All categories

3 years ago

Which of the following describe the purpose of money?

Business

2 answers:

34kurt3 years ago

8 0

Answer:

Options (1), (4) and (5)

Explanation:

Money can be defined as an essential commodity without which life is difficult to run. It is comprised of a numeric value that marks the variation in the price of different objects (material). It is a unit of account and is considered to be a medium of exchange, as it is basically used to buy goods as well as services, in order to fulfill their wish. Anything we need to buy today requires a certain amount of money.

Thus, the correct answer is options (1), (4), and (5).

julsineya [31]3 years ago

5 0

The purpose of money is that it is a store of value, unit of account and a medium of exchange.

Money is a store of value because it holds a value to pay for something else. Money is used to purchase items you want and depending on how much money you have it creates a value that is enough to purchase something else. Money is also a unit of account because it holds a numeric value that is important to the holder and the organizations so that people can spend their items on things they want/need. Money is also a medium of exchange because it is used as an exchange for a good or service that the consumer wants.

You might be interested in

Your grandmother tells you a dollar doesn't go as far as it used to. She says the " purchasing power" of a dollar is much less t

Harrizon [31]

Answer:

See below

Explanation:

My grandmother is referring to the effect of inflation on the currency. Economist defines inflation as the general but gradual increase of prices in the economy over time. As a country experiences economic growth, prices of goods and services tend to increase. The government monitors the increase in prices using tools like the consumer price index (CPI). The resultant figure from the CPI is the inflation rate.

The government desires to keep the inflation rate at a predetermined optimal level. Should the economy grow at a fast pace, the inflation rate will probably rise. The government will respond with measures to control the growth and maintain stable prices.

An increase in prices means that the dollar will buy fewer goods and services than it could previously. A high inflation rate means prices are increasing at a fast pace. The dollar will buy fewer goods, which translates to dollar weakening.

Deflation is the opposite of inflation. It means a general decrease in price in the economy. During deflation times, the dollar gains strengths. It buys more goods and services than in the previous season.

4 0

3 years ago

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in

Bezzdna [24]

Answer:

Inventory= $251,540

Explanation:

Giving the following information:

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in the physical count were $25,420 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,520 of goods sold to Alvarez Company for $32,230, f.o.b. destination.

Both the purchase and the sale must be accounted for in inventory. The purchase is FOB shipping point, therefore it is responsibility os Swifty. The sale was made FOB destination, as it is in transit, it is the responsibility of Swifty.

Inventory= 203,600 + 25,420 + 22,520= $251,540

3 0

3 years ago

The variance of a sample of 121 observations equals 441. The standard deviation of the sample equals 1.91. 231. 21. 11.

Cloud [144]

The standard deviation of sample equals: 11

Explanation:

Given:

variance of sample ( $S^{2}$ ) = 121

no, of observations made = 441

standard deviation = ?

By using the formula:

Standard deviation (S) = $\sqrt{variance}$

= $\sqrt{S}$

= $\sqrt{121}$

= 11

Hence the standard deviation is equal to 11.

6 0

3 years ago

Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co

KATRIN_1 [288]

Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

$48,500+29,500=78,000$

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

$44,000-39,000=5,000$

On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.

Therefore, mortgage debt issues are equivalent to:

$5,000+19,500=24,500$

We add the contributed capital plus capital increases plus mortgage debt issues:

$78,000+24,500=102,500$

4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

$102,500-44,000=58,500$

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars Amount in $

Cash 9,500

+Adjusted basis of the 39,000

building

+50% profit sharing ratio 29,500

+Nonrecourse mortgage 5,000

less adjusted basis

+Remaining mortgage on 19,500

building

TOTAL 102,500

-Debt on building (44,000)

Outside tax basis 58,500

7 0

3 years ago

Brief Exercise 10-3 Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March

7nadin3 [17]

Answer and Explanation:

The computation of the sales tax payable is shown below:

= Total sales × sales tax rate ÷ (100 + sales tax rate)

= $11,880 × 8% ÷ (100 + 8%)

= $880

Now the journal entry is

Cash $11,880

To Sales Revenue $11,000

To Sales Tax Payable $880

(Being the sales tax payable and sales is recorded)

For recording this we debited the cash as it increased the assets and credited the sales revenue and sales tax payable as it also increased the revenue and liabilities

6 0

4 years ago