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4 years ago

Explain how different monetary policies affect the money supply and the economy

1 answer:

8 0

Monetary policies refer to actions that are taken by governments (or the duly appointed monetary regulatory committees in a country) to control the behavior of the economy. Monetary policies can be divided into two: contractionary and expansionary. When an expansionary monetary policy is implemented, the amount of money in circulation (in a country) is increased through lowering of interest rates. The ultimate effect of this is that business and consumer spending goes up (loans are easily available), unemployment rates drop and the economy grows. Contractionary measures are introduced through raising interest rates thereby liquidity (availability of money in the economy) is reduced. As a result, consumer spending reduces and so inflation is kept within sustainable levels.

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Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,200 in quarter 2, 14,700 in quarter 3, and 18,600 in qua

Tcecarenko [31]

Answer:

Total Sales Units 55,600

Total Sales Budget 55600*83= $ 4614,800

Explanation:

PAIGE COMPANY

Sales Budget

For the year ending December 31, 2020

Quarter 1 2 3 4

Sales units 10,100 12,200 14,700 18,600

Sales Price $ 83 $ 83 $ 83 $ 83

Sales Budget $838300 $ 1012600 $1220100 $1543800

As the sales units for each quarter and unit sales price is given we can easily calculate the sales budget by multiplying the units with the units price.

Total Sales Units 55,600

Total Sales Budget 55600*83= $ 4614,800

Similarly the total units can be calculated by adding the units in the quarters and multiplying it with the unit cost will give the total sale budget for the year.

7 0

3 years ago

Read 2 more answers

Comparability and consistency are two terms used to describe information about different companies and information about differe

Aneli [31]

Answer:

Comparability : Inter company comparison , Consistency : Company time series comparison.

Explanation:

Consistency is quality of accounting information, enabling the same company's financial performance comparison over different periods of time. Consistency needs stable accounting methods used for a considerable period of time, unless their changing is necessary.

Eg : Using whichever method straight line or written down value - to calculate depreciation, should not be changed unless necessary.

Comparability is the quality of accounting information, enabling the company's financial performance comparison with other companies. It needs accounting methods following generally accepted accounting principles.

Eg: Accrual basis of accounting is generally standardised, acceptable and using other i.e cash basis won't enable company's comparison with others.

Consistency and comparability are very crucial to analyse company's financial performance - growth with time, growth as per industry standards respectively.

3 0

4 years ago

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,835,00

zalisa [80]

Answer:

Adjusting entry amount

a) Bad debt expense = 25690000*1%*1/2 = 128450

b) Bad debt expense = 162000+12500 = 174500

c) Bad debt expense = 25690000*1%*3/4 = 192675

d) Bad debt expense = 171200-26810 = 144390

6 0

4 years ago

Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land impr

polet [3.4K]

Answer:

1. Land $175,324.50

Land improvements $38,961

Building $175,324.50

2. Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

Dr Land improvements $38,961

Cr Cash $38,961

Being entries to recognize cost incurred in the purchase of Land improvements

Dr Building $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Building

Explanation:

Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.

Thus, given that Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building

Appraised cost of

Land = $247,500

Land improvements = $55,000

Building = $247,500

Total appraised cost of the asset = $247,500 +$55,000 + $247,500

= $550,000

Allocated cost of;

Land = $247,500/$550,000 * $389,610

= $175,324.50

Land improvements = $55,000/$550,000 * $389,610

= $38,961.00

Building = $247,500/$550,000 * $389,610

= $175,324.50

Journal entries

Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.

5 0

3 years ago

(a) (b) (c)

navik [9.2K]

Answer:

XDXDXDXDXDXDXDXDXDXDXXDXD

Explanation:

6 0

2 years ago