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2 years ago

Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.

Business

1 answer:

Furkat [3]2 years ago

3 0

Answer:

B. The market demand is perfectly elastic at the market price. °

Explanation:

As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker

In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost

So the option b is incorrect

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A CPA can accept a gift from a client as long as: Group of answer choices Adequate internal controls exist in the client entity

aleksklad [387]

In order for a CPA to accept a gift from a client, Adequate safeguards exist to prevent any threats to compliance with the Integrity and Objectivity rule

<h3>When can a CPA take a gift from a client?</h3>

A Certified Public Accountant (CPA) is someone who has to abide by the highest ethics in the accounting profession so as to protect the integrity of financial statements and the accounting profession in general.

A CPA can therefore not be seen to be influenced by their client in a way that brings bias such that financial statements cannot be trusted. One way this can happen is if the CPA accepts a gift from the client.

To avoid this, the gift accepted must be in line with integrity and objectivity rules that ensure that the independence of the Certified Public Accountant (CPA) is protected.

In conclusion, a Certified Public Accountant (CPA) can accept a gift if Adequate safeguards exist to prevent any threats to compliance with the Integrity and Objectivity rule

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2 years ago

Jan pays $70 each month for her auto insurance policy. This regular payment is called a

PilotLPTM [1.2K]

EVEN I KNOW THIS ONE. A MONTHLY PAYMENTTT

4 0

3 years ago

Practice

Anettt [7]

If the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.

<h3>What is break-even analysis?</h3>

Break-even analysis is an accounting technique to ensure that a company does not incur losses from its transactions.

Using the technique, a corporation ensures that the total costs are at least equal to the total revenue or the contribution margin is sufficient to cover the fixed costs, which are not variable within a relevant range.

The technique is based on the concepts of contribution margin and variable costing.

<h3>Data and Calculations:</h3>

Special order units = 3,000 boxes

Price per box for special order = $30

Variable costs per box = $24

Special shipping costs per box for the special order = $2

Contribution margin per box = $4 ($30 - $24 - $2)

Total Contribution Margin = $12,000 ($4 x 3,000)

Fixed costs = $30,000 ($10 x 3,000)

Normall selling price per box = $70

Thus, if the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.

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2 years ago

An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp.

RUDIKE [14]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the dividend and interest is received is recorded in this activity.

The loss and gain on sale of the assets is also recorded and amortization on intangible asset is also recorded

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

(1) Exchange of land for patent - Non-cash investing and financing activity as it does not involve any cash transaction

(2) Sale of building at book value - Investing activity

(3) Payment of dividends - Financing activity

(4) Depreciation - Operating activity

(5) Receipt of dividends on investment in stock - Operating activity

(6) Receipt of interest on notes receivable - Operating activity

(7) Issuance of capital stock - Financing activity

(8) Amortization of patent - Operating activity

(9) Issuance of bonds for land - Non-cash investing and financing activity as it does not involve any cash transaction

(10) Purchase of land - Investing activity

(11) Conversion of bonds into common stock - Non-cash investing and financing activity as it does not involve any cash transaction

(12) Loss on sale of land - Operating activity

(13) Retirement of bonds - Financing activity

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3 years ago

When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance, the collabor

JulijaS [17]

Answer:

The correct answer is "equity ownership"

Explanation:

When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance, the collaborative relationship is referred to as equity ownership.

represents the amount that would be returned proportionally to the company shareholders

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3 years ago