MAC3701 ASSIGNMENT 1 Complete Answers

MAC3701 ASSIGNMENT 1 A(n)______ changes basic inputs into products that are sold to customers - ANS Manufacturing business _____ sell products purchased from other businesses to make their objectives of maximizing their profits - ANS Merchandising business The area of accounting with providing internal users with information is called - ANS Managerial accounting Equipment with a sales price of $100,000 is purchased at a discount of 10% by Aaron company. At what values should the equipment be recorded in Aaron company's records? - ANS $90,000 — On August 1, Harvey company offered to pay )13,000 for equipment that was advertised as being sold for $19,000 by Carrone Company. The equipment had a retail value of $23,000 on that day. On August 10, carrone compay offered to sell the equipment for $14,700 and Harvey company agreed to buy it at that price. At what value will Harvey company record the equipment on the books? - ANS $14,700 — according to the cost principle, the accounting records will show assets recorded at the exchange price or cost Emily owns three businesses: a dry cleaner, a market and a candy store. The dry cleaner has revenue of $5,000; the market has revenue of $10,000; and the candy store has revenue of $7,000. Under the business entity assumption, emily should record - ANS None of these choices are correct — under the business entity assumption, emily should record $5,00 of revenue in the records of the dry cleaner, $10,000 of revenue for the market and $7,000 for the candy store economics is best defined as the study of: - ANS how people make choices in the face of scarcity and the implications of those choices for society as a whole. The Cost-Benefit Principle indicates that an action should be taken if, and only if: - ANS its benefits exceed its costs. The opportunity cost of an activity includes the value of: - ANS the next-best alternative that must be foregone. The economic surplus of an action is - ANS the difference between the benefit and the cost of taking an action. The marginal benefit of an activity is the: - ANS extra benefit associated with an extra unit of the activity.