All categories

2 years ago

Shelly purchases a leather purse for $400. One can infer that:

Business

1 answer:

denpristay [2]2 years ago

8 0

Answer:

B. her reservation price was at least $400.

Explanation:

Reservation price: It shows a limit on a price of purchase and selling of products and service rendering.

In the demand side, this price represents the higher price that the buyer is willing to pay to purchase the goods whereas, on the supply side, this price represents the lower price that the seller is willing to sell the goods.

In this question, the Shelly purchase a leather purse for $400 which means the minimum price would be $400

So, all other options except B are incorrect as option B is the most appropriate.

You might be interested in

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 9,619 Accounts r

abruzzese [7]

Answer:

46.07 days

Explanation:

Calculation for the firm's days' sales uncollected for the year

Using this formula

Days' Sales Uncollected Ratio = Ending Accounts Receivable/Net Sales * 365

Let plug in the formula

Days' Sales Uncollected Ratio = ($76,422/$605,500) * 365

Days' Sales Uncollected Ratio = 46.067 days

Days' Sales Uncollected Ratio = 46.07 days Approximately

Therefore the firm's days' sales uncollected for the year is: 46.07 days

5 0

3 years ago

"DEF Corporation, after many profitable years, declares a one-time special cash dividend of $5.00 per share. After the announcem

Tju [1.3M]

Answer: B. 1 DEF Jan 50 Call

Explanation:

The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.

When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.

In this case it will do so by subtracting the dividend from the call;

= 55 - 5

= $50

The customer will then have 1 DEF Jan 50 Call .

8 0

3 years ago

May 24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000.

zubka84 [21]

Answer:

Date General Ledger Debit Credit

May 24 Accounts Receivable-Old Town Café $18,450

Sales $18,450

Cost of goods sold $11,000

Inventory $11,000

Sept. 30 Cash $6,000

Allowance for Doubtful Accounts $12,450

Accounts Receivable-Old Town Cafe $18,450

Dec. 7 Accounts Receivable-Old Town Cafe $12,450

Allowance for Doubtful Accounts $12,450

Cash $12,450

Accounts Receivable-Old Town Cafe $12,450

7 0

3 years ago

All economic questions and problems arise from ____.

Fiesta28 [93]

All economic questions and problems arise from <span>C. scarcity. scarcity is defined as the lack of resources and is the opposite of abundance. If scarcity such as famine is experienced by a country or nation, there arise questions why such state happened</span>

3 0

3 years ago

Read 2 more answers

Rayya company purchases a machine for $105000 on january 1, 2019. Straight-line depreciation is taken each year for four years a

klio [65]

Answer:

Journal entry For Depreciation

Date Account and explanation Debit Credit

July 1 Depreciation expense $7,500

(105000/7)*6/12

Accumulated depreciation-Machine $7,500

(To record Depreciation)

1) Journal entry

Date Account and explanation Debit Credit

July 1 Cash $45,500

Accumulated depreciation-Machine $67,500

Machine $105,000

Gain on Sale of Machine $8,000

(To record sale of Machine)

2) Journal entry

Date Account and explanation Debit Credit

July 1 Cash $25,000

Accumulated depreciation-Machine $67,500

(105000/7*4.5)

Loss on sale of machine $12,500

Machine $105,000

(To record sale of Machine)

6 0

2 years ago