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SpyIntel [72]
3 years ago
8

The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil ma

rket into turmoil . . . [leading to] the lowest price for domestic crude oil since June 1990."a. trueb. false
Business
1 answer:
slega [8]3 years ago
6 0

Answer: The correct answer is a. true.

Explanation: If there is a supply glut and demand is falling, there will definitely be a fall in price. The same principle applies if Organization of Petroleum Exporting Countries (OPEC) disagree to cut production, price for domestic crude oil would fall.

The scenario above is similar to the recent happenings regarding the impacts of coronavirus on global economy and is very fresh in our memories. According to the TheNation Newspapers, "oil prices tanked more than seven per cent at the weekend to their lowest levels since mid-2017 after Russia balked at OPEC's proposed steep production cuts to stabilize prices."

OPEC is proposing a cut in oil production, but if this is not done, the impact on Brent would be devastating as the price would fall further.

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Identify each statement as true or false. If false, indicate how to correct the statement.
bekas [8.4K]

Answer:

1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

3. False: When a corporation is formed, organization costs are recorded as an asset. It is false because organization costs are recorded as expenses.

4. True: Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

5. False: The number of issued shares is always greater than or equal to the number of authorized shares. It is false because the number of issued shares is always less than or equal to the number of authorized shares.

6. False: A journal entry is required for the authorization of capital stock. It is false because journal entry is not required for the authorization of capital stock but for issuance.

7. False: Publicly held corporations usually issue stock directly to investors. It is false because publicly held corporations issue stock indirectly to investors via investment banking institutions while privately held corporations issues stock directly.

8. True: The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

9. False: The market price of common stock is usually the same as its par value. It is false because there isn't any relationship between market value of common stock and its par value.

10. False: Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. False because retained earnings refer to the total amount of net income held by a corporation for its future use.

3 0
2 years ago
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,100 of its accounts receiv
Sidana [21]

Answer:

(During write-off) March 11

Dr    Bad debt expense                     $9,100

Cr    Accounts receivable                  $9,100    

(at the time of collection) March 29

 Dr Accounts receivable                      $9,100    

 Cr Bad debts expense                        $9,100

 

  Dr Cash                                              $9,100

  Cr  Accounts receivable                   $9,100

Explanation:

On March 11, Dexter made an entry to write-off bad debts in the amount of $9,100. Dexter Co., charged it directly to Accounts receivable because the company uses direct write-off method. During the collection we have 2 steps to consider; First, On March 29 during the unexpected collection, Dexter shoud set up the reversal of the write-off entry which they had made last March 11. So we debit Accounts receivable and credit bad debts in the amount of $9,100. Second, is to record the collection, debit cash and credit Accounts receivable in the amount of $9,100.

5 0
3 years ago
Jack Corporation uses horizontal analysis to compare its income statement from year to year. Jack Corporation reported the follo
fredd [130]

Answer:

Current year cost of goods sold is $181,800.

Explanation:

The current year cost of goods sold is calculated as follows:

Current year cost of goods sold = Last year cost of goods sold + Current year change

= $180,000 + ($180,000 * 1%)

= $180,000 + $1,800

= $181,800

Therefore, current year cost of goods sold is $181,800.

6 0
3 years ago
A company can deem an employee as salaried if they
Marysya12 [62]
A company can deem an employee as salaried if the employee works at least 40 hours a week for a month.
5 0
3 years ago
Read 2 more answers
The efficient markets hypothesis holds only if all investors are rational. True or false?
DiKsa [7]

Answer:

This is true, the efficient market hypothesis only holds if all the investors are rational, for example if an investor is not rational and wants to make a loss instead of profit, then the efficient market hypothesis wont hold as the investor will be acting in a way that wont benefit him. When the investor acts irrationally, then he wont react correctly to the information he has and buy or sell stocks which he isn't supposed to buy or sell and this will change the price of the stock from what the price of the stock should be.

Explanation:

5 0
2 years ago
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