Answer: d) Dividends cause equity to decrease.
Explanation:
Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.
In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.
Answer:
See notes below
Explanation:
Rate variance
The rate variance is the the difference between the standard labor cost of the actual hours paid for and the actual cost.
<em>Possible reasons:</em>
An increase in wage rate
Skilled workers were as against using the unskilled workers planned for
Efficiency variance
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate
<em>Possible reasons:</em>
The use of skilled workers who worked faster than the unskilled workers planed for
The workers were trained making them more efficient in saving time
Answer:
$4,697.04
Explanation:
In simple words , this question requires us to find the Future Value in 5 years time. We compound the Present Value using the effective interest rate to determine the Future Value of an investment.
<em>PV = $3,000.00</em>
<em>P/YR = 12</em>
<em>N = 5 x 12 = 60</em>
<em>I = 9 %</em>
<em>PMT = $0</em>
<em>FV = ?</em>
Using a Financial calculator to enter the parameters as above the Future Value (FV) is $4,697.04
therefore,
In 5 years time, you will have $4,697.04.
Answer:
a) The demand curve for unskilled labor is vertical.
Explanation:
Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the Group of answer choices demand curve for unskilled labor is vertical.
Response to prices depend on the elasticity of demand because elasticity of demand relates to how quantity demanded will fall as a result of increase in price or in this case wage rate.
A vertical demand curve is a pictorial demonstration of a perfectly inelastic demand which means that no matter how much to you increase the price no change will occur in quantity demanded as such a good is most essential to the consumers.
Therefore if the demand for labor is perfectly inelastic, it means nobody will be laid off with increase in wage rate as firms will not change their quantity demanded for labor.
Answer:
Price discrimination
Explanation:
Price discrimination is charging customers differently for the same product.
Price discrimination is a type of selling strategy where customers are charged for same goods and services. The seller charges based on what they think that the user is likely to pay.
