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3 years ago

Explain the roles of taxation and government expenditure in the circular flow of income

1 answer:

6 0

The role of taxation in the circular flow of income, is basically to have a medium of revenue for the government, if the government is able to earn money, they are able to spend it on the economy.
So then the role of Government expenditure is to make sure the money goes back into the economy, if the government were to save the money, the economy will have restriction to grow, if all the money the government creates from tax was put back into the economy by spending in say, Heath, Education, Investment, the economy can grow because then household will spend money from their income to utilise these industries.
Hopefully this helps!

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The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles: a

Lesechka [4]

Answer:

The correct option is D

Explanation:

Under the method of allowance, the uncollectible accounts receivable will be recorded in the same accounting period as the sale of an estimate of the bad debt expense. So, the collection of the account which was earlier written off, will not have any affect on the income in the period or year it is received or collected.

3 0

3 years ago

Jacques lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of

S_A_V [24]

Answer:

Explicit Costs

The wages and utility bills that Jake pays

The wholesale cost for the guitars that Jake pays the manufacturer

Implicit costs

The salary Jake could earn if he worked as an accountant

The rental income Jake could receive if he chose to rent out his showroom

Accounting profit = $62,000

economic profit = $-3000

Explanation:

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Jacques forgoes the opportunity to earn a salary and rent out his showroom when he started his business

Accounting profit= total revenue - explicit cost

$793,000 - ($430,000 + $301,000) = $62,000

Economic profit = accounting profit - implicit cost

$62,000 - (50,000 + 15,000) =$-3000

6 0

3 years ago

The following information is available for Pyle Garage for March, Year 2:

trasher [3.6K]

Answer:

See below

Explanation:

Pyle Garage

Bank Reconciliation statement

March 31,

Unadjusted Bank balance

$14,107

March 31,

Add: Deposit in transit

$3,601

Less: Outstanding checks #1,469

($1,557)

Outstanding checks #1,470

($803)

True cash balance March 31, 2018

$15,348

Unadjusted Book balance, March 31

$13,036

Add: Credit memo for collection of

$3,110

Accounts receivables

Less: Error in recording check #1,468

[$890 - $165]

($725)

Debit memo for service charges

($73)

True cash balance March 31,

$15,348

B. Account titles

Cash Dr $3,110

Accounts receivables Cr. $3,110

Equipment Dr $725

Cash. Cr. $725

Bank service charge expense Dr $73

Cash. Cr. $73

8 0

3 years ago

SportsWorld purchased a delivery van for $23,000 with a residual value of $3,000 on September 1, 2019. The van has an estimated

baherus [9]

Answer:

$1,333

Explanation:

The computation of the deprecation expense is shown below:

= (Original cost - residual value) ÷ estimated useful life

= ($23,000 - $3,000) ÷ 5 years

= $4,000

This $4,000 depreciation expense come for a year but the asset is purchased on September 1, 2019 and the books are closed on December 31, 2019

So, the four months depreciation expense would be

= Yearly depreciation expense × number of months ÷ (total number of months in a year)

= $4,000 × (4 months ÷ 12 months)

= $1,333.33

The four months is calculated from September 1 to December 31

8 0

4 years ago

When rachel feels overwhelmed, she commits to spending an initial step of attending to the task for up to a minute in order to i

Svetach [21]

When Rachel feels overwhelmed, she commits to spending an initial step of attending to the task for up to a minute in order to increase her likelihood of finishing it. This is called the work breakdown structure or strategy.

<h3>What is the purpose of work breakdown structure or strategy?</h3>

A work breakdown structure (WBS) is a project management technique that uses a step-by-step method to finish huge projects with many moving parts.

A work breakdown structure (WBS) may integrate scope, cost, and deliverables into a single tool by breaking down the project into smaller components.

This strategy helps to complete tasks faster.

Learn more about work breakdown structure or strategy:
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4 0

2 years ago