Answer: The correct answer is "sole proprietorship".
Explanation: The profits are donated to an orphanage. In the given scenario, Jovi's Corner is most likely an example of a <u>sole proprietorship.</u>
Clearly Jovi's Corner is an example of sole proprietorship since at the death of its owner there was no heir to manage the store or any partner or employee who had sufficient capacity and interest to continue managing the store.
Hi there
The answer is
C. an asset is debited, and a liability is credited.
Good luck
Answer:
$12,900
Explanation:
Calculation for the amount of accounts receivable written off during the year
Beginning Balance $5,600
Add Bad debt expense $12,000
(2% x $600,000)
Less End-of-year balance ($4,700)
Accounts receivable written off $12,900
($5,600+$12,000+$4,700)
Therefore the amount of accounts receivable written off during the year will be $12,900
Answer:
The answers is: 3. A new technology like the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Given there is higher demand for investment opportunities, borrowers in the economy will compete for funding while there is no change in the supply of funding, moreover, inflation rate has been constant which will finally lead to the increase in nominal interest rates.
1. Households reduce their consumption and increase their savings is not correct because higher saving will decrease interest rate as there is higher supply of funding.
2. There is a decrease in expected inflation is not correct as nominal interest rate is most likely to go down to keep real interest rate constant.
4. The economy falls into a recession is not correct as the situation will stimulate more saving and less consumption, less investment. Moreover, the Central Bank may also implement loose monetary policy which will decrease Nominal Interest rate.
5. The Federal Reserve decides to try to stimulate the economy is not correct as Federal Reserve will inject money into the economy, subsequently, nominal interest rate will go down.
Answer: Could help companies remain solvent during prolonged recession.
Explanation:
A promotion budget is a specific amount of money destined to promote the goods or services of a business.
During a recession, many businesses reduce their promotion budgets, although is the opposite of what could actually help them survive tough economical periods. It´s the businesses that improve promotion during recessions the ones that get a sales increase during and even after the recession.