Simply said, demand is the amount of a good or service that consumers are willing and able to purchase at a specific price within a specific time frame. In an economy, people purchase commodities and services to fulfil their needs for things like food, medical care, clothing, entertainment, shelter, etc.
One of the fundamental concepts in microeconomics is the notion of demand. It seeks to address fundamental issues such as how desperately people desire goods and how pleasure and income levels affect demand (utility). Companies change the supply they offer and the pricing they charge based on how useful consumers view the commodities and services to be.
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A. guaranty arrangement
The third party is providing a guarantee that the lender will recover the debt regardless of the borrower's reputation to pay.
Answer:
a. Fair Value Adjustment 28,000 Unrealized Holding Gain or Loss-Income 28,000
Explanation:
The journal entry is as follows
On December 31, 2018
Fair Value Adjustment A/c Dr
To Unrealized Holding Gain or Loss-Income A/c
(Being the unrealized holding gain or loss is recorded)
The computation is shown below:
= Valued of an equity portfolio - cost - debit balance of securities fair value
= $160,000 - $132,000 - $8,000
= $20,000
Financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services.
The needs of borrowers and lenders are met by the combination of well-established financial markets and institutions as well as a wide range of financial products and instruments, which benefits the economy as a whole.
Investors can specialize in specific industries or services, diversify their risks, or do both thanks to financial markets (like those that trade stocks or bonds), instruments (including bank CDs, futures, and derivatives), and institutions (like banks, insurance companies, mutual funds, and pension funds). Financial markets and financial institutions, collectively contribute to economic growth; nevertheless, the relative proportion of the two does not seem to be a significant determinant in growth.
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Answer:
The desired ending inventory for the second quarter is 25,000 bottles.
Explanation:
Since the management feels that an ending inventory of 10% of the subsequent quarter's sales is appropriate, the desired ending inventory for the second quarter can be calculated using the following formula:
Desired ending inventory for the second quarter = Third quarter’s estimated budgeted sales * 10% ............... (1)
Where:
Third quarter’s estimated budgeted sales = 250,000 bottles
Substituting the value into equation (1), we have:
Desired ending inventory for the second quarter = 250,000 * 10% = 25,000 bottles
Therefore, the desired ending inventory for the second quarter is 25,000 bottles.
