The answer is: A.When the price of a good decreases, sellers produce less of the good
When the price of a good decrease, the amount of profit that the sellers could made is also decreasing. Because of this, sellers would feel less motivation to sell that product and start to reduce the supply of the product and replace it with newer ones.
Answer:
Correct option is (a)
Explanation:
Adjusting journal entries are passed before financial statements are prepared to so as to confirm if revenue recognition and matching principles are complied with. Adjusting entries are required to be passed if transactions is spread over multiple financial periods. For example, adjusting entry is passed if goods are received this year but payment will be made next year.
Before income statement and balance sheet is prepared, these entries are passed. Thereafter, adjusting trial balance is prepared and finally financial statements are prepared.
4,000,000 units should be sold a company
<u>Explanation:</u>
<u>Calculating the sales in units:</u>
It has been given that the toal market demand is $20 million, average quantity purchased by buyer per year is 2 units, price average is $50, and the desired share of the market is 10%.
Where:
Q = Total market demand,
N = number of buyers in the market, q = average quantity purchased by the buyer per year,
P = price of average unit
= $2,000,000,000
Market share = 
= 4,000,000 units
Hence, the company should sell 4 million units to achieve 10 percent market share.
The correct answer would be B. Depreciation
Answer:
C : $3,000,000
Explanation:
The Levi Strauss has sold futures at the price of $0.83/lb. The spot price for cotton is $0.81/lb. The difference between spot and exchange price is 0.02/lb ($0.83/lb - $0.81/lb). On November 30, The future prices of cotton raised to 0.85/lb. The average spot of the inventory when purchased was 0.58/lb. To record the inventory in balance sheet we will use average spot plus difference of spot and exchange price $0.58/lb + $0.02/lb = $0.60/lb. The total amount which will be reported in balance sheet will be 200 futures contacts * 25,000lbs * $060/lb = $3,000,000.
