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Troyanec [42]
3 years ago
5

You sell t-shirts in the street corner in order to support some of your tuition costs. Around the middle of the semester, your f

riend Carlos gives you the following advice: "if you increase the price of each t-shirt you sell you will be able to make a lot more money selling your t-shirts". For Carlos to be right, the price elasticity of t-shirts must be price:
a) constant
b) elastic
c) unitary
d) inelastic
Business
1 answer:
Mariana [72]3 years ago
7 0

Answer: (B) Inelastic

Explanation:

 According to the question, when the price of the t-shirt get increased then it generate the high revenue. This result into the decrease in the given quantity and it is smaller change as compared to the change in the price.

This process of the quantity results into the good in the inelastic. Inelastic is the term which is refers to the static quantity of the various types of good and the services and its price are get changed.

Therefore, Option (B) is correct.

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When a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determi
Scilla [17]

Answer:

Yes is True that when a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determine because the nondiscount takers paying earlier will reduce the accounts receivable investment, while the new customer accounts will increase this investment.

Explanation:

Accounts Receivable is any amount of money owed by customers for purchases made on credit. It is an asset account on the balance sheet since it is money due in the short run.

As a current asset, Accounts Receivable is an important aspect of a businesses' fundamental analysis used to measures a company's liquidity or ability to cover short-term obligations without additional cash flows.

Accounts receivable Investment will be reduced if the firm initiates or increases a cash discount.

6 0
3 years ago
Cushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par f
Eduardwww [97]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Sold land (cost $12,000) for $15,000.

Dr Cash                  15,000

Cr Land                                          12,000

Cr Gain on Sale                             3,000

Increase investing cash flows by 15,000. and 3000 gain will be deducted from operating activities

Issued common stock

Dr Cash                                            20,000

Cr Common Stock                                        20,000

Increase financing cash flows by 20,000

Recorded depreciation on buildings for $17,000.

Dr Depreciation Expense             17,000

Cr Accumulated Depreciation                      17,000

This will not affect cash flow.

Paid salaries of $9,000.

Dr Salaries Expense                     9,000

Cr Cash                                                          9,000

Decrease operating activities cash flow by $9,000.

Issued 1,000 shares of $1 par value common stock for equipment

Dr Equipment                                                8,000

Cr Additional paid-in capital Common Stock            7,000

Cr Common Stock                                                          1,000

It doesn't  involve any cash however affects the company financial position so it will be recorded in schedule of non cash financing and investing activities

Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

Dr Cash                                         1,200

Dr Accumulated Depreciation    7,000

Dr Loss on Disposal                     1,800

Cr Equipment                                                        10,000

There would be an increased cash flow of $1,200 under investing activities.

3 0
2 years ago
Your rich aunt has promised to give you $2,000 per year at the end of each of the next four years to help you pay for college. U
jonny [76]

<u>B.</u> (Annuity PV factor, I = 12%, n = 4) PV = $2,000

<h3><u>What Is an Annuity's Present Value Interest Factor?</u></h3>

When the periodic payment amount is multiplied by the present value interest factor of an annuity, the present value of a series of annuities can be calculated. The initial deposit accrues interest at the interest rate (r), which may be expressed as the following formula and perfectly finances a sequence of (n) successive withdrawals:

PVIFA is equal to (1 - (1 + r)n) / r.

Another factor used to calculate the present value of a typical annuity is PVIFA. A PVIFA table, which quickly displays the value of PVIFA, contains the most typical values for both n and r. This table is a very helpful tool for contrasting various scenarios with varied n and r values.

Learn more about the annuity PV factor with the help of the given link:

brainly.com/question/15432294

#SPJ4

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In economics, diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

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A new operating system for an existing machine is expected to cost $570,000 and have a useful life of six years. The system yiel
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Which of the following items determine your preference for a ticket
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