All categories

3 years ago

Which of the following is included in the consumption component of U.S. GDP? Question 12 options:

Business

1 answer:

frosja888 [35]3 years ago

8 0

Answer:

Answer is option b, i.e. purchase of natural gas by U.S. households.

Explanation:

Consumption component of U.S. GDP includes purchase of various durable goods, non-durable goods, and also various intangible services. But anything that is purchased as a means of investment rather than for personal consumption is not regarded as consumption component in GDP. Here, purchase of newly constructed houses is an asset and thus, is not included in these components. Similarly, purchase made for business purposes is also excluded from the list of consumption components.

You might be interested in

Using the income statement method for accounting for uncollectible accounts, a company estimates that 2.5% of credit sales will

Digiron [165]

Answer:

the adjustment for estimated uncollectible accounts will require

b. Debit to Bad Debt Expense for $10,000.

Explanation:

There are two primary methods for estimating bad-debt expense. The first is an income-statement approach that measures bad debt as a percentage of sales.

Accout receivable at the end_ 80000

Credit sales_______________400000

Estimate________________ 2,50%

Debit bas debt expense______10000

7 0

3 years ago

On December 31, 2019, the unadjusted credit balance of the Allowance for Overvaluation of Inventories: Hope Branch ledger accoun

Zigmanuir [339]

Answer:

Journal entries

Date Particulars Debit Credit

31, Dec 19 Investment in Branch Office $132,000

To Inventories $110,000

To Allowance for Overvaluation of $20,000

Inventories

31, Dec 19 Profit and loss $18,400

To Investment in Branch Office $18,400

31, Dec 19 Allowance for Overvaluation $10,000

of Inventories

To Realized Gross Profit: Branch Sales $10,000

Workings

1. Unrealized Inter-company Inventory Profit = (132,000/120) * 20 = $22,000

Shipment to Branch = 132,000 - 22,000 = $110,000

2. Unrealized Inter-company Inventory Profit = (60,000/120) * 2 = $10,000

5 0

3 years ago

Why are junk bonds more popular during a bear market?

Dominik [7]

Many times junk bonds are a high risk bond, but are also a high return. They are more popular during a bear market for this reason only. Sine they have a high return it compensates for the high risk. The junk bonds can also help a persons personal portfolio. Junk bonds also issues with a 10 year term or less. A bear market is when there is a steady drop or stagnation in the market over a period of time.

6 0

3 years ago

Read 2 more answers

A firm estimates its average total cost at 90 units of output to be $15. If the firm can sell all of its output at a market pric

SSSSS [86.1K]

Answer:

435

Explanation:

5(90)=450-15=435

8 0

2 years ago

Presented below is information available for Crane Company.

JulsSmile [24]

Answer:

the acid-test ratio is 1.5 times

Explanation:

The computation of the acid-test ratio is as follows:

Acid test Ratio = Quick assets ÷ current liabilities

where,

Quick Assets is

= Cash + short tern investments + Account receivable

= $3,500 + $50,000 + $56,000

= $109,500

And, the current liabilities is $73,000

So, the acid-test ratio is

= $109,500 ÷ $73,000

= 1.5 times

Hence, the acid-test ratio is 1.5 times

3 0

3 years ago