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4 years ago

When government expenditures increase, the interest rate

Business

1 answer:

Julli [10]4 years ago

5 0

Answer:

The correct answer is option d.

Explanation:

When there is an increase in the government expenditures, the income in the economy will increase. As a result, the demand will increase. The increase in demand will increase the price level.

The suppliers will produce more. To increase output more capital investment will be required. This will further cause an increase in the demand of loan-able funds. So, the interest rate will increase as well.

With the increase in interest rates, the cost of borrowing will increase. This will lead to lesser capital investment and as a result the aggregate demand will be smaller, because of lower production and thus lower income.

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Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective contai

Dennis_Churaev [7]

Answer:

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

d. Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. $655,250

Explanation:

1. Preparation of Journal entries

Based on the information given we were told that the deposits collected on containers that were shipped was the amount of $948,000 which means that the Journal entry will be:

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Based on the information given we were told that the amount of $873,000 was refunded which means that the Journal entry will be :

Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Based on the information given we were told that the deposits forfeited were the amount of $42,750 which means that the Journal entry will be :

Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. Calculation to Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.

Liability for refundable deposits, January 1, 2021 $623,000

Add: Deposits received during 2021 $948,000

Less: Deposits returned during 2021 ($873,000)

Less:Deposits forfeited during 2021 ($42,750)

Balance, December 31, 2021 $655,250

Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet will be $655,250

4 0

3 years ago

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record

lakkis [162]

Answer:

Explanation:

Base on the scenario been described in the question, we use the following method prepare and slove the given problem

Solution to the problem is in file attached below

Option c will be

Base on this, the Cost of goods sold: $ 934

3 0

3 years ago

I’m starting a business if I launch my business will y’all come shop !! for boys and girls * Didn’t launch yet but it’s coming s

EleoNora [17]

Answer:

I willlllll

Explanation:

sure thing :)

5 0

3 years ago

Explain the accrual basis of accounting and reasons for adusting entries

Finger [1]

The accrual basis of accounting states that “expenses are matched with related revenues and are reported when the expense is incurred, not when cash changes hand”. Therefore, adjusting entries are required because of the matching principle in accounting.

8 0

2 years ago

why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

Archy [21]

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.

5 0

4 years ago