Answer:
a. sunk costs.
Explanation:
Sunk cost is the amount which is already invested or incurred before any project is initiated. This cost is permanently lost and cannot be recovered. The business managers avoid incorporating sunk cost in decision making process.
The correct answer is sunk cost because it doesn't complicate capital investment analysis. These costs are not considered when making business decisions or analysis of capital investments.
Answer:
B. two strengths and one threat
Explanation:
SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats.
SWOT analysis helps an organization assess it's competitive position and devise strategies accordingly. Such an analysis aids an enterprise in decision making and planning.
In the given case, availability of finance/capital conveys strength and so does availability of skilled installers.
The construction activity being at an all time low with residential properties being foreclosed depicts a threat.
Thus, the given scenario represents two strengths and one threat.
Answer:
1 . Dr ncome tax expense 7
Dr Deferred tax asset 4
Cr Income tax payable 11
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
Explanation:
Preparation of Journal entries
JournalDebitCredit
(In million)
1 . Dr ncome tax expense 7
($11-$4=7)
Dr Deferred tax asset 4
($16× 25% = $4)
Cr Income tax payable 11
($44 × 25% = $11 )
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
(3/4 × $4) = $3 million
Deferred tax asset= ($16× 25%)
Deferred tax asset= $4 million
Income tax payable= ($44 × 25%)
Income tax payable= $11 million
Answer:
Subsidy
Explanation:
A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut.
In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency.
A subsidy typically supports particular sectors of a nation’s economy. It can assist struggling industries by lowering the burdens placed on them, or encourage new developments by providing financial support for the endeavors.
