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andreev551 [17]
2 years ago
10

The Ricardian equivalence theorem states that

Business
1 answer:
motikmotik2 years ago
5 0

Answer: The Ricardian equivalence theorem states that : <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>

Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.

This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.

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July 15 Declared a cash dividend payable to common stockholders of $169,000. Aug. 15 Date of record is August 15 for the cash di
Brilliant_brown [7]

Answer:

Explanation:

The journal entries are shown below:  

On July 15:

Retained earning A/c Dr  $169,000

    To Dividend payable    $169,000

(Being cash dividend declared is recorded)

On Aug 15:

No journal entry is required on the date of declared

On Aug 31:

Dividend payable A/c    $169,000

      To Cash A/c $169,000

(Being dividend is paid is recorded)

3 0
3 years ago
For each separate case below, follow the 3-step process for adjusting the accured expense account: Step 1: Determine what the cu
kari74 [83]

Answer:

A. 1. Salaries Payable = $0

2. Salaries Payable should equal $15,500

3. Debit Salaries Expense $15,500

Credit Salaries Payable $15,500

To accrue unpaid salaries expense for the year.

B. 1. Interest Payable = $0

2. Interest Payable should equal $250

3. Debit Interest Expense $250

Credit Interest Payable $250

To accrue unpaid interest expense for the year.

C. 1. Interest Payable = $0

2. Interest Payable should equal $875

3. Debit Interest Expense $875

Credit Interest Payable $875

To accrue unpaid mortgage interest expense for the year.

Explanation:

Adjusting journal entries are used to recognize transactions and events that do not have any cash basis because they are required under the accrual basis of accounting.  The accrual basis requires that transactions are recorded in the period they occur without reference to cash payment or receipt.

6 0
3 years ago
What is the primary purpose of fixtures
swat32

A fixture is a work-holding or support device used in the manufacturing industry. Fixtures are used to securely locate (position in a specific location or orientation) and support the work, ensuring that all parts produced using the fixture will maintain conformity and interchangeability.

5 0
3 years ago
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How can work be made attractive ad enjoyable
Nitella [24]

Answer:

I guess by working and doin some you love i dont know

Explanation:

5 0
2 years ago
A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. the property included land appraised a
EastWind [94]
The company should allocate $115,850 (70%*$165,500) for land and $49,650 (30%*$165,500) for building in its accounting record. The total cost for the land and the building that the company has bought is $165,500 (150,000 + (7%*$150,000) + $5000). The lump sump portion above (70% and 30%) must be obtained by dividing each of the asset market value by the total asset market value (Land: ($87,500+$35,000)/($87,500+$35,000+$52,500); Building: $52,500/($87,500+$35,000+$52,500))<span>.</span>
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3 years ago
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