Answer:
(B) The firm issued common stock in 2018
Explanation:
Given that the firm's common stock doubled from $1,000 to $2,000 from 2017 to 2018, it is reasonable to assume that the firm issued common stock in 2018.
Option A is incorrect as the firm's net income was likely lower and, more likely, negative in 2018. A decline in retained earnings from 2017 to 2018 by $340 suggests that the firm likely made a net loss of $340 in 2018.
Option C is incorrect because market prices of a firm's own common stock are not accounted for in its shareholders' equity. Only the book value are account for.
Option D is incorrect because the net income in 2018 was likely negative due to the year-on-year decline in the retained earnings
Option E is incorrect as we cannot ascertain it the firm has more equity than debt because sufficient information to reach that conclusion was not provided.
Answer:
This results from a shift in the supply curve. For example, there is a severe drought that decreases the production of oranges, and therefore, the production of orange juice. The supply curve of orange juice will shift to the left, decreasing the quantity supplied at every price level. This generally increases the price of orange juice and decreases the quantity.
Answer:
Quantity demanded of B/percentage change in price of A.
Explanation:
Cross price elasticity of demand is calculated as follows:
= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A
Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.
For Substitute goods:
It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.
For complimentary goods:
It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.
Answer:
Option B is correct
Explanation:
Selection criteria for scoring models may not be negotiated between a client and a contractor.
