Answer:
a) The debit and credit side of the unadjusted trial balance would be increased by $ 5200.
b) The debit side would remain unchanged. No effect will be seen in the adjusted trial balance.
Explanation:
Effect of adjustments on adjusted Trial Balance.
This first entry would increase the wages expense and increase the liability account in the adjusted trial balance. Both debit and credit side would be increased by an equal amount.
b) This would decrease the Supplies account and increase the supplies expense in the unadjusted account. As both are on the debit side there would be no effect in the debit total.
Sr No Account Debit Credit
<u>Original Entries</u>
a. Wages Expense 5200
Accounts Payable 5200
b. Supplies Expense 1125
Supplies Account 1125
<u>Correct Entries</u>
a. Wages Expense 5200
Accrued Wages Account Payable 5200
b. Supplies Expense 1125
Supplies Account 1125
<u>Difference:</u>
<u>a)</u> We see that the first entry which was original passed the debit side is correct but the credit side would have been of accrued wages instead of accounts payable . This is to raise the amount by which wages are still outstanding by an amount 5200 at the end of the month.
This would decrease the accounts payable increase the wages payable . If the adjustment is not made it the salaries payable is understated .
<u>b)This adjusting entry is correct.</u>
Answer:
Horizon value = $883
so correct option is e. $883
Explanation:
given data
FCF is expected = $50 million
time = 5 year
CF growth rate = 6% = 0.06
average cost of capital = 12% = 0.12
to find out
the horizon value
solution
we know that FCF at year 6 is here
FCF at year 6 = principal ( 1 + rate )
FCF at year 6 = 50 × (1 + 6%)
FCF at year 6 = 53 million
and
Horizon value will be here
Horizon value = 
Horizon value = 
Horizon value = 883.33
Horizon value = $883
so correct option is e. $883
Answer:
<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
Explanation:
The process of <em>free entry and exit of firms</em> is in a sequence as explained under-
- If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
- This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
- When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
- This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
- This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.
Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>
Answer:
False
Explanation:
The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.
This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.
The cash flow is computed both by Direct and Indirect methods.
In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.
Answer:
.A) $1, 920,000
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is the GDP of country using current year prices
Nominal GDP = current year price × quantity
(6000 × 320) = $1,920,000
I hope my answer helps you
