Which of the following is not a tool of Monetary Policy?

Which of the following fiscal policy action would cause the economy to contract?

maksim [4K]

This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too.

4 0

2 years ago

Consider a $2,700 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original dep

kaheart [24]

Answer:

Total interest earned on the original deposit=$403.593

Explanation:

Total Interest earned after 6 years using compound Interest:

$FV=PV(1+i)^n$

Where:

PV is the deposit amount

i is the interest Rate

$FV=\$2,700(1+0.06)^9$

FV=$4561.593

Total Interest earned after 6 years=FV-PV

Total Interest earned after 6 years=$4561.593-$2,700

Total Interest earned after 6 years=$1861.593

Total Interest earned after 6 years using single Interest:

Total Interest=$2,700*0.06*9

Total Interest =$1458

Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest

Total interest earned on the original deposit=$1861.593-$1458

Total interest earned on the original deposit=$403.593

5 0

3 years ago

Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those cont

Sauron [17]

Full question:

Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the ________ presentation.

A) completeness and valuation

B) completeness and accuracy

C) rights and obligations and existence

D) occurrence and accuracy

Answer:

Auditors tests those controls to provide evidence supporting the completeness and accuracy presentation.

Explanation:

During the interim audit, the internal control system is documented and assessed. The completeness and accuracy of the erudition in the report superimposed which the auditor is relying on. Accuracy simply is inadequate. One requires to obtain certitude about both the completeness and the accuracy.

The statement that all the transactions that should hold been recorded are recorded is named completeness. A transaction is deemed accurate if: There is no fault while developing the supporting document, and there is no failure while posting this transaction.

4 0

2 years ago

A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,020,000,

murzikaleks [220]

Answer:

(A) $180,000 (B) A journal entry was prepared for over- or under applied overhead to cost of goods sold.

Explanation:

Solution

Now,

Let us recall from the statement from the example as follows:

A company gives an overhead at =1 60% rate

The actual overhead cost for the present period is =1020,000

Direct cost of labor = $525,000

Then,

(a) For the under applied overhead using T account we have the following:

The direct labor cost overhead = 525,000 * 160% (allocated overhead)

=$ 840,000

Thus

The Under applied overhead becomes,

Under applied overhead =The actual overhead - applied overhead

In other words we deduct the actual overhead for applied overhead

=$1020,000 - $840,000 = $180,000

(B) A Journal entry is carried out for the close over or under applied overhead.

Date Particulars Debit Credit

Cost of goods sold A/c $180,000

Manufacturing overheads $180,000

5 0

3 years ago

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thu

Alborosie

Answer:

Test marketing

Explanation:

Test marketing is a marketing strategy that is undertaken to assess how a product or service will be perceived by the larger market. A small number of representatives is chosen to try the new product or service before the product is launched to the larger market.

6 0

3 years ago