Answer:
Compounding (Compound Interest)
Explanation:
Compounding (Compound Interest) refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.
Ex: $100 deposited @10% pa interest compounding annually for 2 years. Interest at 1st year end : 10% of 100 = 10 & Total Amount : 100 + 10 = 110. Interest at 2nd year end : 10% of 110 = 11 & Total Amount : 121 .
The above case shows how interest in 2nd period is calculated not only on principal amount $100, but also on $10 interest earned in previous period. So, interest in 2nd period is calculated as return percentage on 100 + 10 = 110.
Answer:
Debit Cost of Goods Sold $500
Explanation:
When inventory is purchased, debit inventory and credit cash or accounts payable. When inventory is sold, credit inventory (with the cost of inventory sold) and debit cost of goods sold(p/l).
Further more, sales is recognized by crediting sales account and debiting cash or accounts receivables.
As such, if original cost of the merchandise to X-Mart was $500, entries required would include a credit to merchandise inventory $500 and Debit Cost of Goods Sold $500.
Answer:
The correct answer would be option B, The attractiveness of the store's location and the time it takes to travel to the store.
Explanation:
According to the Huff Gravity Model, The two factors which attract customers to a store location are the attractiveness of that store's location and the time it takes to travel to the store.
This means that according to the Huff theory, people will likely to purchase from a store which is present at a more attractive location and also the time taken to reach at that specific store is less. For example, I myself prefer going to Lulu Hypermarket over Panda Hypermarket because of the difference in the location of both the stores and also Lulu Hypermarket is more near to me than Panda Hypermarket. The location of Lulu is more attractive.
Answer:
Similarities between Free Market Economy and Command Economy
Both economies have similar economic players including consumers and producers, services and goods and money and labor.
