2. a. If many bussiness predict that a recession is coming, and if investment falls, what is the effect in the short run on aggregate output and interest rate? Show your answer by using IS-LM curves (label intial equilibrium point 1, new equilibrium 2) b. In the short run, what could central bank to avoid this effect on aggregate output? Label the new equilibrium point 3 c. suppose instead that central bank chooses not to engage in any active policy aftrer the initial drop in invetment spending. Starting from point 2, describe what will happen to the economy in the long run.
Answers
a. In the short run, if many businesses predict a recession and investment falls, the effect on aggregate output and interest rate can be analyzed using the IS-LM model.
In the IS-LM model, the IS curve represents the relationship between output (Y) and the interest rate (r), while the LM curve represents the relationship between the interest rate (r) and the money supply (M).
When investment falls due to the expectation of a recession, it leads to a leftward shift of the IS curve, indicating a decrease in aggregate output.
The decrease in aggregate output causes a decrease in the demand for money, shifting the LM curve to the left, resulting in a higher interest rate.
The initial equilibrium point is labeled as point 1, representing the intersection of the initial IS and LM curves.
After the decrease in investment and the shifts in the IS and LM curves, the new equilibrium point is labeled as point 2, indicating a lower output and a higher interest rate compared to the initial equilibrium.
b. In the short run, the central bank can take actions to avoid the negative effects on aggregate output caused by the decrease in investment. To do so, they can implement expansionary monetary policy:
Expansionary monetary policy involves increasing the money supply (M) through measures such as lowering interest rates or conducting open market operations to purchase bonds.
By increasing the money supply, the LM curve shifts to the right, lowering the interest rate.
The lower interest rate stimulates investment and consumption, increasing aggregate demand.
The new equilibrium point, after the implementation of expansionary monetary policy, is labeled as point 3. It represents a higher output level and a lower interest rate compared to point 2.
c. If the central bank chooses not to engage in any active policy after the initial drop in investment spending, the economy will adjust in the long run through various mechanisms:
In the long run, the economy will experience adjustments in prices, wages, and expectations.
As a result, the SRAS (short-run aggregate supply) curve will shift to the right, leading to lower prices and higher output levels.
The adjustments in prices and wages will help restore equilibrium in the labor market, allowing firms to adjust their production levels.
Over time, the economy will reach a new long-run equilibrium with a different output level and price level.
However, without any active policy intervention, the adjustment process in the long run may be slower and potentially lead to prolonged periods of lower output and higher unemployment.
Note: The exact adjustments and outcomes in the long run depend on various factors and assumptions in the specific economic model being used.
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Related Questions
The replacement cost method is a method used by analysts that compares ratios of privately held companies to other publicly traded companies in order to value the firm. (T/F)
Answers
False. The replacement cost method is a valuation method that estimates the cost to replace an asset with an identical or similar one.
It is typically used to value assets such as property, plant, and equipment. The method involves calculating the cost of acquiring or building a new asset of equal or similar utility, and then adjusting for any depreciation or obsolescence that may have occurred. This method is not used to value firms or companies by comparing ratios of privately held companies to other publicly traded companies. Instead, analysts typically use other methods such as the market approach, income approach, or asset-based approach to value firms. It is important to note that this method may not always provide a perfect estimation, but it does offer a useful basis for comparison.
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Conducting a search of the store is part of store closing duties. Why?
Answers
1. Everything is in place
If things are not in place in a store, things would be very messy when opening the store the next day. Conducting a search of the store to see if everything is in place also ensures that no merchandise was stolen, and if so, persecution would be followed through with accordingly.
2. There is nobody trespassing/lurking
Conducting a search of the store is part of store closing duties because it assures workers that nobody is lurking in the shadows or intruding without the attention of any employee. Trespassing is illegal in most places, and it is a severe felony in some places. Whenever a store attendant is unaware of somebody who is in the store without permission, countless things can happen that do not work in favor of benefitting the business. However, conducting a search of the store during closing time would eliminate this concern.
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using the demand schedule below, plot the demand curve on the grapa below the schedule. label the axes and indicate for each axis the unit being used to measure price and quanity
price. supply. demand
1. 1. 10
2. 2. 9
3. 3. 8
4. 4. 7
5. 5. 6
6. 6. 5
7. 7. 6
8. 8. 7
9. 9. 8
10. 10. 9
Answers
Demand curve:It is a curve that shows the relationship between the price and quantity demanded of a good or service. Demand schedule, a table, is used to create a demand curve.
