I think the correct answer from the choices listed above is the third option. It is the withholdings that result in a lower net income. <span>A </span>withholding<span> tax, also called a retention tax, is a government requirement for the payer of an item of income to </span>withhold<span> or deduct tax from the payment, and pay that tax to the government. </span>
Answer:
The answer is A.
Explanation:
If a person's wealth is in cash, price level changes in the economy will definitely affect the his monetary wealth.
Price level changes arise as a result of inflation. Increase in general price level in the economy will reduce the purchasing power of the cash. For example, a good that used to sell for $2, it now goes for $5.
And if there is decrease in general price level, the purchasing power of the cash will increase.
Answer:
.b.can agree to a new contract that includes the new price
Explanation:
When Sal and Tasty agreed to cancel their first contract, that was the end of that particular contract. No further negotiations can take place because the contract doe not exist. By calling Tasty the following day, Sal was initiating a new contract.
A new contract does not need to make any references to the canceled contract. Sal and Tasty are free to negotiate for new terms and negotiations since this is a new contract. The details of the canceled contract are no longer binding to them.
Answer:
Assets and stockholder's equity shall be decreased by $850.
Explanation:
Every accounting transaction has an effect on the standard accounting equation, or at least an effect on its components.
Standard Accounting Equation is:
Assets = Liabilities + Stockholder's Equity
As in the given instance the company sponsors, a baseball league, thus, this is an expense.
This will reduce the revenue and ultimately retained earnings which are part of stockholder's equity.
This will also reduce assets in the form of cash outflow made to incur this expense.
Thus, assets and stockholder's equity shall be decreased by $850.
