Answer:
$66,000
Explanation:
The computation of the total implicit cost per year is shown below:
= Given up salary + investment amount × interest rate on investment in the economy
= $60,000 + $100,000 × 6%
= $60,000 + $6,000
= $66,000
We simply added the given up salary and investment amount after considering the interest rate on investment so that the accurate amount could come
Answer:
A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation:
Debt contracts are formed when a borrower agrees to repay a lender. Convenants are usually used to settle disputes between the borrower and the lender. Convenants limits the the extent to which debtors take risks, dividend payouts, claim dilution, and other activities that can cause the lender to lose money.
Debt contracts are obtained by businesses to finance short term operations activities or long term expansion plans.
Answer: A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation: A debt contract is an agreement in which a borrower agrees to repay funds borrowed to a lender. Usually classes into a short-term and long-term debt contracts, they are used in raising money for working capital or capital expenditures and in return for lending the money, the individuals or institutions become creditors and receive a promise that the capital and interest on the debt will be repaid (usually in fixed amounts over a period of time) in accordance with the terms of the contract. Debt contracts include detailed provisions on collateral involved, interest rate, the schedule for interest payments, and the timeframe to maturity if applicable.
Answer:
c. auditors and financial statement users.
Explanation:
This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.
Answer:
The correct answer is letter "B": Cash inflow equal to the cash received and a cash outflow equal to the cash paid.
Explanation:
The cash inflow equals to the amount of money received for the old equipment sold and cash outflow equivalent to the money paid for the brand new equipment. The note payable is not a cash outflow, and the cash outflow received should not be decreased.
Supplies 7, 800
Answer: Debit Supplies and Credit Cash
Explanation: From the above question, Wiley paid cash for the supplies and in accounting you debit the receiver and credit the giver.
In the question above, the supplies account is receiving value while the cash is giving value. Then the right journal entry is to Debit supplies and credit cash.
Answer:
1. Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is;
Value of market basket of the good in 2017
= (50 * 2) + (5 * 6)
= $130
Value of market basket of the good in 2018
= (70 * 2) + (6 * 6)
= $176
CPI in 2017
= 130/ 130 * 100
= 100
CPI in 2018
= 176 / 130 * 100
= 135.38
Percentage change
= (135.38 - 100)/100
= 35.38%.
2. Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is ;
Nominal GDP in 2017
= (50 * 20) + (5 * 60)
= $1,300
Nominal GDP in 2018
= (70 * 21) + (6 * 80)
= $1,950
Real GDP using 2017 prices
Real GDP in 2017
= (50 * 20) + (5 * 60)
= $1,300
Real GDP in 2018
= (50 * 21) + (5 * 80)
= $1,450
GDP deflator in 2017
= (Nominal GDP in 2020 / Real GDP in 2020) * 100
= (1,300 / 1,300) * 100
= 100
GDP deflator in 2021
= (Nominal GDP in 2021 / Real GDP in 2021) * 100
= (1,950 / 1,450) * 100
= 134.48
Percentage Change
= [(134.48 - 100) / 100] * 100
= 34.48%
3. Which of the following statements is correct
a. The inflation rate in 2018 is not the same using the two methods.
b. The GDP deflator allows the basket of goods and services to change.
The inflation rate calculated using a method similar to the consumer price index is 35.38%, while the rate calculated using a method similar to the GDP deflator is 50%. These reports indicate a significant rise in prices in this nation.
To calculate the percentage change in the overall price level using a method similar to the consumer price index or CPI, you first establish a 'basket' of goods, in this case, 2 karaoke machines and 6 CDs. We then need to calculate the total cost of this basket for the two years in question. In 2017, the total cost was (2 karaoke machines * $50) + (6 CDs * $5) = $100 + $30 = $130. In 2018, the total cost was (2 karaoke machines * $70) + (6 CDs * $6) = $140 + $36 = $176.
The percentage increase is: ((176-130) / 130) * 100% = 35.38%, so the inflation rate as measured by a CPI-like method is 35.38%.
The GDP deflator method, by contrast, measures the price of everything produced in an economy, rather than a fixed basket of goods. In 2017, the nation produced 20 karaoke machines at $50 each and 60 CDs at $5 each, so the total GDP was ($1000 + $300) = $1300. In 2018, they produced 21 karaoke machines at $70 each and 80 CDs at $6 each, so the total GDP was ($1470 + $480) = $1950. Therefore, the percentage increase in prices according to the GDP deflator method is ((1950-1300) / 1300) * 100% = 50%, so inflation as measured by a GDP deflator-like method is 50%.
Either inflation measure could be meaningful, depending on the situation, but it's clear that prices are rising significantly in this small nation.
#SPJ3
B. Per month basis
C. Per six months basis
D. Annual basis
Answer:
D. Annual basis
Explanation:
Banks and other financial institutions typically quote interest rates that they pay for deposits on an annual basis. This is to say, the quote the effective rate that is compounded annually, even if the interest is paid monthly, daily, quaterly, or semi-annually.