Answer:
Yes this statement was an error and its effect on financial statements of Woods will be that asset ( equipment in this case) would be overstated and obviously the net income of the company would also increase.
Explanation:
Here Woods accountant has made the error of debiting the cost of $500 on the asset account ( equipment) , which shouldn't have happened as the asset accounts have natural debit balance which means that when an amount is debited to the asset account it will increase the value of the asset.
So therefore here we can say that the asset here is overstated and if the assets are shown overstated it is natural that the income reflected would also be overstated.
Answer:
Free trade of goods and services benefits all countries in the world. This is because of the concept of comparative advantage that tells us that some countries are better at providing specific goods and services than others.
For example, Japan is made up of relatively small islands that are very mountainous, forested, and lacking in natural resources. Besides, the country has a large population concentrated in the few flat areas. This essentially means that Japan is severly lacking in agricultural land and raw materials, and has to import most of its food, oil, natural gas, among other things. This is why the country has specialized in electronics, automobiles, and pharmaceuticals.
Brazil is the opposite: a very large country with hundreds of thousands of square miles fit for agricultural production. The country is a great exporter of soy, rice, sugar, and oil. However, the brazilian industry is not competitive, and most of its exports are to neighboring Argentina.
Without free trade, Japan could hardly feed itself, or it would do so with great difficulty. At the same time, Brazil would have a large surplus of food and raw materials, but its citizens would lack access to high-tech Japanese goods such as Toyota cars, or Sony electronic devices. Both countries would be worse-off.
Answer:
Cash outflow of $579,500
Explanation:
Net cash flow is the sum of all cash inflow and outflows of the company.
In this question the company has cash outflow from Spain and inflow from Germany.
As per given data
Cash flow from Spain subsidiary = €5,000,000 outflow
Cash flow from German subsidiary = €4,500,000 inflow
Net cash flow to parent company = - €5,000,000 + €4,500,000
Net cash flow to parent company = - €500,000
The currency is converted using the exchange rate of $1.159 per euro.
Net cash Flow in U.S. dollars = - €500,000 x $1.159 per euro
Net cash Flow in U.S. dollars = - $579,500
Answer: Option (B) is correct.
Explanation:
Given that,
Cost of new economics textbook = $100
Cost of new CD player = $100
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
As the cost of both the products are identical, so the opportunity cost of buying new economics textbook is the enjoyment of the new CD player.
Answer:
$400 million less ($176+$84)=$14 million
Explanation:
the percentage of completion method of accounting is more like of income statement because it is used to assess the companys performance and financial position
