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kogti [31]
3 years ago
13

Which of the following is a valid criticism of the use of money as a store of value in modern economies?a. annual inflationary l

oss of buying power b. money supply is too narrowly defined c. storing money is wasteful d. imperfect as a unit of account
Business
1 answer:
Serga [27]3 years ago
8 0

Annual inflationary loss of buying power is a valid criticism of the use of money as a store of value in modern economies.

Explanation:

As a result of a highly inflationary reduction in the buying ability of an economy, significant negative economic impacts emerge, particularly rising costs of consumer goods and services, with high-interest rates impacting global markets and lower ratings.

The buying power is the buyer's dollar value of credit to purchase additional stocks and bonds on the retirement account against the already marginal securities. Capacity can also be recognised as the purchasing power of the dollar.

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Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued intere
maksim [4K]

Answer:

A. The amount of interest expense to record for 2018 is $320, calculated as follows: $12,000 x 8% x 4/12 = $320.

B. No amount of cash was paid for interest in 2018; i.e. = $0.00

C. Effect of each transaction on balance sheet, income statement, and statement of cash flows:

1. Cash Revenue of $16,200

Balance Sheet - Cash and Retained Earnings are increased by $16,200.

Income Statement - Revenue is increased by $16,200.

Statement of Cash Flows: Cash inflows are increased by $16,200.  It is an operating activity (OA)

2. Bank Note Payable of $12,000 with accrued interest of $320 for 2018:

Balance Sheet - Cash and Notes Payable are increased with $12,000; Interest on Notes Payable is increased by $320 and Retained Earnings decreased by $320.

Income Statement: Net Income is decreased by $320.

Statement of Cash Flows: Cash inflows are increased by $12,000.  It is a financing activity (FA).

Explanation:

1. Cash revenue increases net income and Cash Account balance, and reflects positively on the cash flows for operating activities.

2. Notes Payable increases Cash Account balance (an asset) and Notes Payable (a liability).  It also increases the cash inflow for financing activities.

3. Accrued Interest on Notes Payable increases liability and decreases the net income, which reflects negatively on the Retained Earnings (Equity).  It does not affect the statement of cash flows as no disposal had been made yet.

4 0
3 years ago
company manufactures pillows. the operating budget was based on production of ​pillows, with ​machine-hours allowed per pillow.
MatroZZZ [7]

a. The budgeted variable overhead is $468,750.

b. The variable overhead spending variance is $38,100 Favorable

c. The variable overhead efficiency variance is $30,000 Favorable

<h3>What is variable overhead?</h3>

Variable overhead is a cost of running a business that varies with operational activity. Variable overheads rise and fall in lockstep with production output. Overheads, such as administrative overhead, are often a set cost.

The variable manufacturing overhead controllable variance reflects how effectively the company stuck to its budget. The difference between the planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced is the fixed factory overhead volume variance.

a. The budgeted variable overhead for 2017 = Budgeted hours * Variable overhead rate per hour

= (25000*0.75)*$25 = $468,750

b. Variable overhead spending variance = (SR - AR) * AH = ($25 - $23) * 19050 = $38,100 Favorable

c. Variable overhead efficiency variance = (SH - AH) * SR = (27000*0.75 - 19050) * $25 = $30,000 Favorable

Learn more about budget on:

brainly.com/question/8647699

#SPJ1

4 0
1 year ago
Which of the following is NOT a necessary condition for oligopoly? differentiated products barriers to entry strategic dependenc
stepladder [879]

Answer:

differentiated products.

Explanation:

An oligopoly occurs when a few large firms dominate a market and they aim to maximise profit. The action of one firm has significant effect on the market, so the firm's are interdependent.

There are high barriers to entry including use of government liscences, patents, economies of scale, and actions taken by firms to discourage entry into the market.

However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.

8 0
3 years ago
An absolute definition of poverty is:________a) a relatively fixed level of income above which a person cannot function in a pro
mafiozo [28]

Answer:

d) Neither A nor B

Explanation:

Poverty refers to a financial state wherein an individual is unable to meet the most basic needs for survival such as food clothing and shelter.

Absolute poverty refers to a state wherein the income of a household is below a certain threshold level which makes it hard to meet the basic necessities of life such as food, shelter, water and sanitation.

The concept of relative poverty makes a comparison i.e relatively to others. When one is relatively poorer than others. The person in such a scenario may be able to meet his ends but relative to other households income, shall be termed as poor.

8 0
3 years ago
The required reserve ratio is 0.05. If the Federal Reserve buys​ $1,000,000 worth of bonds from a bond dealer who has her accoun
Radda [10]

Missing information:

total deposits in bank XYZ = $4,000,000

total reserves = $3,800,000

Answer:

the required reserve = $250,000

excess reserves = $4,550,000

Explanation:

required reserve ratio = 5%

the Fed buys $1,000,000 worth of bonds

the $1,000,000 are deposited entirely in bank XYZ

total checkable deposits will increase to $5,000,000

the required reserve = $5,000,000 x 5% = $250,000

excess reserves = total checkable deposits - total loans - required reserves = $5,000,000 - $200,000 - $250,000 = $4,550,000

5 0
3 years ago
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