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Masja [62]
3 years ago
14

Automatic stabilizers refer to:

Business
1 answer:
Aliun [14]3 years ago
4 0

Answer:

B) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

The two most common automatic stabilizers are: income taxes and unemployment benefits.

When the economy is strong, people make more money, and income tax revenue automatically increases.

On the contrary, when the economy is weak, or in recession, people earn less, and more of them are unemployed. Unemployment benefits therefore increase accordingly.

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The financial ratio that shows the relationship between the price of a company's stock and the company's net worth (stockholders
Paha777 [63]

Answer:

A

Explanation:

5 0
1 year ago
For the current year ($ in millions), Central Park Corp. had $80 in pretax accounting income. This included bad debt expense of
KatRina [158]

Answer:

$69

Explanation:

Calculation for Central Park's taxable income

Pretax accounting income $80

Less Temporary differenceDepreciation (15)

($35 – $20)

Bad debt expense $4

($6 – $2)

Taxable income$69

($80-$15+$4)

Therefore Central Park's taxable income will be $69

8 0
3 years ago
Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou
katovenus [111]

Answer:

$75,000

Explanation:

Calculation for the annual dividend on the preferred stock

Using this formula

Annual Dividend= Number of shares × Par value × Dividend %

Let plug in the formula

Annual Dividend= 10,000 shares × $125 × 6%

Annual Dividend= $75,000

Therefore the annual dividend on the preferred stock will be $75,000

5 0
3 years ago
What’s the answer????
ICE Princess25 [194]

Opportunity cost is the value of your second choice, or whatever you give up to get something

Taylor gives up either the video games or the funny videos. So you can choose either one

7 0
3 years ago
Use the following information to compute NET INCOME.
maks197457 [2]

Answer:

c. $1,890

Explanation:

As for the provided information, we have

Net income is the income after allowing expenses of every nature, and after taxes, but does not include the dividend as is not an expense but allocation or distribution of profits.

Thus net income shall be as follows:

Sales - Expenses

Sales = $10,000

Expenses = $4,000 + $1,100 + $1,750 = $6,850

Profit before taxes = $3,150

Less: Taxes @ 40% = $1,260

Net Income = $1,890

Correct option is

c. $1,890

5 0
3 years ago
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