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1 year ago

Why do you think average income is an important criterion for development explain.

1 answer:

7 0

Average income is important because it tells us the income of an average person and gives an idea about the rising standard of living of people.

Average income is basically income earned per person in a given area in a specific year. More income means more money to fulfill your needs and wants. It is believed that the prosperity of a country depends on it. Money is considered an important factor in the development of a country. If the average income of a country increases there are chances of an increase in the development of that country. If the average income is lower there are fewer chances of development.

A country with high average income is considered rich and low average income country is considered poor. The World Bank also uses the average income to measure the development of any country. Therefore average income is considered a very important criteria for development.

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In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction mu

adell [148]

Answer:

Correct option is (B)

Explanation:

In accounting, double entry book keeping is followed as every financial transaction has dual effect on the books of accounts. It starts with the accounting equation which stated:

Assets = Liabilities + Stockholder's Equity

If there is an increase in assets, there has to be a subsequent increase in either liability or stockholder's equity.

Every transaction is debited in one account and credited in some other account.

For example Depreciation for the year is $2,000. Depreciation expense account is debited by $2,000 and accumulated depreciation account is credited by $2,000.

Since Sandra recognizes that an effect on asset will have a simultaneous effect on either liability or equity, she is following double entry bookkeeping.

5 0

3 years ago

As a private limited firm dealing with garment manufacturing, you have little cash in hand but considerable business potential.

Alborosie

Answer:

A private limited firm refers to a corporation. A corporation’s internal sources of financing are mostly limited to its retained profits, and money realized from the sale of its assets. In case of the given example, because the company does not have enough cash on hand, it will have to rely on several external sources of financing. The most important source of procuring financing for the company is a bank loan. Thus, the company can raise money from institutions such as banks or other creditors in the form of loans. The company will need to repay loans in the future, and therefore the company will record this as a liability in its accounts. However, these ways of procuring money would help the company arrange $15,000 in order to purchase the fabric and other accessories.

The sources of financing will remain the same even in the case of a sole proprietorship; that is, retained earnings or loans from external sources such as banks. However, in the case of a public limited company, the answer would change. In the case of a public limited business, it has another option of raising financing through the issue of common or equity shares.

4 0

3 years ago

Crigui Music produces 60000 CDs on which to record music. The CDs have the following costs: Direct Materials $13000 Direct Labor

gizmo_the_mogwai [7]

Answer:

$35,000 is the maximum amount that Crigui should pay

Explanation:

Total cost if manufactured internally;

Direct materials $13,000

Direct labor 15,000

Variable overhead 3,000

Fixed overhead 7,000

————

Total cost $38,000

Therefore, $38,000 - $3,000 (unavoidable cost) = $35,000

7 0

3 years ago

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation fo

nalin [4]

Answer:

Explanation:

The explanation of the following transactions is given

a. Debit Equipment and credit Cash.

In this transaction, the equipment is purchased for cash so the equipment account is debited and the cash account is credited.

b. Debit Dividends and credit Cash.

In this transaction, the dividend is paid for cash so the dividend account is debited and the cash account is credited.

c. Debit Wages Payable and credit Cash.

In this transaction, the Accrued wages are paid for cash so the wages payable account is debited and cash account is credited.

d. Debit Equipment and credit Common Stock

In this transaction, the equipment is purchased for exchange of the common stock so the equipment account is debited and common stock is credited.

e. Debit Cash and credit Unearned Revenue

In this transaction, the cash is received for service rendered in the future so the cash account is debited and Unearned Revenue is credited.

f. Debit Advertising Expense and credit Cash

In this transaction, the advertising expense is paid for cash so the advertising expense account is debited and cash is credited.

g. Debit Cash and credit Service Revenue.

In this transaction, the cash is received for service performed so the cash account is debited and service Revenue is credited.

5 0

3 years ago

he income statement columns in the end-of-period spreadsheet show that debits are equal to $26,754 and credits are $68,142. what

neonofarm [45]

The information that the statement columns in the end-of-period spreadsheet mean to the accountant is the accounts have not been updated and a net income of $41,388. The correct option is b and c.

<h3>Who is an accountant?</h3>

An accountant is a person who manages and calculates the accounts or finance of a company, a firm, or a person. He calculates the capital of the person, manage taxes and give advice about the finance of the person.

Given that, debits are $26,754 and credits are $68,142. If we subtract the debit from the credit. We see a net income of $41,388.

Thus, the correct option is b. the accounts have not been updated. c, net income of $41,388.

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4 0

2 years ago