Answer:
B) losses you avoided by not buying a stock that has since decreased in price
Explanation:
If a stock has not been bought, there has not been a transaction involving that particular stock. Even though, in theory, you may have avoided losses by not buying a stock that has decreased in price, there hasn't been any actual gain or loss on investment related to that stock since there was no investment.
Since all other alternatives present valid parameters when calculating return on investment, the answer is B).
Answer:
first I will journalize the adjustments:
a. Received a $510 utility bill for electricity usage in July to be paid in August.
Dr Utilities expense 510
Cr Accounts payable 510
b. Owed wages to 15 employees who worked two days at $55 each per day at the end of July. The company will pay employees at the end of the first week of August.
Dr Wages expense 1,650
Cr Wages payable 1,650
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $660 for one full year of interest. No interest has been recorded yet.
Dr Interest receivable 660
Cr Interest revenue 660
effects on the accounting equation:
Assets = Liabilities + Equity
a. 0 510 -510
b. 0 1,650 -1,650
<u>c. 660 0 660</u>
660 2,160 -1,500
Revenue - Expenses = Net income Cash flow
a. 0 510 -510 0 OA
b. 0 1,650 -1,650 0 OA
<u>c. 660 0 660 0 OA</u>
660 2,160 -1,500 0 NC
Answer:
The correct answer is letter "C": relatively high, while monetarists argue it is low.
Explanation:
Keynesian Economics is a school of thought in which the government plays an important role in mitigating economic recessions. It is named after British economist John Maynard Keynes (1883-1946) who argued that governments need to push against economic tides in order to loosen the impact of the boom and bust cycles that are inevitable in a free market economy.
Associated with American economist Milton Friedman (11912-2006) Monetarism states that the government must keep the money supply fairly steady, increasing it marginally each year primarily to allow the economy to grow naturally. Monetarists consider the fiscal policy as less effective than monetary policy due to the low-interest elasticity of the demand for money, opposite to the idea of Keynesians.
