Suppose the following table shows the components of aggregate expenditure for an economy when disposable income is $400 billion and when it is $500 billion:
Disposable Income
$400 billion $500 billion
Consumption $300 billion $400 billion
Investment $100 billion $100 billion
Government Purchases $175 billion $175 billion
Net Exports $200 billion $180 billion
Aggregate Expenditure $775 billion $855 billion
On the following graph, use the blue curve to plot investment as a function of disposable income:
According to the table, investment is:
a. Autonomous with respect to disposable income
b. Responsive to changes in interest rates
c. Responsive to changes in business expectations
d. Correlated with consumption
A terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously to
Options: slope upward; shift up; shift down; slope downward
Answers
The correct option is (B) Responsive to changes in interest rates
Investment in economics refers to the acquisition of capital goods for use in the creation of commodities and services. Demand for investments might alter due to a variety of reasons, including the real interest rate, production costs, taxes, adjustments in inventories, and expectations.
According to the table, investments total $100 billion, compared to $400 billion in available income. Investment stays the same while disposable income rises from $400 billion to $500 billion. Investments are not reliant on available cash. Investments are therefore independent of available funds. If we created an investment function, the investment curve at $100 million would be a horizontal line with investment on the vertical axis and disposable income on the horizontal axis.
Generally speaking, any circumstance that causes firms as a whole to anticipate a lesser return on their investment causes investment to decline. Another factor is expectation. The investment will decrease if CEOs become less optimistic about upcoming sales. Consequently, the investment function you previously developed would fail if a terrorist strike increased the pessimism of business projections.
Therefore option B is correct.
COMPLETE QUESTION is attached in the files section.
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Related Questions
often presented visually on an executive dashboard, what type of report focuses attention on business processes whose performance falls outside of the tolerance ranges defined a kpi metric? question 41 options: 1) annual 2) exception 3) batch 4) drill-down 5) ad hoc
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The exception report focuses attention on business processes whose performance falls outside of the tolerance ranges defined by a KPI metric.
The answer is option 2.
Financial KPIs (key performance indicators) are metrics companies use to the song, measure, and analyze the economic health of the company. Those economic KPIs fall below a spread of categories, consisting of profitability, liquidity, solvency, performance, and valuation.
Types of KPIs include Quantitative signs that can be presented with a variety of. Qualitative signs that can't be offered as a variety of. main signs that could predict the final results of a system.
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a(n) is a specific type of strategic alliance in which two or more companies join forces without merging the companies and share resources, risks, and profits. group of answer choices
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A joint venture is a specific type of strategic alliance in which two or more companies join forces without merging the companies and share resources, risks, and profits.
In the field of business, we can describe a joint venture as a collaboration between two or more two companies that join hands on a common project. Everything that is related to this project i.e the materials and the risks associated with the output that is gained is all divided equally among the companies that are a part of the joint venture.
A joint venture is a type of strategic alliance that helps in building more revenue and reduces the threats imposed by individual loss.
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when studying marketing effectiveness, the three main types of evaluation techniques are message evaluations, online evaluation metrics, and respondent behavior evaluations.
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The three key types of evaluation techniques to determine the effectiveness of digital marketing are message evaluations, online evaluation metrics, and respondent behavior evaluations. Thus, the given statement is true.
Marketing effectiveness is the measure of a wider range of digital marketing objectives to attain a larger return on investment in both the long term and the short term.
The three main digital marketing effectiveness evaluation techniques are briefly described below:
Message evaluations: In this technique messages are examined and optimized so that influencing ads and messages would be developed to attract customers.Online evaluation metrics: this is the technique that evaluates and tracks the digital marketing and advertising campaigns by implicitly measuring the experience of real users.Respondent behavior evaluations: These address the visible customers' actions, such as online store visits, inquiries, and actual purchases. This technique uses a range of measures such as changes in sales, the number of redeemed coupons, and the number of clicks to the website."The complete question is:
when studying marketing effectiveness, the three main types of evaluation techniques are message evaluations, online evaluation metrics, and respondent behavior evaluations. True or False "
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if the fomc wished to generate faster economic growth, they could issue a policy directive to the federal reserve board trading desk to purchase u.s. government securities.
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True: If the FOMC wished to generate faster economic growth, they could issue a policy instructed to the federal reserve board trading platform to purchase U.S. government security.
What is Economic growth?
