Answer:
$21,000
Explanation:
Preparation of income statement
Income statement of Pink Arrangements for the year ended December 31, 2018.
REVENUE:
Service Revenue 84,000
Less EXPENSE:
Insurance Expense (2,500)
Utilities Expense (1,500)
Rent Expense (12,000)
Salaries Expense (47,000)
NET INCOME 21,000
Therefore the Income statement of Pink Arrangements for the year ended December 31, 2018 will be shows the amount of $21,000
Answer:
you can get more of one good only by giving up some of another good
Explanation:
A production possibilities frontier shows the opportunity cost of producing one good instead of another. This way, as you follow the curve, the combination of goods will vary, increasing the production of one good but deceasing the production of the other.
Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative. Since resources are scarce, you must always give something up in order to obtain another thing, e.g. you give up your leisure time in order to study.
The purpose of this category of interview questions is to obtain factual information about the interviewee.
