Inflation reducing the value of investors' financial assets I think its that i'm not sure
Taxation and legislation usually impact a company the most depending on what they are selling, and the quantity in which items are sold.
Answer:
it changes the enviorment drasticly
Explanation:
Answer:
Moral hazard
Explanation:
The moral hazard refers to the situation in which the person has the benefit to increase the risk as it does not bear or suffered the whole risk
According to the given situation, it is mentioned that the business owner canceled the low risk project and used the borrowed funds for taking high risk in the venture after loan receiving
This situation represents the moral hazard scenario
Answer:
The journal entry for the cash receipt and on that the sales tax is charged is as follows:
Explanation:
Cash A/c.................................................Dr $5,300
To Sales RevenueA/c.............................Cr $5,000
To Sales Tax Payable A/c......................Cr $ 300
Working Note:
So, the total of cash received will be = Sales Amount + Amount of sales tax payable
= $5,000 + $300
= $5,300
