Answer:
a) decrease in equilibrium price and an increase in equilibrium quantity.
Explanation:
As the input cost decreases for the companies the the supply of the goods increases hence the supply curve shifts rightwards.In the curve at the new equilibrium point the equilibrium price decreases and the equilibrium quantity increases.
Think it like if cost of creating anything is decreased for a company then the company will create more products .So there will be more products in the market.So to clear the products in the market the price will be reduced and the quantity of the product is more than before.
Answer:
The correct answers are the following:
a - 4 Sunk
b - 5 Opportunity
c - 3 Fixed
d - 2 Variable
e - 6 Incremental
f - 1 Recurring
g - 7 Direct
h - 8 Non-recurring
Explanation:
a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.
b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.
c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.
d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.
e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.
f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.
g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.
h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.
Answer:
debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.
Explanation:
Answer:
Primarily for the benefit of persons outside of the business organization.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Thus, it includes balance sheet, statement of retained earnings and income statement. The information that are found in a financial statement are revenues, expenses, liability, equity and assets.
Hence, the primary objective of financial accounting is to provide accounting information for external users so as to enable them have a good understanding of the financial inclination of a business firm and thus, make an informed decision whether or not to invest in the business firm.
In Accounting, the external users of a financial accounting information includes customers, creditors, investors shareholders and government regulators.
