Here is the answer
https://www.science.edu/Acellus/curriculum/career-technical-education-courses/lesson-lists/Business%20Management%20Curriculum.pdf
Answer:
Differences in Operating Incomes Under Absorption Costing and Variable Costing:
The 2020 operating income under absorption costing is greater than the operating income under variable costing because
the ending inventory has carried over some fixed manufacturing costs, making the cost of goods sold less than under variable costing.
Explanation:
The differences in the operating incomes obtained under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory and carried forward to the next accounting period while the ending inventory under variable costing does not include any fixed manufacturing costs. Absorption costing is based on full costing system but, variable costing does not include the full costs.
Answer:
The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.
This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.
If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.
The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.
I'd say it would be best to pay in all cash.
Answer: b. Carlton's income statement will have to be revised to include the earnings per share data
Explanation:
The options to the question are:
a. No changes will have to be made to Carlton's income statement. The income statement is complete without the earnings per share data.
b. Carlton's income statement will have to be revised to include the earnings per share data.
c. Carlton's income statement will only have to be revised to include the earnings per share data if Carlton's market capitalization is greater than $5,000,000.
d. Carlton's income statement will only have to be revised to include the earnings per share data if Carlton's net income for the past two years was greater than $5,000,000.
From the question, we are informed that the senior accountant for Carlton Co., a public company with a complex capital structure, has just finished preparing Carlton's income statement for the current fiscal year and that while reviewing the income statement, Carlton's finance director noticed that the earnings per share data has been omitted.
The changes that will have to be made to Carlton's income statement as a result of the omission of the earnings per share data is that Carlton's income statement will have to be revised to include the earnings per share data.
