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2 years ago

Producers believe the economy is headed for a recession, so they reduce their purchases of machinery and equipment.

Business

1 answer:

Firlakuza [10]2 years ago

7 0

Answer:

A - The Short Run Aggregate Supply curve shifts to the right.

Explanation:

The Short Run Aggregate Supply curve plots aggreagrate price against aggreagrate quantity.

If producers believe a recession is imminent and they reduce the amount of machinery purchased, the quantity supplied would reduce shifting the Short Run Aggregate Supply curve to the left.

I hope I was able to help you.

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What is one way in which bonds do not generate income for investors?

Aleksandr-060686 [28]

Answer:

D. Bonds pay dividends

Explanation:

Just finished the test :)

4 0

2 years ago

Read 2 more answers

Find the present value of the following stream of cash flows assuming that the firms opportuiny costs is 9 percent. 1-5 years 10

Yanka [14]

Answer:

∑( Cash flow × PVF) = 79,347

Explanation:

Given:

Opportunity cost = 9%

Cash flow for 1-5 years = 10,000

Cash flow for 6-10 years = 16,000

Now,

Present value factor (PVF) = $\frac{\textup{1}}{\textup{(1 + 0.09)^n}}$

here, n is the year

For year 1 to 5

Year Cash flow PVF Cash flow × PVF

1 10000 0.9174 9174

2 10000 0.8417 8417

3 10000 0.7722 7722

4 10000 0.7084 7084

5 10000 0.6499 6499

for years 6 to 10

Year Cash flow PVF Cash flow × PVF

6 16000 0.5963 9540.8

7 16000 0.547 8752

8 16000 0.5019 8030.4

9 16000 0.4604 7366.4

10 16000 0.4224 6758.4

========================================================

∑( Cash flow × PVF) = 79,347

========================================================

taking the PVF to 5 decimal places will make 79,347 ≈ 79,348

8 0

3 years ago

The following inventory was available for sale during the year for Dolphin Tools: Beginning inventory 10 units at $120 First pur

vaieri [72.5K]

Answer: $4,950

Explanation:

If the company is using the First In First Out method for Inventory valuation then the earlier inventory is sold off first which would mean that the inventory at year end will be the more recent inventory.

The 25 units at the end of the year will be the most recent units purchased and so will be;

20 units from the third purchase

5 units from the 2nd purchase

Inventory value = (20 * 195) + ( 5 * 210)

= $4,950

The options are not for this question.

8 0

3 years ago

On her way to office, Mandy bought a cup of cappuccino from a newly opened café. She loved the drink, and recommended the café t

Serhud [2]

Answer:

On her way to office, Mandy bought a cup of cappuccino from a newly opened café. She loved the drink, and recommended the café to her colleague. In the given scenario, Mandy's recommendation is an example of Word-of-Mouth advertising which is an unpaid form of promotion in which, satisfied customers tell other people how much they like a business, product or service. Word-of-mouth advertising is important for every business, as each happy customer can steer dozens of new ones your way.

Explanation:

Word-of-mouth marketing (WOM) is an age old marketing technique that has stood the test of time to remain the most effective form of marketing. It is a powerful asset in our line of work which retains its influential power on the purchase behaviour of customers because it is based on trust, piques people's interestand and gets people talking.

It is also called word of mouth advertising which is incorrect because, by definition, advertising is a paid and non-personal communication.

There are different word of mouth marketing techniques that may used when something is done or created unique are:

- Set up word of mouth triggers.

- Use visual triggers as emotional provocation.

- Encourage user generated content.

- Positive WOM is to provide information for consumers which highlights the strengths of a product or service and encourages consumers to adopt a product or service.

- Push ratings and reviews hard: about 62% of consumers search online for reviews and information before purchasing a product and a whopping; 90% believe brand recommendations from friends; 28% of consumers say word of mouth is the most important factor in strengthening or eroding brand affinity.

Marketing executives considered mouth to mouth to be the most effective form of promotion and indicated that they believe word of mouth is the most effective form of marketing.

7 0

3 years ago

The direct write-off method of accounting for bad debts uses an allowance account. uses a contra asset account. is the preferred

jeyben [28]

Answer:

The correct answer is letter "D": does not require estimates of bad debt losses.

Explanation:

There are mainly two approaches while recognizing bad debts (unpaid debts): the allowance method and the direct write-off method. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.

The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.

8 0

2 years ago