In this situation, when Helen Harrison creates an instrument
containing the words “pay jose sanchez” and her signature on it, she is
creating an endorsement. An endorsement <span>is defined to mean
"a signature (other than that of a maker, drawer or acceptor) that alone
or accompanied by other words, is made on an instrument for purpose of (i)
negotiating the instrument, (ii) restricting payment of the instrument, or
(iii) incurring endorser's liability on the instrument. This type of
endorsement is a Special endorsement in which it contains the signature of the
endorser along with words indicating to whom, or to whose order, the instrument
is payable.</span>
Answer:
- $45000
Explanation:
Economic profit is different from accounting profit in the sense that former also takes into consideration the implicit costs, also referred to as opportunity costs unlike the latter.
Economic Profit = Accounting profit - Opportunity Costs
Opportunity costs are defined as the the cost of sacrificed or foregone alternative for pursuing a particular alternative. Such costs are implicit or notional as they are not actually incurred.
In the given case, Economic Profit = Revenues - Explicit costs - Implicit costs
Here, the implicit cost is $60,000 income foregone.
Thus, Economic Profit = $20,000(income) - $ 5000 (expense) - $60,000 (opportunity cost)
Economic Profit = ($ 45,000) or -$45,000.
Answer:
GDP= 9,872
Explanation:
The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.
The formula is:
GDP=C+I+G+/-NX
GDP: Gross Domestic Product
(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.
(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.
(G) government spending – this includes spending on new infrastructure like bridges and roads.
(NX) net exports – this includes spending on a country’s exports minus its spending on imports.
GDP= 6,728+1,767 +1,741+(1,102-1,466)
GDP= 9,872
Answer:
Matching concept
Explanation:
Matching concept states that revenue and cost should be matched with each other in the period they relate.
Answer:
B
Explanation:
Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services.
