The Correct Response is Option B.
Inflation: can obscure relative price changes.
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency may purchase fewer products and services as the overall price level rises, hence inflation is associated with a decline in the buying power of money.
<h3><u>What occurs when inflation occurs?</u></h3>
- The main cost of inflation is the loss of real income, which occurs when prices rise unevenly and causes some customers' buying power to decline. For both those who receive and pay fixed interest rates, inflation might over time affect their ability to make purchases.
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Answer:
A. Patent = 28000 / 7 years = 4000
B. Goodwill = Indefinite life, so amortization is zero
C. Leasehold improvements = Construction is done on 31 December hence no depreciation for the current year
D. Ordinary repairs and maintenance = Revenue expenditure, so no depreciation
E. Machine A = Already recorded depreciation So no additional depredation as it is sold
F. Machine B (31000 - 7000) / 15 year = 1600
Fiona signed an agreement to either buy or not buy nick’s vacant lot for $310,000 by a specific date. This agreement is called a bilateral contract.
<h3>What is bilateral contact?</h3>
A bilateral contract is a contract which is made between two parties. Under this contract, both parties make promises to each other on the terms and conditions. In this contract, the promise of one party turns into a consideration of the other party. It is the most common kind of contract which is binding in nature.
Fiona signed a contract promising to either purchase Nick's vacant lot for $310,000 by a certain date or not. It's referred to as a bilateral contract.
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Answer:
Interest Payable - 2021 = $6653.33 rounded off to 6653
Explanation:
The accrual principle in accounting requires the revenue and expenses for a period to be matched and recorded in their corresponding or respective periods. Thus, even though the interest on note will be paid at maturity in 2022, the interest expense related to the month of November 2021 and December 2021 will be recorded in the current year at 31 December as interest payable.
Interest Payable - 2021 = 499000 * 8% * 2/12
Interest Payable - 2021 = $6653.33 rounded off to 6653
