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3 years ago

Accounting for trade in goods and services Suppose the following transactions occur during the current year:

Business

1 answer:

Reil [10]3 years ago

4 0

Answer:

Accounting for trade in goods and services

Indication of the combined effects of transactions on the U.S. national accounts for the current year:

1. Dmitri orders 40 bottles of wine from a French distributor at a price of $30.00 per bottle.

Amount (Dollars) $1,200

Consumption 0

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) 0

2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.

Amount (Dollars) $1,000

Consumption 0

Investment 0

Government Purchases 0

Imports Exports $1,200 Exports

Net Exports $1,200

Gross Domestic Product (GDP) $1,200

3. Jake, a U.S. citizen, pays $670 for a surfboard he orders from Greatwaves (a U.S. company).

Amount (Dollars) $670

Consumption $670

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) $670

Explanation:

The Gross Domestic Product (GDP) is the total market value of goods and services produced within an economy for a given period. It is calculated with this formula: GDP=C+I+G+(X−M) where, C = Consumption of goods and services, I = Investments, G = Government Spending, X = Exports and M = Imports. It is in turn influenced by transactions that take place on a daily basis. Some of the transactions do not really affect a country's GDP. For example, the order of bottles of wine by Dmitri (supposedly a Greek citizen) from a French distributor into (Greece).

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A new labor-saving technology will likely result in..... Group of answer choices Lower wage share of output and lower Gini coeff

jekas [21]

Answer:

Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.

Explanation:

Since less labor will be used, total unemployment will increase. Besides less labor being used, more capital will be used, so the share of labor in total output will decrease. Labor efficiency increases, since you need less labor to produce the same or even a larger amount of output.

New technologies tend to increase the wages of high skilled labor and management. Since the Gini coefficient measures income inequality, then higher wages for a few will increase inequality.

This is an example of what is happening in the US, where highly trained labor is getting paid better every time while unskilled labor is getting paid the same as many years ago or their wage has even decreased with time. This shows how important a college education is, and the difference will only keep increasing.

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3 years ago

Independent contractors should purchase __________ liability insurance, which provides protection from liability as a result of

nevsk [136]

Answer:

professional liability insurance

Explanation:

Professional liability insurance protects businesses (an independent contractor is a one person business) against liability resulting from errors and omissions. It covers any harm caused to a customer as a result of professional service or advice. This type of policy generally covers negligence, copyright infringement, personal injury, etc.

Professional liability insurance is generally purchased by businesses that offer the following services:

professional service s
professional advice
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3 years ago

A company anticipates monthly sales of $300,000 for the months of April, May, June, and July. Materials represent 50% of sales,

Vlada [557]

The company's total cash payments in May is $195,500 and this can be determined by preparing a cash budget.

<h3>What is a cash budget?</h3>

A cash budget is a company's estimation of its cash inflows and outflows over a specified period of time. A cash budget provides a company with financial insight into its cash requirements, including shortages and surpluses. The preparation of a cash budget helps the company to determine an efficient use of its available cash.

Data and Calculations:

April May June July

Anticipated sales $300,000 $300,000 $300,000 $300,000

Purchases 150,000 $150,000 150,000 150,000

Labor costs 16,000 19,000 16,000 21,000

Fixed overhead 12,000 12,000 12,000 12,000

General and admin. exp. 2,000 2,000 2,000 2,000

Interest expense 2,500

Equipment purchase 10,000

Total cash payments in May $195,500

Thus, the company's total cash payments in May is $195,500.

Learn more about cash budgets at brainly.com/question/8707644

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2 years ago

Accounts receivable written-off as uncollectible during the year amounted to $12,600. The accounts receivable balance at the beg

elena55 [62]

Answer:

$72,600

Explanation:

Ending balance of the account receivable can be calculated by adding credit sales in beginning balance and deducting any account receivable written-off.

As we have the ending balance of account receivable, we need to calculate credit sales by following formula:

Account receivable Ending Balance = Account receivable Beginning Balance + Credit Sales - Bad Debt - Ending Balance

$320,000 = $260,000 + Credit Sales - $12,600

$320,000 = $247,400 + Credit Sales

Credit Sales = $320,000 - $247,400 = $72,600

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4 years ago

The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increa

salantis [7]

Answer:

15%

Explanation:

The formula and the calculation of the price elasticity of supply are presented below:

Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)

where,

Price elasticity of supply = 2

And, the percentage change in quantity supplied is 30%

So, the percentage change in price is

= 30% ÷ 2

= 15%

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4 years ago