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2 years ago

Economic leverage occurs when a business uses it economic power to:

Business

1 answer:

Goshia [24]2 years ago

3 0

Answer:Threaten to leave a location unless a desired political action is taken.

Explanation: Economic Leverage is a term used to describe the situation where an organization uses its Economic power to gain certain economic advantage over other stakeholders.

An Economic Leverage can occur when an economic power in a country threatens to leave a country Because it wants to gain certain economic advantage from the Government and other Regulatory bodies.

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In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep

ch4aika [34]

In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it from losing any more of its value. Under these conditions, money is said to lack stability

Explanation:

In most situations, two main factors of a high inflation rate are present in a national economy, which in most countries at the very most. Firstly, an increase in consumer spending in comparison to supply could lead to high inflation. The prices rise when more people fought about fewer goods.

Price stability ensures that excessive inflation and deflation are prevented.

Inflation represents an increase in the overall value for money and purchasing power of products and services within an economy over a prolonged period of time. Deflation is a fall over a longer period of time in the overall price cost for goods and services.

4 0

2 years ago

An investment promises to return $1,000 at the end of each of the next 5 years and then $2,000 at the end of each of the next 10

Andrew [12]

Answer:

sorry i dont know i was trying but cant figure it out

Explanation:

7 0

1 year ago

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. Current liabilities $ 180 Income before inte

Anarel [89]

Answer:

B. 75%.

Explanation:

The formula to compute the long-term debt to equity ratio is shown below:

= (Long term debt) ÷ (total shareholder equity) × 100

= ($360 ÷ $480) × 100

= 75%

All other information which is given in the question is not consider for the computation part. Hence, ignored it

We simply divide the long term debt with the total shareholder equity to find out the ratio between them

3 0

3 years ago

Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $2

laiz [17]

Answer:

$117500

Explanation:

Taxable loss = $140000 for 2018

Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017

tax rate = 30%

Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )

first calculate taxes on taxable incomes for 2016 and 2017

$35000 * 30% = $10500

$40000 * 30% = $12000

hence taxable profit = 10500 + 12000 = $22500

Net loss to be reported on 2018 income statement

= $140000 - $22500 = $117500

8 0

3 years ago

Bonita Corporation owns machinery that cost $28,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of

lana66690 [7]

Answer:

(a) Journal entries relating to depreciation for 2020 will be:

Debit Depreciation expense $3,408

Credit Accumulated depreciation $3,408

<em>(To record the depreciation expense for 2020)</em>

(b) Journal entries to record the sale transaction will be:

Debit Accumulated depreciation (machinery) $14,200

Debit Cash (proceed) $14,910

Credit Property, plant and machinery (machinery) $28,400

Credit Gain on disposal $710

<em>(To record the disposal of machinery - September 1, 2021)</em>

Explanation:

(a) Update of depreciation for 2020 by way of journals means to record the depreciation charge for that year. The yearly depreciation expense was calculated as $3,408, so simply record it with the above journals.

(b) The date of disposal is September 1, 2021. Despite the fact that depreciation had already been charged for 3.5 years at December 31, 2020, we still have to charge the depreciation for the year of disposal, i.e., 8 months as $3,408/12 x 8 months = $2,272. Accumulated depreciation for 4.3 years (July 1, 2017 - September 1, 2021) as at September 1, 2021 will be $11,928 + $2,272 = $14,200, resulting in net book value (NBV) of the machinery as $28,400 - $14,200 = $14,200 (Cost - Accumulated depreciation).

Gain or loss on disposal = Sales proceeds - NBV; positive result is a gain, while negative result is a loss.

Gain or loss on disposal = $14,910 - $14,200 = $710

4 0

3 years ago