Answer: True
Explanation:
Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.
It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.
Benefits of small amounts of inflation include more expansionary monetary policy, the placebo effect, and the facilitation of relative price changes.
<h3>What is meant by inflation?</h3>
Inflation is the term used to describe the rate of price rise for goods and services.
It is sometimes used to categorize inflation according to cost-push, demand-pull, and built-in factors.
The two most popular inflation measures are the Consumer Price Index and the Wholesale Price Index.
Inflation can be viewed favorably or badly depending on the perspective and rate of change.
Inflation may be advantageous for those who own tangible assets since it will raise the value of their holdings, such as real estate or goods that are kept in storage.
Inflation's primary causes include:
- Consumer-driven inflation
- Price-driven inflation
- more money available
- Devaluation
- increasing pay
- Regulations and policies
Benefits of Inflation: In order to meet increasing demand, production must increase. Additionally, debtors benefit from inflation because they can return their loans with funds that are less valuable than the funds they borrowed. This promotes borrowing and lending, which boosts expenditure on all levels once more.
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Answer and Explanation:
The matching of the accounting term with the definition is shown below:
1. Debit - it comes in the left side i.e. (i)
2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)
3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)
4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)
5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)
6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)
7. Payable: It is a liability and it always a credit balance and shown in the balance sheet i.e (h)
8. Journal: In this the transactions are recorded i.e. (c)
9. Receivable: This is an asset and it has always a debit balance i.e. (a)
10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)
Answer:
The correct answer is option (D) Profits earned in the domestic economy are counted as part of GDP under the resource cost-income approach.
Explanation:
Solution
Gross domestic product (GDP) refers to sum of all value of goods and services manufactured within the geographical border of the country.
Now the investment for plant in carried within the geographical borders of The United States so it will include in GDP as gross domestic capital formation.
Thus the construction of the plant will cause a rise in U.S GDP.
Now this plant produce profit of $250000. profit produced within the economy so it will include in GDP.
These profit will increase US GDP since profits gained in the domestic economy are counted as a part of GDP under the resource cost or operating in income approach.
Answer: Offer incentives to Customers to reduce Collection time.
Explanation:
Hanson’s Furniture Store should work to reduce the amount of time it takes to collect payments from customers. It takes them over 2 months to collect payments on average and compared to a payables payment in 30 days that's quite troublesome.
They should therefore work to reduce their Receivables Collection time.
One way they can do that is to offer incentives such as trade discounts. A popular one would be the 2/10, net 30 rule. This means that the customer would get a 2% discount if they pay in 10 days or else they will pay the full amount in 30 days. This incentive can go a long way in reducing Payables collection periods.
