The two answers to this question should be "What goods and services will be produced" and "who will buy the goods and services". What to produce will depend on what people need and use like grocery items for example, or clothing or housing and re the second question, it depends on the income of the consumers such as in providing affordable housing to lower income people, and also the goods and services must be things that people will buy ie things that have a useful function.
When firms maximize their profits, society's output will also be maximized is the concept of the 'invisible hand.' This was first introduced by Adam Smith in the mid 1700's.
When the price level in the United States fall relative to the price level of other countries, IMPORTS will fall, EXPORTS will rise and NET EXPORTS will rise.
When the price level of the United state is lower than that of another country, the amount of goods that will be brought from another country into US will be reduced while the amount of goods that US send to other countries will increase.
Answer:
Increase in total assets by $4,600
Explanation:
Faust sold goods that cost $6,600 for $11,200
Cost of goods sold A/c Dr. $4,600
To inventory $4,600
Account receivable A/c Dr. $11,200
To sales $11,200
(sale was made on account)
Net effect:
= $11,200 - $6,600
= $4,600
Therefore, there is an increase in total assets by $4,600.
It should be noted that some of the issues that relate to controls that could affect the audit of a small company include the separation of duties, documentation, etc.
Some of the problems that van lap be faced during the audit include the failure to exercise professional care and the deficiency in confirming account receivables.
The control objectives of a sales system include:
- Efficiently executing customers' orders.
- Raising sales invoices promptly.
- Revising sales policy.
- Implementing steps for improving productivity.
- Increasing sales profitability.
- Invoicing all goods and services.
It should be noted that the deficiencies in the system of accounting include the determination of the face value of the receivables and the length of time the receivable will be outstanding.
Lastly, to avoid the problem above, consideration should be given to the integrity of the firm, and the financial soundness of the company.
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