Answer:
The correct answer is option b.
Explanation:
Inflation can be defined as a sustained increase in the general price level. Inflation causes the purchasing power of money to erode. The value of cash balances gets reduced.
This causes the real income of workers to get reduced as well. However, a worker will not be harmed by inflation if his/her employment contract includes a cost of living adjustment clause.
This clause will cause the payments made to the workers to increase if there is an increase in the cost of living index.
Answer:
Correct option is D
Explanation:
Provided Information,
There is a permanent fund with historical cost of $300,000.
Since the nature of fund is permanent and not a current fund which needs to be shown at current fair market value.
In case of long term assets and funds they are shown at historical cost, as there change in price is not reflected in balance sheet.
As the change might happen with increase or decrease, until the change is permanent the fund is shown at historical cost.
Therefore in the given case the increase in fair value from $300,000 to $360,000, will not be reflected in balance sheet.
Correct option is d)
No entry will be done to recognize any increase or decrease in fair value of such funds.
A credit card issuer is an unsecured creditor that makes money by charging and collecting fees for transactions made with a credit card.
<h3>How does a credit card issuer earn money?</h3>
The credit card issuer is the one who grants credit to the consumer based on the holder's market credibility. He is an unsecured creditor because no collateral can be recovered if the cardholder defaults.
The following are some of the ways that card issuers make money from their cards:
- Interest is charged when a credit amount is not paid on time.
- Charging merchants a fee for accepting credit card payments
- Fees charged by payment gateways
- Charges for cash withdrawals
As a result, the methods through which a credit card issuer or company earns money is in the ways as aforementioned above.
Learn more about credit card issuer here:
brainly.com/question/1160037
The journal entry is as follows:
On December 31
Interest Receivable ($12,000 × 4% × 2 years) $960
To Interest Revenue ($12,000 × 4% × 1 year) $480
To Retained Earnings ($12,000 × 4% × 1 years $480
(Being the correct journal entry is recorded)
Here the interest receivable should be debited as it increased the assets and credited the interest revenue & the retained earnings as it increased the revenue and the stockholder equity
Therefore we can conclude that the above journal entry should be recorded.
Learn more about the journal entry here: brainly.com/question/17439126