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Ksenya-84 [330]
2 years ago
14

Suppose the total market value of all the final goods and services produced in the country of Rushya was $8 billion in 2008 (mea

sured in 2008 prices) and $9 billion in 2009 (measured in 2009 prices). Which of the following statements is definitely correct?
1. Production increased in Rushya between 2008 and 2009.
2. Real GDP increased in Rushya between 2008 and 2009.
3. Average price levels increased in Rushya between 2008 and 2009.
4. Whether real GDP increased cannot be determined with the information given.
Business
1 answer:
Advocard [28]2 years ago
3 0

Answer:

Option 4 is definitely correct: Whether real GDP increased cannot be determined with the information given.

Explanation:

The information that is given only states that there has been an increase in the market value of final goods and services in two years. So, we cannot conclude that production increased in Rushya or average price levels increased there as per Option A and C respectively, because market value can be increased by both increase in production or price levels. Even Option B cannot be concluded as the real GDP is dependent on other variables as compared to the total market value.

Thus, only appropriate statement is option D: we cannot determine increase in real GDP with the given information.

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Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa
sweet-ann [11.9K]

Answer:

Explanation:

Net income is the summation of all revenue generated substracted from all costs such as tax, interest and others it is the profit made.

Cash flow is the amount that the producer needed to spend when stating an accounting section romove from amount needed at the end of that accounting section.

Whenever transactions are carried out,

Cash flow and net income can be affected in ways that are not the same, once goods is sold the net income is noted by the manufacturer, let say he sell goods of $400 to a retailer if the retailer doesn't pay instantly, it mean the manufacturer has $400 cash less.i.e net income

a. Purchased $125 of supplies for cash.

Answer:

✓There is decrease in cash by $125

✓There is no change as far as Net Income is concerned here.

b. Recorded an adjusting entry to record use of $45 of the above supplies.

Answer:

✓There is No change to Cash here,

✓The net income is is decreased by $45.

c. Made sales of $1,220, all on account.

Answer:

✓There is No change to Cash here,

✓The Net Income is increased by $1,220

d. Received $850 from customers in payment of their accounts.

Answer:

✓ There is Cash increase, by. $850 ,

✓ There is No change to Net Income

e. Purchased equipment for cash, $2,500.

Answer:

✓There is Cash is decreased by $2,500

✓ There is no change to Net Income

f. Recorded depreciation of building for period used, $610.

Answer:

✓ There is No change to cash,

✓ there is decrease in Net income by

$610

6 0
3 years ago
The market mechanism:
anyanavicka [17]

Answer:

works because prices serve as a means of communication between consumers and producers.

Explanation:

Market mechanism is the money is used as a medium of exchange between buyers and sellers in a open system of value (market).

In the market mechanism consumers are interested in maximising utility, while sellers want to maximise profit.

Demand and supply mechanics works to properly allocate resources according to fluctuations in price.

So market mechanism is successful because price has become a means of communication between buyers and sellers in their mission to maximise utility and profit.

5 0
3 years ago
Explain how to invest in securities markets and set investment objectives such as long-term growth, income, cash, and protection
shtirl [24]

Answer with Explanation:

The investment in securities must include purchases of stock of more than 15 industry firms because diversified investment gives an average rate of return on investments. Hence it would be better to lower the risk of investment by simply investing in more than 15 firms and each of them must be from different industry sector. Nowadays due to coronavirus, it would be better to investing in fintech, IT and Hi-Tech industries will pay much more than low tech industries. Tesla is one of these tech companies whose share price have surged by 390% in past 12 months. It doesn't mean that other industry products don't pay enough. Setting objective includes how much yearly investment must be added to you security portfolio so that the net worth of the portfolio keeps growing. The reinvestment of dividends received, insurance of downside risk, investment on the basis of value at risk, etc. are all the set objectives that are considered while investing and managing security portfolio. If you are not confident with setting objectives then investing via investment institutions would be a another best option which had employed hundreds of CFA's who are working to increase the wealth of their potential clients and it is more likely that you take home a better return on investment as compared to a person who has little knowledge of security investments.

8 0
3 years ago
Indirect costs are traced to cost objects.
Aneli [31]

Answer:

Explanation:

The following statement is false and true

1. Indirect costs are traced to cost objects - This statement is false because it is not directly traced to the cost objectives. It is traced through the cost drivers.  

2. Yes, this statement is true because the cost drivers are used to allocate the indirect cost to their cost objects

3. Yes, this statement is true because for computing the allocation rate, we have to divide the total allocation cost to its allocation base

4.  Yes, this statement is true because the cost drivers play very important for cost allocation. Without cost drivers, the allocation of the cost would not be possible

5. This statement is false because depreciation should be allocated based on its useful life  rather than the number of square feet because the number of square feet occupied is used to allocate the renting cost

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