Answer:
Macroeconomics: B;C;E
Microeconomics: A;D
Explanation:
Macroeconomics deals with the performance, structure, and behavior of the entire economy. It is a branch of economics that studies how an overall economy behaves. Macroeconomics looks at the overall, big-picture scenario of the economy, it focuses on the way the economy performs as a whole and then analyzes how different sectors of the economy relate to one another to understand how the aggregate functions.
Accordingly, to this definition, the topics relating to macroeconomics are:
(B) the effect of government regulations on auto emissions.
(C) the impact of higher national savings on economic growth.
(E) the relationship between the inflation rate and changes in the quantity of money.
Microeconomics is the social science that studies the implications of human action, specifically about how those decisions affect the utilization and distribution of scarce resources. Individual actors are often grouped into microeconomic subgroups, such as buyers, sellers, and business owners. These groups create the supply and demand for resources, using money and interest rates as a pricing mechanism for coordination.
Accordingly, to this definition, the topics relating to microeconomics are:
(A) a family's decision about how much income to save.
(D) a firm's decision about how many workers to hire.
Answer:
The correct answer is Opportunity cost.
Explanation:
The opportunity cost is understood as the cost incurred in making a decision and not another. It is that value or utility that is sacrificed for choosing an alternative A and neglecting an alternative B. Taking a path means that the benefit offered by the discarded path is waived.
In any decision taken there is an implicit waiver of the utility or benefits that could have been obtained if any other decision had been made.
For each situation there is always more than one way to address it, and each form offers a greater or lesser utility than the others, therefore, whenever one or the other decision is made, the opportunities and possibilities offered by the others will have been renounced, that may be better or worse (opportunity cost greater or lesser).
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $481,540
Adjustment made:
Add : Depreciation expense $44,200
Add: Amortization expense $4,200
Less: Gain on sale of equipment - $6,200
Less: Increase in accounts receivable - $30,500
Less: Increase in inventory - $25,000
Less: Decrease in accounts payable - $12,500
Less: Decrease in salaries payable - $3,500
Net Cash flow from Operating activities $452,240
Answer:
Current assets minus current liabilities
Explanation:
The working capital is a difference between the current assets and the current liabilities.
In mathematically,
Working capital = Current assets - current liabilities
where,
Current assets = Cash + account receivable + prepaid insurance + stock
Current liabilities = short term note payable + account payable
The change in the working capital shows in the operating section of the cash flow statement
Answer:
C. DEBIT TO SALES RETURNS
D. CREDIT TO ACCOUNTS RECEIVABLE
Explanation:
The journal entry to record the May 15 transaction is shown below:
Sales return and allowance A/c Dr $40,000
To Accounts receivable $40,000
(Being sales return is recorded)
For recording the given transaction we debited the sales return and credited the account receivable. Both are recorded for $40,000