Answer:
d. net income for the year will be overstated.
Explanation:
The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are
Debit Prepaid rent
Credit Cash account
On subsequent use of the rent, the required entries are
Debit Rent expense
Credit Prepaid rent
As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.
Answer:
B. flextime plan.
Explanation:
A flextime plan is a schedule that allows employees to decide their start and finish hour which is what it is said in the case as Dee give her employees the option to choose when to begin and end their days. Also, this plan requires employees to always be at work at certain hours as it is indicated. This means that it is mandatory for employees to be at their job in certain times but out of that they can choose their schedule.
Answer:
Option (D) is correct.
Explanation:
Given that,
Current market price = $7.50
Average variable cost = $8.00
Average total cost = $8.25
It can be seen from the above information that current market price is less than the average variable cost, i.e, $7.50 < $8.00.
Mrs. Smith should shut down its production in the short run as well as in the long run until the point where current market price is greater than or equal to average variable cost.
Because the demand between points A and B is inelastic, a $25-per-bike increase in price will lead to an increase, in total revenue per day.
in order for a price decrease to cause a decrease in total revenue, demand must be inelastic.
<h3>What is the price elasticity of demand? </h3>
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
When the coefficient of elasticity is less than one, it means that demand is inelastic. When demand is inelastic, it means that the quantity demanded is not sensitive to changes in price.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
- change in quantity demanded = 40 - 35 = 5
- Average of both demands = (40 + 35) / 2 = 37.50
- Midpoint change in quantity demanded = 5 / 37.50 = 0.133
Midpoint change in price = change in price / average of both price
- Change in price = 100 - 125 = -25
- Average of both prices = (100 + 125) / 2 = 112.50
- Midpoint change in price = -25 / 112,50 = -0,222
Midpoint elasticity of demand = 0.133 / -0,222 = 0.6
To learn more about price elasticity of demand, please check: brainly.com/question/18850846
Answer:
66.67
%
Explanation:
The computation of the percentage of the portfolio should be invested in Treasury bills is shown below:-
Let us assume beta be x
So the equation would be
Percentage of portfolio = x × (Beta of stock) + (1 - x) × (Beta of T - Bills) - 1
= x × (1.5) + (1 - x) × (Beta of T - Bills) - 1
1.5x + (1 - x) × (Beta of T - Bills) - 1
1.5x + 0 = 1
x = 1 ÷ 1.5
= 0.67
or
= 66.67%
