Answer:
e. $4,500
Explanation:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $3,000
2 $4,000 $2,000
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000
This means that year 2's net income was understated by $5,000.
But year 1's net income was overstated by = $2,500 - $3,000 = -$500.
The adjustment on the retained earnings account should be $5,000 - $500 = $4,500
Answer:
fixed overhead price variance - 14300 (F)
fixed overhead PRODUCTION VOLUME variance -12,300 (U)
Explanation:
Given data:
overhead applied =$362,200
actual overhead =$388,800
budgeted overhead = $374,500
fixed overhead price variance = actual overhead - budgeted overhead
fixed overhead price variance =388,800 - 374,500 = 14300 (F)
fixed overhead PRODUCTION VOLUME variance = overhead applied - budgeted overhead
fixed overhead PRODUCTION VOLUME variance =362,200-374,500 = -12,300 (U)
<span>Even though Cindy participated in the
day-to-day operations of the partnership, she is liable as a general partner
only to Jones. This is because Jones knew that Cindy was a general partner. She
cannot be liable to Smith as Smith knew she was a limited partner</span>
Answer:
D. measures the degree to which one input can be substituted for another, output held constant.
Explanation:
Marginal Rate of Technical Substitution is the rate at which producer gives up one input, in exchange of other input, maintaining the same output level.
So implicatively, it denotes the degree to which one input can be substituted for another, output held constant.
MRTS (K,L) = MP L / MP K = w / r ; Where :-
K = Capital, L = Labour, MP L = Marginal Productivity of Labour, MP K = Marginal Productivity of Capital, w = Wages, r = Rent
MRTS is diminishing, because of decreasing marginal productivities of factor inputs.
