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2 years ago

When is allocative efficiency of a product achieved?

1 answer:

3 0

Allocative efficiency of a product is achieved when parties are able to use the accurate and readily available data reflected in the market to make decisions about how to utilize their resources

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During January 2017 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 we

Norma-Jean [14]

Answer:

The correct answer is:

Expenditures—2017 in the amount of $200. (C.)

Explanation:

This scenario describes a record that was less than the actual amount spent on the General Fund supplies. The amount recorded was $2,000, meanwhile the actual amount spent was $2,000. This entails that an amount worth $200 was not recorded, hence it will be debited as expenditures, but the question now is where the debit will be recorded?

This review was done in January 2017, meaning that the income statement for the 2016 Fiscal year must have been balanced, hence the amount will be an expenditure recorded in 2017, but the particulars will have a description that it was a carried over expenditure from 2016. Therefore $200 will be debited from 2017 as expenditures.

5 0

2 years ago

Creme Bakery just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. If y

alekssr [168]

Answer:

$19.47

Explanation:

The computation of the price paid for share is shown below:

= Year second dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.20 + $2.20 × 2.2%

= $2.20 + $0.0484

= $2.2484

In the year 2 , it is

= $2.2484 × 1.022

= $2.2978648

And, the required rate of return is 14%

Plus the growth rate is 2.2%

So, the price paid for the share is

= ( $2.2978648) ÷ (14% - 2.2%)

= $19.47

7 0

3 years ago

When a single broker represents both parties in a real estate transaction, a _______ agency may exist.

Nataliya [291]

Answer:

Dual

Explanation:

real estate transaction,which is used to convey ownership of a particular property to the buyer whereby there is a mutual agreement on some terms. The contract may be long it in shirt time.the end process is usually reffered to as “closing,” and this is a term that explains that both parties need to fulfill all terms and conditions that is associated with the exchange.

It should be noted that When a single broker represents both parties in a real estate transaction, a dual agency may exist.

7 0

2 years ago

24. ABC Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary

nevsk [136]

Answer:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

Explanation:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Deferred tax asset=($400,000*20%)-$75,000

Deferred tax asset=$5,000

Income tax payable=$820,000*20%=$164,000

Income tax expense=$164,000-$5,000=$159,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

5 0

3 years ago

The replacement cost of a LIFO basis inventory item is below the net realizable value and above the net realizable value minus t

Anna35 [415]

Answer:

historic cost.

Explanation:

As the original cost is below the net realizable value minus normal profit margin the lower between the cost and market value therefore lower than replacement cost too. Hence, we should do no adjustment and keep the inventory valued at historic cost.

8 0

3 years ago