Answer:
b.$1,150
Explanation:
Sales Collection $5,000*.98 $4,900
Payment of purchases $5,000*50% ($2,500)
Other payments $5,000*25% ($1,250)
Net Cash flow during a typical month $1,150
Answer: True
Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.
Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value is retained in the form of a fixed or intangible asset.
The capitalized cost of any investment can be determined using the equation, P = A/i. Where P is the capitalized cost, A is the annual amount and i is the interest rate.
Answer:
First blank: Consumers
Second blank: GDP
Third blank: CPI
Explanation:
The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.
Answer:
The stockholders' equity is $6,90,000.
Explanation:
<u>Calculating the Total stockholders' equity:</u>
Total stockholders equity = Beginning stock equity + Net income
Total stockholders equity = (31,000 * 20) + 70,000
Total stockholders equity = 6,20,000 + 70,000
Total stockholders equity = $6,90,000
Answer:
Normal good
Explanation:
Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.
Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.
A normal good is a good whose demand increases as income increases.
If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.
