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2 years ago

The monetary base is equal to

Business

1 answer:

ss7ja [257]2 years ago

6 0

Answer:

The correct answer is option A.

Explanation:

The monetary base can be defined as the amount of money that is in circulation in the hands of the public or held as reserves by banks.

The monetary base in an economy is equal to all currency in circulation plus reserves held by banks.

In other words, it includes highly liquid funds such as coins, notes, and bank deposits.

The money supply is a broader concept than the monetary base and includes the monetary base and other assets as well.

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Payments from customers received before performing services for the customers are recorded as

Pachacha [2.7K]

Answer:

B) liabilities.

Explanation:

When the payment is received from the customer before performing the services is known as unearned service revenue

The journal entry is

Cash A/c Dr XXXXX

To Unearned Service revenue A/c XXXXX

(Being advance payment is received)

We simply debited the cash account as cash is received and credited the respective account i.e unearned service revenue

7 0

3 years ago

Firm A and Firm B have the same total assets, ROA and profit margin. However, Frim B has a higher debt ratio and interest expens

SashulF [63]

Answer:

A.) Firm B must have a higher ROE than first A.

Explanation:

Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.

Interest expense is the amount that is paid to service a loan.

This implies that company B has higher loan portfolio than Company A.

Considering the accounting formula

Equity= Asset- Debt

So an increase in debt will result in a decrease in equity.

Return on equity= Net income/Equity

It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.

6 0

2 years ago

What is the meaning of <br>Accountant

melisa1 [442]

Answer:

An accountant is someone who keeps or examines the records of money received, paid, and owed by a company or person.

Explanation:

To be a good accountant you need to earn the Right Degree. Although not required, most accountants attend college and earn a bachelor's degree.

You also have to pick a Specialty. Virtually all accountants and CPAs specialize in one or more areas of practice.

Eventually you will have to decide between being an accountant or CPA. .

If you want to be a CPA you will need to pass CPA Exam.

5 0

3 years ago

The following accounts appear in an adjusted trial balance of Bridgewater Consulting. Indicate whether each account would be rep

igomit [66]

Answer:

Explanation:

1. Accounts Payable - Current liabilities in liabilities side

2. Accounts Receivable - Current asset in assets side

3. Accumulated Depreciation—Building - Property, plant, and equipment in assets side

4. Cash - Current asset in assets side

5. Common Stock - stockholders' equity

6. Note Payable (due in ten years) - Long-term liability in liabilities side

7. Supplies - Current asset in asset side

8. Wages Payable - Current liabilities in liabilities side

5 0

3 years ago

Read 2 more answers

The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipm

Andrei [34K]

Answer:

The correct answer is 24,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the period cost by using following formula:

Period cost = Sales Salary expenses + Office salary expenses

Where, Sales salary expenses = 15,600

Office salaries expenses = 8,900

By putting value in formula we get,

Period cost = 15,600 + 8,900

= 24,500

Hence, period cost are 24,500.

7 0

3 years ago