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3 years ago

Why does the government oversee the provision of public goods?

1 answer:

7 0

The reason why public goods are provided by the government is C. Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.

A public good simply means the good that is beneficial to everyone in the society. It's non-excludable and non-rivalrous. e.g electricity, water, sewage disposal, etc.

Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods. They're usually provided to meet the needs of the people and not for profit motive.

Learn more about public goods on:

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Journalizing purchase and sales transactions

Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date Account Title Debit Credit

Feb 3 Merchandise inventory 3,300

Account payable 3,300

Feb 7 Account payable 900

Merchandise inventory 900

Feb 9 Merchandise inventory 400

Cash 400

Feb 10 Account receivable 4,700

Sales revenue 4,700

Feb 10 Cost of goods 2,350

Freight out 370

Merchandise inventory 2,350

Cash 370

Feb 12 Account payable 2,400

Cash 2,328

Merchandise inventory 72

Feb 28 Cash 4,606

Sales discount 94

Account receivable 4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at brainly.com/question/24086159.

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4 0

2 years ago

On January 1, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on January 1. The entry on Janua

KonstantinChe [14]

Answer:

b. credit to Cash $60,000.

Explanation:

Given that:

Hurley Corporation issues the principal amount of $500,000

Time = 5 years

Rate = 12% at 96 with interest payable on January 1

Discount on issue =500000 × (1 - 0.96) = 20000

Annual discount amortization= 20000/5 = 4000

Interest payable = 500000× 12% = 60000

From the information given in the question; we can have a journal entry to determine the what the straight-line method will include.

So, let have a look at the table below:

Discount on issue 20000

Annual discount 4000

amortization

Debit Credit

Interest expense 64000

Discount on Bonds payable 4000

Interest payable 60000

Now; The January 1 entries will now be as follows:

Debit Credit

Interest payable 60,000

Cash 60,000

Thus; The entry on January 1 to record payment of bond interest assuming amortization of bond discount used the straight-line method will include a: <u>Credit to cash $60,000</u>

3 0

4 years ago

5 An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy

qaws [65]

Answer:

each policy will pay $25,000 of the loss

Explanation:

Based on the scenario being described within the question it can be said that the each policy will pay $25,000 of the loss. This is an equal share for each policy and is due to them having the pro rata liability clause. This clause states that a policy is only liable for an equal percentage of the loss if the insurer has other policies from other companies. As in this case.

5 0

3 years ago

Omega corporation and precision products, inc., are the principal suppliers of their product in their market. they agree that om

seraphim [82]

Answer:

A per se violation

Explanation:

A per se violation is one that violates antitrust laws for example agreements made that violates the Sherman antitrust act. It has adverse effects on the competitiveness of a market.

Sherman antitrust act of 1980 is aimed at regulating competitiveness in a market. It prohibits anticompetitive agreements, and unilateral activities that tries to monopolize a market.

In this scenario Omega corporation and precision products, inc., are the principal suppliers of their product in their market. They make an agreement that one will focus on retailers and the other on wholesalers.

This is an attempt to monopolize the market by the two principal suppliers, and is a violation of the Sherman antitrust act.

6 0

3 years ago

. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected

ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0

3 years ago