This can be demonstrated with the help of the following table :Price Quantity demanded 1 10 2 9 3 8 4 7 5 6 6 5 7 6 8 7 9 8 10 9Price is plotted along the vertical axis and quantity demanded along the horizontal axis. The units of measurement for quantity demanded and price should be clearly indicated on the axes. By plotting each point in the schedule on the graph and connecting the points with a smooth curve, the demand curve is produced. In the above schedule, the following are the demand and supply curves plotted on the graph below.
Since this is a demand curve, the vertical axis is labelled price and the horizontal axis is labelled quantity demanded. \((/editor/20211004/616afbdb5d648.svg) (Demand curve)\((/editor/20211004/616afc9d9c0cc.svg) (Demand and Supply curves)Units of measurement: Price: dollars (or any other currency)Quantity demanded: units (e.g. pounds, litres, etc).
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Define direct advertising
Answers
Answer:
Explanation:
Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. By contrast, advertising is of a mass-message nature.
Click this link to view O*NET’s Work Activities section for Licensing Examiners and Inspectors. Note that common activities are listed toward the top, and less common activities are listed toward the bottom. According to O*NET, what are some common work activities performed by Licensing Examiners and Inspectors? Check all that apply. working directly with the public evaluating information staffing organizational units drafting technical devices interacting with computers getting information
Answers
Answer:
Licensing Examiners and Inspectors examine, evaluate, and investigate eligibility for, conformity with, or liability under licenses or permits.. Here is what a typical day’s work for a Licensing Examiner and Inspector looks like: Issue licenses to individuals meeting standards. Collect fees for licenses.
Explanation:
Answer: A B E F
Explanation:
How could virustotal be useful to users? how could it be useful to security researchers? however, could it also be used by attackers to test their own malware before distributing it to ensure that it does not trigger an av alert? what should be the protections against this?
Answers
Answer:
The answer to this question can be defined as follows:
Explanation:
VirusTotal was its online tool that scans its file for identification for virus and ransomware up to 256 Mb in the file name. You can also scan that virus scan URL/domain. Its content is examined by 70 virus protection scanners. However, it is convenient for customers who would search their files and connections to detect any file or link malicious type of virus protection.
Yeah, security experts should, of course, just use the service because it retrieves the security aspect for files and VirusTotal can scan the data.
Yeah, throughout the case of abuse of a software package, hackers can test their specific malware to insure how an AV alert is not activated, until releasing it. It will ensure that neither warning is triggered mostly by file, malicious document, or link, and thus check its material with VirusTotal.
Security must be taken from of the abuse by the perpetrators of the VirusTotal tool. Security must be in the form of even an assault that perhaps the virus model or malware ties could be uploaded or regulated throughout the VirusTotal Tool resources. So, it isn't essential to be using the VirusTotal tool.
What describes the number of deaths in a year compared to the number of people in a select group?
Mortality Rate
When calculating life insurance premium rates, which component would an agent’s commission fall under?
Insurer’s expenses
-is a component of the premium
Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?
Interest option
A beneficiary receives only the death benefit earnings in which settlement option?
Interest option
What is NOT a life insurance settlement option?
Extended term option
When calculating life insurance premium rates, which component is affected by an insured’s age and gender?
Mortality
Premiums are best described as?
The amount an insured pays per unit of coverage
A creditor would be allowed rights to life insurance policy proceeds if which type of beneficiary was chosen?
The insured’s estate
How are death benefits that are received by a beneficiary normally treated for tax purposes?
Exempt from federal income taxes
The probability of death, listed by year, is determined in?
Mortality tables
-gives a measure of the number of deaths in a given population over a certain period of time
What is considered the automatic mode of settlement for life insurance policy proceeds
Lump-sum
What is NOT a component when determining policy premiums?
Dividends
Level premium term life insurance policies
Have premiums that are averaged over the policy period
Over the course of a year, which premium payment mode is most expensive?
Monthly
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen?
Fixed amount
What is the price of insurance for each exposure unit?
Rate
A spendthrift clause in a life insurance policy ______?
Restricts the ability of the beneficiary to assign benefits
What is NOT an insurer policy expense?
Premiums
What premium payment frequencies are not typically available to a policy owner?
Biweekly
A policy owner can receive an immediate payment before the insured dies by using a _____?
