Answer:
Debit Rent Expense $2,000; credit Prepaid Rent $2,000.
Explanation:
Assuming On December 31, the Company's Prepaid Rent account had a balance before adjustment of the amount of $6,000 which means that if the Three months' rent was paid in advance on December 1, The adjusting entry needed on December 31 is:
Debit Rent Expense $2,000
Credit Prepaid Rent $2,000.
($6000/3month)
(To record Rent Expense)
Under absorption costing the cost per unit of goods includes the element of fixed cost thus when goods are not sold a portion of fixed costs gets deferred to the next accounting period, thus as can be observed $10 of 1000 units has been deferred to the next period, hence the net profit under absorption costing will be $10000 ($10*1000) higher.
Under Variable costing the fixed cost for the period will be incurred in the same period as they are not included in the per unit cost.
Thus from the above observation absorption costing net operating income would be higher than its variable costing net operating income by $10000.
Answer:
Clientele effect.
Explanation:
This can be seen to be a direct theory which explains that prices of stock of particular companies are seen to decrease or increase according to the companies policies. This effect also is seen to explains how these changes in market situations affect the price of a security and their policy in operation in many cases too. One of the places this effect is seen to do well is availably on the assumption that a lot of the company's shareholders are drawn to the stock of a company because of the company’s policy and when there is a change in policy, the shareholder drifts in their holdings causing price changes.
Answer:
B. equity credit channel
Explanation:
Investment banks specialize in creating shares of stock for a company to raise funds through selling equity.