Answer:
Legal Service Revenue Dr $3000
Unearned Revenue Cr $3000
This is due to the fact that the amount of 25% of the work is undone. Hence, it is recorded as a liability and since it is earned, it is shown as unearned revenue.
Answer:
Our answer is E 114,420
Explanation:
Production budget:
Jan Feb Mar
Budgeted sales units 40000 37000 34000
Add: Ending inventory 12950 11900
Total requirement 52950 48900
Less: Beginning inventory 14000 12950
Budgeted production units 38950 35950
Purchase budget of Box:
Jan Feb
Budgeted production 38950 35950
Bx required per unit 3 3
Total requirement of Boxes 116850 107850
Add: Ending inventory 21570
Total boxes needed 138420
Less: Beginning inventory 24000
Budgeted Purchase boxes 114420
Answer is E. 114420
Answer: three times as large
Explanation:
Economic order quantity will be calculated as follows:
EOQ = ✓(2DS/H)
D = Demand in units
Here S = Ordering cost = $10
H = Holding cost
Since S = $10
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 10 × D/ H)
= ✓(20D/H)
Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:
Since S = $90
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 90 × D/ H)
= ✓(180D/H)
3✓20DH
The revised EOQ will then be 3 times as large.
Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.
Explanation:
The real interest rate is the market interest rate less the inflation rate.
The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.
