Answer:
A subsidiary ledger: is a listing of individual accounts and amounts with a common characteristic.
Explanation:
A subsidiary ledger is a listing of individual accounts with similar characteristics, whose combined balances make up a specific general ledger. The general ledger that captures the summary of the subsidiary ledger is called the master account or control account.
For example, an account receivable subsidiary ledger would comprise the listing of customers with credit purchases; the combined balances would amount to the balance in the accounts receivable ledger.
Answer:
(a) The stock dividend is not taxable because it affects all shareholders pro rata
(b) Babara will transfer half of the old stock base to the new stock and make her new and old stock tax base $50
(c) Hoosier does not change his E&P for the stock dividend since the shareholders are not taxable.
Explanation:
Answer:
d) 110; 180
Explanation:
Price ceilings is put in place to ensure a price does not rise above a particular level.
When a price ceiling is below the equilibrium price, the quantity demanded for will e greater than quantity supplied, and excess demand will arise.
original equilibrium of $12
180 units would be exchanged in a free market (when equilibrium price is $12), and 110 units would be exchanged with the price ceiling in effect.
Answer:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources
(i.e : India has an absolute advantage in operating call centers compared to the Philippines because of its low cost of labor and abundant labor force.)
Explanation:
Answer:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
