True. <span>Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms that limit their liability while allowing them to take risks that may lead to greater profits. Organization forms refers to how a company organizes different organizations within the company. A great deal of focus and planning goes into deciding how an organization should structure themselves to be the most profitable. </span>
Answer:
The correct answer is letter "D": nominal interest rate; hold.
Explanation:
The demand of money refers to the amount of money people prefer to hold in cash instead of investment vehicles or assets. The demand for money is proportional to individuals' income and the interest rate. According to this approach, when the interest rates are higher, people prefer to invest. When interest rates fall, people prefer to hold cash.
Therefore, <em>the demand for money explains the relationship between the quantity of real money demanded and the nominal interest rate that people prefer to keep, remaining the same all other factors that influence the amount of money.</em>
Answer:
The correct option is Dana might be indifferent between C, A, and B.
Explanation:
Note: See the attached photo for the indifference curve showing points A, B and C.
The answer can be explained using an indifference curve.
An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.
In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.
Therefore, the correct option is Dana might be indifferent between C, A, and B.
Answer:
It will be reported as accrued expenses (c)
Explanation:
Accrued expenses represents amount owed for either serviced that has been enjoyed or goods that have been delivered but yet to be paid for.
Income statement is prepared on accrual basis, hence, these expenses will be recognized in the current period and matched with revenues generated.
Answer:
Two adjustments must be made to year 1's financial statements:
- The income statement must be adjusted since net income increased because cost of goods sold decreased.
- The balance sheet must be adjusted since retained earnings will increase because net income increased.
Explanation:
The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.
