Answer:
Paid $325 cash for salaries expense ⇒ Decrease asset (Cash); Decrease in Equity (Expenses)
Assets are reduced because the money used to pay for the salaries came from cash and cash is an asset. Assets will therefore be credited.
Equity also reduces because expenses come out operating income which is part of Equity. Equity will be debited as it is debited when it decreases.
Answer:
allowance for uncollectible accounts
Explanation:
The cash budget represents the cash inflow and cash outflow position with respect of cash receipts and cash payments i.e cash disbursement plus it also involves financing needs i.e how much amount is to be borrowed
But it does not involve the allowance for uncollectible accounts as it is not shown in the cash budget because it is shown under the debtors side with the negative amount of the balance sheet
Like
Assets
Current Assets
Account receivable XXXXX
Less: Allowance for uncollectible accounts XXXXX
Net account receivable XXXXX
Answer: Please refer to Explanation
Explanation:
Sometimes Monopolies need to be regulated to ensure the protection of consumers from unfair pricing business strategies.
The below are some of the ways the Government does so.
A firm is allowed to price its product so that it earns a normal return on capital invested. RATE of RETURN REGULATION.
Firms are directed to charge the price associated with the extra cost of making each unit. This pricing rule often leads to firms earning a negative profit. MARGINAL COST PRICING RULE.
Firms charge a price that allows them to earn only a normal economic profit. AVERAGE COST PRICING RULE.
This places maximum limits on the price firms can charge for a good or service. PRICE CAPS.