The correct answer is: business cycle
Option C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.
<u>Explanation:</u>
Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.
If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.
Answer:
E. Johnathan eats alone because he feels guilty about his binge-eating habits and gets worked up when waiters attend to him.
Explanation:
Johnathan is not happy with his habit of binging food.This made him to act like seating alone while eating and he gets worked up when he is attended by waiters
Answer:
$12,000
Explanation:
The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.
The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:
- partnerships or C corporations with less than $5 million in yearly revenue
- sole proprietorships and S corporations with less than $1 million in yearly revenues
- family owned farms
- you provide personal services and 95% of your revenue comes from it
- no publicly traded corporation is allowed
Cash is the real money that we have while cash equivalents are instruments that can be turn to cash quickly. They are very liquid.
Treasury bills are cash equivalents. They are very liquid and can be converted into cash quickly. They are instruments in the money market.
Going by this above explanation, the Cash and Cash Equivalents that will be reported on the balance sheet are:
Cash --------------------------------------- $1,900
Treasury bills purchased--------------$500
Total-------------------------------------------<u>$2,400</u>
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$2,400 will be reported as Cash and Cash Equivalents on the balance sheet.
