Competitive equilibrium is a circumstance in which profit-maximizing producers and utility-maximizing customers in aggressive markets with freely decided expenditures arrive at an equilibrium price.
At this equilibrium price, the quantity furnished is equal to the quantity demanded.
What happens when a market reaches its equilibrium price?A market is stated to have reached equilibrium price when the grant of goods fits demand. A market in equilibrium demonstrates three characteristics: the conduct of agents is consistent, there are no incentives for dealers to alternate behavior, and a dynamic process governs equilibrium outcomes.
Prices and quantities in aggressive equilibrium trade in response to grant and demand shocks. Price-taking behaviour ensures that all positive factors from trade in the market are exhausted at a aggressive equilibrium.
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https://brainly.com/question/13372875#SPJ4in general, aversion therapy and contingency management for substance use disorders are more successful when:
Regaining a normal weight is the first goal of treatment.Anorexia cannot be overcome without regaining a healthy weight and learning how to properly eat.Participants in this process might include:Your primary care physician, who can both monitor your calorie requirements and weight gain.
When people want to get rid of stress, what are the most common things they do?
When people want to get rid of stress, the most common activity they engage in is: entertainment, such as reading, listening to music, or watching television.The following is a description of intentionally faking illness in order to achieve some external gain:malingering.
Which circumstance is most likely to result in a muscle dysmorphia diagnosis?
Body dysmorphia may be exacerbated by certain life experiences and underlying psychological factors, according to the Mayo Clinic.Muscle dysmorphia can affect men and women alike.This condition may be influenced by negative childhood experiences like being bullied or being teased about your size.
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what incentives would you recommend to motivate a product development team responsible for creating new toys?
A behavioral theory known as the "incentive theory of motivation" asserts that people are motivated by a desire for rewards and incentives.
Additionally, according to the incentive theory, individuals avoid actions that could result in punishment and act in a manner that they believe will earn them a reward.
Which three kinds of incentives are there?
However, there are three types of incentives, and they are not just economic in nature: Economic incentives include material gain or loss (doing the right thing), social incentives include reputation gain or loss (being seen as doing the right thing), and moral incentives include conscience gain or loss (doing the "right thing" or not).
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critical thinking questions you are reading the information that accompanies a video. it states that the video is 1080p. explain what this means. be specific. imagine that you were filming a brief documentary about a political candidate. which camera angle and camera movement would you use in the opening scene? why would you select these? imagine that you decided to film a video in sd because the video will mostly be shared on social media, and you want it to be able to load quickly. what considerations do you need to take into account in order to make the video successful? imagine that you will be shooting a public service announcement about the dangers of vaping. you have decided to shoot it in hd. what considerations do you need to take into account so that the framing is appropriate for hd? imagine that you had been asked to film a commercial to advertise a car wash. what kind of lighting would you want to have available for the filming? explain your choices.
Answer:for the first critical thinking question, the answer is: the video is 1920 x 1080 and that it is HD
Explanation:
1080p means that the resolution is 1920 x 1080 and that it is also HD
an advertising agency is testing the effectiveness of a new commercial. they are trying out the commercial in three different time lengths (15, 30, and 60 seconds) and two formats (animated vs. live action). each test audience will rate the product after seeing the commercial shown in one way. which description of this study is correct?
Since there are several hundred volunteers, each of the 6 treatment groups will be tested on more than 1 volunteer and make the inference to be more precise or consistent.
a. The best description of this design:
ii. 2 factors(length and format), one having three-level and the other having 2 levels for a total of 6 treatment groups.
b. The principle that is explained here is replication:
This is to ensure that the parameter estimates are consistent and have more precision.
Replication is the act of reproducing or copying something there were three fashions for a way organisms might mirror their DNA: semi-conservative, conservative, and dispersive. or is it a duplicate of something? when a test is repeated and the outcomes from the original are reproduced, that is an example of a replication of the authentic study. a duplicate of a Monet portrait is an example of a replication.
DNA replication is the procedure through which a double-stranded DNA molecule is copied to provide the same DNA molecules. Replication is a critical method due to the fact, on every occasion a mobile divides, the 2 new daughter cells need to incorporate the same genetic statistics, or DNA, as the figure cellular.
