In a market economy, like the one described in the question, there is the potential to achieve efficiency in production. This is because producers can choose what they produce and can focus on the products they are good at. This can help with economies of scale and efficiency.
Answer:
The land should be reported in the financial statements at $40,000
Explanation:
At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price
Since in the question, the land was purchased at $40,000 and moreover, it is assessed for the tax purpose for $27,000 and by other appraisers it was valued at $48,000 plus there is an offer of cash payment for $46,000
But at the time of recording, the balance sheet would show at the purchase price i.e $40,000
Answer:an increase the unemployment rate.
Explanation:Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see: an increase the unemployment rate.
Answer:
If the FIFO method is used, the equivalent units of production during the month equal:_________122,000
Explanation:
<u>FIFO Equivalent Units </u>
Particulars Units % Of Completion Equivalent Units
Materials Conversion Materials Conversion
Beginning Inventory 10,000 60 60 6000 6000
+Units Transferred 120,000 100 100 120,000 120,000
Less
<u>Ending Inventory 20,000 20 20 4000 4000</u>
<u>FIFO Equiv. Units 122,000 122,000</u>
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<em>FIFO method uses the beginning units and deducts the ending units. For this we add the beginning units and deduct the Ending units to get the First In First Out units. AS the name suggests it only deals with the beginning units First purchased or produced and leaves the ending units Last produced.</em>
Answer:
Explanation:
Off-balance sheet (OBS) financing is an accounting practice whereby a company does not show a liability or debt on its balance sheet. It is used to impact a company's level of debt and liability.
