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Margaret [11]
3 years ago
7

Please match each description with the appropriate approach to federal finance. Policymakers should reduce spending and increase

taxes when the economy is growing in order to prevent "overheating". _____This approach was considered conventional wisdom until the advent of the Great Depression. _____Policymakers should focus on keeping unemployment low and providing the people with the public goods and services they want. ____ If insisted upon, this approach would only worsen the economy during a recession. ____This approach ignores the impact of the budget on the business cycle. _____
Business
1 answer:
horsena [70]3 years ago
7 0

Answer:. 1.cyclically balanced budget

2. annually balanced budget

3. functional finance

4. annually balanced budget

5. functional finance

Explanation:

policymakers should reduce spending and increase taxes when the economy is growing in order to prevent "overheating" ----Cyclically balanced budget

2. this approach was considered conventional wisdom until the advent of the great depression---Annually balanced budget

3. Policymakers should focus on keeping unemployment low and providing the people with the public goods and services they want.-----Functional finance

4. if insisted upon, would only worsen the economy during a recession--Annually balanced budget

5. ignores the impact of the budget on the business cycle.----functional finance

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Explanation:

The journal entries are shown below:

On February 1

Account receivable - Sarah’s Cycles A/c Dr $550

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(Being the goods are sold on credit)

Cost of goods sold A/c Dr $375

           To Merchandise Inventory A/c $375

(Being goods are sold at cost)

On February 9

Sales return and allowance A/c Dr $137.50    ($550 ÷ 4)

To Accounts receivable - Sarah’s Cycles    $137.50

(Being sales return is recorded)  

Merchandise Inventory A/c $85

                  To Cost of goods sold A/c Dr $85

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On March 2

Cash A/c Dr $412.50        ($550 - $137.50)

           To Accounts receivable - Sarah’s Cycles $412.50    

(Being cash is received)

The net profit margin is

= (Net sales - Cost of goods sold) ÷ Net sales

= ($412.50 - $290) ÷ ($412.50)

= 29.69%

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