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which statement about marketing channels is true? multiple choice question. reaching the right audience through marketing channels is becoming easier. the number of available imc channels is shrinking as marketers switch to new media. new media channel options are overall better and more effective than traditional marketing channels. imc combines the channels so that together they exceed the total of the individual channels.
The true statement about marketing channels is that IMC combines the channels so that together they exceed the total of the individual channels. The Option D is correct.
What is the meaning of marketing channel?This refers to the set of people, organizations, and activities that work together to transfer goods from the point of origin to the point of consumption. The main purpose of the marketing channel is to create a direct or indirect connection between the organization that creates a product or service and prospective customers who may want to purchase it.
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the effort by business managers to balance marginal increases in revenues against marginal increases in costs, which automatically results in maximum profits for the firm within market and resource constraints is known as
The effort by business managers to balance marginal increases in revenues against marginal increases in costs, which automatically results in maximum profits for the firm within market and resource constraints is known as Economic Equilibrium.
Business managers are responsible for the overall operation of a company or organization. They develop and implement strategies and policies to ensure the long-term success of the business.
The role of business manager is a demanding one, but it can be extremely rewarding. Those who are successful in this role are usually highly motivated and have a strong desire to see their company succeed.
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Im
What is the formula for determining run rate?
Current revenue for one month x 12
Current revenue for one month / 12
Current revenue for one month - 12
Current revenue for one month + 12
To calculate run rate, take your current revenue over a certain time period—let's say it's one month. Multiply that by 12 (to get a year's worth of revenue). If you made $15,000 in revenue for each month, your annual run rate would be $15,000 x 12, or $180,000.
because you are suspected of sending out bulk unsolicited e-mail advertisements, the ftc asks your internet service provider to supply information on what you do in foreign jurisdictions. will you succeed in a lawsuit against your internet service provider for providing such information to the ftc?
No, internet service provider is not providing such information to the ftc because the ISP is shielded from accountability for such behaviour by the US Safe Web Act.
The enforcement of civil (non-criminal) antitrust legislation and the promotion of consumer protection are the primary responsibilities of the Federal Trade Commission (FTC), an independent body of the US government.
Together with the Department of Justice Antitrust Division, the FTC is responsible for overseeing federal civil antitrust enforcement. The Federal Trade Commission Building in Washington, DC, serves as the organization's headquarters. In reaction to the monopolistic trust crises of the 19th century, the Federal Trade Commission
Act, which became law in 1914, formed the FTC. Since its founding, the FTC has enforced both the provisions of the FTC Act, 15 U.S.C. 41 et seq., as well as the provisions of the Clayton Act, a significant antitrust act.
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which collaboration strategy involves allowing team members to air their grievances before deciding on a way to move forward with a plan or project?
The collaboration strategy involves allowing team members to air their grievances before deciding on a way to move forward with a plan or project is disagree and commit.
What is a collaboration strategy?A collaboration strategy is how businesses approach teamwork within their company. A collaboration strategy means the manners in which an organization campaigns or requires workers working together to achieve goals and complete activities or projects.
Therefore, the collaboration strategy involved in permitting team members to air their grievances before and decision is disagree and commit.
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According to the income balance, the "+" sign refers to _____ and the "-" sign refers to _____. A. When foreigners use services in a country; when foreign services are used B. When foreign services are used; when foreign services are used C. Incoming dollars; merchandise imports D. Merchandise imports; incoming dollars E. Earnings from overseas investment; payments are sent overseas
According to the income balance, "+" sign refers to the earnings from overseas investment and "-" sign refers to the payments are sent overseas.
What are investments?Investments are financial commitments made with the intention of buying an asset whose value will increase over time. To invest, one must give up something current, such time, money, or effort. A profit or loss on the sale of a piece of real estate or investment, unrealized capital gains, investment income like dividends, interest, or rental income, or even a combination of capital gains and income, could all be included in the return. A low-risk investment often yields a small return. Significant risk carries a commensurate possibility of high losses. Investors, especially novices, are usually advised to diversify their portfolios. Statistics show that diversification reduces overall risk.
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one reason why consumers are unlikely to be too upset about tariffs is because a) most consumers benefit from protection. b) tariffs are an inexpensive way to create jobs. c) consumer losses are not real losses. d) the costs are so spread out that no one pays a big share of the total.
One reason why consumers are unlikely to be too upset about tariffs is because the costs are so spread out that no one pays a big share of the total.
