Answer:
A. for government to provide the good and then pay for its production through taxation.
Explanation:
Free Riding is an economic problem implying usage of 'non excludable' good, by people not contributing to pay for it.
Example : Roads, Bridges etc.
One most suitable solution to free rider problem is : Providing it through government and treating all prospective beneficiaries as unified consumers set , dividing the entire total cost equally between all of them - through mechanism of taxation
Answer:
B: LIFO
Explanation:
Based on the information provided it can be said that in this situation the costing method that would bring the most benefit would be LIFO costing method. This acronym refers to last-in-first-out and describes a method of assuming that the last items that enter an inventory are always the first ones to be sold during that accounting year. This method would provide the most benefit because it usually results in higher cost of goods sold and a lower overall inventory.
Answer:
(A) Inventory increases by 595,000
(B) Inventory decreases by 14,500
(C) no effect
Inventory balance: 595,000 - 14,500 = 580,500
Explanation:
<u>We are asked for Readers' Corner</u>
(A) Reades purchase at 595,000 so we use this value. Reader has no informaiton about the cost of New Books.
(B) there is an allowance for 14,500 the inventory account will decrease immediately as it works with perpetual invnetory method
(C) no effect. The payment do not alter the invnetory valuation.
Answer:
This is the story of a very well educated little wolf. His parents taught him to be courteous to others. One day he goes out to the forest to hunt for the first time and catches a rabbit. When he is ready to devour him, the rabbit asks him to read a story. So, the polite wolf goes home for a book. When he returns, the rabbit is gone. Then he hunts a chicken that does the same trick: he asks as a last will that the wolf sing a song, but he also escapes. But what a lack of education! Why do neither of you keep your promises? In the end the saying is confirmed that who laughs at the last laughs better.
Answer:
D. assets - liabilities = shareholders' equity
Explanation:
The balance sheet paint the picture of the real accounting equation.
Shareholders' equity + Liability = Asset
That is, Asset - Liability = Shareholders' equity
