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3 years ago

In a long-run equilibrium,

Business

1 answer:

Serga [27]3 years ago

8 0

Answer: Option (d) is correct.

Explanation:

Correct option: Only a perfectly competitive firm operates at its efficient scale.

In the perfectly competitive market and in the long run, the firms who are making losses will exit the market and those firms who are able produce at a point where price is equal to the average total cost will exist in the market.

However, monopolistic firms operates at a below efficient level of production and with an excess capacity.

Competitive firms are generally enjoys the productive efficiency in the long run because these firms have the capability to produce at a lower average total cost.

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(1.1: Modeling) Before paying employee bonuses and state and federal taxes, a company earns profits of $103,000. The company pay

yan [13]

Answer:

Amount paid in;

Bonuses to employees = $5,150

State tax = $5,150

Federal tax = $41,200

Explanation:

The bonus paid to employees, federal tax and state tax are all a percentage of the profit made by the company.

The amount of each of these elements may be computed by applying the applicable percentage on the profit made by the company before any of these deductions.

amounts paid in;

bonuses = 5% * $103,000

= $5,150

state tax = 5% * $103,000

= $5,150

and

federal tax = 40% * $103,000

= $41,200

8 0

3 years ago

This type of budgeting technique is commonly used because it provides a budget that is tied directly to the company's strategy a

mixer [17]

Answer:

Objective and task.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis. The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

The budgeting method described in the question is called objective and task. It is typically used by various organizations or companies due to the fact that, it's tied directly to the strategy and tactics of a company on an annual basis. Also, it is used to set a budget for marketing efforts while anticipating on informations about the company.

8 0

3 years ago

Joey's first task as a new employee at a Technology firm is to write a computer program to perform a predictable task. Joey can

sveticcg [70]

Answer: Option A

Explanation: In simple words, critical thinking refers to the process under which an individual or an entity analyse and evaluate their objectives with the intent of forming a judgement for then purpose.

In the given case, joey has a wide variety of alternatives to choose to how to perform then task and the supervisor will form judgement about his work on the basis of the choices he made for the work assigned.

7 0

3 years ago

Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro

cestrela7 [59]

Answer:

a. net income= understated, retained earnings= understated

Explanation:

In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if ending inventory is understated, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to net income and gross profit being understated.

Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.

4 0

3 years ago

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

andriy [413]

Answer:

1. Record each transaction in the journal. Explanations are not required.

April 1

Dr Cash 70,000

Cr Common stock 70,000

April 3

Dr Office supplies 1,100

Dr Furniture 1,300

Cr Accounts payable 2,400

April 4

Dr Cash 2,000

Cr Service revenue 2,000

April 7

Dr Land 30,000

Dr Building 150,000

Cr Cash 40,000

Cr Notes payable 140,000

April 11

Dr Accounts receivable 400

Cr Service revenue 400

April 15

Dr Salaries expense 1,200

Cr Cash 1,200

April 16

Dr Accounts payable 1,100

Cr Cash 1,100

April 18

Dr Cash 2,700

Cr Service revenue 2,700

April 19

Dr Accounts receivable 1,700

Cr Service revenue 1,700

April 25

Dr Utilities expense 650

Cr Accounts payable 650

April 28

Dr Cash 1,100

Cr Accounts receivable 1,100

April 29

Dr Prepaid insurance 3,600

Cr Cash 3,600

April 29

Dr Salaries expense 1,200

Cr Cash 1,200

April 30

Dr Rent expense 2,100

Cr Cash 2,100

April 30

Dr Dividends 3,200

Cr Cash 3,200

2. Open the following four-column accounts including account numbers:

3. Post the journal entries to four-column accounts in the ledger,

I used an excel spreadsheet to answer questions 2 and 3

4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.

In order to prepare a trial balance we must prepare an income statement first.

Service revenue $6,800

Salaries expense -$2,400

Rent expense -$2,100

Utilities expense -$650

Net income $1,650

retained earnings = net income - dividends = $1,650 - $3,200 = -$1,550

Theodore McMahon, Attorney

Balance Sheet

For the Month Ended April 30, 2018

Assets:

Cash $23,400

Accounts receivable $1,000

Prepaid insurance $3,600

Office supplies $1,100

Furniture $1,300

Land $30,000

Building $150,000

Total assets: $210,400

Liabilities and Equity:

Accounts payable $1,950

Notes payable $140,000

Common stock $70,000

Retained earnings ($1,550)

Total liabilities and equity: $210,400

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3 years ago