Answer:
Take your gross sales revenue for the accounting period and subtract discounts, allowances and returns. This gives you net sales. Subtract the cost of goods sold from net sales and you get gross profit. In some cases, this might be a gross loss
Answer:
The answer is C. goods have been transferred from the seller to the buyer
Explanation:
Revenue Recognition states one should recognize revenue when it is earned and not only when cash is received.
Option C. is correct.
When goods have been transferred from the seller to the buyer, it means the buyer has bought something and the ownership and risk for the asset have been transferred to the seller. Well, this doesn't say whether cash is received at the point of exchange or not but revenue has been earned.
Option A is wrong. This transaction affects accounts receivable because revenue for this must have been collected before
Answer:
You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock: 450,000 shares outstanding, selling for $63 per share; the beta is 1.14. Preferred stock: 19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market: 5 percent market risk premium and 4.9 percent risk-free rate.What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Economists are concerned with an individual's wants because wants because the existence of wants leads to scarcity.
<u>Explanation:</u>
Wants are the wishes of the human beings. It is the desire that is to be achieved by human beings. Every individual wants something in life for the survival. The wants of human beings has led to the technology advancements and discovery of many new things.
Wants are never ending things in human life. When something is achieved and there arises another want to be achieved again. This is to live better and this betterment will be never ending one, hence, economists view wants of individuals to lead to scarcity.
Answer:
Scottish workers have an absolute advantage in producing scones.
English workers have an absolute advantage in producing sweaters.
The opportunity cost Scottish workers have a comparative advantage in Sweaters and English workers have a comparative advantage in Scones.
Explanation:
English workers can produce 50 scones per hour which is 10 more than Scottish workers who can produce 40 scones an hour, they have an absolute advantage in producing scones.
Scottish workers can produce 2 sweaters compared with English workers who can only produce 1, they have an absolute advantage.
The opportunity cost of an English worker producing a sweater is 50 scones. This is because if they spend an hour producing a sweater, they could have been producing 50 scones.
The opportunity cost of a Scottish worker producing a sweater is 20 scones. This is because in an hour they can produce 2 sweaters or 40 scones. Therefore, for each sweater they lose 20 scones
