Answer:
The answer is yes, it will function as a medium of exchange.
Explanation:
Money has three functions, store of value, unit of account and medium of exchange. Money that can be used as a medium of exchange is money that is accepted as such by both buyers and sellers, and that is comfortable, or convenient enough, to be carried and exchanged
In this example, the nation of Newbie will issue a currency that can be easily transported. While heavy stock cardboard is a little bit heavier than the paper in which most modern-day currencies are printed, the weight is still light, and does not impede easy transportation and exchange of the currency bills.
Besides, the new Newbie Nugget will be what is know was the legal tender of the nation. The legal tender is the currency that a specific country accepts to collect taxes. This gives more legitimacy to Newbie Nugget and makes it a classical example of a medium of exchange.
Answer:
real interest rate = -3.08%
Explanation:
real interest rate = nominal rate - inflation rate
- nominal interest rate = [($562/$509) - 1] x 100 = 10.41%
- inflation rate = [(143/126) - 1] x 100 = 13.49%
real interest rate = 10.41% - 13.49% = -3.08%
since the real interest rate is negative, the investor actually lost money in real dollars. This means that the amount of goods that the investor could purchase before making the investment is higher than the amount of goods he/she will be able to buy after the investment.
The postdated checks are considered to be an accounts receivable for accounting purpose.
<h3>What is a
postdated checks?</h3>
These are checks that is expected to make a payment to be processed on a specified date in the future.
However, in accounting, the postdated checks are considered to be an accounts receivable by a firm for accounting purpose.
Read more about postdated checks
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Answer:
True
Explanation:
Balance sheet is the financial report of an organization that includes investments, liabilities, assets wealth, overall debt, etc. during a given time.
The income statement is one of the company's financial statements that indicates the company's profits and expenditures for a specific period of time. This shows how the profits are converted into net revenue or net income.
Answer:
Allison should record the purchase at $5880
Explanation:
The net method for recording purchases implies that the purchases is recorded net of the envisaged cash discount on the transaction since the purchaser believes they would settle their account before the cash discount period expires.
Based on the above, the purchases would be recorded as shown below:
cost of purchase=original purchase value*(100%-discount rate)
original purchase price is $6,000
discount rate is 2%
cost of purchase=$6000*(100%-2%)
=$6000*98%
=$5880
