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3 years ago

Which of the following are included in M2?

Business

1 answer:

alexira [117]3 years ago

5 0

Answer:

c. I , III, and IV

Explanation:

M1 and M2 are amongst the ways of measuring money supply of an economy.

M1 basically includes physical currency and coins, demand deposits, traveler's checks, and other checkable deposits.

M2 is regarded as a broader classification than M1 since it includes assets that are highly liquid but are not cash.

M2 includes M1 plus savings deposits, money market deposits, certificate of deposits less than $100,000 and money market mutual fund balances which can be readily redeemed.

Unlike the types of financial assets defined as money that are included in money supply, credit card transactions create loans that the borrower must pay later and hence are excluded from M2.

Hence M2 will include $5,000 certificate of deposits, $ 1000 in traveler's checks and $ 500 in piggy bank i.e option (c)

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The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,00

Genrish500 [490]

Answer:

$363,500

Explanation:

Gross profit = Revenue - Cost of Goods Sold.

In the case

Revenue = $578,000.

The Cost of Goods Sold: COGS

Inventory turn over = COGS/ Average turnover

Average turnover = Opening stock + closing stock/2

In this case Opening stock + Closing stock = $110,000

Average turnover = $110,000 /2 =$55,000

Therefore:

3.9 = COGS/$55,000

COGS = $55,000 x 3.9

COGS =$214,500

Gross profit = $578,000 - $214,500

Gross profit = $363,500

3 0

2 years ago

A company had the following purchases during the current year: January: 19 units at $129 February: 29 units at $139 May: 24 unit

ycow [4]

Answer: A - $8,046

Explanation: Inventory valuation using the specific identification method is a method used in getting the actual stock cost at their specific purchase price at a specified time during the year.

Jan - 11 units @129 =1,419

Feb - 13 units @139 = 1,807

May - 6 units @149 = 894

Sept - 13 units @159= 2,067

Nov - 11 units @ 169= 1,859

Total = $8,046

4 0

3 years ago

You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i

fredd [130]

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : $\frac{2,200,000}{25.36}=$86,750.7886$

Purchase Cost = b3,200,000

(To get USD amount : $\frac{3,200,000}{41.06}=$77,934.7297$

Step 2:

Profit = Sales Revenue - Purchase cost

= $86,750.7886 - $77,934.7297

= $8,816.0589

The value of this exchange is $8,816.05.

4 0

3 years ago

Purchased raw materials of $17,700 on account. (b) Incurred factory labor of $39,200. Of that amount, $29,400 relates to wages p

alekssr [168]

Answer:

Journal Entries:

a) Debit Raw materials inventory $17,700

Credit Accounts payable $17,700

To record the purchase of raw materials on account.

b) Debit Payroll expense $39,200

Credit Wages payable $29,400

Credit Payroll taxes payable $9,800

To record payroll expense.

c) Debit Factory utilities expenses $3,600

Credit Utilities payable $3,600

To accrue factory utilities expenses.

Debit Factory property taxes of $2,510

Credit Cash $2,510

To record payment of property taxes.

Debit Depreciation Expense, Factory building $9,600

Credit Accumulated Depreciation, Factory building $9,600

To record depreciation expense.

Explanation:

1) Data and Analysis:

a) Raw materials inventory $17,700 Accounts payable $17,700

b) Payroll expense $39,200 Wages payable $29,400 Payroll taxes payable $9,800

c) Factory utilities $3,600 Utilities payable $3,600

Factory property taxes of $2,510 Cash $2,510

Depreciation Expense, Factory building $9,600 Accumulated Depreciation, Factory building $9,600

3 0

2 years ago

Stephen is a professor at a university. He tells his students that rich countries continue to stay rich because they control the

devlian [24]

Answer: World-system theory

Explanation:

World-system theory are various approach to how past events in the world played out alongside social changes and it's impact on the people.

They are many claims the rich make their wealth off the poor, many of those claims could be true, as we are surrounded with a few rich and many struggling person's in the society. These theories and many more which tell how past events play out is known to be World-system theory.

3 0

3 years ago