Answer:
The correct answer is option D.
Explanation:
The money equation given by Irving fisher is popularly known as fisher's equation.
The equation is given as MV=PT
Here, M represents money supply, V is the velocity of money, P is the price level and T refers to the volume of transactions or output level.
The supply of money refers to the quantity of money in existence while the velocity of transactions shows the number of times, money changes hands. Together they show the volume of money in circulation.
P is the average price level and T represents the expenditures on all transactions or, in other words, output level.
Here, V and T are assumed to be constant. This means that the money supply directly affects the price level.
There is no explicit mention of the interest rate in this equation.
So, option D is the correct answer.
In general, if you have more types of deductions on your tax, the 1040 forms maybe more appropriate for you because it provide you with various options to claim deductions or credit.
The 1040Ez on the other hand only offer a simple format that only beneficial for taxpayers who made certain conditions.
Answer: The Break-Even Point will reduce from $4,285.71 to $4,125
Explanation:
To get the Break-Even Point we can divide Fixed Assets by the Contribution margin.
The Contribution Margin is the Selling Price minus the Variable Cost.
For Scenario 1 the Break-Even Point will be,
= 15,000 / ( 6 - 2.50)
= $4,285.71
For Scenario 2 the Break-Even Point is,
= 16,500 / 6.5 -2.5
= $4,125
The Break-Even Point for Scenario 2 means that even though the higher Fixed Costs could have led to a higher Break-Even Point, the higher price contributed more than the fixed costs did and led to an ultimately lower Break-Even Point than the first Scenario.
Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
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