Answer:
<u>income statement for the year ended </u>
investment income $48,000
Intergoverment grant 8,000
Net increase in fair value of investemnt <u> 2,000</u>
Total Income 58,000
Expenditure - Subscription <u>(39,500)</u>
Net income <u>18,500</u>
<u />
Balance sheet as at the year end
Asset
cash $8,500
Investment 518,000
Accrued interest receivable <u> 2,000</u>
<u> 528,500</u>
Additional to permanent endowments 510,000
Net Income <u> 18,500</u>
<u> 528,500</u>
Explanation:
The correct answer for this question is: TRUE. The Federal Advisory Council of the Federal Reserve decides if any changes to the money supply are needed. It is one of the responsibilities of the Federal Advisory Council of the Federal Reserve regarding to money supply that is needed.
Answer:
Wages Expense debit $8,000
Wages Payable credit $8,000
Explanation:
At the end of December 31, which is a Thursday, workers would have worked 4 days out of a 5-day week, which implies we need to recognize wages for the 4 days because it has been incurred even not yet paid
Wages for 4-days=$10,000*4/5
Wages for 4-days=$8,000
We would debit wages account with $8,000 since an increase in an expense account is a debit entry while wages payable would be credited since it is an increase in liabilities
1,200 Gallons.
Economic ordering quantity (EOQ) is the most cost efficient amount to order that minimizes both carrying and order costs. The formula is
1,200 gallons
Answer:
of changes in price level
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
For example, country A produces 10 kg of rice at $10 per kg in 2019 and 50kg of beans at $30 per kg in 2018. In 2019, it produces 10 kg of rice at $20 per kg in 2019 and 50kg of beans at $40 per kg in 2019. 2018 is the base year.
Nominal GDP in 2018 = (10 x $10) + (50 x $30) = $1600
Nominal GDP in 2019 = (10 x $20) + (50 x $40) = $2200
Real GDP in 2018 = (10 x $10) + (50 x $30) = $1600
Real GDP in 2020 = (10 x $10) + (50 x $30) = $1600
We can see that even though the country produced the same quantity of outputs in both years, nominal GDP differed but when the effect of rise in prices was eliminated, real GDP for both years was the same.
