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3 years ago

If the consumption function is defined as C = 5,500 + 0.9Y, what is the

Business

1 answer:

Nimfa-mama [501]3 years ago

8 0

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒ $C = 5,500 + 0.9Y$

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒ $C=5,500+0.9(0)$

⇒ $=5,500+0$

⇒ $=5,500$ (%)

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What decision rule should be followed when deciding if a business segment should be eliminated?

dusya [7]

Here is the answer of the given question above. The decision rule that should be followed when deciding if a business segment should be eliminated is this: Segments with revenues which are less than avoidable expenses should be considered for elimination. <span>Unavoidable expense are those expense which will continue to be incurred whether segment is continued or discontinued. Hope this helps.</span>

5 0

3 years ago

Read 2 more answers

Fraud Investigators Inc. operates a fraud detection service. On March 31, 10 customers were billed for detection services totali

mr_godi [17]

Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31: Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

Oct. 31: Debit Allowance for Uncollectible Accounts $1,300

Credit Accounts Receivable $1,300

To write-off uncollectible accounts.

Dec. 15: Debit Accounts Receivable $760

Credit Allowance for Uncollectible Accounts $760

To reverse a previously written-off account.

Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

To record the cash collected from the customer.

Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

To reverse a previously written-off debt.

C2) Debit Cash $810

Credit Accounts Receivable $810

To record the receipt of cash from the customer.

D) Debit Bad Debts Expense $590

Credit Allowance for Uncollectible Accounts $590

To record bad debts expense for the year.

2. Transaction Net Receivable Net Sales Income From Operation

A +34,000 +34,000 +34,000

B -1,950 NE -1950

C +/- 810 NE +810

D NE NE -590

Explanation:

a) Data and Analysis:

March 31: Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590

7 0

3 years ago

1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.

Oksana_A [137]

Answer:

1. False

2. False

3. False

4. True

5. True

Explanation:

Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.

Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.

The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting. Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.

The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.

The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.

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3 years ago

A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $1

Angelina_Jolie [31]

Answer:

earnings per share = $0.67

Explanation:

the earnings per share = stock price / multiple value = $10 / 15 = $0.67

When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.

4 0

3 years ago

After years of tinkering and reverse engineering initiatives, Kimray had finally unlocked the secrets of the Beta tape format. A

Karolina [17]

The correct answer is A; Change in project scope.

Further Explanation:

The project has now changed drastically from Beta tapes to VHS. With this happening, all of the work they had did on the Beta tapes is now null. The company will now have to change the scope of their work to working with VHS tapes.

A few of the things that will have to be done to change the scope of project are;

quality can be changed or modified
new costs
new tasks
new deadlines
more money needed to invest
functions

Learn more about project scopes at brainly.com/question/13234457

#LearnwithBrainly

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3 years ago