Answer:
Explanation:
As auditor, I may not agree with the policy that is been changed. It
is believed that, by default there is a normal loan risk that is been associated with the business of Pacific Bank. A way to help reduce this risk is to carefully asses the loan applications. Loans that are large has greater risk in the event of default compared to smaller loans. Therefore, it is reasonable to have more than several individual involved in decision making give a loan that is very big. In addition, loans should be given base on those that meet the requirements, it should not be on the base on favoritism or people with relationship with bank president. Giving the bank president the power to give huge loans may lead to him granting loans to people who he is familiar with, without the required due process been followed. This may cause the bank to be credit exposed risks that are poor.
The Nominal GDP of the economy that produces two goods in 2014 is $170.
The Nominal GDP of the economy that produces two goods in 2015 is $320.
The Real GDP in 2015 using 2014 as base year is $250.
The GDP deflator of an economy that produces two goods is 1.28.
Gross domestic product is the sum of goods and services that a country produces in a year.
Nominal GDP is GDP calculated using current year prices. Real GDP is GDP that is calculated using base year prices.
GDP deflator is the ratio of prices of goods and services produced using current year prices and prices of goods and services using base year prices.
Nominal GDP in 2014: (15 x $2) + (20 x $7) = $170.
Nominal GDP in 2015: (20 x $4) + (30 x $8) = $320
Real GDP in 2015: (20 x $2) + (30 x $7) = $250
GDP deflator = (nominal GDP / real GDP) x 100
($320 / $250) x 100 = 1.28
To learn more about real GDP, please check: brainly.com/question/23126579?referrer=searchResults
Answer:
$200,000
Explanation:
Total cost = Fixed cost + variable cost
$200,000 = $100,000 + $100,000
Fixed cost is cost that do not vary with production. E.g. rent
If no production activity takes places, fixed cost would still be incurred.
Variable cost is cost that varies with production e.g. wages
If no production activity takes place, there would be no variable cost.
I hope my answer helps you.
<span>Your real income value will increase. The value of your money has now become higher, since deflation is a decrease in the overall money supply. Any income you do have, if it stays the same, will be able to buy more in products than it previously was able to.</span>
Answer: True.
Explanation: The journal entry would be made with processing cost system when the units would have been completed in respect to the work done. The statement is " true".
Processing cost system is used when nearly identical product are produced in mass. The process costing can be described as one method of assigning manufacturing cost to unit produced.
