Answer: The overall price level increased.
Explanation: The rise in the overall price level is termed as inflation. From the information we can see that the average price of the three goods in 2015 was $7.50. A year later, the average price changed to $7.58.
Therefore, the overall price level rose as the average price level increased from $7.50 to $7.58.
Answer:
The interest on notes is calculated as follows
Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)
= $695,000 * 6% * 9/12
=$31,275
Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account
General Entry
Date Account Title and Explanation Debit Credit
30 Sep. Notes payable $695,000
Interest payable $31,275
Cash $726,275
(To record the amount to be paid at maturity)
They can be described as traumatized, horrified, mortified, etc.
Answer:
(B) Management
Explanation:
Management audits are a means of evaluating the effectiveness and efficiency of various systems within an organization, showing how well the management is deploying and applying its strategies in the interests of shareholders, employees, and the organization's reputation.
Answer:
It seems that something is missing in question i.e b) what is the after state taxes profit in the state with the 2% tax rate.
Answer for both requirement is given below in explanation with calculation.
Explanation:
A) After tax profit where state tax is 10%
The after tax profit will be 1,278,000$ (1420000*90%)
B) After tax profit where state tax is 2%
the after tax profit will be 1,352,400$ (1380000*98%)
So we can conclude that option 2 is better because it gives greater after tax profit.
