Answer:
a. Trade can make every person better off.
Explanation:
Trade generates a benefit for all parties trading. If a party do not fell like winning with trade, it will stop trading and the trade will not occur. It is important for each party to make sure the other wants to keep trading, so quantity and price will be based upon both parties agreement.
A person can trade for product she produces, for example a person who produce a certain fruit can buy the same fruit when is off-station in their side of the world with another producer.
It could also trade becasue is the raw material of a finished product and it need more input for his facilities.
If a person or a party who is trading thinks is worse than before the trade, then it will stop trading so, as long as there is trade, both parties are better off after the trade.
Answer:
2 transactions reduced ABC's total assets
Explanation:
First transaction that reduced ABC's total assets was the purchase of of equipment worth $1,200 for cash.This transaction drains cash to the tune of $1,200 since it was settled by a cash outflow of $1,200
The second transaction that negatively the business's total assets was the payment of salaries to employees to the tune of $10,000, this also was a cash outflow of $10,000 from the business .
The issue of shares increased the total assets since it was cash inflow.
The purchase of land implies an increase in asset land and an increase in liabilities notes payable.
The receipt of $14,000 cash increases total assets.
The purchase of office supplies on account did not reduce assets but increases it.
Answer:
Date Journal Entry Debit Credit
Aug 15 Cash $245,152
Due from factors $10,432
Loss on sale of receivables $$10,216
Recourse liability $5,000
Account receivable $260,800
Cash received = ($260,800*94%) = $245,152
Add: Due from factor($260,800*6%) = $10,432
Less: recourse obligation= <u>$5,000</u>
Net proceeds= <u>$
229,720</u>
<u>
</u>
Loss on sale of Receivables = $260,800 * 2% + 5000 = $10,216
Answer:
False
Explanation:
Hawthorne is a researcher who tried to analyse and examine employee's behaviour and what motivates them to work more hard. The above statement is false because according to Hawthorne study employee's motivation is not related to incentives. Hawthorne concluded that an employee's motivation is strongly linked with their relationship with the manager and the supervisor. A healthy Employee – supervisor relationship motivates and encourage them to carry out directives.
Answer:
$130.35
Explanation:
Given the information in indistry, we have:
- PE = 19.75
- Share price reported: $6.6
As we know the price earning (P/E) ratio can be used to determine the price of a stock with the following formula
Price = EPS × P/E ratio
=> The intrinsic value = 19.75 × 6.6 = $130.35
(It is suitable to find the intrinsic value when using the industry average price-earning ratio)
