Answer: With the left shift in Aggregate demand resulting from the tax increase causes the price level to slide back to <u>equilibrium</u> level.
<u>Explanation:</u>
When there is an increase in the level of the taxes by the government, the price of the particular good increases because of the taxes. This leads to the fall in the level of the aggregate demand of that good and there is a left shift in the aggregate demand curve.
But this will lead to the falling back of the price level to the equilibrium level because even though the demand falls but the supply level does not change. So there is an excess of supply level in the economy. This leads to the fall in the level of the price back to the equilibrium level and leaving the economy back to the normal situation.
Answer:
$47.58
Explanation:
The computation of the stock price is shown below:
Provided that
Next year dividend = $2.95
Growth rate = 4.4%
Required rate of return is 10.6%
So, the stock price is
= Next year dividend ÷ (Required rate of return - growth rate)
= $2.95 ÷ (10.60% - 4.4%)
= $2.95 ÷ 6.2%
= $47.58
This is the answer but the same is not mentioned in the given options
Answer:
Temporary – revenues, expenses, dividends (or withdrawals) account. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period.
Explanation:
1. Decrease in inventory, increase in cash
2. Increase in machinery (motor lorry) , decrease in cash
3. Decrease motor lorry, increase cash
4. Increase machinery and equipment, increase in accounts payable
5. Increase in office furniture , increase in accounts payable
Answer:
some obligations payable at some date beyond the operating cycle.
Explanation:
Liabilities refer to money that a business owes to other entities. They are debts a firm acquires in its normal business operations. Liabilities are categorized as either long-term or short-term.
Long term liabilities are obligations that are not due for repayment in the current financial year. They are debts that the company is expected to pay in future financial periods. Long-term liabilities due dates are after one year and beyond. Short-term liabilities contrast long-term liabilities because the due date for the former is in the current financial year.
