Explanation:
The adjusting entries are as follows
1. Insurance expense A/c Dr $2,300
To Prepaid insurance A/c $2,300
(Being the insurance expense is recorded)
The computation is shown below:
= $2,300 ÷ 6 months × 6 months
= $2,300
2. Supplies expense A/c Dr $8,950
To Supplies A/c $8,950
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies opening balance + purchase made - supplies on hand
= $7,200 + $3,100 - $1,350
= $8,950
Answer:
d. defense tactics make the costs of a takeover lower.
Explanation:
There's a take over attempt when a company is faced with a hostile takeover attempt.
Defense can be either pre offer takeover or post offer takeover.
In pre offer takeover defense, companies put mechanisms in place to discourage takeover attempts.
Pre takeover defense mechanisms include:
1. Golden parachute: this benefits the managers of a company. It is an agreement where managers are compensated lucratively if they leave the company being targeted for a takeover when there's a change in corporate control.
2. Fair price amendments: this sets a bidding value floor for a target company. This makes the company more expensive
3. Staggered board : this is when its impossible to change all the members of boards of a company.
4. Poison pill
5. Poison put
Post take over defense mechanism usually are put in place after a takeover attempt. They include:
1. White knight defesne : The takeover firm invites another company to purchase it in place of the firm planning an hostile takeover. This can lead to bidding and counter bidding by the third firm and the firm planning the hostile take over. This can eventually leads to winners curse. This usually increases the cost of takeovers
2. Litigation
Not all take over defense tactics are usually effective. Generally, preoffer take over tactics are usually recommended.
Answer:
The answer is: A) M1 stays the same and M2 stays the same
Explanation:
Total money supply is divided into:
- M1 includes all coins and bills in circulation plus traveler's checks and checking account deposits.
- M2 includes M1 plus savings accounts, short term deposits and money market accounts.
- M3 includes M2 plus long term bank deposits and institutional money market funds.
Answer:
See below
Explanation:
<u>1. How revenue affects Profits</u>
Revenue is income that a business receives selling its products or from the services it provides. Income from other sources such as win in lawsuits is also revenue.
A business with high revenue is more profitable than a company with low income. For a business to make profits, its revenues must exceed its total expenditure. Profit is total income minus expenses. After the breakeven, extra sales contribute to profits. The more the sales, the higher the profits. Low revenue makes low profits.
<u>2. How do expenses affect profit?</u>
Expenses are costs incurred by a business in its productions and sales processes. Service providers incur expenses as they provide services to customers.
Expenses have a direct impact on profits. High costs may result in losses. Profits are realized after deducting expenses from revenues.
If the expenses are high, then profits will be minimal. Low expenses will result in high profits.
