Answer:
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
Explanation:
The German firm hired an American worker and paid him $50,000. That means that American national income will increase by $50,000.
Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.
Total GDP increases by the amount of $50,000 + $20,000 = $70,000
An add for employment advertising an open or vacant clerical position
Answer: $844,000
Explanation:
Given that,
Beginning work in process inventory = $270,000
Cost of goods manufactured = $866,000
Beginning finished goods inventory = $332,000
Ending work in process inventory = $310,000
Ending finished goods inventory = $354,000
Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
Cost of goods sold = $332,000 + $866,000 - $354,000
= $844,000
∴ Cost of goods sold = $844,000
Answer:
Any transaction in cash, either paid or received eg. bought goods from supplier on cash.
Some time supplier offers customer the credit so he can pay later. Bought goods from supplier which are payable in 30 days.
Revenue expenditure is short-term expenditure used to run daily operations eg. Rent, Salaries. These are treated as expense in SOCI.
Where as capital expenditure is one-time large expenditure which generate revenue for company in future. eg Plant and Machinery, Equipment, Furniture. These are capitalized as in SOFP as they meet the definition of Asset (ie Future economic benefits will flow to entity).
