Answer: Option 3. Warehousing
Explanation: Warehousing can simply be defined as a situation whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market and furthermore, "warehousing" happens when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit.
Answer:
Explanation: Only in exceptional cases may inventories be stated above cost according to the Accounting Standards Codification. For instance, precious metals, which have a fixed monetary value with no substantial cost of marketing may be stated at its monetary value, which may be above cost; For agricultural, mineral, and other products that can be substituted for one another and have immediate marketability at quoted prices, it may be difficult to obtain appropriate costs leading to inventory being stated above costs.
Answer:
The theory of absolute advantage
Explanation:
The theory of absolute advantage is a quantity-based approach to measuring the productivity of nations with respect to their output in international commercial dealings.
The theory was an Adam Smith's submission that emphasizes that nations of the world should specialize in producing goods and services that they are most productive.
The theory failed to address a major problem that in gaining a benefit another alternative benefit is lost,hence nations should also factor in the benefits they lose when they specialize in producing certain products.
Answer:
Decrease in quantity supplied.
Explanation:
As in the given question the price of orchids is decreases from $10.00 to the $5.00 it simply means the purchasing of orchids by customer is not very high it means only few people or customer are purchasing the orchids it directly effect the quantity supplied. So the decrease in the quantity supplied takes place
- As the market price of the orchids is decreases then it is directly proportional to the decrease in the supplying of the quantity .
- If the price of orchids is increases then the increases in the supplying of quantity .
- All the other option is incorrect because the given question is asking about the decreases in the price of orchids.
Answer:
No Journal entry. Disclose contingent liability of $794000 in Notes to Financial Statements
Explanation:
A Provision is recognized when it is Probable ( Probabity > 50%) that there would be an outflow of economic resources and that a reliable estimate can be made - IAS 37
Since there is a 45% chance of losing, it is not probable to recognize a provision. Thus a Contingent liability is recognized instead
Contingent Liabilities are only disclosed if the amounts are significant and are not shown on the face of the financial statement (no journal entry)
