Answer:
The correct answer is:
5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. (a)
Explanation:
to calculate the percentage deflation, we will simply calculate the percentage change in price between the years stated. This is calculated as follows:
% change = 
Note that the negative sign shows a deflation.
if you use the same method for years two and three, you should get -3%, using P₁ as 142.5 and p₂ as 138.2. Hence option 'a' is correct.
Answer:
b) Equal payments and an infinite life
Explanation:
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.
The answer is frequent sales:
This is because all the other answers would make the shop lifter feel discouraged as there is a lot of security, when more sales would most likely have no affect
Answer: $35,000
Explanation:
Implicit rental price = Interest payment + Depreciation
Interest payment = 5% * 500,000
= $25,000
Implicit rental price is therefore:
= 25,000 + 10,000
= $35,000
<h3><u>Answer;</u></h3>
credit, debit, and debit, respectively
<h3><u>Explanation</u>;</h3>
Normal balance of sales; Credit
Normal balance of sales discount; Debit
Normal balance of sale returns and allowances; Debit
- A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
- The normal balance of sales is credit.
- The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
- The account Sales Discounts is referred to as a contra-revenue account. Therefore; its is debit balance.
