The annual percentage of profit on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of a particular sum of money over time.
The investor can calculate how much of a nominal return is real return by adjusting the nominal return to account for inflation.
Real rate of return is one plus nominal rate of return.
(1 plus the inflation rate) (1 plus 0.45 = (1 plus 0.30)
(1 + rate of inflation)
The inflation rate is equal to [(1 + 0.45 / (1 + 0.30)]. 1 Inflation rate equals 0.1154 percent, or 11.54%
Real rate of return has the drawback that its value is unknown until after the event has taken place. That is to say, inflation is a trailing indicator for any particular period, meaning it can only be measured after the relevant period has ended.
To know more about inflation, click here:-
brainly.com/question/28190771
#SPJ4
Answer:
A real account is a publicly generalized account that does not close at the end of the considered year. Apparently, the balances in real accounts are carried over to become the start of balances of the next period. Real accounts are also permanent accounts.
Answer:
b. $21,000
Explanation:
The accounting treatment for uncollectable accounts under allowance method is: Bad debts expense Debit and Allowance for doubtful accounts credit.
In the Question carried forward balance of Allowance for Doubtful accounts is $7,000 and the current year's allowance for doubtful accounts in total is $28,000.
So the amount for of bad debts expense for the period would be:
<h3>$28,000 - $7,000 = $21,000</h3>
Answer:
Gross requirement for A = 10 units
Inventory on hand for a is 2 units
Net requirement is 10 -2 = 8 units
Therefore Gross requirement of D = 8 * 3 = 24 units (for each A, 3 units of D is required)
and Gross requirement of F = 8 * 2 = 16 units (for each A, 2 units of F is required)
