Answer: True
Explanation:
Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.
Fir example, if the government wants to decrease consumption in the economy, the government can increase tax. On the other hand, the government can increase consumption by reducing tax as people will have money to spend and also more money for production purpose.
In terms of evaluating balance sheet, the two primary
questions that are being formulated are the following;
-
The assets are financially secure or stable
-
The firm has assets that are sufficient and are
short term in means of having debts that are only short and temporary.
Answer:
Dr. Cr.
Work-in-Process Inventory - Dept. 2: 750
Work-in-Process Inventory—Dept. 1: 750
Explanation:
All the cost incurred in the department 1 was added in the work in process account of this department. While transferring the product from one department to other the cost of work in process will also be transferred to next department to accumulate all costs associated with the product. At the end the finished goods will be carrying all the cost incurred to manufacture that product. Due debit nature of WIP account the cost in transferred to next department's account by just crediting the WIP of department 1 and debiting WIP of department 2. WIP of Department 1 will be 0 and WIP of department 2 will be $750.
