Answer: The equilibrium will shift from right to left, and that would be a recessionary gap
Explanation:
Aggregate supply is the quantity of goods and services producers make available for sale and is equal to the money income received by the owner's of the factors of production. Aggregate demand is the total demand for final goods and services in the economy at a given period of time and at a given price level. It is the sum of money consumers planned to spent on the purchase of output in an economy at a given period of time.The equilibrium level of income is the income level at which aggregate supply equals aggregate demand. The Aggregate income on the other hand, is the total amount of income received by all factors of production in an economy at a given period.
If there is a decrease in aggregate income and spending in an economy, the equilibrium level of income shift from right to left and that would be a recessionary gap. The recessionary gap occurs when when the aggregate demand consisting of consumption, investment and government expenditure is not enough to create condition of full employment. It is the difference of the amount by which aggregate expenditure falls short of the level needed to generate equilibrium national income at full employment without inflation.
Answer:
the payback period is 14 months
Explanation:
The computation of the payback period is shown below:
Profit is
= $2,000,000 - $1,669,426
= $330,574
Now payback period is
= 1 + $330,574 ÷ $1,669,426
= 1 +0.198 years
= 1.198 years
= 14.37 months
= 14 months
Hence, the payback period is 14 months
Answer:
12.3076
Explanation:
Receivables Turnover = ![\frac{Net\: Credit\: Sales}{Average\: Receivables}](https://tex.z-dn.net/?f=%5Cfrac%7BNet%5C%3A%20Credit%5C%3A%20Sales%7D%7BAverage%5C%3A%20Receivables%7D)
Here Net Credit sales = $8,000,000
Average Receivables = ![\frac{Beginning\: Receivables + Closing\:Receivables}{2}](https://tex.z-dn.net/?f=%5Cfrac%7BBeginning%5C%3A%20Receivables%20%2B%20Closing%5C%3AReceivables%7D%7B2%7D)
Opening Receivables = $600,000
Closing Receivables = $700,000
Average Receivables = ![\frac{600,000 + 700,000}{2} = 650,000](https://tex.z-dn.net/?f=%5Cfrac%7B600%2C000%20%2B%20700%2C000%7D%7B2%7D%20%3D%20650%2C000)
Receivables Turnover = ![\frac{8,000,000}{650,000} = 12.3076](https://tex.z-dn.net/?f=%5Cfrac%7B8%2C000%2C000%7D%7B650%2C000%7D%20%3D%2012.3076)
12.3076
Overmanaging is the most evident mistake Claudia made as a senior accountant.
Answer:
1) DISAGREE, assets must be recorded at their historical cost or purchase value ⇒ cost principle
2) DISAGREE, the company should not pay for a car that will serve only for personal use ⇒ economic entity principle
3) DISAGREE, revenue must be recorded only when the earning process is substantially completed ⇒ revenue recognition principle
4) AGREE, it can be recorded as Prepaid Rent ⇒ conservatism principle
5) AGREE, it can be recorded as a contingent liability ⇒ full disclosure principle
6) DISAGREE, generally corporations should disclose quarterly and annual financial statements ⇒ time period principle