A tariff is a tax that a government imposes on goods and services that are imported from other nations in order to raise prices and reduce the appeal of imports, or at the very least their competitiveness, compared to domestic consumers products and services. Tariffs are the term for customs fees imposed on imported goods. Tariffs increase government revenue while giving locally produced items a price edge over imported versions of similar goods.
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which is not a potential explanation for ipo short-term underpricing? group of answer choices underwriters can unload more shares at a lower price. due to asymmetric information, firms need to lower price so outside investors are willing to invest. high returns on the first trading day attracts investors. firms want to raise more capital
High returns on the first trading day attracts investors is not a potential explanation for IPO short-term underpricing.
An initial public offering (IPO) is the procedure of selling fresh shares of stock to the general public in a private firm.For a company to hold an IPO, the Securities and Exchange Commission (SEC) and exchange standards must be met.Companies have the chance to raise money through IPOs by selling shares on the primary market.Investment banks are used by businesses to market, assess demand, determine the pricing and timing of initial public offerings, and perform other tasks.An IPO can be viewed as a way for the company's founders and early investors to cash out and receive the full return on their private investment.An IPO is a significant milestone for a business since it gives it access to a large source of funding.Learn more about Initial Public Offering (IPO), here
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masters, inc. prepares a budget that always includes 12 months of data. as each month ends, it is removed from the budget, and another month is added. masters uses which type of budget?
Masters, inc. creates a budget that always includes data for the previous 12 months. Each month is removed from the budget as it ends, and another month is added. Master uses a continuous budget.
What is a continuous budget?
The process of continuously adding one additional month to the end of a multi-period budget as each month passes is known as continuous budgeting. Because the continuous budgeting concept is typically applied with a twelve-month budget, there is always a full-year budget in place.
A business's capacity to produce a top-notch budget is significantly increased if it chooses to adopt continuous budgeting for a shorter time frame, like three months. Since sales forecasts are typically significantly more accurate over short time frames, the budget can be changed based on fairly plausible predictions of business activity.
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spot co. purchases office supplies from sally supplies, inc.. spot does not pay cash for the purchase, and now owes the amount to sally. this transaction would typically be recorded in which account in spot's books?
If spot co. purchases office supplies from sally supplies, inc.. spot does not pay cash for the purchase, and now owes the amount to sally. this transaction would typically be recorded in account payable account in spot's books.
What is account payable?Account payable can be defined as the money a company is yet to pay to their suppliers for the goods that was supplied to them.
Spot co is still owning sally supplies inc based on the fact that after receiving the goods the are yet to pay sally supplies inc which is why the transaction will be recorded as account payable in spot books and sally supplies inc will record it the transaction in their account as account receivables because they are yet to received the money for the goods they supplied to spot.co.
Which is why account payable is often treated as current liability under the balance sheet while account receivable is treated as current assets.
Therefore it will be record as account payable.
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Identify a service in which they are packaged.
Please give real answers only, 100 points/brainliest/thanks/5-star Rated and more.
A service which is packaged is a web design package.
What are packaged services?Packaged services refer to those services that are not offered one at a time but are instead offered as a bundle in order to make them more marketable.
There are several services that can be packaged. Indeed, just about any service can be packaged. An example is a web design package offered to people who want their websites to be managed. A web design package could include things like domain name provision, website hosting, email addresses and social media integration.
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accy 307 exam 2 question 37 sharon is the controller for carla vista inc., a factory that creates unique dog chew toys. until now, carla vista has been using a single plant-wide rate of $10.40 per direct labor hour to allocate manufacturing overhead (moh) costs. sharon has been debating a switch to activity-based costing and has derived the following activity-based rates: $18.00 per machine hour $11.00 per direct labor hour $7.00 per inspection hour a recent production run used 80 machine hours, 250 direct labor hours, and 9 inspection hours. how much moh would be allocated using the newly derived activity-based rates? $4190.00 $2520.00 $1890.00 $4253.00
$13,300 would be allocated using the newly derived activity-based rates
Estimated total production overhead costs = Predetermined overhead rate The allocation base's projected total value
= $840,000 = 140% of the cost of direct labor
Direct labor cost of $600,000
The following formula is used to calculate the manufacturing overhead cost for the Koopers job:
$9,500 × 140% = $13,300
The idea that all past, present, and future events, including human behavior, have already been predestined or accepted is known as predeterminism (by means of God, fate, or some other force). Predeterminism and determinism are inseparably related concepts. Predeterminism is frequently contested by the theory of causal determinism, which holds that there could be an endless series of prior events connected in an unbroken chain. In the case of predeterminism, this series of events has already been preconnected, and human action cannot alter the outcomes of this preconnected chain. Predeterminism is a subset of determinism and can be used to describe pre-mounted causal determinism.