Viatical settlement contract
-transaction that involves an immediate payment to the policy owner prior to the death of the insured
A policy owner is prohibited from making any changes to the policy without the beneficiary’s written consent under which beneficiary designation?
Irrevocable beneficiary
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
Specified amount of money
What happens to the total amount of premium paid for an insurance policy when the payment frequency increases?
Increases
Proceeds from a life insurance policy are protected from the beneficiary’s creditors by which clause?
Spendthrift trust clause
An example of naming a beneficiary by class would be?
"To the children born of my union with Ned Jackson."
What is affected by the frequency of an insurance policy’s premium payments?
Cost
A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the ______?
Named living primary beneficiaries
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in a car accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits?
Common disaster clause
-a policy owner can be sure that if both the insured and the primary beneficiary die within a short period of time, the death benefits will be paid to the contingent beneficiary
A tax free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs ______?
From insurer to insurer and no cash is received by the policy owner
What would be an expense factor in an insurance program?
Mortality Costs
What factors help determine an insured’s life insurance premium?
Avocation (hobby)
-premiums are determined by several factors pertaining to the insured, such as age, occupation, and avocation (hobby)
Naming a contingent beneficiary as "all surviving children" is described by which term?
Class designation
If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if _____?
The insured outlived the beneficiary
*common disaster provision
Answers
The concept here is Agent. In legal terminology, an agent is a person who has been authorized by law to act on behalf of another person or entity.
1) mortality rate
2)The agent's commission is considered part of the insurer's expenses and is a component of the premium.
3) the beneficiary should select the interest option.
4)interest settlement option.
5)extended term option
6) Mortality is the component of a life insurance premium that age and gender affect.
7) The amount you pay for covered services before your insurance plan starts.
8)Creditors have rights to life insurance policy proceeds when the beneficiary is the insured's estate.
9)Death benefits that are received by a beneficiary are generally exempt from federal income tax.
10) Mortality tables
11) The lump-sum cash settlement is considered the automatic (or "default") option for most life insurance contracts.
12)Dividends are not a component when determining policy premiums.
13) monthly
14) fixed amount
15)The price of insurance for each exposure unit is called the rate.
16)The spendthrift clause protects life insurance proceeds from creditors.
17)Restricts the ability of the beneficiary to assign benefits
18)Premiums
19) Biweekly
20)Viatical settlement contract
21) Irrevocable beneficiary
22) Specified amount of money
23) Increases
24) Spendthrift trust clause
25) "To the children born of my union with Ned Jackson."
26) Cost
27) Named living primary beneficiaries
28) Common disaster clause
29) From insurer to insurer and no cash is received by the policy owner
30) Mortality Costs
31) Avocation (hobby)
32) Class designation
33) The insured outlived the beneficiary
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Which type of market is the one in which a person buys stock in the fast-food company that makes their favorite breakfast sandwich?
Product market
Factor market
Financial market
Closed market
Answers
The type of market is the one in which a person buys stock in the fast-food company is Financial market. Thus 3rd option is correct.
What is Financial Market?Any location or system that gives buyers and sellers the ability to trade financial assets, such as bonds, shares, the various international currencies, and derivatives, is referred to as a financial market.
The connection between people with capital to invest and those who need capital is facilitated by financial markets.
The kind of market where a consumer purchases shares of the fast-food chain that sells their preferred breakfast sandwich is referred as financial market.
Thus 3rd option is correct.
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Answer: Financial market
Explanation: stocks
Select all that apply.
Select all reasons data mining is important to businesses.
It cuts costs.
It identifies long-term goals.
It solves problems.
It increases profits.
Answers
I sole’s problems increase profits
Answer:
a,c,d
Explanation:
what will happen to equlibrium GDP if the government increases taxesby $30 but does not increase spedning? Be specific
Answers
When taxes are raised, government expenditure also rises as well, which causes the real GDP to fall whenever taxes are raised.
What is GDP?The GDP of any country helps to determine the economy and the factors of growth. It helps to determine the value of goods produced and utilized by the consumer in a country.
The increase in GDP shows the growth factor which reflects increases in the purchasing parity of the consumer and they spend more on buying goods and services. This will show they improve the standard of living.
The real GDP will always fall whenever taxes are raised since eventually they will lead to higher government spending. Because of this, a $30 increase in after-tax income will result in a $30 decrease in real GDP in this particular situation.
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which type of chart would you create to compare expenses in each department as a percentage of all expenses?
Answers
Based on the information given, the best chart that can be used to represent the scenario will be an exploded pie chart.
A pie chart simply refers to a type of graph that's is used in displaying the data in a circular graph. In this case, the pieces are proportional to their fractions.
The exploded pie chart can be used in comparing the expenses in each department as a percentage of all expenses.
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Can I earn by brainly?
Answers
Answer:
huh?
Explanation:
Is a business plan a one time fee?
Answers
Answer:
i think so :)
Explanation:
Question 6 of 10
The optional feature in a business letter is the:
A. date.
B. inside address.
C. closing.
D. reference.
Answers
Answer:
D would be the correct answer
Explanation:
Answer: reference
Explanation: ape x
What is the difference between revolving and term credit?
Answers
Answer: Revolving credit offers borrowers the option to draw funds up to a limit while ,Term credit is the agreement between a seller and buyer that lists the timing and amount of payments the buyer will make in the future.
tennis team goes through a dozen tennis balls every week (on average). If they want to always have at least a week's supply on hand, and it takes a week to get more tennis balls, how low can their supply get before they should reorder?
Answers
Answer:
Like 4 days into the week so they can have it for the next week.
Explanation:
Answer: 24 supplies
Explanation:
12x1 week
12x1 safe week suplies
12x2 = 24
Acme Corporation is liquidated with Joe, sole shareholder, receiving property having an adjusted basis of $70,000 and an FMV of $100,000. Joe's basis in the Acme stock surrendered is $60,000. Describe the tax consequences to Joe and Acme as a result of the liquidation.
Please explain step by step so I can understand the concepts, not just an answer.
Answers
When Acme Corporation is liquidated, there are tax consequences for both Joe, the sole shareholder, and Acme Corporation. Let's go through the step-by-step process to understand these consequences:
Property Distribution: As part of the liquidation, Joe receives property with a fair market value (FMV) of $100,000 and an adjusted basis of $70,000. The FMV represents the current value of the property, while the adjusted basis is the original cost adjusted for any depreciation or improvements.
Gain or Loss Recognition: Joe will recognize a gain or loss based on the difference between the FMV of the property received ($100,000) and his basis in the Acme stock ($60,000). In this case, Joe will have a recognized gain of $40,000 ($100,000 - $60,000).
Taxable Gain: The recognized gain of $40,000 will be subject to taxation. Joe will include this gain in his personal income tax return, and the tax will be calculated based on his individual tax rate.
Acme Corporation: As a result of the liquidation, Acme Corporation ceases to exist. The corporation may recognize any gains or losses on the distribution of its assets. If there are any remaining assets after satisfying its liabilities, the corporation may have tax consequences such as capital gains or ordinary income.
It's important to note that the specific tax consequences can vary based on the jurisdiction and applicable tax laws. Consulting with a tax professional is recommended to ensure accurate understanding and compliance with tax regulations.
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What role do sources play in validating an argument? Are we able to rely on the internet to provide complete and truthful information? Of course not, but how do we discern? How do we determine the motives of the people we're reading? One thing we have learned is that the people screaming most loudly about dishonesty are the ones being most dishonest. That isn't by accident. So, what do you do? And how does that apply to this week's content?
Answers
Incomplete question. However, I answered from a general research perspective.
Explanation:
What role do sources play in validating an argument?
Well, the term source basically refers to the originator of any information. We have sources that are considered credible sources (like Encyclopedia, Journal Magazine, Newspaper, etc) and others that are considered incredible sources (general social media post). Knowing the kind of source could thus help validate an argument.
Relying on the internet to provide complete and truthful information is difficult considering the amount of fake news available today.
1. Barbara and Richard have both been with the company for a year, but Barbara counts over 50 coworkers in her network, making her_ ___ _ _ _ _ _ much higher than that of Richard, who has only gotten to know his manager, the seven other people in his department, and a handful of people who staff the mailroom. A) betweenness, B) number of nonredundant contacts, C)number of structural holes, D)degree of centrality.
Answers
Barbara and Richard have both been with the company for a year, but Barbara counts over 50 coworkers in her network, making her much higher than that of Richard, who has only gotten to know his manager, the seven other people in his department, and a handful of people who staff the mailroom.
The options given are : (A) betweenness, (B) number of contacts, (C) number of structural holes, (D) degree of centrality.Answer:The correct answer is (B) number of nonredundant contacts. In social network analysis, the Number of Nonredundant Contacts (NNC) metric can be used to measure an individual's network size. In social network analysis, the term refers to the fact that each contact is only counted once, regardless of how many interactions that person has had with that contact. To put it another way, if two people have interacted many times, they will still only count as one contact. The NNC metric measures the number of unique contacts that an individual has in their network.
A person with a high NNC has many unique connections, whereas a person with a low NNC has few unique connections.A structural hole is a gap between two individuals or groups in a network. A person who bridges structural holes, on the other hand, has access to information that others do not. They serve as intermediaries between the two groups, which may help them advance their careers or gain access to valuable information. It can be used to identify people who serve as intermediaries in a network and are thus in a position to control the flow of information. Degree centrality, on the other hand, is a measure of how many direct connections a person has in a network. It can be used to identify people who are popular or influential in a network.
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In what areas do federal agencies regulate to ensure safety and the general
wellness of US citizens?
a. Businesses
b. Environment
c. Products
d. All of the above
Answers
Answer:
d. All of the above
Explanation:
Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.
The areas of regulations include but are not limited to
Protecting consumers from undue exploitation by businesses, Encourage fair business competition Promote a healthy, safe work environment for employees Promote and sustain a clean environmentPrivate data protection and securityWhich of the following affects employers’ decisions on how much to pay their workers? Maximizing costs
Maximizing profits
Minimizing profits
Minimizing benefits
Answers
What affects employers’ decisions on how much to pay their workers is : Maximizing profits.
What is profit maximization?Profit maximization can be defined as the way in which a company or an organization tend to determine the price level that enables them to maximize profit.
Every company or organization goals is to make profit based on this company that is determine to make profit must tend to make use of profit maximization approach.
Profit maximization is important as it can tend to lead to sustainable growth for companies which is why most companies make use of profit maximization strategy so as to make higher profit.
Therefore what affects employers’ decisions on how much to pay their workers is : Maximizing profits.
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At the end of the fiscal period, Burton Company omitted the adjusting entry for depreciation
on equipment. The effect of this error on the financial statements is to
a. understate liabilities.
b. understate owner's equity.
c. overstate expenses.
d. overstate assets
Answers
The impact of the given error on the financial statement should be an overstatement of the assets.
Since the adjusting entry for depreciation is omitted i.e.Depreciation expense Dr XXXXX
To accumulate depreciation XXXXXX
(being depreciation expense is recorded)
Here depreciation expense is debited as it increased the assets and credited the accumulated depreciation as it decreased the assets.
So if the above journal entry is omitted so it means the assets should be overstated.
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which of the following is not an advantage of an etf?select one:a.no minimum investmentb.tax efficiencyc.a broad set of investmentsd.daily redemption at nav
Answers
No minimum investment is not an advantage of an ETF (Exchange-Traded Fund). Option A is correct.
ETF stands for Exchange-Traded Fund. It is a type of investment fund that is traded on stock exchanges like individual stocks. It is designed to track the performance of a specific index, commodity, or basket of assets. ETFs are made up of a portfolio of assets, such as stocks, bonds, or commodities, and offer investors a way to diversify their investments across a wide range of securities with a single trade.
ETFs are generally considered to be a low-cost investment option compared to traditional mutual funds. They also offer tax efficiency, as investors can buy and sell ETFs without triggering capital gains taxes as long as they hold the ETF in a tax-advantaged account like an IRA.
Hence, A. is the correct option.
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a foodservice operations uses the mini-max system to determine amounts to order. canned peaches have a maximum inventory level of 10 cases and a safety stock factor of 2 cases. the operation currently has 6 cases on hand. how many cases should be ordered?
Answers
We should order 0 cases for just a food service operation, according to the inquiry.
Does 'amount' imply 'money'?Amount of money: quantity | Business English an enormous/modest/moderate amount With only just few hours of work you may earn a sizable sum. a specific/specific amount Payments are restricted to a specific sum.
Do amount equal price?Price can be interchanged with terms like quantity, cost, and expenditure, expense, and pay. Cost and price are nearly synonymous when referring to the amount we spend for anything. The phrase the overall cost is $27, for instance, means the same thing as the entire price is $27.
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A savings account is a good choice for:
A. a high return on your investment.
B. retirement planning.
C. when you need easy access to your funds. .
о
D. basic savings and as an emergency fund.
Answers
Answer:
B. Basic savings and as an emergency fund
Explanation:
In response to threats from such companies as Amazon, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________. Group of answer choices
Answers
Answer:
Re-intermediation
Explanation:
Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.
So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.
Fink Insurance collected premiums of $17,700,000 from its customers during the current year. The adjusted balance in the Deferred premiums revenue account increased from $5.0 million to $8.8 million dollars during the year. What is Fink's revenue from insurance premiums recognized for the current year?
a. $22,300,000.
b. $9,500,000.
c. $13,500,000.
d. $17,900,000.
Answers
The Fink's revenue from insurance premiums recognized for the current year is $13,900,000.
This is because to find Fink's revenue in this situation; we use this formula.
Insurance premium collected + Beginning Deferred premium account - Ending deferred premium;
Thus we have an Insurance premium collected => $ 17,700,000;
Beginning Deferred premium account => $ 5,000,000;
Ending deferred premium => $8,800,000;
Therefore by slotting the details into the formula, we have:
=> $ 17,700,000 + $ 5,000,000 - $8,800,000 = $ 13,900,000;
Hence, in this case, it is concluded that the correct answer is "$13,900,000."
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Paulette, Camille, and Hortense each own wineries in France. They produce inexpensive, mass-market wines. Over the last few years, such wines sold for 7 euros per bottle, but with a global recession, the price has fallen to 5 euros per bottle. Given the information below, calculate each winemaker's profit. Winemaker Fixed Costs Variable Costs Recession Revenues Profits Paulette 50,000 80,000 120,000 Camille 100,000 40,000 70,000 Hortense 200,000 250,000 200,000
Answers
The each winemaker's profit is 70000 and -250000 for Camille and Hortense respectively and Paulette's profit is - 10000.
Profit is the amount that the company earns over the cost of the production they have used in the business
Elaborating:For Paulette it is 120000-50000-80000= -10000
So this is calculated by deducting fixed and variable cost from revenue
Same will be for other two mentioned.
-70000 and -250000 for Camille and Hortense respectively
Variable costs:Costs that fluctuate in response to changes in the quantity of a product or service produced by a company are referred to as variable costs.The sum of marginal costs for all units produced constitutes variable costs. They can also be regarded as standard expenses. The total cost is made up of two parts: fixed costs and variable costs.
Costs that do not change when production or sales volumes increase or decrease are known as fixed costs. This is on the grounds that they are not straightforwardly connected with assembling an item or conveying a help. Consequently, fixed costs are regarded as indirect costs.
Question incomplete:Paulette, Camille, and Hortense each own wineries in France. They produce inexpensive, mass-market wines. Over the last few years, such wines sold for 7 euros per bottle, but with a global recession, the price has fallen to 5 euros per bottle. Given the information below, calculate each winemaker's profit. Winemaker Fixed Costs Variable Costs Recession Revenues Profits Paulette 50,000 80,000 120,000 Camille 100,000 40,000 70,000 Hortense 200,000 250,000 200,000
A. Paulette -10,000, Camille = -70,000, Hortense = -250,000
B. Paulette 40,000, Camille = 30,000, Hortense = -50,000
C. Paulette 70,000, Camille = -30,000, Hortense = 0
D. Paulette = 90,000, Camille = 10,000, Hortense = 150,000
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List 5 Entrepreneural qualities
Answers
Explanation:
resolute motivation and passion, creative thinking, self discipline, risk taking ability, and persistence
A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,957 representing a loss of $3,309. Determine the art that would appear in the operating activities section of the statement of cash flows based on this transaction. a $29.266 b $3,309 c $25.957 d $22.648
Answers
The amount that would appear in the operating activities section of the statement of cash flows based on the transaction is $22,648.
In the indirect method of preparing the statement of cash flows, the operating activities section starts with net income and adjusts for non-cash items and changes in working capital. The sale of a fixed asset with a loss is a non-cash item that needs to be accounted for.
When a fixed asset is sold, the proceeds from the sale are reported in the investing activities section of the statement of cash flows. However, the loss from the sale is added back to net income in the operating activities section because it is a non-cash expense that had already been deducted in calculating net income.
In this case, the loss from the sale of the fixed asset is given as $3,309. Since it is added back to net income in the operating activities section, the amount that appears in the operating activities section is the negative of the loss, which is -$3,309.
However, the question asks for the "art" that would appear in the operating activities section, which appears to be a typo. Assuming it is meant to be "amount," the correct answer would be option (d) $22,648, which is the negative of the loss (-$3,309). This is because the loss reduces net income, and in the operating activities section, it is added back to net income to reflect the non-cash nature of the loss.
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