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3 years ago

According to the classical dichotomy, when the money supply doubles, which of the following also doubles?

Business

1 answer:

masha68 [24]3 years ago

7 0

Answer: Option (C) is correct.

Explanation:

Correct option: The price level and nominal wages.

According to the classical dichotomy, nominal variables moves proportionately with the quantity of money whereas real variables remains unchanged.

A classical model that is based on the flexibility of prices and wages, conclude that any changes in money supply only affects the nominal variables whereas real variables remains constant. This theory results in the independence of the real variables from any changes in the money supply and nominal variables.

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Froya Fabrikker A/S of Bergen, Norway, Is a small company that manufactures specialty heavy equipment for use In North Sea oil f

solmaris [256]

Answer:

1) JOURNAL ENTRIES

a) Debit Material Account $290,000 Credit Accounts Payable $290,000

b) Debit Work in process $ 275,000 Credit Material Account $275000

c) Debit Factory overheads $69300, Debit Selling and admin (utility expense) $7,700 Credit Accounts Payable $77,000

d) Debit Work in process $320,000 Debit Factory overheads $108,000

Credit Salary and wages Payable $428,000

e) Debit Factory overheads $72,000 Credit Accounts payable $72,000

f) Debit Selling and admin expense (Advertising) $154,000 Credit Accounts payable $154,000

g) Debit Debit depreciation expense $90000 Credit Accumulated depreciation on Factory equipment $67,500 Credit Accumulated depreciation on selling and admin facilities $22,500

h)Debit Factory rent $92000 Debit selling and admin rent $23000 Credit Accounts payable $115000

i) Debit Work in process $417,100 Credit Manufacturing overhead costs $417,100

j) Debit Finished goods $950,000 Credit work in process $950,000

k) Debit Accounts receivables $2,100,000 Credit Revenue $2,100,000

Debit cost of sales $980,000 Credit Finished goods $980000

2) DR Raw materials CR

opening bal 48000 work in process 275000

Accounts payable 290000 balance c/d 63000

338000 338000

work in process

opening balance 39000 finished goods 950000

Raw materials 275000 balance c/d 101100

salaries payable 320000

applied overheads 417100

1051100 1051100

finished goods

opening balance 78000 cost of sales 980000

work in process 950000 balance c/d 48000

1028000 1028000

Manufacturing overheads

accounts payable 69300 work in process 417100

salaries payable 108000

accounts payable 72000

depreciation 67500

Accounts payable 92000

cost of sales (over) 8300

417100 417100

selling and admin overheads

Accounts payable 7700 Profit and loss account 207200

Accounts payable 154000

Depreciation 22500

Accounts payable 23000

207200 207200

Accumulated depreciation on Factory equipment

balance c/d 67500 depreciation 67500

Accumulated Depreciation on selling and admin facilities

balance c/d 22500 depreciation 22500

Accounts payable

balance c/d 638700 raw materials 290000

accounts payable 69300

accounts payable 72000

Accounts payable 92000

Accounts payable 7700

Accounts payable 154000

Accounts payable 23000

638700 638700

cost of sale

Finished goods 980000 manufacturing overheads 8300

trading account 971700

980000 980000

sales

trading account 2100000 Accounts receivable 2100000

trading account

cost of sales 971700 sales 2100000

gross profit 1128300

3) cost of goods manufactured

direct material 275000

Direct labor 320000

applied overheads 417100

cost of goods manufactured 1012100

4a) Debit Manufacturing overhead 8300 Credit cost of sales 8300

4b) finished goods

opening 78000

work in process 950000

closing goods 48000

Cost of goods sold 980000

5)INCOME STATEMENT

SALES 2100000

COST OF SALES -971700

gross profit 1128300

selling and admin costs -207200

Net income $921100

Explanation:

5 0

3 years ago

Review Key Concepts

notsponge [240]

Explanation:

1. Because marketing of goods must comply with current marketing practices. Trends and consumer perceptions must be maintained. It is important.

This refers to the acquisition, distribution, and marketing of goods, services or trademarks, such as advertisement and market analysis, and the production of the products for customers or end-users.

2. An example of an economic good and an economic service :

Economic goods: cars, furniture, television, and clothing

Economic services: cooking a hamburger, cutting hair

3 0

3 years ago

It is important to find a hotel that has a five star rating to base the training off of. what aspect of service quality would th

kramer

The aspect of service quality would be the objective measure of goodness.

<h3>What is service?</h3>

In contrast to products, which we can physically touch or handle, services are the non-physical, intangible components of our economy.
The majority of the economies of the wealthy countries are based on services like banking, education, healthcare, and transportation.
They also represent the bulk of the economies of the developing countries.
There is no transfer of ownership when a business offers a service and the client pays for it. We are unable to ship or store a service.
They are only present as long as the customer is consuming them and the provider is supplying them.

For instance, getting a haircut is a service that cannot be stored or transported.

Know more about service with the help of the given link:

brainly.com/question/12505990

#SPJ4

8 0

2 years ago

At December 31, 2021, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $102 million rela

masha68 [24]

Answer:

Moonligh Bay Resorts will report a Non-current liability of $126 million

Explanation:

The question is to determine whether Moonlight Bay Resorts is to report an asset (current or non-current) or a liability (current or non-current) in its December 31st 2021 Balance Sheet

The step is to determine the classification of the items in the balance sheet

This is done as follows

Description Amount ($)

Total Deferred Tax liability (168 million + 120 million) 288 million

(Deferred tax liabilities related to

both current and non-current assets)

Total Deferred tax asset (102 million + 60 million) (162 million)

The net deferred tax liability 126 million

Since, under the International Financial Reporting Standards Deferred Tax Liability is a Non-current liability, it means Moonligh Bay Resorts will report a Non-current liability of $126 million

7 0

3 years ago

Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is being held soon, but as a m

Lisa [10]

Answer:

Larry must have signed a PROXY AGREEMENT that gives the management group control over his shares.

A proxy agreement is generally used for stockholders voting procedures, they basically grant another person the right to vote on behalf of another stockholder.

Larry's current investment in the company is $86,000.

= 2,000 stocks x $43 = $86,000

If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth $82,560.

company's new market value = (20,000 x $43) + (5,000 x $34.40) = $1,032,000

new stock price = $1,032,000 / 25,000 stocks = $41.28

= $41.28 x 2,000 = $82,560

This scenario is an example of STOCK DILUTION.

The stock price will lower because the increase in the company's value is less than proportional to the increase in the number of stocks.

Larry could be protected if the firm's corporate charter includes a PREEMPTIVE provision.

Preemptive rights give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $103,200.

= [(5,000 / 10) x $34.40] + $86,000 = $17,200 + $86,000 = $103,200

5 0

3 years ago