The Effects of the Advance Payment (Receipt) on Lark Bell's Year 1 Financial Statements are:
Balance Sheet
Assets = Liabilities + Equity
Cash +$36,000 = Unearned revenue +$15,000 + Service Revenue +$21,000
Income Statement Cash Flow
Revenue - Expense = Income Statement
Service Revenue +$21,000 Cash inflow +$36,000 OA
In Year 1, the Assets (Cash) will increase by $36,000. There is a corresponding increase in Liabilities (Unearned Revenue) of $15,000 and an increase in Equity (Service Revenue) of $21,000.
Thus, the amount of revenue that Bell would recognize on the Year 2 income statement from this transaction in Year 1 is $15,000. This covers 5 months from January to May.
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The best answer among the following choices would be B) Use a simple, easy-to-read font and decorate the border with formulas, images of planets, and books because if we do process of elimination, its not D) because without images most people wont really see the picture of what you're trying to advertise, not C) because the color green for trees has nothing to do with more chances of more people seeing your ad for a sale, and not A) because even though attractive posters bring in more people, too much attraction can draw them away from your advertisement.
Answer:
1. Private Good: A snow cone
2. Public Good: A community fireworks display
3. Common Resource: An Alaskan king crab
4. Club Good: Satellite Television
Explanation:
Goods can be categorized into four distinct categories as show above. This distinction is based mainly on two things:
A. Excludability: Whether others can be prevented from consuming them.
B. Rivalrousness: Whether consumption reduces the availability for consumption by others.
1. Private Goods: They are both excludable and rivalrous. They have to be purchased in order to be consumed. Anyone who cannot afford it, is excluded from consuming it. Similarly, the purchase of it by one person reduces the availability for another person, proving rivalry.
2. Public Goods: They are both non-excludable and non-rival. Anyone can consume it and one person’s consumption does not reduce what is available for another person.
3. Common Resource: They are non-excludable but are rival products. They are available to be utilized by anyone but one person’s consumption will reduce what is available for another person.
4. Club Goods: These are excludable but non-rival goods. Individuals can be prevented from consuming them if they don’t purchase it, but one person’s consumption won’t impact the consumption of another person.
Answer:
E
Explanation:
As the capital asset pricing model dictates, assest's systematic risk is captured by beta parameter. If we have beta value of asset then we can calculate expected return.
- expected return = risk free rate + beta * market risk premium
As both A and B have same beta hence they have same expected returns.
Answer:
The statement is absolutely wrong.
Explanation:
The reason is that the just like humans, a company is also part of the society and so it owes a duty of care towards them. The least that an organisation can do is to compensate the stakeholders that are harmed by their operations.
In the nutshell, the animals and plants are also part of our society and they have an equal right to live on this planet as we have. The least the company can do is not harm them or if it harms them due to its negligence then it should compensate them.
