Answer:
See explanation section.
Explanation:
December 31, Interest receivable Debit $198
Interest revenue Credit $198
Interest revenue = ($7,920 × 10% ÷ 12) × 3 = $198
<em>To record the adjusting entry for interest revenue.</em>
February 1, Cash Debit = $8,184
Note receivable Credit = $7,920
Interest revenue Credit = $66
Interest receivable Credit = $198
Calculation: Interest revenue = ($7,920 × 10% ÷ 12) × 4 = $264 - $198 = $66
<em>To record the cash received from note receivable with interest.</em>
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The lenders deliver the activity of credit bureaus and the information is compiled into credit reports while you are getting a loan.
Explanation:
The computer reads the information and splits out the score with credit scores. The number lenders are used to evaluate the repay.
If you have not used traditional credit accounts and use cash or debit without rely on any credit then nothing will be there in your credit history. There will be a lack of credit score.
The credit report don't have any information about your gender, race, religion, marital status, national origin, medical history and criminal record. The lenders consider the credit scores are at low risk if it ranges between 300-850. if the scores are below mid-600 is considered to be at high risk.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
A) Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small.
Explanation:
First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.
The larger the multiplier, the larger the positive effect. The multiplier formula = 1 / MPS (marginal propensity to save). Even though inflation increases, still the economy is going to grow. That unless the local residents decide to purchase many imported goods. The larger the amount of imported goods purchased, the lower the positive effects.
This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.