Excess aggregate demand (AD)
Quick economic growth.
Answer: $2420
Explanation:
The following can be deduced from the question:
EBIT = $3,280
Depreciation = $1,850
Cost of goods sold = $6,920
Dividends = $750
Interest expense = $860,
Taxable Income will be calculated as:
= EBIT - Interest Expense
= $3280 - $860
= $ 2420
Answer:
$8,870
Explanation:
Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Using this formula
Balance in the allowance for doubtful accounts=
(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance
Let plug in the formula
Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000
Balance in the allowance for doubtful accounts=$6,870+$2,000
Balance in the allowance for doubtful accounts=$8,870
Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870
Answer: Option C
Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.
In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.
Answer:
Economies of scale
Explanation:
As the production increases, the cost per unit of a single product type decreases.
