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IrinaK [193]
3 years ago
15

If some of a person's wealth is in cash, it follows that Select one: a. this person's monetary wealth will change as the price l

evel changes. b. this person's monetary wealth will not change as the price level changes. c. this person is wealthier than a person who holds all his wealth in nonmonetary form. d. a and c e. b and c
Business
1 answer:
kvasek [131]3 years ago
8 0

Answer:

The answer is A.

Explanation:

If a person's wealth is in cash, price level changes in the economy will definitely affect the his monetary wealth.

Price level changes arise as a result of inflation. Increase in general price level in the economy will reduce the purchasing power of the cash. For example, a good that used to sell for $2, it now goes for $5.

And if there is decrease in general price level, the purchasing power of the cash will increase.

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rusak2 [61]

Answer:

Financial accounting is more highly regulated than managerial accounting.

Explanation:

Financial accounting is highly regulated and follows laid down principles that must be followed. International Financial Reporting Standard (IFRS) and Generally Accepted Accounting Principles (GAAP) are two examples of regulatory guidelines for financial accounting.

On the other hand managerial accounting is flexible and tailored to the manager's needs.

It must not follow the strict guidelines of financial accounting. This is because managerial accounting is used internally by a company and is not subject to public scrutiny.

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3 years ago
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The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such a
Olenka [21]

Answer:

a.

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.  

Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.  

Examples: Revenue earned, expenses incurred etc.  

There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.  

The two methods of presenting cash flow statement are:  

  1. Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.  
  2. Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.  

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3 years ago
Define and explain SMART?
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When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at
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When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.

Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.

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Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
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True djtvfegjuthbggh
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