Answer:
long-run average total cost decreases as output increases.
Explanation:
The individual stockholders face limited liability in the form of money
Answer:
D. Debit Deferred Revenue and credit Service Revenue for $12,000.
Explanation:
Total Subscription receipt for one year = 400 x $90 = $36,000
Number of months accrued = December 31, 2021 - September 1, 2021 = 4 months
Revenue accrued = Total Revenue x (Number of Months accrued / 12) = $36,000 x (4/12) = $12,000
So the correct option is D. Debit Deferred Revenue and credit Service Revenue for $12,000.
Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.
Explanation:
When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.
The Operating Activities deal with the normal business Transactions and related entries that keep the business running.
Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.
The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.
When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.
Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.