Answer:
$8,750
Explanation:
ASSETS = LIABILITIES + PAID IN CAPITAL + RETAINED EARNINGS
beginning of the year:
$11,400 = $5,700 + paid in capital + retained earnings
paid in capital + beginning retained earnings = $5,700
end of the year:
$6,150 = $4,500 + paid in capital + retained earnings
paid in capital + ending retained earnings = $1,650
ending retained earnings = beginning retained earnings + net income - dividends = beginning retained earnings + $3,050 - dividends
paid in capital + beginning retained earnings - $5,700 = 0
paid in capital + beginning retained earnings + $3,050 - dividends - $1,650 = 0
let X = paid in capital
let Y =beginning retained earnings
X + Y - $5,700 = X + Y + $3,050 - dividends
we eliminate X and Y
-$5,700 = $3,050 - dividends
dividends = $5,700 + $3,050 = $8,750
Answer:
The correct answer is option d.
Explanation:
In a perfectly competitive market, it is assumed that the buyers and sellers have perfect information and take their economic decisions accordingly. But in reality, buyers and sellers do not have perfect information.
Information comes at a cost, which can sometimes be high. The rational decisions of the consumers without full information can lead to irrational outcomes.
If the cost of gathering information is less than or equal to the benefit earned from the information, the consumers will gather information and make fully informed decisions.
But if the cost is higher than the benefits, the consumers will not gather information and make a less informed decision.
Answer:
The correct answer is option A
a. cure the defect.
Explanation:
A problem that can be corrected based on the agreed terms and conditions by a seller or buyer is a curable defect.
Answer & Explanation:
Most balance sheets are arranged according to this equation:
Assets = Liabilities + Shareholders’ Equity
The equation above includes three broad buckets, or categories, of value which must be accounted for:
1. Assets
An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.
Assets can be further broken down into current assets and noncurrent assets.
- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.
2. Liabilities
A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.
As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.
- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.
3. Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:
Shareholders’ Equity = Assets - Liabilities
— Courtesy of Harvard Business School
I hope this helped! :)
