Answer:
The correct answer is: fell making the interest rate fall.
Explanation:
The preference for liquidity is a recurring expression in the study of economics, especially important in Keynesian theory and that assumes that people consider it better to have their savings in liquid form, that is, as money.
This concept, which is very recurrent in macroeconomics, assumes the existence of an outstanding trend in human and rational behavior through which individuals prefer to have their assets accessible and liquid compared to other possibilities. Originally, the definition of liquidity preference was coined by Keynes when explaining the concept of monetary demand and its mode of action.
This theory suggests that there is a direct relationship between interest rates or rates and people's preferences in terms of liquidity, because both maintaining money effectively and not doing so entail certain costs for these. In other words, saving money can translate into financial gains.
Answer:
Explanation:
The adjusting entries are shown below:
A. Interest expense A/c Dr $370
To Interest Payable $370
(Being accrued interest adjusted)
B. Accounts receivable A/c Dr $1,830
To Service revenue A/c $1,830
(Being unbilled amount recorded)
C. Salary expense A/c Dr $900
To Salary Payable $900
(Being earned salaries are recorded)
Answer:
b. 51,429 units
Explanation:
If x = Number of units
Net Income = Sales Revenue - Variable Cost - Fixed Cost
or
Net Income = Contribution Margin - Fixed Cost
where,
Net Income = $80,000
Contribution Margin per unit = $3.50
Fixed Cost = $100,000
Contribution Margin = Net Income + Fixed Cost
$3.50x = $80,000 + $100,000
$3.50x = $180,000
Dividing the above equation by $3.50 we get
x = $180,000 / $3.50
x = 51,429 units
Hence 51,429 number of units must be sold to generate the net income of $80,000.
Answer:
The cost of goods sold for next month is expected to be $202,500
Explanation:
Given that,
Sales budget = $450,000
Cost of Good sold = 45% of sales
Opening inventory = $20,000
Ending inventory = $24,000
Beginning accounts payable = $206,500
Since, in the given question, it is mentioned that the cost of good sold is 45% of sales.
So,
Cost of Goods Sold (COGS) = 0.45 × $450,000
= $202,500
Hence, the cost of goods sold for next month is expected to be $202,500
Note: we don't considered other things which is mentioned in the question.
