Explanation:
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Answer: Financial Intermediation.
Explanation:
Financial Intermediation is a method of wealth distribution common to Banks, where money deposited by it's customers is given out as loan to investors/individuals. The Banks are known as Financial Intermediaries as they are actively involved in wealth distribution.
This test that Albert Chong and his colleagues carried out was most relevant for evaluating the allocative efficiency of these postal services because the test was designed to measure how often and how quickly the letters sent were returned to sender.
Electricity consumed in the manufacturing process is inventoriable cost per unit using variable costing.
Variable costing is that concept which is used in managerial and cost accounting. In this type of costing the fixed manufacturing overhead is excluded from the product-cost of production.
The method contrasts with absorption costing, in which the fixed manufacturing overheads are allocated to products which are produced. In accounting frameworks such as GAAP and IFRS, variable costing cannot be used in financial reporting.
Although accounting frameworks such as GAAP and IFRS prohibits the use of variable costing in financial reporting, this costing method is commonly used by managers.
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Answer: A. debit of $3,745 to Premium on Bonds Payable.
Explanation:
The carrying value of the bonds at redemption date is $103,745.
The bonds retired however, had a face value of $100,000.
The company therefore paid a premium on these bonds which is:
= 103,745 - 100,000
= $3,745
This amount will be debited to the Premium on Bonds Payable account.
