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4 years ago

The unit of account function of money:

Business

1 answer:

sleet_krkn [62]4 years ago

8 0

Answer: Money makes price information more accessible

Explanation: The unit of account function of money tells that money can be used as a common measurement for all the goods or services offered in the market, thus, making it possible to price the commodities and making it more accessible and informative to the consumers.

In simple words it means all units can be measured on the basis of money.

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For the year ended December 31, 2019, Davidson Mart had sales of $ 550 comma 000 and cost of goods sold of $ 412 comma 500. Dav

Bas_tet [7]

Answer and Explanation:

The adjusting entry is as follows

Sales return & allowances ($550,000 × 2%) $11,000

Refunds payable $11,000

(Being the recording of estimated sales return is done)

For recording this we debited the sales returns & allowances as it increased the sales return and credited the refund payable as it also increased the liabilities

5 0

3 years ago

1. Which of the following individuals and groups produce medical care?

ikadub [295]

Answer:

1. B. Nurses and doctors.

C. X-ray technician.

E. A nursing home.

2. Decrease; Increase

Explanation:

1. To produce medical care means to have the capacity to give medical care and this is what doctors and nurses do. When you go to a hospital and they diagnose and recommend treatment, they are producing medical care. In Nursing homes this is also done as they have full time medical staff that provide health care to their clients so they are also considered producers of medical care.

An X-ray technician produces medical care by showing the parts of the body that may have been damaged.

2. If the number of medical care producers increase, the equilibrium price will go down because the shift in the supply curve to the right will intercept the demand curve for medical care at a lower point thereby decreasing equilibrium price.

Consumer surplus refers to the difference between the price that customers would have paid and the price they are paying so with the prices lower, consumers will see their surplus increase.

6 0

4 years ago

Imagine you own a lawn-mowing business. Identify the main function of money exhibited in each situation below.

Natasha2012 [34]

Answer:

A.) Medium of exchange - Here money is used for doing transaction and therefore, this example is under the medium of exchange.

B.) Store of value - Here, a person store or deposits his money into a bank and therefore, this shows the store of value characteristic of money.

C.) Medium of exchange - Here, one of my friend utilize money for helping me mowing lawns which shows that money is used as a medium of exchange.

D.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his net earnings for the year on the tax return in terms of money.

E.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his new lawn mower value.

3 0

3 years ago

Which of the following does a budget tracker do? Select all that apply.

Neko [114]

Answer:

A and D

Explanation:

8 0

3 years ago

Read 2 more answers

(Yield to maturity) A bond's market price is $900. It has a $1 comma 0001,000 par value, will mature in 1414 years, and h

jonny [76]

Answer:

The question is not correct in its entirety,find below correct question:

A bond's market price is $900. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.)

The bond's yield to maturity if it matures in 14 years is % 12.53%

The bond's yield to maturity if it matures in 28 years is %

The bond's yield to maturity if it matures in 7 years is %

12.53%

12.28%

13.23%

Explanation:

In calculating the bond yield to maturity, the rate formula in excel comes handy:

=rate(nper,pmt,-pv,fv)

nper is the number of periods coupon would be paid

for 14 years it is 14*2=28(coupon is paid twice a year),56 for 28 years and 14 for 7 years

pmt is periodic coupon payment semi-annually, which 11%*$1000*6/12=$55

pv is the current market price of $900

fv is the redemption price of $1000

YTM for 14 years=rate(28,55,-900,1000)

=6.27% semi-annually

=6.27% *2=12.53% annually

YTM for 28 years=rate(56,55,-900,1000)

=6.14% semi-annually

=6.14% *2=12.28% annually

YTM for 7 years=rate(14,55,-900,1000)

=6.62% semi-annually

=6.62% *2=13.23% annually

5 0

3 years ago