Answer:
$2,317,000
Explanation:
The computation of the weighted-average accumulated expenditures for interest capitalization purposes is shown below:
For expenditure on March 1
= $1,932,000 × 10 months ÷ 12 months
= $1,610,000
On June 1
= $1,212,000 × 7 months ÷ 12 months
= $707,000
On December 31, it would be zero
So, the accumulated expenditures is
= $1,610,000 + $707,000
= $2,317,000
Answer: A. Is the answer
Explanation: I took the quiz and got it right
Answer:
the money supply in Macroland will increase from <u>5,000</u> econs to <u>7,000</u> econs
Explanation:
Currently, Macroland's money supply = 2,000 econs held by the public and 3,000 econs held by the banks (= 300 econs x 1/0.1).
In order to determine the increase in the money supply we must multiply the inflow of econs by the money multiplier. The money multiplier = 1 / reserve ratio = 1/0.1 = 10.
Since the government is injecting 200 econs to the economy, the increase in the money supply = 200 econs x 10 = 2,000 econs.
So now, Macroland's money supply will increase from 5,000 to 7,000 econs.
The money multiplier measures the banking system's ability to "create" money. The banking system creates money by first receiving deposits, e.g. you deposit 10 econs in your savings account, and then lending money to another client. The bank will lend 9 econs (-10% required reserve) to John that will purchase a bike. The seller of the bike receives the money form John and deposits the 9 econs in his own bank. Then this second bank will lend 8.10 econs to Sarah. Sarah will use the money to purchase a new computer and a printer from Tom. Tom then deposits the money in his bank, and then his bank lends 7.29 econs to Sally, and the wheel goes on and on.
This money creating process is possible because Macroland uses a fractional banking system, which means that the banks are only required to keep a fraction of total deposits as reserves.
Answer:
The master budget should only be prepared by top management.
Explanation:
A budget is an estimation of the amount of money that a person or business plans to spend on activities within a given period.
Budgeting creates efficiency in spending and reduces waste.
It is an activity that should be carried out by all relevant staff. This is because the staff know where they need to spend money.
It top management independently make a budget, it may not meet some pressing needs of the staff.
