Answer:
D
Explanation:
The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls, then the income effect which causes you to reduce your corn purchases is smaller than the substitution effect which causes you to increase your corn purchases, resulting in a net increase in quantity demanded.
Most definitely and without a doubt C
Answer:
1) $155,000
Explanation:
Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
Cash flow from Financing activities
Borrowed from a local bank $100,000
Issued common stock $75,000
Paid dividends - $20,000
Net Cash flow from Financing activities $155,000
All other information which is given is not relevant as it related to the operating and investing activities. Hence, ignored it
Answer: Option D
Explanation: In simple words, accrual basis refers to the method of accounting in which the expenses are recorded when they are incurred and revenues are recorded when they are earned.
Under this method, accountant does not take into consideration whether the cash has been exchanged or not. This is widely followed as it represents the position of an organisation more effectively.
