Answer:
To ensure assets and liabilities are reported at appropriate amounts.
To ensure the related revenues and expenses are reported in the proper period.
Explanation:
Adjusting entries at the end of the period are basically made, to comply with the requirements of the accrual principal.
Under accrual principal the financial statements represent the true and fair view of the transactions and conditions of the company.
It basically records all the revenues and expenses at the time when they are incurred and not at the time when they are paid in cash, or cash is received.
As and when the transaction incurs, or to the period it relates it shall be disclosed.
Therefore, each balance sheet item is disclosed and reported at the appropriate amount. And the all the revenues and expenses related to the period are provided for.
When you take out an insurance policy your monthly premium is the amount you pay each month to keep your insurance. In this case, the $200 a month premium allows you to file a claim if something were to happen because you are paying for the insurance services. When you set up your premiums they will base your monthly service rates off of your deductible amount if you need to file a claim. The out-of-pocket for a car accident with a deductible of $700 is $700. Once the deductible is paid, the insurance will pay out for the damage.
Answer:
d. 1.38
Explanation:
The computation of potential investment's profitability index is shown below:-
As we know that
Profitability index (PI) = PV of future cash flows ÷ Initial investment
Now
NPV = Present value of future cash flows - initial investment
$36,224 = Present value of future cash flows - $95,000
Present value of future cash flows = $36,224 + $95,000
= $131,224
So,
Profitability index = Present value of future cash flows ÷ Initial investment
= $131,224 ÷ $95,000
= 1.38
Therefore we have applied the above formula.
Answer:
Profit is higher, and output level is lower in Cournot.
Explanation:
Cournot competition is a type of economic model which describes an industry setting whereby firms that produce the same product compete on the amount of product to manufacture.
This type of competition involves more than one firm in which each firm's output decision affects the price of the product in the market. In cournot equilibrum each firm decide on the quantity of products to produce inorder to maximise profit.
B, because monopolistic market sells homogeneous goods.When a firm raises its price,it loses all of the customers
