Answer:
a. An audit adjustment is needed since the best case scenario, where the net realizable value is highest would result in $92,000 - $5,000 = $87,000.
b. the value of inventory must decerase by $99,000 - $87,000 = $12,000, so COGS must increase by that amount:
Dr Cost of goods sold 12,000
Cr Merchandise inventory 12,000
Answer:
Total interest earned on the original deposit=$403.593
Explanation:
Total Interest earned after 6 years using compound Interest:
Where:
PV is the deposit amount
i is the interest Rate
FV=$4561.593
Total Interest earned after 6 years=FV-PV
Total Interest earned after 6 years=$4561.593-$2,700
Total Interest earned after 6 years=$1861.593
Total Interest earned after 6 years using single Interest:
Total Interest=$2,700*0.06*9
Total Interest =$1458
Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest
Total interest earned on the original deposit=$1861.593-$1458
Total interest earned on the original deposit=$403.593
Answer:
Option (B) is correct.
Option (D) is correct.
Explanation:
If banks kept 100 percent of deposits on hand as reserves, then this will indicate that all the deposited amount would be saved as reserves. Therefore, the reserve requirement ratio is 100% here which means that:
Reserve ratio = 100%
= 100 ÷ 100
= 1
and the money multiplier = 1 ÷ reserve requirement ratio
= 1 ÷ 1
= 1
Banks would not be able create new money by giving loans because the reserve requirement ratio is 100%.
Answer:
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- <u><em>True. The point (6,15) will be on the graph.</em></u>
Explanation:
Since all cards have the same price, there is a direct relation between the number of cards and the cost, with the unit price being the constant of proportionality.
The unit price is determined from the point<em> (4, 10)</em>, whihc means 4 cards for $10.
- K = unit price = $10/4cards = $2.5 per card.
Point <em>(6,15) </em>means that 6 cards cost $15. Is that true?
Use the constant of proportionality:
- Cost = K × number of cards
- Cost = $2.5/card × 6cards= $15.
Hence, indeed the cost of 6 cards is $15, and that is represented by the point (6, 15).
