Answer:
All of the above are true.
Explanation:
The law of diminishing returns was first formulated by the classic economist David Ricardo. It presupposes a technical relationship between input and output, which is not scientifically demonstrable but only empirically. In practice, in a generic production system, at any contribution of any factor, that is, land, labor, capital, machines, etc. there is no proportionally increasing production increase.
Normally it is assumed that the law does not always come into operation but only when the variable input exceeds a certain threshold. For example, the increase of workers on an assembly line certainly allows a proportional increase in production, but only until the entire system begins to suffer from malfunctions due to logistics or work organization, precisely because of the its getting bigger. Large industrial plants have shown that they must be divided into sections, however coordinated, precisely because of the decreasing returns. This is because the increase in the number of workers and the mass of the plants does not correspond to a consequent increase in production.
Answer:
Adjusting Entry
Cost of goods sold (Dr.) $11,000
Beginning Inventory (Cr.) $6,000
Purchases (Cr.) $5,000
Closing Entry
Ending Inventory (Dr.) $2,000
Income Summary (Cr.) $2,000
Explanation:
The adjusting entry is made by debiting cost of goods sold account which reflects the amount of inventory sold during the month and the entry is credited by beginning inventory of $6,000 and the remaining amount which is $5,000 is credited in purchases account.
The closing entry is made by debiting the ending inventory by the amount of $2,000 and Income Summary account is credited by the same amount to close the inventory account.
Answer:
A. Stockholders equity at the end is $493,000.
B. Closing total assets is $865,000.
C. Closing liability is $410,000.
Explanation:
A. Closing total assets:
= Opening assets + increase in assets
= $845,000 + $177,000
= $1,022,000
Closing liability:
= Opening liability - Decrease in liability
= $600,000 - $71,000
= $529,000
Closing equity:
= Closing assets - Closing liability
= $1,022,000 - $529,000
= $493,000
B. Opening equity:
= Opening assets - Opening liability
= $845,000 - $600,000
= $245,000
Closing assets:
= Opening assets + increase in liability - Decrease in equity
= $845,000 + $92,000 - $72,000
= $865,000
C. Closing liability:
= Opening liability - decrease in assets - increase in equity
= $600,000 - $90,000 - $100,000
= $410,000
Answer:
Risk is higher if a company has more assets.
Explanation:
All of the following statements are true and correct;
1. Higher financial leverage involves higher risk.
2. Risk is higher if a company has more liabilities.
3. The debt ratio is one measure of financial risk.
4. Lower financial leverage involves lower risk.
However, it is false and an absolutely incorrect to say risk is higher if a company has more assets.
A company having more assets would have a debt ratio less than one (1) because it has many assets to fund it's business. Thus, the company would have little or no debts and as such, it's risk portfolio is very low.
Hence, risk is lower if a company has more assets.
Answer: A. Draft a formal offer letter is not something you need to do following the compleition of an interview. After an interview, if you are qualified and wanted for hirer by the organization, they will likely draw up a formal offer letter and provide that to you when offering you the position. The formal offer letter typically includes the date of start and monetary offer the company is willing and able to pay.
