Answer:
It suggests that the advertisement financially supports the website ( C )
Explanation:
Affiliation is the official attachment of businesses with common interest wherein one party controls or is in-charge of the business relationship between the parties. in some cases a third party might be in control as well.
The information found on an advertisement that is affiliated with a website content shows that the advert and the website are in business together hence the advert supports the website financially, because the details contained in the advert might be drawn from the contents of the websites.
Answer: a. Accounts Receivable
Explanation:
The Direct Write-off method is usually used by businesses where Uncollectible Receivables are not common. This way when it does occur, they simply debit the Bad Debts accounts and credit the Accounts Receivables to show the event.
This method of Accounting violates the Matching Principle under the Accrual basis because it usually does not recognize bad debts in the same period that the inventory was sold. It only records bad debts when they are declared which could be periods afterwards.
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer:
A. The demand curve shifts to the left
Explanation:
Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter. Changes in the price of bread will affect the demand for butter.
An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.
