protects the person who said it from defamation suits however this is not always the case.

If the opinion is based on disclosed and well known facts, the action is free of defamatory or libel charges.

This seems to be the case in this scenario as his column seems to be based on the performances for the year.

Bottomline is, Stella cannot sue Carl for libel as it is his opinion.

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3 years ago

For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.

Gnom [1K]

Answer:

Alice's consumer surplus = $5

Jeff's consumer surplus = $16

Nicole's producer surplus = $1

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.

Consumer surplus = willingness to pay - price of the good

Producer surplus is the difference between the price of a good and the least price the producer is willing to accept

Producer surplus = price of the good - least price the producer is willing to accept

Alice's consumer surplus = $30 - ($35 - $10) = $5

Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16

Nicole's producer surplus = $501 - $500 = $1

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3 years ago

Problem 20-40 (LO. 3, 8) Citron, a calendar year taxpayer, began business in January 2017. It had a long-term capital gain of $5

Fittoniya [83]

Answer:

Explanation:

A. Provision of long term capital gain as An Individual.

Long-term capital gain of $5,000 in 2017 is taxable in 2017 as a longterm capital gain @15%

And long term capital loss of $10,000 in 2018 is either sett off to the capital gain or capital loss upto $3,000 can be settoff from normal income above this limit can be carry forword for next year.

Three maximum federal income tax rates apply to most types of net long-term

capital gains income in tax year 2018:

1. 0 percent for taxpayers in the 10 percent or 15 percent bracket for ordinary income (under $73,800 for married joint filers)

2. 15 percent for taxpayers above the 15 percent bracket but below the 39.6 percent bracket (from $73,800 to $457,600 for married joint filers)

3. 20 percent for taxpayers in the top 39.6 percent bracket ($457,600 or higher for married joint filers)

B. Provision of long term capital gain as An C corporation.

C corporation deduct capital loss upto theire capital gain.

If in any tax year apital loss exceed capital gain than it can not be deduct from other income of same year.

Therefore loss of $10,000 can be carry forward for next year.

C. Provision of long term capital gain as An S corportation.

S corporations are pass-through entities, which means that the company itself does not pay taxes on the sale of its assets. Rather, the income from the sale of its assets passes through to the shareholder, who is responsible for paying taxes.

8 0

3 years ago

Simon Company’s year-end balance sheets follow.At December 31 2017 2016 2015Assets Cash $ 36,335 $ 42,472 $ 42,524 Accounts rece

mina [271]

Answer:

(1) Debt Ratio in 2017 = 44.57%; Debt Ratio in 2016 = 39.33%; Equity Ratio in 2017 = 55.43%; and Equity Ratio in 2016 = 60.67%.

(2) Debt-To-Equity Ratio in 2017 = 80.42%; and Debt-To-Equity Ratio in 2016 = 64.83%.

(3) Times Interest Earned in 2017 = 4.71 times; and Times Interest Earned in 2016 = 4.22 times.

Explanation:

(1) Calculation of debt and equity ratios

Debt ratio is a ratio that is used to measure the ability of a company to pay off its liabilities with its assets. Debt ratio can be calculated using the following formula:

Debt Ratio = Total Debt / Total Assets

We can then calculate as follows:

Total debt = Accounts payable + Long-term notes payable secured by mortgages on plant assets

Total debt in 2017 = $159,605 + $120,505 = $280,110

Total debt in 2016 = $89,723 + $123,354 = $213,077

Total assets in 2017 = $628,417

Total assets in 2016 = $541,739

Debt Ratio in 2017 = $280,110 / $628,417 = 0.4457, or 44.57%

Debt Ratio in 2016 = $213,077 / $541,739 = 0.3933, or 39.33%

Equity ratio is a ratio that is used to measure the amount of assets of a company that are financed by the investments of the owners of the company. Equity ratio can be calculated using the following formula:

Equity Ratio = Total Equity / Total Assets

We can then calculate as follows:

Total equity = Common stock, $10 par value + Retained earnings

Total equity in 2017 = $162,500 + $185,807 = $348,307

Total equity in 2016 = $162,500 + $166,162 = $328,662

Equity Ratio in 2017 = 0.5543, or 55.43%

Equity Ratio in 2016 = 0.6067, or 60.67%

(2) Calculation of debt-to-equity ratio.

The debt-equity ratio provides the proportion of financing of a company that is contributed by creditors and investors. Debt-equity ratio can be calculated using the following formula:

Debt-To-Equity Ratio = Total Debt / Total Equity

Using the data in part (1) above, we can then calculate as follows:

Debt-To-Equity Ratio in 2017 = $280,110 / $348,307 = 0.8042, or 80.42%

Debt-To-Equity Ratio in 2016 = $213,077 / $328,662 = 0.6483, or 64.83%

(3) Calculation of times interest earned

The times interest earned ratio is a ratio that is used to determine the proportionate amount of income that that is required to cover interest expenses. The times interest earned ratio can be calculated using the following formula:

Times Interest Earned = Earnings before interest and tax (EBIT) / Interest expenses

We can then calculate as follows:

EBIT = Sales - Cost of goods sold - Other operating expenses

EBIT in 2017 = $816,942 - $498,335 - $253,252 = $65,355

EBIT in 2016 = $644,669 - $419,035 - $163,101 = $62,533

Interest expenses in 2017 = $13,888

Interest expenses in 2016 = $14,827

Times Interest Earned in 2017 = $65,355 / $13,888 = 4.71 times

Times Interest Earned in 2016 = $62,533 / $14,827 = 4.22 times

7 0

3 years ago