Answer:
Accounting Profit = $11,875
Economic Profit = $1,575
Explanation:
income from job = $10,000 /month
Rent which could have been earned = $300 /month
Office supplies = $75 /month
Increase in electricity bills = $50 /month
Income from home = $12,000 /month
(a) Accounting profit = Income - Costs
= $12,000 - ($75 + $50)
= $11,875
(b) Economic profit = Accounting profit - Opportunity cost
= $11,875 - ($10,000 + $300)
= $1,575
Answer: a cash deposit into
banking system on the money supply<span>
</span><span>
<span>The
money multiplier refers to the ratio of deposits to the reserves in a certain
banking system. The money multiplier formula is caused by a cash deposit in a
bank on the money supply.</span></span>
Answer:
Explanation:
The journal entries are shown below:
On January 31
Allowance for doubtful accounts A/c Dr $800
To Account receivable A/c $800
(Being the written off amount is recorded)
On January 31
Account receivable A/c Dr $300
To Allowance for doubtful accounts A/c $300
(Being the reverse entry is made)
On March 9
Cash A/c Dr $300
To Accounts receivable A/c $300
(Being the amount is collected)
Answer: a. Inflation
Explanation:
Inflation refers to the general rise in prices of items in an economy in a certain period of time. Inflation essentially erodes the value of the domestic currency of the economy in question.
Central Banks like the Fed can use Monetary policy to influence inflation. In this case they reduced the amount of money in the economy by reducing bank loans. This will ensure that people cannot spend too much which would increase demand and therefore increase prices.
By doing this, they have limited the likelihood of inflation.
Answer:
D. $38,000
Explanation:
The formula to compute the accounting profit is shown below:
Accounting profit = Annual revenue - Explicit cost
= $52,000 - $14,000
= $38,000
It shows a relationship between the annual revenue and the explicit cost. The difference between these two is known as accounting profit.
