A. Because grants and scholarships are free money and loans have to be repaid. 25% is the lowest amount of loans
Answer:
Option B, lower interest rates and increase the equilibrium GDP.
Explanation:
Option B is correct because the increase in the money supply will reduce the interest rate and increase the real GDP or output on the country because the rise in the money supply will results in more money in the hand of people. Therefore, more investment and production will be done in the economy. Thus, a rise in the production of output in the economy will result in the rise of GDP
Answer:
C. $40,000
Explanation:
For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis
= Cash received + fair market value of the stock - adjusted cash basis
= $40,000 + $60,000 - $35,000
= $100,000 -$35,000
= $65,000
But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000
Explanation:
1. The journal entry is as follows:
On March 1
Prepaid insurance A/c Dr $36,000
To Cash A/c $36,000
(Being the prepaid insurance is recorded for cash)
For recording the advance purchase of insurance, we debited the prepaid insurance and credited the cash account. Both the accounts are recorded at $36,000 so that the proper posting could be done.
Answer:
financial accounting and management accounting
