Answer: Option (d) is correct.
Explanation:
Correct option: Market price is greater than marginal cost.
In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.
At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.
Therefore, option (d) is not true.
Answer:
D. $77,600
Explanation:
The $77,600 made to purchase equipment would be reported as a cash outflow in the investing activities section. This is because asset purchased such as equipment is an investment while the cash used to purchase the asset is regarded as cash outflow.
Dividends are recorded in the financing section, while cash paid for interest and paid to suppliers would be recorded in the operating activities.
Current balance in the general ledger cash account is $5,320
Explanation:
General ledger
Opening balance $4,000
(Add)
A note collected by a customer $1,000
interest collected by a customer $40
NSF check from a customer $300.
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$5,340
(Less) bank service charges $20
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Balance in the general ledger
cash account is $5,320
current balance in the ledger cash account =
( $4,000+ $1000+ $40+ $300- $20= $5320)
