Answer:
D
Explanation:
When a business borrows money, the amount borrowed is measured in dollar. For example, a business can borrow $10,000. Another business can borrow $1 million.
When goods are sold, money is received in exchange for the sale of the good.
When goods are bought, money is given to the seller in exchange for the good.
Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
Answer:
c. Internal benefits are less than external benefits
Explanation:
Lets first understand what a positive externality is. Positive externality is the effects of an activity that has greater and/or additional benefits to the society as a whole as compared to the benefits enjoyed by the individual responsible for creating such a positive impact. One of the common examples of positive externality is getting education, when we get education that provides us benefits on a personal level but it also helps you reach to a position where you can educate others and/or the society in general. This means that educating yourself not only benefits you but also has a positive influence in the society.
Similarly, if you walk to work every day, this will make you more healthy and will reduce congestion in the city and benefit every body else as well.
