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3 years ago

According to the consumption function,

Business

1 answer:

anygoal [31]3 years ago

5 0

Answer:

The correct answer is option A.

Explanation:

Consumer spending refers to the expenditure of households on consumer goods and services. The aggregate consumer spending depends upon the disposable income of the consumer, the real interest rate, consumer optimism and wealth.

Consumer spending is positively related to disposable income, consumer optimism and wealth. The real interest rate is inversely related to consumer spending.

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3 years ago

Disposal of Fixed Asset

andreev551 [17]

Answer:

$328000

Explanation:

Given: Cost of machine= $880000

Residual value= 60000

Estimated life= 10 years

Company use straight line depreciation method.

∴ Depreciation = $\frac{\textrm{cost of machine- residual value}}{estimated\ useful\ life}$

⇒ Depreciation= $\frac{880000 - 60000}{10} = \frac{820000}{10}$

∴ Depreciation= $\$ 82000$ per year.

Now, lets find the value of depreciation.

∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.

∴ Depreciation value after 6 years= $\textrm{Depreciation value every year \times number of years used}$

Depreciation value after 6 years= $82000\times 6 = \$ 492000$

Next, finding the value of machine after 6 years of depreciation.

Value of machine after 6 years= $820000 - 492000= \$ 328000$

∴ Disposal value of machine after 6 years of usage is $\$ 328000$ , however, machine was sold at $225000.

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3 years ago

What is the most important reason for doing vehicle inspection

AURORKA [14]

So you know if the vehicle is drivable or not and also so you know what you are getting into when you inspect the car or truck

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4 years ago

What is a question that should be asked about accounts receivable when forecasting?A. What is the lead time needed to replenish

diamong [38]

Answer:

C. What percentage of sales will likely be made on credit?

Explanation:

Accounts receivable are defined as the claims of payment that can be legally enforceable which is held by any business for the supply of goods or the services that are rendered that the customers have utilized or ordered but not paid for it. It is the balance of the money which is due to the organization for the goods or the services taken.

So when forecasting about the accounts receivable, one question we need to ask is -- "What percentage of sales will likely be made on credit?"

When the cash is received by the debtor, and the transaction is recorded, the accounts receivable are credited and the cash is debited.

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3 years ago

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3 years ago

According to the consumption​ function,

According to the consumption function,