Answer:
a. Increase both an asset and capital stock.
Issuance of common stock increases the cash as assets and common stock as a capital stock.
b. Increase both an asset and a liability.
Supplies purchased on account increases the Inventory as an asset and Increases the payable as a liabilities.
c. Increase one asset and decrease another asset.
Maturity of an Investment in debt instrument, Increases the cash as an asset and decreases the investment as another asset.
d. Decrease both a liability and an asset.
Payment to supplier decrease the account payable as a liabilities and cash as an asset.
e. Increase both an asset and retained earnings.
Cash Sales Increases the cash as an asset and Net profit as a retained earning.
f. Decrease both an asset and retained earnings.
Sales return decreases the account receivable as an asset and net profit as a retained earning.
Answer:
The correct answer is letter "A": Covers the full opportunity cost of the resources used by the firm.
Explanation:
Normal profit is an economic term that means zero economic profit. For economists, this usually happens since total revenue equals total cost. The latest include costs in both dimensions: <em>explicit cost</em> and <em>implicit cost</em>. Normal profit occurs when resources are being used in the most efficient way at their highest and best use.
sole proprietorships, partnerships, and corporations.
Answer:
$63.27
Explanation:
Calculation of how much should you pay on the stock today
First step
The Price of stock 19 years from now will be:.
20/0.075
= 266.67
Second step
The Price of stock today will be :
The price of stock from 19 years from now which is:
250 / (1.075)^19
=250/3.951489
=$63.27
Therefore how much should you pay on the stock today will be $63.27