The amount of cash received will be the net of discounts and sales returns.
Given,
the sales = $ 2,000
The sales return = $ 800
The discount will be allowed only if the payment is made within the discounts period i.e. 10 days. The sales were made in 15th July and Payment is made on 24th July, thus Carson company is eligible for the discount. The discount will be calculated on the sales net of returns
Net sales = $ 2,000 - $ 800 = $ 1200
Discount = 2 % X $ 1,200 = $ 24
The cash received = $ 2,000 - $ 800 - $ 24 = $ 1,176
Answer:
The multiplier is useful in determining the change in GDP resulting from a change in spending
Explanation:
A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.
Answer:
The correct option is A
Explanation:
Transaction costs are the whole array of costs associated with selling, buying, transferring goods etc.
Transaction costs can be of different types which are:
- search costs
- monitoring costs
- Bargaining costs
- transfer costs etc.
to make sure business is conducted safely and fairly
The government creates regulations in order to make sure business is conducted safely and fairly. Without regulation the market would have to auto regolate itself, which is a thing that it does, but the cost of this autoregulations are often too much. The government can help create basic directories to ensure that the trade is safe done.
