<span>managerial bias is the term used to describe the potential for analysis to be based on rosy or optimistic forecasts Ex: high sales projections &/or low cost projections</span>
Answer:
c. will earn zero economic profits but positive accounting profits
Explanation:
A competitive industry is characterised by many buyers and sellers of homogenous goods and services.
There are no barriers to entry and exit of firms. If firms in a competitive industry earn economic profit in the short run, firms enter into the industry in the long run and economic profit falls to zero.
A competitive firm earns accounting profit but doesn't earn economic profit.
Accounting profit = Revenue - Cost
Economic profit = Accounting profit - Opportunity cost
I hope my answer helps you.
Answer:
Please find the detailed answer as follows:
Explanation:
a) The cost of obtaining an MBA degree for someone who is employed in a business position normally is a deductible education expense. But if the reason for taking course is to qualify her for a new trade or business then the expense will not be deductible or disallowed.
Reasons Deductible or Nondeductible
- It is to maintain or improve existing skills required in her present job. Deductible
- It is to meet the minimum educational standards for qualification in her existing job. Deductible
- It is to qualify her for a new trade or business. Nondeductible
.
- It is to meet the express requirements of her employer or the requirements imposed by law to retain her employment status. Deductible.
b) $4,000 will be allowed as deduction for qualified tuition under § 222. Except for this amount of tuition portion, Jamie must itemize to claim the deduction and it will also be subject to the 2% of AGI limitation.
Answer: John is frictionally unemployed, and Curtis is structurally unemployed.
Explanation:
John is frictionally unemployed because he is in the process of moving from one job to another and there is a high possibility he would secure his desired job, while Curtis is structurally unemployed because of the general unavailability of accounting jobs.
Answer:
Increase.
Explanation:
Given that,
Total current assets = $510,000
Total current liabilities = $250,000
Current ratio before paying short term note:
= Total current assets ÷ Total current liabilities
= $510,000 ÷ $250,000
= 2.04
On July 1, 2017: Payment of short term note with cash = $60,000
This payment of short term note reduces the total current assets in terms of cash reduction and also reduces the total current liabilities in terms of short term liability.
New total current assets:
= $510,000 - $60,000
= $450,000
New current liability:
= $250,000 - $60,000
= $190,000
Current ratio:
= New Total current assets ÷ New Total current liabilities
= $450,000 ÷ $190,000
= 2.37
Therefore, the current ratio of this firm increases from 2.04 to 2.37.
