Answer:
False
Explanation:
It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:
- In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
- Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
Answer:
The correct answer is B
Explanation:
The journal entry recorded for the conversion of the shares is as:
Common Share A/c......................................Dr $51,500
Preferred Stock A/c...........................................Cr $50,000
Paid in capital in excess of par (Common)....Cr $1,500
Being conversion of stock into common share is recorded
As the shares are converted into common stock from preferred stock, so the common stock is debited against the preferred stock which is credited. And the excess amount is credited by the account of paid in capital in excess.
Answer:
price
Explanation:
supplier will be willing and able to sell products for high prices as their able to make a good profit
Selective marketing . the act of singling out a group of people to sell them a product based on that group