Answer:
D. no control over either the price of pretzels or the wage it pays to its workers.
Explanation:
A competitive market is characterised by many firms that are price takers. Firms that are price takers have no influence over the price they charge for their products; prices are set by the forces of demand and supply.
If the market for pretzels are competitive, the firm cannot set the price for pretzels. If the pretzel stand owner increases the price for pretzels, consumers patronize other pretzel stand owners. There would be no incentive for the pretzel owner to reduce its cost because the pretzel stand owner would be reducing its revenue and reducing its profit
If the market for pretzel makers is competitive, firms have no influence on wages that can be paid to workers.Wages are determined by the forces of demand and supply. If wages are cut, workers move to other firms. There would be no incentive to increase wages because it would increase cost and reduce profit.
Answer:
1. revenues
2. revenues
3. Incurred
Explanation:
Accrual basis is one of the methods used in preparing Financial statement. It records transaction when they are incurred or when they happen irrespective of whether cash has been paid or not.
Cash basis is a another one. It recognizes transactions only when the cash has been given.
Accrual basis accounting recognizes REVENUE when the service or product is delivered and records REVENUE when INCURRED in order to adhere to the matching principle
The <span>method of evaluating capital investment proposals that uses the concept of present value to compute a rate of return would be: </span>internal rate of return
the internal rate of return method of evaluation analyze the present value of all cash flows from all investments.
This method is most commonly used to determine whether a potential investment will be profitable or not.
Answer:
B
Explanation:
When using the indirect method to prepare the operating section of a statement of cash flows , the gain on sale of land will be deducted from the net income as it has already been included in the net income as the gain on the sales of the land , which was a non cash recognition in the course of the business.
Decrease in receivable means that there was an inflow of cash as some receivables had paid their debts , thus it is added.
The amortization is a non cash expenses that had been deducted which will need to be added back to the net income for the purpose of cash flow.