A rise in the output of products and services over a given time period is referred to as economic growth. The calculation needs to account for inflation. A country's economy is said to be growing when the value of its goods and services rises, generating more revenue for companies. Consequently, stock prices increase. This provides businesses with money to expand and recruit more workers. The number of jobs added increases income. More purchases are made because consumers have more money to spend on more goods and services. All nations seek healthy economic growth for this reason.
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__________ _________ compare alternatives by determing the qualitative factors that should be included as part of the decision, assigning weights related to their importance, and then ranking different alternatives to allow comparisons.
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Quantitative factors compare alternatives by determining the qualitative factors that should be included as part of the decision, assigning weights related to their importance, and then ranking different alternatives to allow comparisons.
Qualitative factors can be considered as results that cannot be quantified or measured and depend on subjective knowledge.
On the other hand, Quantitative factors can be considered as numerical outcomes that can be easily quantified or measured. They may involve generic empirical information or monetary values that represent the magnitude of the financial effect on the reporting company or organization. It expresses a certain amount or range. Generally, there is a unit of measurement associated with this type of data. Hence, it makes sense to assign bounds to this data, and also arithmetic operations can be applied to this data to allow comparisons.
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the components of a typical issues management process include: multiple choice identify issue, take action, scan for new issues. generate options, predict the firm’s profitability, evaluate results. identify issue, analyze issue, allow the government to take action. all of these answers are correct.
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The components of a typical issues management process are include:
Identify issue, take action, scan for new issues.Identify issue, analyze issue, allow the government to take action.Generate options, predict the firm's profitability, evaluate results.So, the correct answer is all of these answer are correct.
Management process can be described as a process of setting goals, planning and controlling the organizing and leading the execution of any type of activity, such as: a process or a project. There are some functions of management process, such as: planning, organizing, coordinating, staffing, directing, reporting and budgeting.
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descibe and rationalize how a firm's logistics and supply chain strategy will likely evolve as a firm shifts from no international strategy to a global strategy. what are the challenges as the firm evolves through this change?
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When a firm operate in national or local market then it deals with few number of suppliers, retailers.
But when a firm begins to take its business operations into global market and make global strategy in which it offers the same products or services to many market of various countries then the and supply chain strategy will likely rise as now it has to identify the needs and trends of market in each country which can be allowed from local suppliers, and distributors of many countries.
The challenges they face when they evolve are-
The cost and quality of supplies may be delayed production as the quality raw materials at low cost isn't easy.The conflict of interest among supplies and distributors as number of these channels are increasing in the supply chain evolution.The communication and cultural barrier may affect supply chain evolution as the firm deals with people from different culture and background.legal authorities like taxes, duties, tariffs etc affect supply chain when firm operates business in another countries.Learn more about Global strategy:
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total fixed costs on a super-variable costing income statement will be blank than total fixed costs on a traditional variable costing income statement. multiple choice question. the same as higher than lower than
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The right answer is an option (b). Total fixed costs on an income statement using super-variable costing will be higher than total fixed costs on an income statement using regular variable costing.
Give an example of the difference between fixed and variable costs.Over a predetermined time period, fixed costs are constant. Depending on how well the business is doing, variable costs may go up or down. Rent, taxes, and insurance are a few examples of fixed costs. Credit card fees, direct labor, and commission are a few examples of variable costs.
On an income statement, how are fixed and variable costs determined?Add up all of your production costs first. Be certain to understand which costs are fixed and which are changeable. Add up your variable costs and divide by the quantity of units you generated to get your total cost of production. You will then be given your overall fixed cost.
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Natalia works for a mid-range electronics company. The consumers in the company’s domestic market are sophisticated and demanding and are constantly pressuring the company to innovate with new designs and technology. Which aspect of porter’s diamond does this demonstrate?.
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From the information given, it can be inferred that the aspect of porter’s diamond that this demonstrates is: Power of Customers.
What is Porter's Diamond Model?Porter's Five Factors is a model that identifies and analyzes five competitive forces that define every sector and aid in determining an industry's strengths and weaknesses. Five Forces analysis is widely used to define company strategy by identifying an industry's structure.
Porter's approach may be used in any sector of the economy to better analyze industry competitiveness and increase a company's long-term profitability. Michael E. Porter, a Harvard Business School professor, inspired the Five Forces paradigm.
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The possibility that poor sales were due to rejection of the health claims by the european union indicates that this product failure was primarily due to _______.
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Answer:
NGL I DO NOT KNOW
Explanation:
my fault
if you work part-time when you would like to work full time, or have a full-time job that doesn’t utilize all your skills and talents, then you are counted as: group of answer choices frictionally unemployed underemployed structurally unemployed a discouraged worker
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If you work part-time when you would like to work full time, or have a full-time job that doesn’t utilize all your skills and talents, then you are counted as: B. underemployed.
