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3 years ago

Why do economists study the money supply? Be sure to mention liquidity in your response.

2 answers:

8 0

<span>Economists measure the money supply because it's directly connected to the activity of taking place all around us in the economy world.the M1 is the narrowest definition of money. M1 consists of coins and currency, checking accounts and traveler's checks.</span>

Soloha48 [4]3 years ago

5 0

The money supply is the total amount of money available in an economy at any given time. It's important to study this supply so that we can understand how accessible money is in our system. Because money can exist in different forms and in different kinds of accounts, it can be more or less liquid.

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The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:

Gnoma [55]

Answer and Explanation:

The calculations are given below:

1. Total current assets

we know that

Current ratio = Current assets ÷ current liabilities

where,

Current liabilities is

= Accounts payable + Accrued interest + Salaries payable

= $47,000 + $1,000 + $19,000

= $67,000

And,

Current ratio = 1.6:1

So,

Total current assets is

= 1.6 × $67,000

= $107,200

b. Short term investment is

Short term investment = Total current assets - Cash and cash equivalents - Accounts receivables - Inventories

= $107,200 - ($5,800 + $28,000 + $68,000)

= $5,400

c. Now retained earning is

Total assets

= Total current assets + Property, plant and equipment

= $107,200 + $160,000

= $267,200

Total liabilities is

= Current liabilities + Notes payable

= $67,000 + $38,000

= $105,000

Now Retained earnings is

= Total assets - Total liabilities - Paid in capital

= $267,200 - $105,000 - $140,000

= $22,200

4 0

3 years ago

In a business-to-business transaction, the seller offers the buyer a 2 percent discount for paying a bill early. Assuming the us

chubhunter [2.5K]

Assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

<h3>Discounted amount </h3>

Using this formula

Discounted amount =Discount rate× Invoice

Let plug in the formula

Discounted amount=2%×$10,000

Discounted amount=$200

Therefore assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

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8 0

1 year ago

Question 10 of 10: you've been meaning to fix those rotted boards on your porch for years. finally, last week the deck gave way.

yulyashka [42]

you've been meaning to fix those rotted boards on your porch for years. finally, last week the deck gave way. No, you will not be able to recover the cost of replacement. This is further explained below.

Generally, the cost; In order to get or carry out (something), one must first spend (a certain quantity of money).

In conclusion, You've been looking at the rotten planks on your porch for years and know you need to do something about it. The deck ultimately collapsed last week. The cost of replacement cannot be recouped, unfortunately.

Read more about the cost

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5 0

2 years ago

An individual works from a generalization to a specific conclusion when creating logical appeal with __________.

emmainna [20.7K]

Deductive Reasoning.

((:

6 0

3 years ago

Read 2 more answers

To provide external shareholders with relevant, reliable, consistent, and comparable financial information, the accounting profe

masha68 [24]

Answer:

<u>Generally accepted accounting principles</u>

Explanation:

Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.

GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.

Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.

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3 years ago