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2 years ago

For each error below, indicate:

Business

1 answer:

patriot [66]2 years ago

8 0

Answer:

1. Inventory account will be affected and assertions of accuracy and valuation will be violated.

2. Assets are overstated and assertion classification is violated.

3. Liability is understated and assertions of accuracy is violated.

4. No impact.

Explanation:

Assertions are certain claims of a business which a business must fulfill in order to make its financial statements reliable. A company has to record the expense when it is incurred in order to provide accuracy in valuation. In the given cases the assertions are violated which impact business accounts.

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Does this production function exhibit increasing, decreasing, or constant returns to scale? A. Decreasing returns to scale bec

horsena [70]

Answer: Option A : Decreasing returns to scale because the inputs exhibit diminishing marginal returns.

Explanation:

Return to scale measures the degree of effect certain changes in the input factors(parameters) has on the output in the long run.

Also in simple words, Marginal returns in Economics describes a situation where the increasing the input or intake of a commodity leads to decrease in satisfaction (output).

Hence, for a system that it's input exhibits marginal returns, increasing the input(e.g Capital, Land) leads to decrease in output (satisfaction; Marginal returns parlance) thereby DECREASING the RETURN TO SCALE.

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2 years ago

Define protectionism

Mice21 [21]

Answer:

Protectionism refers to government policies that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal to improve economic activity within a domestic economy but can also be implemented for safety or quality concerns.

Explanation:

7 0

2 years ago

Read 2 more answers

Profitability Ratios PJ's Ice Cream Parlor has asked you to help piece together financial information on the firm for the most c

Elodia [21]

Answer:

The return on assets = 6.53%

Explanation:

Since the debt ratio is 0.47 and the total debt value is $23 million By applying the debt equity formula we can find out the total debt value which is shown below:

Debt ratio = (Total debt ÷ Total assets)

0.47 = ($23 million ÷ Total assets)

So, the total assets = $23 million ÷ 0.47 = $48.94 million

And, the total assets would be equal to

= Total debt + total equity

$48.94 million = $23 million + total equity

So, total equity = $48.94 million - $23 million = $25.94 million

The return on equity is 12.3%. So, here we apply the return on equity formula which is shown below:

Return on equity = (Net income) ÷ (total equity)

12.3% = Net income ÷ $26 million

So, the net income would be $3.198 million

And, Return on assets = (Net income) ÷ (total assets)

= $3.198 million ÷ $48.94 million

Hence, the return on assets = 6.53%

5 0

2 years ago

Suppose that the nominal rate of interest is 5 percent and the inflation premium is 1 percent.

murzikaleks [220]

Answer:

1. 4%

2. 2%

Interest rates are rounded off to nearest whole number.

Explanation:

Fisher effect formula determines the relationship between the Nominal rate, Real rate and inflation rate.

Fisher effect formula is as follows

1 + nominal rate = ( 1 + real rate ) ( 1 + inflation rate )

1 + 5% = ( 1 + real rate ) ( 1 + 1% )

1.05 = ( 1 + real rate ) x 1.01

1 + real rate = 1.05 / 1.01

1 + real rate = 1.0396

real interest = 1.0396 - 1 = 0.0396 = 3.96% = 4%

Inflation premium = [ ( 1+ nominal rate ) / ( 1+ real rate ) ] -1

Inflation premium = [ ( 1+ 6% ) / ( 1+ 4% ) ] -1

Inflation premium = [ ( 1.06 / 1.04 ] -1

Inflation premium = 1.0192 - 1

Inflation premium = 0.0192

Inflation premium = 1.92%

Inflation premium = 2%

4 0

2 years ago

Which of the following identifies the optimal usage of inputs by a profit-maximizing firm?

Anna [14]

Answer:

Marginal cost of labor = marginal cost of capital

Explanation:

The general rule says that the firm maximizes profit when it produce the quantity of output where marginal revenue is equal to marginal cost.

You can also approach the profit maximization issue from the input side, that means: what is the profit maximizing usage of the variable input? In order to maximize profit, the firm should increase its usage of the input up to the point where the input's marginal revenue product is equal to its marginal costs.

This is the profit maximizing rule (mathematically) MRPL = MCL

L: is a subscript and it refers to the variable "labor"

6 0

3 years ago