Answer:
Excludable from Burr's gross estate
Explanation:
Buy-sell" agreements are excludable from a decedent's estate provided the agreement:
1) is a bona fide business agreement;
2) is not a device to transfer property to the decedents family for less than full and adequate consideration; and
3) has terms similar to those entered into by persons in arm's length transactions.
As the "buy-sell" in this case meets the requirements for being excludable from the decedent's estate, the insurance proceeds will be excluded from Burr's estate upon Burr's death.
Banks operating on the basis of fractional reserve banking are vulnerable to panics or runs. Fractional reserve banking refers to the practice of banks holding only a fraction of their deposits as reserves and lending out the rest.
This system allows banks to make profits by charging interest on loans, but it also means that banks have a limited amount of cash available to meet the demands of depositors who wish to withdraw their funds.
In the event of a panic or run on the bank, where many depositors try to withdraw their funds at once, the bank may not have enough reserves to meet these demands and may be forced to close.
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Answer:
D) The requirement of a double coincidence of wants.
The major shortcoming of a barter economy is the requirement of a double coincidence of wants. Option (d) is correct.
A barter economy is a cashless economic system where goods and services are exchanged at agreed-upon prices. One of the earliest forms of economy is barter, which predates both monetary systems and written history. Barter may be used effectively in practically any industry.
The three drawbacks of the barter system are as follows: Lack of two desires that coincide. It indicates that in order to buy and sell each other's goods, both sides must agree. ii It is difficult to easily value every item. There are some products that simply cannot be split.
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The point that represents a surplus on the graph is point D.
Description of surplus
A surplus is when the quantity supplied is greater than the quantity demanded. This is because price is above equilibrium. This would be an incentive to increase supply and this would make consumers to decrease demand. This leads to a surplus.
Due to the surplus, prices would fall until equilibrium point is reached again. Equilibrium is the point at which quantity demanded equals quantity supplied. On the graph, this is point C.
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Answer:
it is D
Explanation:
Answer:
Explanation:
The journal entry is presented below:
Cash A/c Dr $1,800
To Accounts receivable A/c $1,800
(Being the cash is received)
Since the cash is received so we debited the cash account and there is a decrease in account receivable so this account should be credited. Both the accounts are recorded at $1,800 each.
Answer:
Yes.
Explanation:
We know,
Accounting profit = Revenue - Explicit cost.
Economic profit = Revenue - Explicit cost - Implicit cost
Explicit cost is the day to day expenses, while the implicit cost is the expanses that have already occurred.
Therefore, the explicit cost may not be higher than the revenue. So accounting profit can be positive.
However, as we have to deduct the explicit cost as well as implicit cost from economic profit, it can be positive, negative, or even zero. So the statement is correct.
It is possible for accounting profit to be positive and economic profit to be negative when the implicit costs used in calculating economic profit are greater than the accounting profit. This indicates that the resources used in the business could generate higher returns if invested elsewhere.
Yes, it is indeed possible for accounting profit to be positive while economic profit is negative. This scenario arises due to the difference in what is considered a cost in the computation of each type of profit. Accounting profit is total revenue minus explicit costs, which are direct, out-of-pocket expenses. It does not consider implicit costs, which are the opportunity costs of using resources in one way instead of another. These might include the entrepreneur's time or the potential earnings that could have been generated if capital had been invested elsewhere.
On the other hand, economic profit is total revenue minus total cost, including both explicit and implicit costs. Even when a business is generating a positive accounting profit, if the implicit costs are higher than this accounting profit, the economic profit may be negative. This translates to the business not being as profitable as it could be if the resources had been invested elsewhere. This difference is important because while a business pays income taxes based on its accounting profit, whether it is economically successful depends on its economic profit. The decision to continue a business would depend on positive economic profit.
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B) never changes.
C) increases annually.
D)decreases annually.
Answer: B. Never changes.
Explanation: A monthly fixed rate mortgage payment will NEVER change.
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