Suppose the country of montgomery has specialized in the production of a good but has not yet entered into trade. At this point in time, montgomery has <u>moved along its existing production possibilities curve.</u>
<u></u>
A production posibilities curve in economics measures the maximum output of goods and the use of a fixed quantity of input. The input is any aggregate of the four elements of manufacturing: natural resources (which include land), hard work, capital goods, and entrepreneurship.
for example, say an economic system produces 20,000 oranges and 12000 apples. On the chart, it truly is point B. If it desires to produce greater oranges, it ought to produce fewer apples. In the chart, factor C suggests that if it produces 45,000 oranges, it could most effectively produce 85,000 apples.
By means of describing this trade-off, the curve demonstrates the idea of possible price. Making greater than 1 precise will price society the opportunity of making greater of the other excellent.
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Answer: Option (A) is correct
Write-off refers to accounting term that curtails the amount of an asset while synchronously soliciting liabilities. It is principally utilized in its literal term by organizations seeking to rationalize unpaid loan obligations,receivables, or losses. Delinquent account refers to a credit account, where a individual has be found lacking to make at least the minimum monthly payment.
<em>Therefore, Write-offs of delinquent accounts could be viewed as the internal control deficiency of the given organization.</em>
Answer:
Explanation:
1. The journal entry for declaration of dividend is shown below:
Retained Earnings A/c Dr
= (8,600 million shares × $0.18 per share) = $1,548 million
To Dividend payable in cash $1,548 million
(Being dividend is declared)
2. No journal entry should be passed on the record date
3. The journal entry for payment of the cash dividend is shown below:
Cash dividend payable A/c Dr $1,548 million
To Cash $1,5480 million
(Being payment is made for cash dividend)
Answer:
True
Explanation:
According to MM, without taxes, the market value of the company is not affected by capital structure. As a result, the WACC is unaffected by capital structure. Here, the value of a company is determined by cash flows.
In the case where there is tax, the value of a company with debt is greater than that of the same company without debt for the same level of income.
The additional expenses required in order to avoid keeping currency during periods of inflation are known as shoe leather costs.
<h3>What do you know about holding cash?</h3>
The reasons for keeping cash are pretty straightforward. Cash inflows and outflows may balance each other out, or the outflows occasionally exceed the inflows. Hence, to cover up these eventualities, organizations hold cash to meet certain unpredictable situations.
The term "transaction motive" refers to the need for cash that a business has for ongoing operations. In general, the business needs cash to pay employees' salaries, rent, pay for labor, acquire items, and other expenses. On the receiving side, the business receives money from customers, debtors, and other sources. The inflows and outflows do not always coincide. As a result, the company keeps some cash on hand to fill this shortfall.
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