What is an unemployment rate?Unemployment rate can be defined as a measure or percentage of the total labor force in a country (economy), who are unemployed but are actively seeking to be gainfully employed by the employers of labor.
This ultimately implies that, an unemployment rate can be used to measure the number of unemployed workers with respect to the percentage of the labor force.
The types of unemployment.According to bureau of Labor statistics, unemployment can be divided into various types and these include the following;
Actual unemployment (AU).Cyclical unemployment (CU).Frictional unemployment (FU).Structural unemployment (SU).In this scenario, we can reasonably infer and logically deduce that a person who works work part-time when he or she would like to work full time would be counted as being underemployed.
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8. which of the following is not a typical concern for inventory and scheduling when implementing a lean system? a. frequent, small shipment must be arranged with suppliers. b. changeover times must be reduced. c. production schedules must be stabilized. d. companies can increase setup times because deliveries are frequent
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When developing a lean system, the following is not a frequent issue for inventory and scheduling: Deliveries are frequent, so businesses can extend setup times.
What lean idea aids in supply chain coordination, inventory level regulation, and production startup?The establishment of a process' production numbers through the use of Kanban is essential since it supports JIT production and ordering systems. It's frequently referred to as lean manufacturing's "nervous system."
Describe benefits of lean systems.Lean manufacturing boosts output while enhancing efficiency and reducing waste. As a result, there are numerous advantages: higher product quality Increased productivity frees up personnel and resources that would have been spent for innovation and quality assurance.
Delivering value as defined by the client, eliminating waste, and continuous improvement are the three pillars of the Lean approach to business processes, which was originally inspired from the hugely influential Toyota production system (TPS).
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green leaves seeks to encourage increased use of reusable bags by creating a new market space for "shoppers with a conscience." to achieve this, the firm creates differential value for consumers and makes contributions to society by reducing costs and environmental impact. which overall environmental marketing strategy does this exemplify?
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This demonstrate the overarching environmental marketing strategy's sustainable value innovation by reducing costs and environmental impact.
Innovation is the practical application of concepts that leads to the launch of new products or services or enhancements in the provision of existing products or services. Innovation is described by ISO TC 279 in the standard ISO 56000:2020 as "a new or altered entity realising or redistributing value." Lego has been converting the components of its renowned bricks to biodegradable plastics with an oil base. Additionally innovative were the first electric cars that entered the automotive market and the ongoing development of new batteries with increased range. A marketing strategy is a long-term plan for attaining a company's objectives through comprehending client needs and forging an identifiable and long-lasting competitive advantage. marketing strategy includes everything, from defining who your target audience is to selecting the methods you will use to communicate with them.
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simone takes ownership of the project to which she was assigned. she provides the leadership and vision that will take the product from the idea stage to the final customer. simone is a(n) .
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Simone assumes control of the task she was given to complete. She gives the project the direction and vision needed to see it through to the end user. A product spokesman is Simone.
Any activity that is meticulously planned to accomplish a specific goal, whether it is done alone or in a group, and may include research or design, is referred to as a project. A different perspective sees a project as a series of activities that must be completed in a specific order and under specific financial and other constraints. A project may be a transient (rather than permanent) social structure (work system), staffed perhaps by teams (inside or across organizations), to carry out specific tasks under time limitations. A project could be a component of a larger program management effort or work independently.
Be aware that open-source software "projects" or artists' musical "projects" (for instance) could not have clearly defined team members, exact planning, or time limits.
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the following best describes the global supply chain cycle from beginning to end: warehouses to distribution centers to suppliers to transporters to customers.
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No, warehouses to distribution centers to suppliers to transporters to customers do not best describes global supply chain from beginning to end therefore it is false.
A supply chain is a collection of individuals and companies held to account for creating a product and gaining it to the end user. The input materials production companies are the initial links inside this chain, and the final link is the van which provides the finally completed product to the client.
The significance of supply chain can be seen in the lowered costs and enhanced productive capacity that arrive from an optimization distribution chain. Companies are working to augment their supply chains in order to decrease expenses and maintain competitive advantage. Effective supply chain helps the companies to compete better and create good customer and also help in overall reduction of cost.
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1. when the partnership goes out of business and the normal operations are discontinued, the accounts should be adjusted and closed except the asset accounts. the liability accounts. the owners' equity accounts. all of these choices are correct.
