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Two transactions took place in the year which met the definition and recognition criteria
of an expense. The transaction did, however, have a distinct difference which is
highlighted below:
(i)
Transaction one resulted in the decrease of the bank account, an asset; and
(ii)
Transaction two resulted in a loan liability being created
As the accountant was confused with the conceptual treatment of the transactions, he
examined another set of financial statements, showing non-compliance with IFRS, which
treated transaction one as an expense but transaction two as the issue equity preference
shares. The accountant has therefore decided to follow this treatment but is concerned it is
not correct. Do you agree with the treatment? (4 marks)
. Use the diagram below to answer the following questions. A) In order to maximize profits, the firm will produce ______ units (show the calculation or steps). B) Calculate the firm’s profit (or loss) at equilibrium point; be sure to show your work and label your answer as profit, loss, or break even. C) Calculate the Total Revenue, Total Cost and Profit at the breakeven point. D) How much is the shut-down price? E) Calculate TR, TC and Profit at the Shutdown point. Q 300 250 100 $ S D Q P AVCATC MC50
. In a market there are 20 buyers of a leather bag each having identical demand function Qd = 10 - 2P and 40 producers each with identical supply curve given by P= 4+Qs where Qd and Qs are quantity demanded and supplied respectively.
Guidelines says :your discussion should cover the extend of apportionment that will depend on the fiscal position the council level of services offered in the municipality, economic development activities, infrastructure backlog and the urgency in which council has prioritized addressing challenges
Topic
In municipality of your choice discuss how the annual budget is allocated to operational expenses
6 pages
year. If prices were high in year 1 more of the product will be planted in year 2 in the
expectation that prices will remain high. This may cause an oversupply, resulting in lower
prices.
Because of the low prices in year 2, less of the product will be planted in year 3, resulting in
higher prices. (This is based on the adaptive expectations hypothesis, where expectations are
based on past behaviour).
Due to the delay in production time, supply and demand do not interact to reach equilibrium in
the short term, and this process may continue for a number of years.
Given a demand curve Qdt = 150 -3Pt and a supply curve Qst = -50 + 2Pt-1, and given P0 = 48
at time t = 0,
a) Find the equilibrium price and quantity.
b) Plot the price for the first 10 years.
Demand Worksheet : Vocabulary
Word - There is an expectation The price of product will soon fall
- indicate whether demand will increase or decrease
- provide an explanation as to why
Demand Worksheet - Vocabulary
Word - Product now out of fashion
- indicate whether demand will increase or decrease
- provide an explanation as to why
Demand Worksheet: Vocabulary
Word - Product becomes a popular fad
• indicate whether demand will increase or decrease
• provide an explanation as to why
