Which of the following should be included in any journal entry

__________ is a market failure that the government might seek to change through intervention

hammer [34]

Answer: A positive externality, negative externality and asymmetric information

Explanation:

A market failure is one of the type of economical situation in which the the various types of products and the services are distributions in an inefficient manner.

A positive externality, negative externality and an asymmetric information are the market failure that the government wants to change by the process of intervention

Externality is one of the type of advantage or cost that basically affect the third party in the economics so the free market under consuming the various types of products. Therefore, the given answer is correct.

5 0

3 years ago

Tara Company owns 30% of Hawkins, Inc. and applies the equity method. During the current year, Hawkins buys inventory costing $4

Step2247 [10]

Answer:

The correct option is d. $7,500

Explanation:

For computing the unrealized gain, first we have to compute the gross profit ratio which is shown below:

Since gross profit is not given in the question, so, first we have to find it.

The gross profit formula is shown below:

= Sales revenue - cost of goods sold

= $500,000 - $400,000

= $100,000

Now, gross profit ratio equals to

= (Gross profit ÷ sales revenue) × 100

= ($100,000 ÷ $500,000) × 100

= 20%

In the question, the 25% of merchandise is still held by Tara.

Since merchandise inventory is not given

So, we multiply the gross profit by 25% and 30%

In mathematically,

= Gross profit × 25% × 30%

= $100,000 × 25% × 30%

= $7,500

Hence, the $7,500 amount of unrealized gain must be deferred by Hawkins in reporting on the equity method

Therefore, the correct option is d. $7,500

3 0

4 years ago

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. What is the real deficit or surplus

algol13

Answer:

Real deficit is -$100 billion.

Explanation:

Since we have a nominal deficit in the question, what we are to calculate is the real deficit.

The real deficit can be described as the actual or nominal deficit that has been adjusted for the effect of inflation on the debt. Therefore, the real deficit can be calculated using the following formula:

Real deficit = Nominal deficit - (Debt * Inflation rate) ................. (1)

From the question, we have:

Inflation rate = 20%

Debt = $2 trillion = $2,000,000,000,000

Nominal deficit = $300 billion = $300,000,000,000

Substituting the values into equation (1), we have:

Real deficit = $300,000,000,000 - ($2,000,000,000,000 * 20%)

Real deficit = $300,000,000,000 - $400,000,000,000 = -$100,000,000,000 = -$100 billion

Therefore, real deficit is -$100 billion.

4 0

3 years ago

33. This question refers to the videos we watched about the “Crisis of Credit.” 1. Before 2008, why did investment bankers think

Zigmanuir [339]

Before 2008, the investment bankers thought that buying home mortgages was a good and safe investment because it was a stable investment, which is less impacted by inflation.

The “subprime” mortgages were more riskier than “prime” mortgages because the lender were more likely to default the mortgage.

<h3>What was the event "Crisis of Credit" about?</h3>

The Crisis of Credit, also known as the financial crisis of 2008 or Global Financial Crisis referred to a severe worldwide economic crisis that occurred in the early 21st century. It was considered the most serious financial crisis since the Great Depression (1929).

In 2008, the financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When bubble burst, all banks were left holding trillions of dollars as worthless investments in subprime mortgages and the Great Recession that followed cost many their jobs, their savings and their homes.