Answer:
The correct answer is B
Explanation:
The journal entry which is to be recorded for the service revenue at the end of May is as follows:
Unearned Revenue A/c..............Dr $5,333
Service RevenueA/c...........Cr $5,333.
Working Note:
Revenue = Total amount × Number of months / Total months
where
Amount is $8,000
Number of months means at the end of May which is a 2nd month
Total months is 3 months (April, May and June)
= $8,000 × 2 / 3
= $5,333
The life insurance policy in which death benefits last a lifetime but premiums are all paid after a specified time period is a limited-pay whole life policy.
Answer:
a. ZTech will have a higher operating leverage because it has a higher fixed cost.
b. ZTech will have a higher profit since it has a higher operating leverage if the economy strengthens.
Explanation:
Operating leverage measures the the extent to which a firm uses fixed cost to finance its operations. The higher the fixed cost, the higher the degree of operating leverage
If the economy strengthens, the firm with a higher degree of operating leverage earns a higher profit.
Answer:
Apollo's return on equity is 38.17%
Explanation:
The formula to compute the return on equity is shown below:
Return on equity = Net income ÷ total equity
where,
Net income = $50,000
And, the total equity is
= Common stock + retained earnings
= $10,000 + $121,000
= $131,000
Now put these values to the above formula
So, the value would equal to
= $50,000 ÷ $131,000
= 38.17%
An externality is internalized (a) if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.
Explanation:
<u>Internalizing the externality means transferring the burden or the cost of a negative externality (like pollution or traffic congestion) to inside(i.e external to internal).</u>
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- <u>Internalization of externality can be done through taxes, property rights, tolls, and government subsidies.</u>
- <u>The only way of correcting an externalities is to "internalize" the third party cost involved but this market -driven approach is not feasible </u><u>if the true monetary values cannot be determined.</u>
An externality is internalized if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.
