Answer:
c. A debit to Salaries Payable and a credit to Cash.
Explanation:
As on December 31, entry to record the expense of Salaries which is accrued and not paid is
Salary A/c Dr.
To Salaries Payable
Now on the closing date, of previous year there is a liability outstanding of Salary Payable.
In the next year on 5th January the salary outstanding in opening balance sheet is paid.
For this, the payment will be made and accordingly, cash will be reduced.
Accordingly liability will be reduced for this, liability will be debited.
Therefore, correct option is
c. A debit to Salaries Payable and a credit to Cash.
Answer:
Option A, “the substitution effect dominates the income effect” is correct.
Explanation:
If the real wage increases then the opportunity cost for leisure will also increase. Therefore, an increase in real wages and a rise in the opportunity cost of leisure induce labor to supply more workforce or labor force. This is known as the substitution effect. Moreover, when this substitution effect is greater than the income effect then the supply curve for labor is upward sloping.
Explanation:
Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country.
People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.
This is a profit, which increases next year's budget.
Answer:
The amount of amortization expense each year is $500,000.
Explanation:
This can be calculated as follows:
Patent original cost = $3,000,000
Salvage value after 5 years = $500,000
Number of years to use before selling it = 5 years
Therefore, we have:
Annual amortization expense = (Patent original cost - Salvage value after 5 years) / Number of years to use before selling it = ($3,000,000 - $500,000) / 5 = $500,000
Therefore, the amount of amortization expense each year is $500,000.
