Answer:
1. Increase in real income percentage = 1.5%
2. Rate of inflation = 1.7%
Explanation:
For computing the percentage of how much real income would increase, we have to apply the formulas which are shown below:
The increase in real income percentage would be equal to
= increase in nominal income percentage - increase in price level percentage
= 5.3% - 3.8%
= 1.5%
And, the rate of inflation equals to
Nominal income - the rate of inflation = Real income
2.8% - rate of inflation = 1.1%
So, the rate of inflation = 1.7%
Answer:
By processing QI further, there would a net disadvantage of $9000
Explanation:
In order to determine the financial advantage of processing further product QI, a net incremental benefit approach could be used, which means that we compare the additional revenue from further processing versus the additional cost of further processing to ascertain whether further processing of QI after split-off point is desirable
Additional revenue =($18-$13)*9000
=$45000
Further processing cost =$54,000
Net increment benefit=$45000-$54,000
=-$9,000
Receipt and payment accounts show only cash and bank transactions in that accounting period whereas the income and expenditure account are on accrual basis.
The receipt and payment account must start with a cash opening balance brought forward from previous period while the income and expenditure account does not start with any balance.
Capital and revenue receipts and payments are included in the receipt and payment account while only the income and expenditures of revenue are included in the income and expenditure account.
The receipt and payment account includes receipts and payments relating to the period immediately before or after whereas the income and expenditure account must include only income and expense items belonging to the period under review.
Receipts are shown on the debit side and payments on the credit side in the receipt and payment account while as in the income and expenditure account, all revenue appears on the credit side and expenditures on the debit side if it is prepared in accounts form.
For more details about the receipt and payment account and income and expenditure account refer here;
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Answer:
communist
Explanation:
Under the communist system of the market, the factors of production are owned solely by a group. Group usually is the representation of the form of the government. The means of production which are the labor, capital, natural resources, and the entrepreneurship are all controlled and owned by the government. The government has total control over the market.
Answer:
$9.40
Explanation:
First we have to calculate the future value of the stock when it starts to pay the $1.40 using the perpetuity formula:
stock price in 7 years = $1.40 / 10.7% = $13.08
Now we have to find the present value of both next year's dividend and the perpetuity:
stock price = ($3.30 / 1.107) + ($13.08 / 1.107⁷) = $2.98 + $6.42 = $9.40