Decreasing taxes can stimulate the economy by putting more money in the circulation or by boosting the spending .The tax cuts stimulate the economic growth only in the short-term.
Explanation:
Due to an decrease in tax the after tax income of an individual increases which is used by individuals to buy more product and services.Thus reduced tax rates leads to an increase in saving and investment, which leads to an increase in the productive capacity of the economy as a whole
Answer:
A) Provide savings incentives
Explanation:
Total national savings equal the total investment component of the gross domestic product of a nation. The only way you can increase investment is by saving more money.
The simplest way (but also ineffective) of increasing savings in an economy is by increasing interest rates. It is ineffective since you increase both interest paid to people that save money and those who borrow money. If you print more money all you are going to do is increase the inflation rate.
A more efficient way of increasing savings would be offering tax incentives for those who save money.
Answer:
17.27 years
Explanation:
For this question we use the NPER formula that is shown on the attachment below:
Provided that
Present value = $340,000
Future value = $25,000
PMT = $35,000
Rate of interest = 7.5%
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the number of year is 17.27 years
Answer:
prepayment penalty, maintain, insurance, mortgage
Explanation:
Prepayment penalty clause relates to the situation that the borrower shall not prepay the borrowed amount as to the creditor it will be loss in the form of interest, thus, it do not want that the borrower shall collect from any other source.
The property should not loose its value, or the value shall not be degraded as that will result in loss, as when the borrower fails to repay the loan, creditor has the right to sell it, if it will not be maintained the value will degrade.
Insurance is required so that same as in above mentioned point that the value is not lost, and then the value of loan is fully recoverable.
If the value of loan exceeds 80% of value of property there shall be mortgage as the lender ensures his payment and no failure shall be there.
Answer:
C. Economic entity assumption
Explanation:
Monetary unit assumption: As per this assumption, US dollar is considered to be a king. The accountants are forbidden of logging transactions in any other currency. It also grant accountants permission to ignore inflation when reviewing the statements considering that purchasing power of a dollar remains unchanged.
Going concern assumption: As per this assumption, a firm will continue its operations for the foreseeable years. Irrespective of the fact, whether the owner is alive or not, a firm may continue to operate unless dissolved. In case of bankruptcy, a firm will discontinue its operations.
Cost principle: As per this principle, an asset should be recorded at the acquired price. The acquired price is the price at which the asset was originally purchased i.e. the historical cost of an asset.
Economic entity: Each firm or organization is an economic entity and has a separate artificial identity from its owner or stakeholders. So, only the transactions pertaining to business are recorded and personal expenses are excluded from the financial statements of the firm.
Thus, the personal expense of president of the company should not have been recorded in the financial statements of the company.
