Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
Explanation:
Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.
It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.
Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.
When a positive externality exists the socially optimal level of output will be greater than that resulting from a private market.
The output level that takes into account all of the benefits and drawbacks of a transaction, or the equilibrium that would be reached if the results of the market took into account the impact of externalities.
"The ideal distribution of resources in society, taking into consideration all external costs and benefits as well as internal costs and advantages," is how economists define a "socially optimal solution."
The distribution that a charitable social planner chooses, limited solely by the endowment of resources, is the social optimum. In general, the social optimum will not be possible if the social planner's policy tools are constrained.
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Answer:
most circumstances
Explanation:
The priority in the interests those that have companies to present them first or those that have perfected it. This is due to giving it greater agility on the side of presenting it first and having the interests very explicit as soon as possible and on the other hand when they have been perfected giving greater integrity to the interest presented by the company.
The internal monthly magazine and blog at the cosmetics firm Mary Kay serve as non-financial rewards for employees; the magazine and blog are outlets for not only selling advice but also company-wide recognition of individual salespeople’s accomplishments.
Explanation:
Non-financial incentives empower and involve employees in respects that money could not. Non-financial incentives are the kind of benefits that do not make up the salary of an employee. They generally have little or no cash for the venture, but still have considerable weight.
Non-monetary validation can be extremely motivational and help build trust and happiness sentiments. Rewards for promoting and improving workers ' success and achieving the Company's financial and efficiency targets.
Answer:
true
Explanation:
It is a smart decision to have it to fall back on.
