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3 years ago

What are the characteristics of the best circular flow of income?

1 answer:

8 0

Answer: The circular flow of income represents money moving through the economy. Circular flow of income can be seen in a situation where households purchase goods and services from firms by using the income they earned from firms by working for them.

Explanation:

Characteristics of circular flow of income are :-

It helps in studying or analysing the problems of disequilibrium.

It helps us in analysing the effects of leakages and inflows/injections hence helps in Taking appropriate policy measure for health of the economy .

Circular flow of income creates a networks of markets .

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according to the rule of 72, if the GDP of the Apex Federation is growing at 1.3% per year, its economy will double in approxima

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It will double in 13 years

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3 years ago

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net dif

Nina [5.8K]

It is termed as Income Summary account.

<h3>Income summary account </h3>

The income summary account is a temporary account into which all income statement revenue and expense accounts are transferred at the end of an accounting period. The net amount transferred into the income summary account equals the net profit or net loss that the business incurred during the period.

The income summary account is recorded by debiting revenue accounts and crediting expense accounts. The balances of the transferred amounts should match with the net income or loss for the year.

Learn more about income summary account here :

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2 years ago

According to the law of demand, as prices increase, the quantity demanded by people .

Dahasolnce [82]

Answer:

Quantity supplied will increase

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3 years ago

Wang co manufactures and sells a single product that sells for 640 per unit; variable costs are 352 per unit. Annual fixed costs

Reptile [31]

Answer:

Break-even point (dollars)= $5,112,222.22

Explanation:

Giving the following information:

Selling price= $640

Unitary variable cost= $352

Fixed costs= 985,500

Desired profit= $1,315,000

<u>To calculate the sales in dollars to be sold, we need to use the following formula:</u>

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

contribution margin ratio= (640 - 352) / 640= 0.45

Break-even point (dollars)= (985,500 + 1,315,000) / 0.45

Break-even point (dollars)= $5,112,222.22

4 0

3 years ago

On January 1, a company issues bonds dated January 1 with a par value of $240,000. The bonds mature in 5 years. The contract rat

erica [24]

Answer:

The journal entry on maturity is as follows:

Dr bonds payable $240,000

Cr cash $240,000

Being redemption of bonds

Explanation:

At the end of the life of the bond,the bond premium or discount would have been fully amortized,hence the only entry left to be made is to debit bonds payable account with face value of the bond and a credit of the same amount to cash account to record the outflow of cash.

The face value of the bond is $240,000,hence the $240,000 is debited to bonds payable in order to finally cancel the debt obligation.

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3 years ago

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