Answer:
Revenue /expense approach
Explanation:
As we know that the income statement recognized only the revenues and the expenses and if the revenue is more than the expenses so the company is earning profit else it would suffered loss
So for proper income statement, the item recognized under US GAAP should be placed in revenue and expense approach as it comes under the income statement and the same is to be considered
Answer:
Option (C) is correct
Explanation:
The payment is made during the discount period of 11 days so the 2% discount rate would be applicable.
Goods purchased = $112,000
Goods returned = $2,200
Discount = (Goods purchased - goods returned) × 2%
= ($112,000 - $2,200) × 2%
= $2,196
Net purchase = Goods purchased - returned - Discount
= $112,000 - $2,200 - $2,196
= $107,604
Total inventory cost = Net purchase + Freight cost
= $107,604 + $400
= $108,004
Therefore, company’s inventory increased by $108,004.
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
I’m pretty sure it’s that the market for complementary goods increase
