Answer: Option B
Explanation: In simple words, multiplier effect refers to the process under which a particular amount of expenditure results in the change in income greater than the amount of that expenditure made.
Usually this is used to depict the impact of the expenditures made by the government to boos the economy.
Hence from the above we can conclude that the correct option is B.
Answer:
A. At the end of one accounting period result in cash receipts in a future period
Explanation:
Revenue is total amount of money firm receives or is entitled to receive, by selling its goods / services, in a period of time.
Revenue can be :
- Cash (Actually received): Based on cash transactions.
- Accrued (Earned but not received): Based on credit transactions - with Debtors (who owe money to us)
Accrued Revenue i.e Revenue Earned but not received in an accounting period : is an asset in form of debtors of a firm. The firm will get cash receipts from them in a future period.
Answer:
a. Soft-drink manufacturers.
- Soft drink manufacturers generally sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.
b. Ski-resort operators.
- Ski-resort operators sell more during cold days (winter), but their sales are negatively affected by both abnormal warm weather or extremely harsh cold weather, so they will be interested in reducing risks (hedging) against abnormal winter weather.
c. Electric utilities.
- Electric utility companies benefit from both HDDs and CDDs, so the more frequent they are the better for them. They probably dislike mild weathers, but love extremes.
d. Amusement park operators.
- Similarly to soft drink manufacturers, amusement park operators sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.
Explanation:
Companies rely heavily on certain weather conditions and need to reduce risk will hedge weather risk.
Heating Degree Day (HDD) basically measures the demand for energy needed to heat some place, e.g. any type of building. If the temperature is below 65°, then people start to request that a place is heated (heating system turned on).
Cooling Degree Day (HDD) is basically the opposite, measures the demand for energy needed to cool some place. If the temperature is above 65°, then people start to request that a place is cooled (air conditioner turned on).
Answer:
b. Income from both sole proprietorship and partnerships that is taxable is treated as individual income.
Explanation:
The correct choice is b according to the following statements. Because income from both the sole proprietorship and the partnership is treated as individual income because there are no specific tax levels or separate tax rates, the income generated in these types of business should be reported in their individual income tax returns.
Therefore, all other statements given are wrong as a general partnership is completely different from the company plus partnership is not the most complicated type of business. Not all business organizations have by-laws nor limited lives for sole ownership, but the partnership has also limited lives.
Finance is accountable for documentation of mutual useful resource agreements.
<h3>What's finance means?</h3>
Finance, of financing, is the system of elevating money or capital for any form of expenditure.
It is the technique of channeling a range of cash in the shape of credit, loans, or invested capital to those financial entities that most want them or can put them to the most productive use.
<h3>What is finance in banking sector?</h3>
The monetary area is a segment of the economy composed of businesses and establishments that grant commercial and retail customers with monetary services.
A massive element of this sector produces loan and mortgage income, which will increase the value as activity charges decline.
Learn more about finance here:
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