Answer:
There is no entry to be made on April 17, 2014
Explanation:
Following The accrual principle - an accounting concept that requires accounting transactions to be recorded in the time period in which they actually occur, rather than the period in which the cash flows related to them occur or the transaction are received.
On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014 and the delivery does not occur yet on that day. I should be occur in May 2014.
Therefore, there is no entry to be made on April 17, 2014. In May, when the company finish delivering, the entry would be made:
1. Debit Cash (or Accounts Receivable) $11,000
Credit Revenue $11,000
2. Debit Cost of goods sold $7,500
Credit Cash $7,500
Answer:
A. Max (0, ST - X)
Explanation:
call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.
Answer:
The correct answer is: firms are unlikely to undertake investment.
Explanation:
The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.
The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.
The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.
B. credit to Unearned Warranty Revenue, $871
Answer:
b) $124
Explanation:
FIFO means first in, first out. Under this principle, goods that were purchased or produced earlier will be the first ones on sale.
The value of the goods sold in our case will be as follows.
The first ten items @ $10: 10X10 =$100
Two items to make [email protected] $12: 2x12=$24
Total cost: $100+$24= $124
