Answer:
B
Explanation:
A firm is an organisation that is created to make profit. They transform resources into products
They include :
- corporations
- limited liabilities
- partnerships
Answer: please refer to the explanation section for journals and notes
Explanation:
1 April
DR Inventory 23000
CR Trade Payable 23000
inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised
6 April
DR Freight costs 900
CR Bank 900
DR Inventory 900
CR Freight costs 900
Kerber Co Paid Freight costs of $900. There are two events happening in this transaction being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).
7 April
DR Equipment 26000
CR Creditor/Liability 26000
Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset and liability is credited.
8 April
DR Trade Payable 3000
CR inventory 3000
Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company)
. Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable
15 April
DR Trade Payable 20000
CR Bank 20000
23000 - 3000 = 20 000
recording payment made to the Creditor for inventory purchased or settlement of the trade payable account
Answer: inefficient because Steven and Ingrid could have made a mutually beneficial trade.
Explanation:
Regarding the question, Ingrid was waiting for "Mamma Mia!" show to come to town; it eventually came with tickets cost of $60. Even though Ingrid's reservation price was $75, he was not able to get a ticket as they had been sold out.
On the other hand, Steven got a ticket for $60 even though his reservation price for the ticket was $65. Steven eventually attended "Mamma Mia!" show while Ingrid does not. This is an inefficient situation because Steven and Ingrid should have made a mutually beneficial trade which could have happened if Steven had sold Ingrid the ticket for the show for $70 and they would have been better off.
Answer: e. 0.20
Explanation:
The Reserve Requirement is a reserve that the central bank of a country requires that Banks hold in case people started making sudden withdrawals. This way the bank is not in danger of being unable to meet those demands.
The Reserve Requirement is a ratio to the Deposits in the bank by the public.
From the above, the deposits to the bank total $100 million.
The Required Reserves totals $20 million.
This means that the Required Reserves are,
= 20 million / 100 million
= 0.20
Answer:
$976.90 will be the new price if interest rates increase to 8.5 percent.
Explanation:
YTM = 8%
Change in interest rate = (8.5% - 8%) = 0.5% <em>(Increase of 0.5%
)</em>
%Change In Price of Bond = -Duration/(1+YTM) X Change in Rate
= -4.99/(1+0.08) X 0.5%
= -2.310%
There will be a decrease of 2.310% in Bond Price
New Bond Price = 1000 - (1000 X 2.310%)
= 1000 - 23.10
= $976.90
