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timofeeve [1]
3 years ago
7

In Rovamia, a developing country, companies often had to compromise on quality and cost earlier to make their products affordabl

e to consumers. However, with the increase in per capita income of the country, companies can now maintain the quality of their products without lowering price. Identify a factor that best describes the reason for this shift in Rovamia.
Business
1 answer:
Serggg [28]3 years ago
6 0

Answer:

economic growth

Explanation:

Here are the options

Ethical growth

Cultural evolution

Political clash

Economic growth

Economic growth can be described as the rise in the real gross domestic product of an economy overtime. It is the increase in the wealth of a nation overtime.

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

Per capita income = real GDP / population

per capita GDP measures the standard of living of people in a country. The higher the per capita income, the higher GDP is and the higher the standard of living is.

If per capita income of Rovamia increases, it means that the gross domestic product has also increased and economic growth has occurred.

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In a statement of cash flows: Multiple Choice No noncash transactions are reported in the statement itself or the related footno
vesna_86 [32]

Answer:

The answer is C. The two primary reporting classifications of cash flows are inflows and outflows

Explanation:

Statement of Cash flows is prepared using cash basis i.e it recognizes outflow only when money goes out of the business and recognizes inflow only when money comes in. This is unlike accrual basis. So the primary reporting classifications are inflow and outflow.

Option A is incorrect because non cash transactions are reported in the statement. For example, depreciation under indirect method of preparing operating cash flow is a non cash transaction.

Option B is wrong because operating activities under cash flow statement are not the same as reported under income statement.

Option D is wrong because inflow and outflow are reported under all the three sections of statement of cash flow

6 0
3 years ago
The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is debit In
stepladder [879]

Answer:

Debit Interest Expense, credit Cash and Discount on Bonds Payable.

Explanation:

The journal entry that a company needs to record for payment of interest is: a debit to the interest receivable account and a credit to the interest income account.

The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to cash.

The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to discount on bonds payable.

4 0
3 years ago
In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 7 percent, and the beta for Twitter stock was
Gnesinka [82]

Answer:

14.77%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.97% + 1.40 × 7%

= 4.97% + 9.8%

= 14.77%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is shown in the answer

5 0
3 years ago
The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the perf
ipn [44]

Answer:

Revenue recognition principle.

Explanation:

The revenue recognition principle states that revenue is recognized in the accounting period in which the performance obligation is satisfied. The cash-basis of accounting is in accordance with generally accepted accounting principles.

7 0
2 years ago
A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the secon
Alexandra [31]

Answer:

The budgeted materials need in kg. in the first quarter is 90,000 kg

Explanation:

For computing the budgeted material needed in the first quarter, first we have to calculate the consumption of first and second quarters separately, so that we can arrive to a solution.

The consumption of first quarter = Budgeted production × required kg

                                                   = 45,000 × 2

                                                   = 90,000 kg

The consumption of second quarter = Budgeted production × required kg

                                                   = 30,000 × 2

                                                   = 60,000 kg

The ending raw material inventory = 30% of second quarter

                                                      = 30% × 60,000

                                                      = 18,000 kg

Now put the formula to find out the purchase amount. The formula is shown below:

Raw material consumption = Opening raw material inventory + purchase of raw material - ending raw material inventory

where,

beginning inventory = 18,000 kg

90,000 = 18,000 + purchase - 18,000

So, the purchase is 90,000 kg

The question has asked the amount in kg so cost per kg is irrelevant.

Hence, the budgeted materials need in kg. in the first quarter is 90,000 kg

3 0
3 years ago
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