Answer: Option D
Explanation: Short term investments can be defined as the liquid investments that are expected to be sold or be converted into cash within a particular time period, generally a year or operating cycle of the company. Primary examples are commercial paper and US treasury bills.
These are generally used to have cash availability at short term notice in the entity or for some future project funding investment. For bad debt buffering specific provisions are made.
Public Goods and Services are goods and services that cannot be easily restricted to those that pay for them. Income redistribution is distribution wealth and income to over half the nations income in wages. Property rights are legal ownership rights to protect property from the government. Market failures are private police or military that imperfect information in the market.
Answer:
Relative responsiveness of consumer to change in price is called elasticity of demand.
Elasticity of demand here is 7.
Demand is highly elastic.
Cutting the price from $1.25 to $0.75, total revenue remains same as the elasticity of demand does not change.
Explanation:
Percentage change in quantity demanded due to percentage change in price.
Elasticity of demand=% change in quantity demanded/percentage change in price.
Small change in price caused a huge change in quantity demanded.
Answer:
a. 710,000
Explanation:
Current assets are calculated as follows:
Cash: $185,000
Accounts receivable, net $725,000
Recall that a loyal customer is to make semi-annually payments of $100000 into to the tune of $400,000 accounts receivable. For the year five balance sheet, the reclassification of o/s receivable will therefore be $200000
Therefore Total current assets = $185,000+ $725,000 - $200000 = $710,000
In JB Company's December 31, year five Balance Sheet $710,000 should be reported as current assets.