the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend.
Answer:
A. True
Explanation:
The terms of 2/10, net 30 implies that the firm is entitled to receive a 2 percent discount if it makes payment within 10 days for the goods it bought on term but the seller expects to pay full amount of the amount due in 30 days if it fails to pay within 10 days.
However, since there will be no more discount after the discount period, the cost of trade credit will continue to fall longer the payment is extended. For this question this can be demonstrated using the formula for calculating the cost of trade discount as follows:
Cost of trade discount = {[1 + (discount rate / (1 - discount rate))]^(365/days after discount)} - 1 ................... (1)
We can now applying equation (1) as follows:
<u>For payment in 40 days </u>
Cost of trade credit (payment in 40 days)= {[1 + (0.02 / (1 - 0.02))]^(365/40)} - 1 = 0.202436246672765, or 20%
<u>For payment in 30 days </u>
Cost of trade credit (payment in 30 days) = {[1 + (0.02 / (1 - 0.02))]^(365/30)} - 1 = 0.278643315029666, or 28%
<u></u>
<u>Conclusion</u>
Since the 20% calculated cost of trade credit for payment in 40 days is lower than 28% calculated cost of trade credit for payment in 30 days, the <u>correct option is A. True</u>. That is, the calculated cost of trade credit for a firm that buys on terms of 2/10, net 30, is lower (other things held constant) if the firm plans to pay in 40 days than in 30 days.
The amount that a person pays when they visit health care providers or have their prescription filled is a <u>Copayment</u>.
<h3>What is a copayment?</h3>
A copayment refers to the amount that people pay to their healthcare providers out of their pocket when they go to get services such as having their prescriptions filled.
Copayments are usually fixed amounts that depend on the kind of care you receive from your healthcare provider.
Find out more on copayments at brainly.com/question/17373826
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The correct answer is mass production. Mass production is
being defined as having to manufacture products in large quantities by which
they are likely utilized by an assembly of line technology. This is a process
by which it creates similar products in large numbers.
I would say the correct answer is B. t<span>he ability of a company to change prices and output like a monopolist. Market power is basically the power of a particular company to manipulate the price of the product and thus affect all other participants, as well as customers. Monopolists have the greatest market power; conversely, in an ideally balanced economy, nobody would have market power. All participants would have equal chances and nobody would dictate the terms to others.</span>
