Answer:
22.98%
Explanation:
Here, the current entry means the ratio between the long term debt and the total assets
In mathematically,
= Long term debt ÷ total assets
where,
Total assets = Account receivable + cash + inventories + net fixed assets
= $397,400 + $47,500 + $288,000 + $999,000
= $1,731,900
And, the long term debt is $398,024
Now put these values to the above formula
So, the ratio would equal to
= $398,024 ÷ $1,731,900
= 22.98%
Answer:
The correct option is A
Explanation:
Regressive tax is the kind of tax which is imposed or held in such a way or method, that the rate of tax decreases or falls as the amount subject to the taxation rises.
It describe the effect of distribution on the expenditure or on the income of the person, as the rate progresses or increases from high to low, so that it could make average tax rate increases or exceeds the marginal tax rate.
So, in this case, when both of went to purchase the oven, they have to pay extra 7%, in sales tax, which is a regressive tax.
Answer:
The government will need to reduce spending by $60 billion
Explanation:
Expansionary gap is defined as a situation where the total output of an economy exceeds its potential output. That is the economy is performing above its long term potential as measured by GDP.
When this occurs the government will need to reduce spending to match output with economic needs.
Marginal propensity to consume is the proportion of an individual's income that is reserved for consumption.
In this case it is 4/5. This means individuals are willing to spend 4/5 of their income on consumption
The amount needed by the economy to meet consumption is:
Amount consumed= (4/5) * 300 billion
Amount consumed= $240 billion
Therefore
Excess cash= 300 billion - 240 billion = $60 billion
The government will need to reduce spending by $60 billion
Answer:
a. It is easier to raise finance as the business can sell shares.
Explanation:
A private limited company can be defined as a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested.
Some of the characteristics (features) of a private limited company include;
I. Shares can be issued by the private limited company to raise capital.
II. All the shareholders (owners) of a private limited company have limited liability.
III. After the death of a shareholder, a private limited company will continue to operate its business.
An advantage of operating a business as a private limited company is that it is easier to raise finance as the business can sell shares.
However, one of the disadvantages of a private limited company is that the general public are able to view a summary of their business accounts.
Answer: C- Alzania's neighbor exported half its production of cotton that year
Explanation: Alzania produces and consumes 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton industry, consumed 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.
Thus, if <em>Alzania's neighbor exported half its production of cotton that year </em>the total production of cotton is greater of the neighbor than Alzania.
