Cash 60000
Office Equipment 25000
To Common Stock 85000
(Being Cash and equipment introduced in business)
Land $40000
Building $160000
To Cash $30000
To Long Term Note Payable $170000
(Being Land and Building purchased partly by cash and long term note payable)
Office Supplies 2000
To Accounts Payable 2000
(Being Office Supplies Purchased on credit)
Automobile 16500
To Common Shares 16500
(Being Automobile introduced in lieu of share)
Office Equipment $5600
To Accounts Payable $5600
(Being Office Equipment Purchased on credit)
Salary $1800
To Cash $1800
(Being Salary Paid in cash)
Cash 8000
To Sales 8000
(Being Sales made in cash)
The average compound return earned per year over a multi-year period is known as the geometric average return.
<h3>What is an Average Return?</h3>
An average return is a mathematical average value of a number of returns generated over a specific period of time. An average return helps in measuring the past performance or portfolio of an individual or government.
When an average compound return is earned per year over a multi-year period, then it is known as the geometric return of that individual or government.
Learn more about an Average Return here:
brainly.com/question/16857172
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Answers:
Correct answer:
1. Investment
2. Trade-off of present for future benefit
Incorrect answers:
1. The only possible decision
2. The consumption of consumer goods.
Solution :
It is given that :
Amount of investment or the principle amount , P = $ 100
Time of investment , t = 6 years
Rate of interest compounded annually r = 6 %
Therefore the future amount of this investment in a 6 year time is given by,
Therefore, after 6 years the investment of $ 100 will give an amount of $ 141.
Answer: The invisible hand
Explanation: Invisible hand can be defined as those unobservable market forces which helps the forces of demand and supply to reach to an equilibrium level.
In the given case, Daniel is giving work to local suppliers and jobs to residents as well as producing demand in the market by its products, thus, we can conclude that the given case is an example of invisible hand.