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niles and daphne are near retirement. they have a joint life expectancy of 25 years in retirement. daphne anticipates their annual income in retirement will need to increase each year at the rate of inflation, which they assume is 4%. based on the assumption that their first year retirement need, beginning on the first day of retirement, for annual income will be $85,000, of which they have $37,500 available from other sources, and an annual aftertax rate of return of 6.5%,calculate the total amount that needs to be in place when niles and daphne begin their retirement.
The total amount that needs to be place when Niles and Daphne begin their retirement = $906,131.31
Expected return :The expected return is the quantity of profit or loss an investor can anticipate taking on an investment. An expected return is computed by multiplying possible outcomes by the odds of them happening and also totaling these outcomes. Expected returns can not be guaranteed
Evaluating the total amount :Number of periods (Nper) = 25 years
PMT = $85,000 - $37,500
= $47,500
Rate = 4%
Expected Return = [(1 + after tax rate)/(1 + inflation rate)]-1 x 100
Expected Return = [(1+6.5%)/(1+4%)]-1 x100
Expected Return = (1.065 / 1.04 )- 1 x 100
= 2.4038%
FV= 0
Type = 1
Present Value = Calculated in Excel
=PV(rate,nper,PMT,Fv,Type)
=PV(2.4038%,25,-$42,500,0,1)
PV = $906,131.31
Hence, the total amount required at the beginning of their retirement = $906,131.31 .
Present value :
Present value is the conception that states an quantity of money present is worth further than that same quantity in the future. In other words, money entered in the future isn't worth as much as an equal quantity entered present. admitting$ 1,000 now is worth further than$ 1,000 five times from now. Present value measures the consequence of time on money. Present value is what a sum total of money or a series of cash overflows paid in the future is worth present at a rate of interest known the “ reduction ” rate. Present value is used to plan for fiscal purposes and to produce investment opinions
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a product's conformance to specifications multiple choice is in response to customers' needs. determines sales price to the customer. is defined as continuity of service to the customer. is independent of the quality of design.
A product's conformance to specifications is independent of the quality of design. Product and process conformance refers to a product's, service's, or process's ability to meet its design criteria. Design specs are an interpretation of the customer's requirements.
Conformance refers to how well anything, such as a product, service, or system, matches a stated standard and may relate to: Conformance testing determines whether a product or system matches a predefined standard. Improves Customer Satisfaction If the company ensures that the quality of conformance of the products or services that reach the client is at least satisfactory, the customer's requests are more likely to be met.
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Explain the Consumer Price Index? (who uses it, how many products are tested) and what is
current inflation rate of the United States?
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas.
The annual inflation rate for the United States is 7.7% for the 12 months ended October 2022 after rising 8.2% previously, according to U.S. Labor Department data published Nov. 10.
A purchaser is someone or a set who intends to reserve, or uses bought goods, products, or services in general for private, social, family, family and similar desires, who isn't always directly associated with entrepreneurial or commercial enterprise sports. The time period maximum typically refers to someone who purchases goods and offerings for private use.“customers, by definition, include us all," stated President John F. Kennedy, providing his definition to the us Congress on March 15, 1962. This speech became the basis for the creation of worldwide consumer Rights Day, now celebrated on March 15. In his speech : John Fitzgerald Kennedy mentioned the indispensable duty to clients from their respective governments to help workout clients' .
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the common stock of the p.u.t.t. corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months. you do not know whether it will go up or down, however. the current price of the stock is $85 per share, and the price of a 3-month call option at an exercise price of $85 is $8.00. a. if the risk-free interest rate is 9% per year, what must be the price of a 3-month put option on p.u.t.t. stock at an exercise price of $85? (the stock pays no dividends.
The price of a three-month put option will be $3.187 if the stock pays no dividend.
