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3 years ago

The _______ test asks the question: is the industry profitable or capable of being profitable?

1 answer:

meriva3 years ago

4 0

The attractiveness test asks the question: is the industry profitable or capable of being profitable. It is a fundamental test for managers and investors and helps to establish a baseline of performance expectation. An answer of 'no' to the attractiveness test indicates that the industry is not likely to be a good investment.

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All of the following are arguments against an explicit inflation targeting rule for monetary policy except:

White raven [17]

Answer:

C. An explicit target is easier to understand by households and firms which makes monetary policy more transparent.

Explanation:

Explicit inflation targeting is a monetary policy used by central banks to check inflation rate is under control for medium term. However, critics target this policy as they believe that instead central bank should have monetary policy for long term inflation control and economic growth for long term. Product price targeting or nominal income targeting would create more economic stability.

3 0

3 years ago

Emily is a writer, and uses her tablet computer to write a 500-page novel that she sells to a publishing company for $500,000. I

brilliants [131]

Answer:

$24,500,000

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Contribution to GDP = total revenue of book - cost of selling the book to the publishing company

(25 x 1,000,000) - 500,000 = 24,500,000

7 0

3 years ago

Jeffrey works as an independent contractor for an accounting firm jointly owned and managed by the Matthews brothers. Which of t

lions [1.4K]

Answer:

The correct answer is letter "A": Jeffrey will be solely responsible for making payments for his Social Security (FICA).

Explanation:

Independent contractors act like third party services working for an entity to render services for specific jobs. Independent contractors are not employees of the company who hires them for the job which implies the independent contractors are fully responsible for the payment of their own Social Security and Medicare taxes.

8 0

3 years ago

_____ is a method whereby a shareholder elects a representative, commonly another individual or a written document, through whic

Talja [164]

Answer:

jh2h2hg2y3yy3y3

Explanation:

hwheheuu2u2u

6 0

3 years ago

Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been cl

Veronika [31]

Answer:

Dynamic Weight Loss Co.

Statement of Financial position as at June 30, 20Y7

Assets

Current Asset $ $

Cash 72,000

Accounts Receivable 187,500

Supplies 11,200

prepaid Insurance 8,400

Prepaid Rent 6,000

Total Current asset 285,100

Property, plant and Equipment

Land 375,000

Equipment 325,900

Accumulated Depreciation - Equipment (186,000) 514,900

Total Assets 800,000

Liabilities and Owners Equities

Current liabilities

Accounts Payable 51,200

Salaries Payable 7,500

Unearned Fees 21,000

Total liabilities 79,700

Owners Equities

Common Stock 100,000

Retained Earnings 620,300

Total Equities 720,300

Total Liabilities and Owners Equities 800,000

Explanation:

The balance sheet shows the company's assets, liabilities and equities.

Using the accounting equation

Assets = Liabilities + Equities

Total assets

= 187,500 + 325,900 - 186,000 + 375,000 + 8400 + 6000 + 11,200 + C

where C is the closing balance in the cash account

= 728,000 + C

Total liabilities

= 51,200 + 7500 + 21,000

= $79,700

Total equities

= 620,300 + 100,000

= $720,300

Since Assets = Liabilities + Equities

728,000 + C = 720,300 + 79,700

C = 720,300 + 79,700 - 728,000

C = $72,000

5 0

3 years ago