Answer: After closing the balance in the retained earnings account will be $20,000.
We arrive at Retained earnings for a given year as follows:
We then find the closing balance in the Retained Earnings account as follows:
Answer:
David is trying to gain the advantages of financial management and campaign strength.
Explanation:
Advertisement evaluation and effectiveness is a systematic approach in which the advertisement is measured against set financial and technical goals to determine if the advertisement was effective.
Advertisement can evaluation can be broadly classified into;
1. The reach of the advertisement which will measure how big of the target audience the advertisement influenced.
2. The results of the advertisement which will deal with the impact that the advertisement had on it's target audience. It deals with the feedback from the target audience.
Advertisement is usually a costly activity depending on the type of advertising one wants to pursue. This brings a need of knowing precisely how effective the advertisement is for purposes of careful planning to minimize resource wastage.
In this way, David is trying to gain the advantages of better financial management to know if the advertising is wasteful and by how much. David is also trying to gain the advantages of campaign strength by comparing the actual results of the campaign to the expected results. If the actual results is a reflection of the expected results then the advertising strategy is strong.
Answer: b. each category of the current account balance involves a corresponding flow of payments in the same direction
Explanation:
For every purchase made or sales that sold, a corresponding payment needs to be made or received.
The balance of payment therefore allows for us to be able to figure out the amount that was traded because it would be the payment received less receives.
