Answer: The matching principle <u>"d. states that the revenues and related expenses should be reported in the same period".</u>
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Explanation: The application of this principle is a consequence of double entry; In the specific case of the Correspondence Principle we refer to the relationship that exists between an income and expense at the time of registering a transaction. It can be summarized in the following statement:
For every income there is an expense and for every expense there is an income.
Answer:
The price of fertilizer must be greater than average variable cost.
Explanation:
- Being a perfectly competitive market the prices of the fertilizers will rise. As the forms are making economic losses the prices must be greater the average variable costs.
Answer:
The probability of each outcome
Explanation:
The probability of an event Bis the number of ways event B can occur divided by the total number of possible outcomes. Also it describes the probability of an event taking place and the chance that the event will occur as a result of an experiment carrier out.
It can mean that the bank is running low on liquidity of
cash. In the banks are required to keep a minimum of liquidity to be able to
give loans and keep the cash flow. In case the bank is running low on liquidity
the customer should inform the central bank and the central bank should fine
the bank for not maintaining the liquidity.
