Answer:
The calculation will be more accurate, because the base year is the oldest.
CPI is calculated as
(P_n / P_base - 1)*100
as:
P_n prices at time n
The mathematical reason why it is better to take the oldest year is that % growth works better
Answer:
<u>November 1</u>
Loaned $18,600 cash to Manny Lopez on a 12-month, 10% note.
-
Dr Notes receivable 18,600
-
Cr Cash 18,600
<u>December 11</u>
Sold goods to Ralph Kremer, Inc., receiving a $47,250, 90-day, 8% note.
-
Dr Notes receivable 47,250
-
Cr Sales revenue 47,250
<u>December 16</u>
Received a $58,200, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.
-
Dr Notes receivable 58,200
-
Cr Accounts receivable 58,200
<u>December 31</u>
Accrued interest revenue on all notes receivable.
-
Dr Interest receivable 728.25
-
Cr Interest revenue 728.25
How to calculate interest:
Lopez: $18,600 x 10% x 2/12 = $300
Kremer: $47,250 x 8% x 20/360 = $210 (using a 360-day year; 20 days)
Fernetti: $58,200 x 9% x 15/360 = $218.25 (using a 360-day year; 15 days)
Total $728.25
Answer:
Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the business.
Answer:
- Private property rights:
- Institutions and incentives
Explanation:
- Private property rights → they are constructs that determine how a resource or economic good is used and owned. They can be view as an attribute of an economic good, it has four components and also, it is often referred to as a bundle of rights:
1- The right to use the good.
2- The right to be able to aer income from that good
3- The right to transfer the good to other, or to abandon it or destroy it.
4- The right to enforce the property rights.
- Institutions and incentives → This kind of institution creates incentives for technological innovation and investments in both human and physical capital
. When the right incentives are placed, as a consequence production and investment occur naturally, as a result we have more human capital, more physical capital, and technological advancement - all of which lead to economic growth.
Answer:
$0.16
Explanation:
Particulars Quantity Price Amount
Cocoa 400 $1.25 $500
Sugar 80 $0.40 $32
Milk 120 $2.50 <u>$300</u>
Total <u>$832</u>
Standard direct materials cost per bar = Total amount / Number of bar
Standard direct materials cost per bar = $832 / 5,200 bars
Standard direct materials cost per bar = $0.16
