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lukranit [14]
3 years ago
7

Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?

Business
1 answer:
Pepsi [2]3 years ago
8 0

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

You might be interested in
Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6
worty [1.4K]

Answer:

1. Bad debt expense = $97,500

2. Accounts receivable written off = $109,500

3. Bad debt expense for 2021 = $109,500

Explanation:

Bad debts expense refers to an uncollectible accounts expense that occurs because goods or services are delivered on credit a company to a customer who did not paid the amount owed.

The questions can be answered as follows:

1. What is bad debt expense for 2021 as a percent of net credit sales?

Under this, bad debt can be calculated using the following formula:

Bad expense = Net credit sales * Estimated bad debt percentage ....... (1)

Where;

Net credit sales = $6,500,000

Estimated bad debt percentage = 1.50%

Substituting the values into equation (1), we have:

Bad debt expense = $6,500,000 * 1.50% = $97,500

2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021.

This can be calculated using the following formula:

Accounts receivable written off = Beginning uncollectible balance + Bad debt expenses - Ending uncollectible balance ............ (2)

Where;

Beginning uncollectible balance = $62,000

Bad debt expenses = $97,500

Ending uncollectible balance = $50,000

Substituting the values into equation (2), we have:

Accounts receivable written off during 2021 = $62,000 + $97,500 - $50,000 = $109,500

3. If the company uses the direct write-off method, what would bad debt expense be for 2021?

Under the direct write-off method, the exact amount of uncollectible accounts as they are specifically identified are recorded.

Based on this explanation, bad debt expense for 2021 is equal to the accounts receivable written off during 2021 calculated in part 2 above. Therefore, we have:

Bad debt expense for 2021 = $109,500

7 0
3 years ago
________ entails even closer economic integration and cooperation than a common market. Group of answer choices A customs union
Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

8 0
3 years ago
Essay of market structure
ASHA 777 [7]

Market structure serves as the way the industries in the market are been classified.

<h3>What is Market structure ?</h3>

Market structure can be regarded as a structure that is used in the classification of different industry that made up a market.

The types of market structures are:

  • perfect competition
  • oligopoly market
  • monopoly market
  • monopolistic competition.

These classification is usually done base on based on their degree and nature of competition of that industry.

Learn more about  Market structure here: brainly.com/question/3010212

#SPJ1

4 0
2 years ago
On December 31 of Swift Co.’s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of it
pishuonlain [190]

Answer:

1. $66,000

2. $66,000

Explanation:

The computations are shown below:

1. Before written off:

= Account receivable balance - uncollectible amount

= $70,000 - $4,000

= $66,000

2. After written off:

= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount

= $70,000 - $700 - $4,000 + $700

= $66,000

8 0
3 years ago
Floyd Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6
Elanso [62]

Answer:

a. 6.7%

b. 12.0%

Explanation:

a. DDM

Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.

Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate

Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%

Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06

Return on equity = 6.7%

b. SML

Security Market line method uses calculates the cost of capital using following formula

Re  =  R f  +  β   (  Rm  −  R f  )

Rf = Risk free rate

β = stock beta

Rm = Market rate

Re =Expected rate

Re = 5.9% + 1.20 ( 11% - 5.9% )

Re = 12.02%

5 0
3 years ago
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