While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Paula and her assistant are using the contingency approach.
True
Answer: $25 billion
Explanation:
The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:
= Deposit into banking system * Money multiplier
Money multiplier = 1 / Required reserve ratio
= 1 / 20%
= 5
Checkable deposit increase:
= 5 billion * 5
= $25 billion
Answer:
Explanation:
The journal entry is shown below:
Land A/c Dr $470,500
Land Improvement A/c Dr $87,800
Building A/c Dr $1,452,200
To Cash A/c $2,010,500
(Being these costs are recorded)
The computation of the land is shown below:
= Purchase cost of new plant + tear down cost + fill and level the lot cost
= $390,000 + $33,500 + $47,000
= $470,500
Answer:
b. The amount distributed in any one year can never exceed the net income reported for that year.
Explanation:
If the companys had 100,000 net income per year during 10 year
His retained earnings amount will be 1,000,000
Then, suppose next year income is also 100,000
The company is not doing anything wrong if it distribute dividends for 400,000 as their retained earnings can afford this dividends
