Answer:
d. government revenues equal government expenditures.
Explanation:
A balanced budget refers to a situation in which earnings are equal or greater than the expenses. Usually this term is used when talking about government budget and this is a budget that has no deficit and that it is possible than can have a surplus which helps to avoid leaving big debt for the future that can posses problems. According to this, a balanced budget is present when government revenues equal government expenditures.
Answer: $19000
Explanation:
From the question, we are informed that Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019 and that for the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement.
The amount that Vaughn debited to the appropriate account in 2020 to write off actual bad debts will be:
= $31000 - ($190000 - $178000)
= $31000 - $12000
= $19000
Answer:
B. at the intersection of supply and demand
Explanation:
Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.
In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.
Answer:
The correct answer is the letter b. Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.
Explanation:
Efficiency is about maximizing production while minimizing costs, ie producing as much as possible with available resources. Equality refers to the distribution of production, that is, the division into economically considered fair parts of what was produced among the agents of society. In the example, efficiency would be to produce the largest pie possible given the existing resources. Equality would be the distribution of the pie considered socially fair.
Answer:
Explanation:
Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2