Answers
The accounts should be adjusted and closed are except the asset, contra asset, liability, and owners' equity accounts. So, the answer is all of these choices are correct.
A partnership can be defined as a form of business where two or more people share ownership, as well as the income or losses the business generates and the responsibility for managing the company. Partnership has several characteristic, such as sharing of losses and profits, mutual agency, Lawful business, Unlimited liability, and also Contractual relationship. Partnership also can be defined into 3 main categories, such as general partnership, limited liability partnership, and also limited partnership.
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for the year ended december 31, 2025, davidson mart had sales of and cost of goods sold of . davidson estimates that approximately % of the merchandise sold will be returned. the adjusting journal entry on december 31, 2025, would include a .
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For the year ended December 31, 2025, a credit of $32,000 would be made to Refunds Payable in the adjusting journal entry on December 31, 2025.
When a bank has Refunds Payable, it signifies that the bank has been closed by the regulatory authorities, that a public official has been appointed to take over the bank, or that the bank has stopped or refused to make payments in the regular course of business.
The following Accounts Receivable accounts are impacted when goods purchased on credit are returned:
Accounts Receivable that is either credited to lower the balance owed by the customer or is a receivable from them.
Returns Inventory is Refunds Payable debited to lower the amount of sales, and In order to replenish stock with the returned goods, a second entry must be made to debit the merchandise inventory.
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The complete question is
For the year ended December 31, 2025, Davidson Mart had sales of $700,000 and cost of goods sold of $525,000. Davidson estimates that approximately 3% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2025, would include a
A. debit to Cost of Goods Sold for $15,750
B. credit to Refunds Payable for $21,000
C. debit to Sales Revenue for $5,250
D. credit to Estimated Returns Inventory for $15,750
employees who receive high performance evaluations for their one year accomplishments are awarded a fixed cash award. this is an example of tying evaluations to what element of the pay mix?
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Employees who receive high performance evaluations for their one year accomplishments are awarded a fixed cash award. this is an example of Short Term Incentives.
The term "short term incentive administration" describes rewards that are delivered over a period of up to one year. Short-term incentives, also known as annual incentives, are frequently linked to actions that have the biggest influence on business performance and are intended to motivate target achievement. Sep 21, 2020 For each period, "Fixed Cash Amount" refers to the sum shown in the table below across from that time. The Obligors shall not, during the periods set forth in the tables below, permit the Available Cash Amount to be less than the lesser of (x) the Fixed Cash Amount (as defined below) for such period and (y) the Variable Cash Amount at such time, at the close of business on the last Business Day in any calendar week.
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considering quickbooks online uses the fifo method for tracking inventory, what is the best way to see which line items are affected in the sales transaction?
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Considering QB online uses the FIFIO method for tracking inventory, Run an Inventory Valuation Summary-course is the best way to see or run a profit and loss and select COGS account to see the transaction history.
What is Inventory?
The term "inventory" refers to both the natural resources utilized in manufacture and the finished products that are offered for sale. One of the most important assets that an organization may have is inventory turnover because it is one of the primary ways to generate revenue and, subsequently, earnings for the firm's stockholders. Natural resources, take a job, and completed items are the three categories of inventory. On a company's balance sheet, it is shown as a current asset.
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Raymond barrows owned a 17-acre parcel of undeveloped land in seaford, delaware. For most of his life, mr. Barrows had been an astute and successful businessman, but by the time he was 85 years old, he had been diagnosed as "very senile and confused 90 percent of the time. " glenn bowen offered to buy the land. Barrows had no idea of its value, so bowen had it appraised by a friend, who said it was worth $50,000. Bowen drew up a contract, which barrows signed. In the contract, barrows agreed to sell the land for $45,000, of which bowen would pay $100 at the time of closing; the remaining $44,900 was due whenever bowen developed the land and sold it. There was no time limit on bowen’s right to develop the land nor any interest due on the second payment. Comment.
Answers
Answer:
Please clarify your question Thanks!
has credit sales of $342,000 yearly. if dome offers a 2 percent discount for payment in 18 days, what will the average accounts receivable balance be? assume all customers would pay on the last day of the discount period. (use a 360-day year.)
Answers
The average accounts receivable balance be $17,100. assuming all customers would pay on the last day of the discount period. (using a 360-day year).
Credit sales of Dome metals = $342,000 yearly
Dome offers 2% discount for payment in 18 days.
Assuming all customers would pay on the last day of the discount period.
