Stephen Hemmerling was a driver for the Happy Cab Co. Hemmerling paid certain fixed expenses and abided by a variety of rules re

The definitions are accurately paired with their corresponding terms

Explanation:

1. Operating cycle - C. The duration necessary to procure goods or services from suppliers, distribute them to customers, and collect payment from those customers.

2. Accrual basis accounting- B. Record expenses when they are incurred to generate revenue.

3.  Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Declared -  J. This represents the equation from the income statement.

4. Unearned revenue - F. This asset account captures cash paid in advance of incurred expenses.

5. Revenues - Expenses = Net Income - L. This is known as the retained earnings equation.

6. Expenses  - I. Record revenues when received and expenses when they are disbursed.

7. Prepaid Expenses  -  A. To report the longevity of a business over shorter periods.

8. Gains  - E. These are increases in assets or reductions in liabilities resulting from peripheral transactions.

9. None of these are accurate

Opportunity cost is defined as the loss incurred when one chooses one alternative over another.

In this scenario, the forgone option is full-time work along with other costs associated with that period when opting for schooling instead. Room and board expenses remain constant whether attending school or working full time, thus these are not factored in. Earnings from part-time work during school are deducted as they would have been earned during full-time employment.

Thus;
Opportunity cost = $20,000+$10,000+$1,000-$8,000 = $23,000

Answer:

a) the small bus

b) the medium or large bus

c) the small bus

Explanation:

a) using the maximin criterion, the manager aims to maximize the least possible profit (a pessimistic approach), which results in the following profits:

Bus size Demand

Low Medium High

Small 50 60 70 → minimum profit = 50

Medium 40 80 90 → minimum profit = 40

Large 20 50 120 → minimum profit = 20

Thus, the optimal choice yielding the highest minimum profit is the small bus.

b) applying the maximin criterion, the manager will seek to minimize potential maximum losses, determining losses based on the best profit scenario:

Bus size Demand

Low Medium High

Small 0 -20 -50 → maximum loss = -50

Medium -10 0 -30 → maximum loss = -30

Large -30 -30 0 → maximum loss = -30

Hence, the option that bears the least maximum loss is either the medium or large bus.

c) for calculating the expected value of each option:

small = 30/100*50 + 30/100*60 + 40/100*70 = 61

medium = 30/100*40 + 30/100*80 + 40/100*90 = 72

large = 30/100*20 + 30/100*50 + 40/100*120 = 69

The small bus turns out to be the best choice, as it has the highest expected profit.

Response:

The property will go to the nearest direct heir, which is his sister. This is because property is typically divided among siblings. Therefore, since Smith's sister qualifies as one of the siblings, she is entitled to inherit the property.

Clarification: