b. the money multiplier formula
c. calculating interest payments
d. prime rate divided by interest rate
Answer:
B. The money multiplier formula
the money multiplier formula is the increase in the money supply equals the initial cash deposit times one divided by the required reserve ratio.
Answer:
Leading
Explanation:
The leader of the company, the CEO, is responsible for establishing the company's future goals, and guiding the company toward achieving those goals.
The leader must coordinate the employees so that each one of them does as good as possible in the workplace.
Answer:
a hazard risk management plan
b. an ad in Better Homes & Gardens for floor tiles
c. a salesperson at a store that specializes in floor coverings
d. a brochure explaining why the corn-based floor tiles are superior to nylon ones
e. a discussion with co-workers about the best floor tiles to buy
Answer:
e
Explanation:
The correct option is e. Which is a discussion with co-workers about the best floor tile to buy.
Discussing with co-workers on what floor tile to buy is a source of non-marketing controlled product information. It is not associated with advertising or promotion.
Some other examples of nonmarketing-controlled information sources include personal experiences, personal sources, and public sources.
Answer:
c. The amount of the debits must equal the amount of the credits.
Explanation:
a. The number of debit accounts must equal the number of credit accounts.
An account means one record entry of a transaction. There may be more credit or more debit accounts, depending on the transactions.
b. There must always be entries made on both sides of the accounting equation.
Although this happens most often, it is not always true.
The Accounting Equation: Assets = Liabilities + Owner's Equity
The two sides are separated by the equal sign. There can be a transaction that's only on one side. Example:
I buy a chair for $50 cash. Only the furniture and cash accounts are affected, and they are both on the assets side.
c. The amount of the debits must equal the amount of the credits.
This must always be equal. When you increase an asset (debit), you will increase owner's equity (credit). When you decrease an asset (credit) you could either decrease owner's equity or liability (debit).
d. There must only be two accounts affected by any transaction.
This is untrue. Sometimes, three or more accounts can be affected. For example, if I buy a chair, giving $20 down payment and borrowing $30 from the bank. The three accounts affected are furniture (increase by $50), cash (decrease by $20), and bank loan (increase by $30).
In a double-entry accounting system, the amount of the debits must equal the amount of the credits in every transaction.
In recording an accounting transaction in a double-entry system, the correct statement is: c. the amount of the debits must equal the amount of the credits.
In a double-entry system, every transaction affects at least two accounts. The total amount debited in a transaction must always be equal to the total amount credited. This ensures that the accounting equation (assets = liabilities + equity) remains in balance.
For example, if a company purchases inventory for $500, it would debit the inventory account by $500 and credit the accounts payable account by $500, ensuring that the debits ($500) equal the credits ($500).
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