Average receivables balance = Receivables with discount x Average collection period
= (342,000 - 2%) x 18 /360 =$341,999 x 0.05 =$17,099.999
Therefore Average receivables balance = $17,099.999 ≈ $17,100
Average account balance over a certain length of time for the accounts payable account When linking this account to Sales, an average balance must be calculated because the amount presented in the Accounts Receivable account is the final balance on a single day (the balance of which reports the sales for a period of time).The amount of times a firm collects its typical level of accounts receivable is measured by the accounts receivable turnover ratio. It measures how well a business is able to manage its line of credit procedure and collect past-due amounts from customers.Accounts receivable Turnover Ratio: An efficient firm has a higher ratio whereas an inefficient company has a lower ratio.Learn more about Average account, here
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Your credit report is the equivalent of your financial what?
A: Goals and dreams
B: Family budget
C: Report Card
D: Car payments
Answers
Answer:
financial nothingness is equivalent to space time travel
got em
as an alternative, lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing and the balance with short-term financing. the same interest rates apply as in part a. earnings before interest and taxes will be $200,000. what will be lear’s earnings after taxes? the tax rate is 30 percent.
Answers
The value of earning after tax of Lear will be $35,875, considering value of current asset, fixed asset and value of earnings before interest and taxes.
The following information is provided:
Temporary current assets =$450,000
Permanent current assets =$350,000
Fixed assets =$600,000
Total assets =$14,00,000
Tax rate = 30%
Calculation of interest expense in the alternative financing plan
Long-term interest expense = asset to be financed*interest rate
= (600,000+350,000+1/2* 450,000)*10%
= $1,17,500
Long-term interest expense = asset to be financed*interest rate
= [$450,000 + ½ ($350,000)]*5%
= $31,250
Total interest expense = $1,17,500+$31,250 = $148,750
Calculation of earnings after tax:
Earnings after taxes= Earnings before interest and taxes-interest expenses- tax
= $200,000-$ 148,750-$15,375
= $35,875
The complete question is here:
Lear inc has 800,000 in current assets, 350,000 of which are considered permanent current assets. In addition, the firm has600,000 invested in fixed assets.
a) Lear wishes to finance all fixed assets and half of its permanent current assets with long term financing costing 10percent. Short term financing currently costs 5 percent. Lear’s earnings before interest and taxes are 200,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30 percent.
b) As an alternative, Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be 200,000. What will be Lear’s earnings after taxes? The tax rate is 30 percent.
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Why was the federal reserve system set up with twelve regional federal reserve banks rather than one central bank, as in other countries?.
Answers
The Federal Reserve machine changed into installation with 12 local banks because of conventional American hostility to centralized authority and crucial bank, this sort of machine changed into setup to diffuse the energy and distribute it a whole lot extra evenly.
The required details for Federal Reserve System in given paragraph
The Federal Reserve System is the crucial banking machine of the United States of America. It changed into created on December 23, 1913, with the enactment of the Federal Reserve Act, after a chain of monetary panics brought about the preference for crucial manage of the financial machine with a purpose to alleviate monetary crises. Over the years, activities which includes the Great Depression within side the Thirties and the Great Recession at some stage in the 2000s have brought about the growth of the jobs and duties of the Federal Reserve System.
Congress hooked up 3 key targets for financial policy within side the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-time period hobby rates. The first targets are now and again called the Federal Reserve's twin mandate.
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some companies extend their networks to their customers and suppliers in order to build innovative continuous inventory replenishment systems that would lock in their business. this creates a (n) information system.
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This creates an intra enterprise information system.
Any information system that enhances the capabilities of enterprise business operations through integration is referred to as an enterprise information system (EIS).
In general, this implies providing high-quality services, handling big amounts of data, and being able to serve a sizable and perhaps complex organization or enterprise. All areas and levels of a company must be able to use an EIS. The word "enterprise" can mean several different things.
Frequently, the phrase is exclusively used to describe extremely massive institutions, such as public sector or multinational corporations. Due to the term's status as a buzzword in corporate jargon, it can be applied to almost anything.
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industry, forestry and energy production are top sources of greenhouse gases. of the remaining sources listed below, which produces the greatest amount of greenhouse gases? transportation agriculture residential and commercial buildings water and wastewater
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Due to automation and reliance on vehicles like cars, trucks, aeroplanes, and ships, transportation alone is responsible for the greatest amount of greenhouse gas emissions.
What is greenhouse gas?
