Answer:
Accounting profit = $45,000
Economic profit = $5,000
Explanation:
The computation of accounting profit and economic profit is shown below:-
Accounting profit = Sales - External expenses
= $75,000 - $30,000
= $45,000
Economic profit = Accounting profit - Implicit cost
= $45,000 - $40,000
= $5,000
Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive
Keeping the boat you are riding clean is the most fundamental responsibility to do in order to maintain the structure and efficiency of the watercraft. In addition, its hull is at most important to be cleaned using detergents. Among this type of detergent that is commonly used in cleaning would be a non-phosphate detergent.
Answer:
1. Dr Cash $8,290
Cr Common stock $8,290
2. Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
3. No Entry $0
No Entry $0
Explanation:
Preparation of the entries to record the transactions
1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:
Dr Cash $8,290
Cr Common stock $8,290
(Being To record the investment)
2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:
Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
($980-$390)
(Being To record the purchase of supplies)
3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.
No Entry $0
No Entry $0
The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.
The initial deposit might have a higher purchasing power because of inflation.
When money is deposited in a savings account, the amount of money earns interest.
The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)
Interest earned = $$5,306.04 - $5,000 = $306.04
Interest rate = $306.04 / (3 x $5000) = 2.04%
Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.
To learn more about inflation, please check: brainly.com/question/18072639
Answer:
Output and employment will increase exerting modest upward pressure on the price level.
Explanation
In simple words, the increased demands for the good would work as an incentive for the producer to produce more and they can also lower their cost of production by producing in mass which will further lead to economies of scale.
More production means more requirement of workers which will eventually lead to more employment opportunities in the country. However, this increase would lead to modest increase in prices due to more purchaser power in the country.