What is put option?The right to sell an asset (the underlying) to the writer (i.e., seller of the put) at a specific price (the strike), by (or at), or at a specific date (the expiry or maturity) is granted by the holder (i.e., the buyer of the put option) of a put or put option in the financial industry. When a put option is bought, it is assumed that the buyer has low expectations for the stock that it covers in the future. Since the owner has the authority to "put up for sale" the stock or index, the term "put" refers to this ability. Puts can also be used in conjunction with other derivatives as part of more complicated investing strategies, and they are particularly beneficial for hedging.
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which promotional element refers to a two-way flow of communication between a buyer and a seller and is designed to influence the buyer's purchase decision? multiple choice question. advertising sales promotion personal selling public relations
The promotional element that refers to a two-way flow of communication between the buyer of a good and the seller, is called personal selling.
How does personal selling work?Personal selling is a promotional element that is designed to help influence a person's decision to purchase a good or service. It works by the seller directly communicating with the buyer to convince them to make a purchase.
This means that personal selling requires a two - way flow of communication between the seller and the buyer. The seller cannot be the only one communicating in the hopes of reaching out to several buyers, but instead talks to a buyer at a time.
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a general fund receives an invoice from the electric utility fund (an enterprise fund) for electricity provided by the electric utility fund. when it receives the invoice, what account should be debited in the general fund
When it receives the invoice, Expenditures—utility services account should be debited in the General Fund.
An invoice is a document that shows the general fund and cost of goods or services provided by a business. It is typically used by businesses account to request payment from customers. An invoice may be created using software, such as Microsoft Excel, or it may be handwritten.
The customer is typically expected to pay the invoice within a certain period of time, typically 30 days.
Hence, the correct option is (c)
The question is incomplete, the complete question is:
A General Fund receives an invoice from the Electric Utility Fund (an Enterprise Fund) for electricity provided by the Utility Fund. When it receives the invoice, what account should be debited in the General Fund?
a. Due from Electric Utility Fund
b. Transfer in from Electric Utility Fund
c. Expenditures—utility services
d. Due to Electric Utility Fund
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discuss an example of a business function that could be implemented on each platform, and explain why that platform would be preferred over the other platform.
Information technology is used by businesses to create and distribute the necessary information. A business information system refers to the integrated processes as a whole.
When a company would use web-based information systems or mobile computing in their operations-
These technologies are utilised by the businesses to further their corporate goals. Because they provide information systems with all the software and business process requirements, these technologies are the cause.
When a company wants to let customers incorporate UPS features
These features include cost estimates and tracking into one's own website, which is an information systems approach to fostering client intimacy.
When a company wants to increase productivity and use mass customisation
These methods help achieve corporate objectives by preserving constant profitability and an industry lead.
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which entry mode into a foreign market best serves a high-tech firm because it reduces the risk of losing that competence?
The entry mode into a foreign market best serves a high-tech firm because it reduces the risk of losing that competence wholly owned subsidiaries
What is wholly owned subsidiaries?
A corporation whose common stock is 100% held by another company is referred to as a wholly owned subsidiary.
A parent corporation may acquire a firm and turn it into a wholly owned subsidiary. A corporation whose common stock is 51% to 99% held by a parent company is referred to as a majority-owned subsidiary.
Hence, we can say that A high-tech company is best served by entering a foreign market through one of its fully owned subsidiaries since it lowers the danger of losing that expertise.
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which of the following statements about internal control is correct? group of answer choices internal control should provide reasonable assurance that collusion among employees cannot occur. the establishment and maintenance of internal control are important responsibilities of the internal auditor. exceptionally effective internal control is enough for the auditor to eliminate substantive procedures on a significant account balance. the cost-benefit relationship is a primary criterion that should be considered in designing internal control.
The impact of one or more persons on the research-related behavior, attitudes, or intellectual capabilities of others is characterized as research leadership. Thus, the right choice is the cost-benefit relationship is a primary criterion that should be considered in designing internal control.
What is internal control?Accounting and auditing describe internal control as a procedure for ensuring an organization's objectives in operational effectiveness and efficiency, trustworthy financial reporting, and compliance with laws, rules, and policies. Internal control is a wide notion that encompasses anything that regulates hazards to an organization.
It is a method of directing, monitoring, and measuring an organization's resources. It is critical in identifying and preventing fraud as well as preserving the organization's physical and intangible resources.
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what two assumptions must be met to be able to use the constant dividend growth model to estimate the cost of common equity?
