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Stels [109]
2 years ago
7

The roles of money Sam just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down pay

ment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story.
Business
1 answer:
Mashutka [201]2 years ago
4 0

Answer:

Explanation: Money is a medium of exchange for goods and services. Money plays a large role in the economy and in the life of an individual.

The role of money include:

1. Medium of Exchange: Money is used to facilitate the sale, purchase, or trade of goods between parties. It is used as a medium of exchange for goods and services that is why Sam had to save some money so that he will have access to the car he wants.

2. Unit of Account: The value of something is measured in a specific currency. From the question, the value of each car was stated using a value of money. This will enable the buyer or seller known the value if what is to be bought or sold.

3. Store of Value: A store of value is something that people use to transfer purchasing power from the present to the future. Here, Same had saved some money which did not change in value as at when he wanted to buy the car and he also had to obtain a loan that would be paid off on a later date.

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Which of the following is NOT an example of fixed expenses?
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Answer:

A.

Health insurance premium

Explanation:

helping

3 0
2 years ago
when the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as wha
Lera25 [3.4K]

Answer:

A budget deficit

Explanation:

A budget deficit arises when the governments spend more than it has collected.  The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.

A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets.  A balanced budget is when the collected revenues match the planned expenditures.

8 0
3 years ago
Ballooshu, a large dairy cooperative, organizes its labor force into different divisions for the manufacture of butter, cheese,
diamong [38]

Answer:

B) Product departmentalization

Explanation:

Ballooshu is using product departmentalization because it is dividing the company according to product lines.

As a diarly cooperative, management probably believes that the most efficient form of organization is according to the products that it makes.

The cheese department will focus on producing cheese, the ice cream department will focus on making ice cream, the milk department will focus on the production of milk, and so on.

3 0
3 years ago
Northeast Auto​ Parts, a​family-owned auto parts​ store, began January with $10,600 cash. Management forecasts that collections
coldgirl [10]

Answer:

Part 1. $500 required

Part 2. $1,500 required

Explanation:

<u>Part 1.</u>

                                     <u>Northern Auto Parts</u>

                                           <u>Cash Budget</u>

<u>Cash Receipts:</u>

                                                         January       February

Beginning cash balance                     10600         10500

Cash receipts from customers            11300          14700  

Cash receipt on note receivable       <u>  6500              0     </u>

Cash available                                     28400        25200

<u></u>

<u>Cash payments:</u>    

Purchases of inventory                         14400           12200

Selling and administrative expenses  <u>  3500            3500  </u>

Total cash payments                          17900           15700

Now

                                                                              $                  $

<u>Cash Receipts:</u>                                                  28400        25200

<u>Cash payments:</u>                                             <u> </u><u>17900         15700 </u>

Ending cash balance before financing          10500           9500  

<u>Less</u>: Ending cash balance Required             <u> 10000          10000 </u>

Projected cash excess                                       500             -500  

Total effects of financing                                 <u>     0                 500  </u>

Ending cash balance                                         10500          10,000

<u></u>

<u></u>

<u>Part 2.</u>

<u>Cash Receipts:</u>

                                                         January       February

Beginning cash balance                     10600         10500

Cash receipts from customers            11300          13700  

Cash receipt on note receivable       <u>  6500              0     </u>

Cash available                                     28400        24200

<u></u>

<u>Cash payments:</u>    

Purchases of inventory                         14400           12200

Selling and administrative expenses  <u>  3500            3500  </u>

Total cash payments                          17900           15700

Now

                                                                              $                  $

<u>Cash Receipts:</u>                                                  28400        24200

<u>Cash payments:</u>                                             <u> </u><u>17900         15700 </u>

Ending cash balance before financing          10500           8500  

<u>Less</u>: Ending cash balance Required             <u> 10000          10000 </u>

Projected cash excess                                       500             -1500  

Total effects of financing                                 <u>     0                1500  </u>

Ending cash balance                                         10500          10,000  

The company will have to borrow $1,500 in the month February.

6 0
2 years ago
The primary responsibility for fair and accurate financial reporting rests with the:
Nikitich [7]

Answer:

The correct answer is (D)

Explanation:

Financial reporting is a complex task which requires an expert to handle them accurately. Companies make many changes in the real data to slip from government taxes and they usually report losses. Auditors are the one responsible to find discrepancies in the financial reporting. So, the primary responsibility rests with the auditors for accurate financial reporting.

5 0
3 years ago
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