Answer:
Amortization expense $11,500
To Accumulated Amortization- Leasehold improvements $11,500
(Being the expenses for the first year is recorded)
Explanation:
The journal entry is as follows
Amortization expense $11,500
To Accumulated Amortization- Leasehold improvements $11,500
(Being the expenses for the first year is recorded)
The computation is shown below:
= Incurred expenses ÷ remaining life
= $23,000 ÷ 2
= $11,500
While recording this transaction we debited the amortization expense as the expenses account is increased while at the same time the accumulated amortization should be credited as it decreased the value of the asset
<span>In the insurance market, this is referred to as adverse selection. Adverse selection is simply just a situation where the seller has information that the buyer does not have about an aspect of the product or its quality, or vice versa. When it comes to insurance, adverse selection is the likelihood of those who preform dangerous jobs or are high risk to get life insurance.</span>
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
Answer:
<u>Risk Management</u> can be defined as Determining,minimizing, and preventing accidental loss in a business, for example, by taking safety measures and buying insurance
Explanation:
- Risk Management identifies the potential risk ,then it prioritizes the risk the business house is exposed to and then it addresses the risk faced by the business houses both in the short-term and the long-Term
- <u>The risks, could stem from a variety of sources, like financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.</u>
Answer:
C. discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
Explanation:
Arguments for adopting a policy rule include;
- discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
- discretion enables policymakers to change policy settings when an economy undergoes structural changes.
- discretion avoids the straightjacket that would lock in the wrong policy if the model that was used to derive the policy rule proved to be incorrect.
- policy rules can be too rigid because they cannot foresee every contingency.
- policy rules do not easily incorporate the use of judgment.
