The correct option is, the quantity of tires bought and sold in the market is reduced.
<h3>When tires are taxed and sellers of tires are required to pay the tax to the government?</h3>
- The amount of tires purchased and sold on the market decreases when tires are taxed and tire vendors are compelled to pay tax to the government.
- The loss of consumer and producer surpluses that are not accounted for in government revenue.
<h3>When a tax is placed on a product the price paid by buyers?</h3>
- In general, taxes increase the price consumers pay, decrease the price sellers receive, and decrease the amount of goods sold.
- A tax must result in a deadweight loss if it is imposed on a good and sales volume is decreased.
<h3>What is deadweight loss?</h3>
- The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss.
- Deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.
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Answer:
The times interest earned ratio will reduce
Explanation:
The times interest earned ratio is a ratio that looks at how many times a companies earnings from operations can cover the loan interest it has to pay in a year.
It is calculated by the formula Earnings Before Interest and Tax divided by the interest expense.
Therefore looking at the scenario, if HCA increases its debt level by issuing a $1.53 billion bond, this will increase its interest expense significantly and the number of times its earnings will cover its interest expense will be remarkably lower.
Therefore the times interest earned ratio will reduce
Answer:
S/n General Journal Debit Credit
a Insurance expense $1,200
Prepaid Insurance $1,200
(To record insurance expired)
b Supplies expense $6,200
Supplies $6,200
($5,000 + $2,000 - $800)
(To record supplies used)
Turn the decimal in to a fraction then ding the common denominator and add don't forget to simplify
