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Answer:
a. 8.33 percent
Explanation:
The computation of the economy's growth rate between the two years is presented below:
= (GDP at the end of year 2 - GDP at the end of year 1) ÷ (GDP at the end of year 1) × 100
= ($1,300 billion - $1,200 billion) ÷ ($1,200 billion) × 100
= ($100 billion) ÷ ($1,200 billion) × 100
= 8.33%
The economic growth rate is always expressed in percentage form
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This action is a violation of Cost Principle or Historical Cost Concept.
<h3>What is Historical Cost Concept?</h3>
The historical cost principle states that a company or business must account for and record all assets at the original cost or purchase price on their balance sheet and not at its market price.
The historical cost principle forms the foundation for an ongoing trade-off between usefulness and reliability of an asset.
Thus, if the modern enterprises reported all assets in the accounts at current market value. This action is a violation of Cost Principle or Historical Cost Concept.
Learn more about Historical Cost Concept here,
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Answer:
New target price is $ 180.
Explanation:
This question requires us to calculate the new target price. The detail calculation is given below.
Current price = Full cost + target income
Current price = $ 200 + $ 40
Current price = $ 240-A
New Price = A * (75%)
New price = $ 180
(new price is 75% of current price)
