Answer:
c. The management of Ace should consider the effect of slow moving inventory on its liquidity.
Explanation:
Liquidity is an important measure of a company's financial health, its calculation determines how well the company can pay off your short-term debts. Inventory has a great impact on liquidity and it depends on how easily the company can sell it. As ACE is having trouble selling its products, it means that it takes a long time to sell its inventory, which does not help its liquidity since its inventory can not be easily be transformed into cash without losing its value, and that's why this company management must consider moving inventory on its liquidity, in order to increase its current ratio, that means its ability to pay current, or short-term, liabilities (debt and payables) with its current, or short-term, assets (cash, inventory, and receivables).
If this company
Answer:
(a) Excess reserves = 200
(b) Monetary base (B) = 900
(c) Money multiplier = 10
Explanation:
Assuming that the required reserve ratio (missing in the question) is 0.1:
(a) Excess reserves = Reserves - Required reserves
Reserves = 400
Required reserves = Deposits x Required reserve ratio
= 2000 x 0.1
= 200
Hence, Excess reserves = 400 - 200
= 200
(b) Monetary base (B) = Reserves + Currency
= 400 + 500
= 900
(c) Money multiplier = 1 / Required reserve ratio
= 1 / 0.1
= 10
Answer:
GDP per capta will be $54.5454
So option (a) will be correct option
Explanation:
We have given GDP of US in 2014 is roughly about $17.4 trillion
We know that 1 trillion = 1000 billion
So GDP of US = $17.4×1000 = $17400 million
Population of US in 2014 = 319 million
We have to find the GDP per capita
For finding GDP per capita we have to divide total GDP to number of peoples
So GDP per capita will be 
So option (a) will be the correct option
Answer:
Total Insurance need $166,500
Explanation:
Life insurance [DINK method]
Amount mortgage loan (half) $145,000
Auto loan(half) $7,500
Credit card balance(half) $2,000
Other debts(half) $4,000
Funeral cost $8,000
Total Insurance need $166,500
Question Completion:
Since the Trial Balance was not provided, we assume that the Supplies account had a beginning balance of $120 for the purpose of this exercise. Any other figure can be substituted for this balance.
Answer:
Adjusted Trial Balance as of December 31: Income Statement Balance
Debit Credit Expense Revenue Sheet
a. Depreciation expense $18 $18
Accumulated Depreciation $18 -$18 assets
b. Accrued Salaries $21 $21
Salaries Payable $21 $21 liabilities
c. Unearned Revenue $27 -$27 Liab.
Earned Revenue $27 $27
d. Supplies Expense $30 $30
Supplies $30 -$30 assets
e. Insurance Expense $30 $30
Prepaid Insurance $30 -$30 assets
Explanation:
Company B with the adjusting events above, usually recorded through the adjusting journal, can also be adjusted directly in the trial balance with their effects on the financial statements clearly demonstrated. Expenses have debit accounts while liabilities have credit accounts. Expenses reduce the net income, revenues increase the net income, while liabilities and assets can be reduced or increased as the case may be.
