Answer and Explanation:
Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts a raise in productive capacity of an economy. An outward shift implies that an economy has capacity to increase its production outputs. This can be as a result of the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.
Effects of saving and investment upon national GDP
level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able to lend more to firms to support their investments.
low savings and investment implies a PPF inward shift. low savings in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.
spending on consumer goods vs capital goods effect on the economy
In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.
Answer:
It is true
Explanation:
Chartered Accountants most especially external auditors are trained to provide assurance services that will give credit and reliability to the financial information being presented to the users by the directors.
Their services include statutory audit and other related assurance services.
The report produced by a Chartered Accountant (e.g External Auditor) gives reasonable assurance to the shareholders of the company or any other external users.
<span>This will lead to a flattening of the overall organization. This will allow the management to be closer to the end consumer, giving a better overall customer service reputation as well as a cost savings in not having to have as many levels of bureaucracy to go through on the part of the consumer.</span>
Answer:
<u>Generally accepted accounting principles</u>
Explanation:
Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.
GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.
Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.
Answer:
It will be willing to pay up to $297,853.46
Explanation:
First, we calculate present value of the cash saving
C 45000
time 8
rate 0.05
PV $290,844.57
Then, the present Value of the salvage value
Maturity 7.50 %
time 8.00
rate 0.05
PV 5.08 %
This is calculate as a percent, because we are not given with a cash value.
Last, the 12,000 major overhaul
Maturity -12,000.00
time 8.00
rate 0.05
PV -8,122.07
This PV is negative as it is a cash out-flow
Lastly, we add them all:
290,844.57 + 0.0508PV - 8,122.07 = PV
<u>And solve for PV</u>
290,844.57 - 8,122.07 = PV - 0.0508PV
282,722.5 = 0.9492PV
282,722.5/0.9492 = PV
PV = 297,853.455541 = 297,853.46