Any gas that has the ability to absorb infrared radiation emitted from the Earth's surface and reradiate it to the surface is a greenhouse gas and contributes to the greenhouse effect. As far as greenhouse gases go, carbon dioxide, methane, as well as water vapour are the most significant. (Surface-level ozone, nitrous oxides, as well as fluorinated gases trap infrared radiation to a lesser extent.) Even though they make up a small portion of all atmospheric gases, greenhouse gases have a significant impact on the energy budget of Earth system. Throughout Earth's history, greenhouse gas concentrations have varied significantly, and these variations have resulted in significant climate changes over a wide range of timescales. In general, the levels of greenhouse gases have been highest during warm seasons and lowest during cold ones.
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Answer:
Industry, forestry and energy production are top sources of greenhouse gases.
Of the remaining sources listed below, which produces the greatest amount of greenhouse gases?
Agriculture
Water and wastewater
Transportation
Residential and commercial buildings
Explanation:
Correct Answer:
Agriculture
john’s friend, michael, just got fired from his job as a server at a local restaurant. after michael is done telling his story about his encounter with an irate customer and his boss, john says, "so, your boss took the customer’s words over yours?" what is john doing here in his response? question 4 options:
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In a case whereby john’s friend, Michael, just got fired from his job as a server at a local restaurant and narrated the issue to John, and John says "so, your boss took the customer’s words over yours, then John means that his boss do not trust him.
What is the trust between the employee and employer?The trust between the employee and employer can be seen as one that do make the relationship between the employer as well as the employee to be strong.
It should be noted that the Trust in the workplace implies that there is a culture of honesty as well as psychological safety which exist between the employee as well as the employer, hence in the case whereby the employer is acting against the employee as a result of the comments from the customer without any investigation implies that there is no trust between them which is not adviceable.
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an accounting statement that presents predicted amounts of the company's assets, liabilities, and stockholders' equity as of the end of the budget period is called a(n): a) master balance sheet. b) budgeted income statement. c) pro forma balance sheet. d) pro forma cash flow statement. e) operating balance sheet.
Answers
Income statement, statement of stockholders’ equity, balance sheet, and statement of cash flows are the proper order.
Every company prepares financial statements to inform the intended users of its financial performance.These claims are connected to one another, thus they can be made in any order.Since the information needed to complete the income statement does not come from other statements, it is prepared first.Statement of Stockholders’ Equity is prepared following the income statement because it requires the balance of net income or loss from the income statement.
The balance sheet is then created because it needs the information on stockholder equity.Because it needs information from the previous year as well, the last statement of cash flows is created.This is essentially the presentation of a business’s plans in financial terms. It is claimed to be a strategy that will assist you in keeping track of your finances, managing your money sensibly, and achieving your short-, medium-, and long-term goals on schedule.
The sales, purchases, cash, and income statements are the significant configurations in which the majority of master budgets are constructed. According to the selling, general, and administrative budget and the pro forma revenue statement, budgeted sales commissions are clearly displayed.
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on april 1, dos company sold $12,000 accounts receivable to ps2 finance company to obtain immediate cash. the related allowance for doubtful accounts was $480. the financial agreement specified a price of $10,200 on a with-recourse basis. dos estimated a $240 recourse liability. required prepare the journal entry for dos company to sell the accounts receivable.
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DateAccount Titles DebitCredit2020 April 1Cash $12,000, Allowance for Doubtful Debts $480, Loss on Sale of Receivables (2,200 + 240)= $2,440 Accounts Receivables $12,000,Recourse Liability $240.
A debit card, commonly referred to as a check card or bank card, is a type of payment card that can be used to make transactions in place of cash. The phrase "plastic card" refers to both the previous item and an identity debit card. While they resemble credit cards, the money for the purchase must be in the cardholder's own account with them. The financial agreement specified a price of $10,200
In double-entry bookkeeping, the debit is the side of the entry that shows the amount deducted from an account.
Receivable refers to the fact that the payment has not yet been realized. Accordingly, the business must have given its clients a credit line.
Trade accounts receivables, notes receivable, and other receivables are the three main categories that make up receivables.
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When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called trade.
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When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called free trade.
In the field of business, such a kind of trade in between two countries that require low or no taxes at all is referred to as free trade. Free trade is considered beneficial if the status of the market of a country is to be enhanced. Foreign companies will be more interested to sell products in a country where there are no quotas, taxes or other restrictions so that they can benefit to the maximum level from such a trade.
Free trade is a policy by the government of a country to allow import as well as export without any restrictions. The local businessman of a country benefits from such a kind of trade as they do not have to pay taxes.
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