Answer:
D. The cost of living in the country is lower than that of France
Explanation:
PPP or Purchasing Power Parity is a measure of the cost of living in different countries. When GDP Per Capita is computed accounting for PPP, significant differences can show up between this measure and Nominal GDP Per Capita, this is because of differences in the cost of living among countries.
If the GDP Per Capita Nominal of a country is lower than that of France, it means that measured by US Dollars, the other country produces less output per person than France. However, if the GDP Per Capita PPP of the same country is higher than that of France, it means that even if output is less, people in the other country can buy more things with less income than people in France. (Remember than when calculating GDP, output is the same as income).
Answer:
March revenue:
102 units x 15 dollar each = 1,530
April revenue
51 units x 15 dollars each = 765
Explanation:
We recognize based on the delivery of the goods which is the point at which the trasnfer of ownership occurs. Once the good are delvierired; the customer is the owner of them and can use them as see fit, is responsabile for their condition and wellbeing.
Answer:
The answer is: B) purchase records are not maintained.
Explanation:
There are two methods for estimating inventory costs:
- Gross Profit Method
: uses the information from the income statement. If operating conditions remain similar, the proportion between total sales, profits and COGS should be similar (lets say profit is 30% and COGS is 70% of total sales). You can estimate your inventory costs by using the information on total sales.
- Retail Method: It is used mostly by merchandising firms (retailers) that have consistent mark-ups. You have to determine the proportion between cost and retail price (lets say the COGS is 80% of the retail price). Then if you are given the retail inventory, you can determine the COGS using the proportion determined previously.
Answer:
Physics
Explanation:
Opportunity Cost
When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice.
Since Arshad is concerned about his mid-career salary, Physics has the highest mid-career salary among the options, therefore opportunity cost of choosing to major in communications would be Physics
Answer:
c. $600 interest expense and zero cash outflow from operating activities.
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ total number of months in a year
= $36,000 × 5% × 4 months ÷ 12 months
= $600
This four months are calculated from September 1 to December 31
In the income statement, the interest expense is recorded for $600 but in the operating activity there is no effect