Answer:
The correct answer is:
Debit: Account receivable $5,800
Credit: Sales revenue $5,800
Debit: Cost of goods sold $4,000
Credit: Merchandise inventory $4,000
Explanation:
On 1st May
Upon sale of inventory on credit
Debit: Account receivable $5,800
Credit: Sales revenue $5,800
On 1st May
To record cost of goods sold of merchandise inventory:
Debit: Cost of goods sold $4,000
Credit: Merchandise inventory $4,000
Answer:
A. The demand of wheat and corn is basically inelastic and so increases in output drastically reduce price and income to the farmers.
Explanation:
Inelastic demand means the change in price does not affect the purchasers' buying power. The difference in price has relatively little effect on the quantity demanded. Since the demand for wheat is inelastic, price and income will reduce irrespective of increasing production. Therefore, harvesting massive production (wheat or corn) does not bring a high income.
Answer:
Increasing progressive taxes in order to redistribute income may be seen as a fair and noble thing, but such measure may have several unintended consequences.
Explanation:
One consequence is that if taxes are raised too high on the highest earners, these people may simply leave the country for another one where taxes are lower. Wealthy people have the means to do so in the modern economy.
Another consequence would occurr if the taxes are raised too high on corporations. Corporations may either leave the country as well, or pass through the higher costs to the consumers.
All in all, progressive taxation is seen as a fair system by many economists, but it should be implemented with care, and by making cost/benefit analysis first.
Generally accepted accounting principles are the standards and rules that accountants follow while recording and reporting financial activities.
<h3>
What is Generally accepted accounting principles?</h3>
A unified collection of accounting regulations, guidelines, and practices published by the Financial Accounting Standards Board is known as generally accepted accounting principles (GAAP) (FASB). When assembling their financial accounts, American public firms' accountants are required to adhere to GAAP.
Ten basic principles serve as the framework for GAAP, which is a set of regulations. The International Financial Reporting Standards (IFRS), which are seen as more of a principles-based norm, are frequently used as a comparison. There have recently been initiatives to move GAAP reporting to IFRS because it is a more global standard.
To learn more about Generally accepted accounting principles, visit:
brainly.com/question/14665057
#SPJ4
