Explain the different factors of production
What will be an ideal response?
Answer: Natural resources are things that are useful in their natural state, such as land, forests, minerals, and water. Human resources are people and their individual talents and capacities. Capital includes money, computers, machines, tools, and buildings that a business needs in order to produce goods and services. Entrepreneurship is the spirit of innovation, the initiative, and the willingness to take the risks involved in creating and operating businesses. Knowledge is the collective intelligence of an organization.
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Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is
a. $1,000; b. $750; c. $250; d. $25; e. none of these
Andromeda Industries had 300,000 shares of common stock with a $3 par value and retained earnings of $180,000 at January 1, 2011 . In 2011, the stock was split 3 for 1 . In 2010, earnings per share were $1.80 . Which of the following would not result from the stock split?
a. The new shares would total 900,000. b. The total amount in the capital stock account would remain the same. c. The par value would become $1. d. Retained earnings would be reduced. e. The earnings per share for 20 years prior to the split would be reduced.
In a service organization using a job order costing system, actual overhead will be the same as applied overhead
Indicate whether the statement is true or false
A _____ item is expected to result in a cash receipt or a cash payment within approximately one year or less
a. illiquid b. long-term c. current d. noncurrent e. liquid