Answer:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
Explanation:
The closing inventory in perpetual inventory is $875,300 which is recorded in excess of its inventory in hand $781,900 which means that additional $93,400 must be adjusted in Cost of Goods Sold.
The journal entry on October 31, 2020, is given as under:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
The correct answer is letter A. The 13th account in the ledger. The account number 13 in the ledger doesn't mean the 13th day of the month but rather the 13th account in the ledger.
Answer:
Real GDP is not influenced by price changes, but nominal GDP is.
Explanation:
Real gross domestic product (Real GDP) is a measure of gross domestic product "in volume", that is, measured at constant prices. Changes in GDP linked to price variations (inflation or fall in prices) are thus neutralized, which allows a measure of economic growth.
Real GDP is only used in practice to measure GDP growth from year to year, with nominal GDP remaining the benchmark measure for long-term data.
Answer:
To answer properly, it is better to define core inflation:
Core inflation measures the changes in goods and services <u>excluding</u> from the analysis the <u>prices of food and energy sectors</u>, which <u>fluctuate more than the rest of the elements of the index.</u>
Then, when inflation is calculated, the prices of all goods and services included in the CPI are used, while when core inflation is calculated, prices of food and energy sector are excluded.
Core inflation allow us to perceive long term tendencies in prices.
- Concerns policymakers more than the level of core inflation. FALSE: while <u>core inflation allow us to follow tendencies in the price levels,</u> inflation may change suddenly because of an abrupt change in energy prices, for example, which may be seasonal, not representing a sustainable in the long run prices tendency.
- Is generally more volatile than core inflation. TRUE. Inflation measure does include the changes in prices of food and energy, which by nature are more unstable than the rest of the prices in the economy, making inflation measure more volatile than core inflation.
- Does not include the most price-flexible goods in the economy: FALSE (this will be core inflation instead of inflation).
- Is generally less volatile than core inflation. FALSE: see definition of core inflation above and its implications.
