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3 years ago

If you use a credit card what are you creating

Business

1 answer:

serious [3.7K]3 years ago

8 0

The answer would be debt, if it was a debit card it would be a completely different answer

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Household behavior with respect to changes in income can be described by the marginal propensity to consume (MPC) and the margin

Citrus2011 [14]

Answer: Greater the MPC

Explanation:

The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.

The formula for MPC is;

= Change in Consumption/Change in Income.

Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.

As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.

If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.

5 0

3 years ago

Alexis Company was started in Year 1. At the end of Year 1 the Company had the following accounting equation.Assets = Liabilitie

swat32

Answer:

Company's assets at the end of Year 2 were provided by creditors = 20%

Explanation:

Calculation of Cash at the end of Year 2

Cash balance at the end of Year 1 $600

Less: Paid off to notes payable ($500)

Add: Earned cash revenue $700

Less: Paid cash expenses ($400)

Less: Paid cash dividend ($100)

Cash balance at the end of Year 2 $300

Notes payable at the end of Year 2 = Beginning balance - Paid off

= $1,000 - $500

= $500

Calculation of Notes Payable at the end of Year 2

Notes Payable at the end of Year 1 $1000

Less: Paid off to notes payable ($500)

Notes Payable at the end of Year 2 $500

Total assets at the end of Year 2 = Cash + Land

= $300+2200

= $2500

Creditors at the end of the Year 2 (Notes payable) = $500

Company's assets at the end of Year 2 were provided by creditors = Creditors * 100 / Total assets

= $500 * 100 / $2500

= 20%

5 0

3 years ago

The preparation of a bank reconciliation is an important cash control procedure. If a company deposits cash receipts daily and m

castortr0y [4]

Answer & Explanation :

Bank Reconciliation Statement is prepared to reconcile (match) the differences between bank balance as per cash book & bank balance as per pass book, at end of an accounting period.

The differences may arise because of following reasons :

Errors committed by firm or bank
Cheques paid but not collected, upto the last date (added in cash book, but not in bank balance)
Cheques issued but not yet presented for payment, upto last date (subtracted in cash book, but not in bank balance)
Direct expenses & direct incomes settled by bank (done in bank balance, but not in cash book)

BRS involves starting with balance as per any book - cash book or passbook. Then, the adjustments for mismatch are done, to arrive at correct balance as per the other book.

8 0

3 years ago

The lower the concentration ratio the

Papessa [141]

More competitive the industry.

7 0

3 years ago

How many types of money are included in the M2 category? A.two B.three C.four D.five

RSB [31]

There are four types of money included in the M2.

3 0

4 years ago

Read 2 more answers