The assumptions used in the dividend growth model are that the company will exist forever. Beside that, the one assumption is also that the dividend will increase at a constant percentage rate.
In business, The dividend growth model generally can be described as a mathematical formula investors can use to determine a reasonable fair value for a company's stock. The calculation of dividend growth model is based on its expected future dividend growth and its current dividend. The dividend growth model have several aspects, such as the stock's current price, The investor's required rate of return, The current annual dividend, and also The expected rate at which dividends will increase.
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in september, the board of directors of chaparral steel approved a stock split of 2-for-1. after the split, how many shares of chaparral steel stock will an investor have if he or she owned 1,100 shares before the split?
An investor have 550 shares if he or she owned 1,100 shares before the split.
What does the term "shares" mean?
Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends. A stock with no dividend payments does not distribute its income to its shareholders.
Equity shares and preference shares are the two main types.
Equity securities Ordinary shares are another name for equity shares. They are among the most prevalent types of shares.
Companies issue stock to raise funds for operating expenses. These shares reflect ownership in the company and confer ownership rights on the holder. The shareholder receives a specified number of rights by acquiring shares.
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jp morgan chase co. (jpm) has earnings per share of $3.35 and a p/e ratio of 11.42. what is the price of the stock? (round your answer to 2 decimal places.)
P/E ratio = (market value per share) / (Earnings per share)
11.42 = (market value per share) / 3.35
Market value per share = 11.42*3.35 = 38.257
Price of stock = 38.257
P/E =11.42
E = $3.35
P=$3.35*11.42
price of the stock, P= $38.257
In finance, stock (additionally capital stock) consists of the stocks of which possession of an enterprise or enterprise is split.[1] (mainly in American English, the word "stocks" is likewise used to refer to stocks.)[1][2] An unmarried proportion of the stock approach fractional possession of the agency in share to the entire quantity of shares. This commonly entitles the shareholder (stockholder) to that fraction of the company's income, proceeds from the liquidation of belongings (after discharge of all senior claims along with secured and unsecured debt),[3] or voting strength, frequently dividing these up in proportion to the quantity of cash each stockholder has invested. Now not all inventory is necessarily the same, as sure instructions of stock may be issued for instance without balloting rights, with more suitable voting rights, or with a sure precedence to obtain profits or liquidation proceeds before or after other classes of shareholders.
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for each dollar paid in taxes, approximately how much do households in the top quintile receive back in the form of government expenditures?
For each dollar paid in taxes, approximately households in the top quintile receive back in the form of government expenditures is :-
29 cents.
How is negligible assessment rate determined?
To ascertain the minimal expense rate on the speculation, you'll have to sort out the extra duty on the new pay. In this model, $500 will be charged at 15% and $500 at 25%. This produces expense of $200, which on pay of $1,000 causes the minor duty from making that venture equivalent to $200/$1,000 or 20%.
How would you find the typical duty rate?
The typical duty rate is the aggregate sum of assessment separated by complete pay. For instance, in the event that a family has a complete pay of $100,000 and pays charges of $15,000, the family's typical expense rate is 15%.
What is the typical duty rate quiz let?
Normal Expense Rate is your assessment bill partitioned by your available pay at the end of the day, the level of your pay that goes to settle charges. Your peripheral duty rate is the pace of the additional assessment you would pay assuming you acquired another dollar.
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carpenter inc. had a balance of $80,000 in its quality-assurance warranty liability account as of december 31, 2020. in 2021, carpenter's warranty expenditures paid were $445,000. its warranty expense is calculated as 1% of sales. sales in 2021 were $40 million. what was the balance in the warranty liability account as of december 31, 2021?
The balance in the warranty liability account as of December 31, 2021 will be $35,000.
Warranty expense for 2021 = $40 millions * 1%
Warranty expense for 2021 = $400,000
Balance in Liability on 31 Dec = Warranty Liability on 1 Jan + Warranty Expenses - Warranty Expense paid
Balance in Liability on 31 Dec = $80,000 + $400,000 - $445,000
Balance in Liability on 31 Dec = $35,000
A warranty liability is an account that a business uses to record the cost of repairs or replacements that it anticipates having to make for goods that have already been shipped or services that have already been rendered. When it comes to more complicated products that are prone to breaking, this can be a serious liability.
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