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4 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

1 answer:

7 0

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

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Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a u

aliina [53]

Answer:

Great Adventures

Journal Entries on July 1, 2022:

Debit Equipment Account with $12,000

Credit Cash Account with $12,000

To record the purchase of a used Suburban.

Debit Vehicle Insurance with $1,800

Credit Cash Account with $1,800

To record payment of one year vehicle insurance.

Debit Equipment Account with $3,000

Credit Cash Account with $3,000

To record the payment for repainting and placing logo.

Debit Equipment Account with $2,000

Credit Cash Account with $2,000

To record deluxe roof rack and trailer hitch on the vehicle.

Maintenance on October 22:

No Journal Entry Required in July.

Explanation:

a) The initial amount spent to purchase the vehicle is capitalized, i.e. recognized in the asset's account (Equipment Account).

b) Vehicle insurance is not capitalized. It is a period cost that should be recognized in the income statement.

c) Repainting and putting logo on the vehicle is capitalized because it adds to the value and brings the vehicle to its use. All expenditure that helps to bring an asset to its use and increases the future value is capitalized.

d) The deluxe roof rack and trailer hitch is also capitalized since they increase the future benefits of the vehicle.

7 0

3 years ago

Define an informal business

Katena32 [7]

The informal<span> sector refers to those workers who are self employed, or who work for those who are self employed. People who earn a living through self employment in most cases are not on payrolls, and thus are not taxed. Many </span>informal<span> workers do their </span>businesses<span> in unprotected and unsecured places.</span>

7 0

3 years ago

You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. I

Kobotan [32]

Answer:

-$1,500

Explanation:

Calculation for the economic profit earn

Using this formula

Economic profit =Investment amount ×(Return on investment-Current interest rate)

Let plug in the formula

Economic profit =$50,000×(0.05 - 0.08)

Economic profit =$50,000×(-0.03)

Economic profit = -$1,500

Therefore you earn an economic profit of -$1,500

3 0

3 years ago

If joe to go decides to produce its coffee beans domestically and sell them in india through a local retailer, this would be an

zhenek [66]

If joe to go decides to produce its coffee beans domestically and sell them in india through a local retailer, this would be an example of exporting. When you export an item you are trading an item that wsa produced in one country and bringing it to another country. The person doing this or business, Joe To Go is the exporter in the situation by selling them in India through a local retailer.

4 0

3 years ago

Advertising is used mainly to

marta [7]

I think the answer would either be a or b. Most likely the answer would be a.

5 0

3 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks​

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks