Indicate How Each Event Affects the Elements of Financial Statements

question 41

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.Use only one letter for each element.You do not need to enter amounts.

-On December 31,2016,Kirkland Co.paid cash for interest on bonds it had issued on January 1,2016 at 101 ½,and amortized part of the premium on bonds.Indicate the effects of the payment of interest and amortization of the premium.

Understand the conditions for long-run economic profit or loss in price-taker markets.

Assess the minimum price a firm would need to charge to cover its average total cost in the long run.

Distinguish between price searchers and price takers.

Evaluate the effect of market entry or exit on market supply, price and firm profitability.

---

Definitions:

Ileus

A temporary and often painful condition in which there is a lack of movement in the intestines, leading to a buildup of food, fluid, and gas, and causing abdominal swelling and discomfort.

Fecal Occult Blood

Small amounts of blood in feces that are not visible to the naked eye but can be detected through specific tests.

Guaiac Paper

Guaiac Paper is a type of paper used in a diagnostic test to detect the presence of blood in stool, indicative of gastrointestinal issues.

Sterile Gloves

Gloves that have been treated to eliminate all forms of bacteria and other contaminants, used in medical procedures to maintain a sterile environment.