Answer:
the number of people involved is small.
Explanation:
Coase theorem was developed in 1960 by a British economist and author named Ronald Coase.
Coase theorem states that when the actions of a party (X) negatively affects or harm another party (Y), then party Y should be able to create an incentive for party X to stop or limit the action creating such harm.
Generally, when transaction cost are low, the two parties are able to bargain and reach a mutual agreement in the presence of an externality such as a pollution.
The Coase theorem will apply only if the number of people involved is small, the cost of negotiation is low and there are well defined property rights.
B. Finance a car. If they need to use one yearly, then it would be best to finance one and pay it off over time
This type of capitalization method is called the Gross Rent Multiplier (GRM). This is used in calculating the approximate net <span>income excluding the vacancies, bed debt, and expenses. In order to estimate the value of an apartment or building, for instance, GRM is used as the quickest tool.
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<u>Determination of historical cost of Equipment:</u>
A historical cost is the original cost of the assets purchased. It is the value at which the asset is recorded in the accounts. In other words, historical cost is the nominal or original cost at which the asset was acquired.
In the given case it is given that Equipment has a cost of $150,000.
Hence the historical cost of Equipment shall be <u>$150,000.</u>
Answer:
D) All of the above.
- A) When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges.
- B) When debt is backed solely by fees and charges.
- C) When a government has a policy to establish fees and charges to cover the cost of providing services for an activity.
Explanation:
The Governmental Accounting Standards Board (GASB) was established to set accounting standards for state and local governments. It basically adapted GAAP rules into public entities. GASB statement 34 requires state and local governments to provide two sets of financial statements and places special emphasis on reporting infrastructure assets.
One set of financial statements is based on accrual accounting and reports items as expenses, while the other set of financial statements reports items as expenditures. The difference is that expenses refer to the resources consumed during the accounting period, while expenditures refer to the resources purchased during the period.
