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Dimas [21]
3 years ago
5

All other things unchanged, a general decrease in the amount of government borrowing will typically: a increase interest rates.

b reduce the supply of loanable funds. c raise the level of demand for loanable funds. d have no effect on the demand for loanable funds. e shift the loanable funds demand curve to the left.
Business
1 answer:
omeli [17]3 years ago
4 0

Answer:

The answer is option B) a general decrease in the amount of government borrowing will typically reduce the supply of loanable funds.

Explanation:

When government decides to borrow, one of the ways they achieve this is by  issuing debt in the form of bonds to raise money. They offer attractive interest rates to the public to increase participation and the monies paid in as investment will constitute loanable funds.

However, if there is a general decrease in the amount of government borrowing, there might reduce the incentives and when this happens, people are less enthusiastic about buying bonds.

This scenario will reduce the supply of loanable funds that would have been collated from the citizens investment.

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Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franc
IrinaK [193]

Answer:

a.       I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.

b.      I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).

c.       I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.

6 0
3 years ago
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4 0
3 years ago
On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial stat
Amiraneli [1.4K]

Answer:

1.Dr Income Tax Expense 22

Cr Income Tax Payable 16

Cr Deferred Tax Liability 6

2.Net Income of Ameen in 2016 = $23

Explanation

1.Preparation of the appropriate journal entry to record Ameena 2016 income taxes

Calculation for Pretax accounting income

Pretax accounting income = $45

Less:Excess Depreciation as per tax = ($5)

($20-$13)-($30-$28)

$7-$5

=$5

Taxable Income = $40

Income tax for the year = 40 × 40%

Income tax for the year= $16

Calculation for Deferred Tax Expense for the year 2016

Deferred Tax Expense for the year 2016 = ($28 - $13) ×40%

Deferred Tax Liability= $15 ×40%

Deferred Tax Liability= $6

Calculation for Income Tax Expense

Income Tax Expense = $16 + $6

Income Tax Expense= $22

Therefore the appropriate journal entry to record Ameena 2016 income taxes will be:

Dr Income Tax Expense $22

Cr Income Tax Payable $16

Cr Deferred Tax Liability $6

2. Calculation for Ameen 2016 net income

Net Income

Accounting Income of Ameen = $45

Less: Total Tax Expense = ($22)

Net Income of Ameen in 2016 = $23

Therefore the Net Income of Ameen in 2016 will be $23

3 0
3 years ago
A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.2. What do in
gladu [14]

Answer:

$53

Explanation:

The computation of the stock sale at the end of the year is computed after calculating the required rate of return and the growth rate

The required rate of return by applying the Capital Asset Pricing model formula is

= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 6% + 1.2 × (16% - 6%)

= 6% + 12%

= 18%

Now the growth rate is

Stock price = Dividend per share÷ (Required rate of return - growth rate)

$50 = $6 ÷ (18% - growth rate)

So, the growth rate is 6%

Now the ending stock price is

Next year dividend ÷ (Required rate of return - growth rate)

where,  

Next year dividend is  

= $6 + $6 × 6%

= $6 + 0.36

= $6.36

So,

= ($6.36) ÷ (18% - 6%)

= $53

5 0
3 years ago
A job cost sheet of Fugate Company is given below.
Vera_Pavlovna [14]

Answer:

A.Direct material 5,320

Direct labour 1,700

Manufacturing overhead 2,550

B. Total cost 9,570

Unit cost 6.38

C. Dr Finished goods inventory account 9,570

Cr Work in Process inventory account 9,570

Explanation:

A. Calculation for the predetemined manufacturing overhead rate

Date Direct material Direct Labour Manufacturing Overhead

5/10 1,330

12 1,120

15 550 825 825

22 480 720 720

24 1,000

27 1,870

31 670 1,005

Total 5,320 1,700 2,550

B. Calculation for the total cost and the unit cost of the completed job

Cost of Completed job :

Direct material 5,320

Direct Labour 1,700

Manufacturing Overhead 2,550

Total Cost 9,570

Unit Cost = Total Cost / Number of units

Unit cost = 9,570/1,500

Unit cost = 6.38

C.Therefore when a job is fully completed, thebFinished goods inventory account will be

debited with the correspondent credit of Work in progress account.

Journal entry

May.31

Dr Finished goods inventory account 9,570

Cr Work in Process inventory account 9,570

4 0
3 years ago
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