Answer:
a, c , d
investment
decreasing
no effect
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Externalities
Investment spending by businesses includes purchases made by businesses. So, investment spending increases. Net export decreases because import is a negative function of GDP. The increase and decrease cancel each other out and there would be no change in GDP
Answer:
D. Recognised $13.5 million gross profit on the project in 2021.
Explanation:
Firstly, we will begin by getting how much of the project has been completed
$35 million of the cost has been incurred and a further $83 million left
This means that the total cost would be;
= $35 + $83
= $118
If $35 million of the cost has been incurred, we can find out how far the project is using its proportionality .
= 35/118
= 0.297
= 29.7% of the project has been completed.
The above implies that we can apportion 29.7% of the contract price to 2021.
= 29.7% × $163 million
= $48.411 can be recognised as revenue
The cost till date is $35 and there were no costs in the previous year as this is the first year of the project.
Hence, the gross profit would be;
= $48.411 million - $35 million
= $13.5 million
Answer:
Common Stock 100,000
Retained Earnings 425,000
Total 525,000
Explanation:
Paradise Travel Service Statement of Net Income
Fees Earned : 900,000
Less Office Expense : (300,000)
Less Miscelleaneous Expenses :( 15,000)
Less Wages expense (450,000)
Net Earnings 135,000
Paradise Travel Service statement of stockholders’ equity for the year ended May 31, 20Y6
Common stock Retained Earning Total
Balance Jan 1 60,000 300,000 360,000
Additional Invested capital
40,000 - 40,000
Net Income :
- $135,000 $135,000
Less Dividends paid
- ($10,000) ($10,000)
Balance, May 31 20y6
100000 425000 525000
Common Stock 100,000
Retained Earnings 425,000
Total 525,000