Answer:
undervalued assets an liabilities by 50,000
Explanation:
The financial statement for the fiscal year ended on December 31th, 2012
will have the following mistake:
Liabilities are undervalued by 50,000
Cash wll be undervalued by 50,000
As the note payable is not recorded neither the cash receipts from the loan.
Because this transaction is missing, we are not doing a correct representation of reality. This account will be undervalued.
GDP stands for gross domestic product. The GDP allows economist to measure the market value in terms of money. They are measuring the final good or service that is being offered to a customer over any given time.
Since the first bag of flour is being sold to a bakery to make bread from and sell for $4.00 the GDP of this item is $4.00 because that is the cost a customer is paying.
The second bag of flour is sold to a customer for $2.00 in a grocery store and is the final cost a they are paying.
In this scenario, the GDP for the two products being sold to a customer is $6.00.
Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.
Explanation:
When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.
This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.
It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.
Answer:
The answer is B. increase its spending.
Explanation:
Fiscal policy is a tool used by the government of every nation to control its economy. It uses its spending and revenue (tax) to control it.
When the economy is operating at an output level below potential real GDP, it means there are low activities in the economy i.e reduced households' consumption, reduced business investments and reduced government spending.
Government can stimulate the economy (which will increase real GDP) by increasing its spending in all areas.
Increasing taxes will reduce GDP because households' consumption will reduce due to lower disposable income and business investments too will reduce.
Option A and D are wrong because money supply is a monetary policy.
