Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.
Land improvements are capitalized separately from Land because land improvements have only a limited useful life.
Land is a special fixed asset which means that:
- It is purchased for long term use
- It is not depreciated because it lasts forever
Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.
In conclusion, land improvements are capitalized separately from land because they have a limited useful life.
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What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?
a. $30,000
b. $ 3,000
c. $ 3,000,000
d. $300,010
Inventory is a collection of finished goods or items for manufacture held by a company for business purposes. The company could sell the inventory for profit. That means the products are finished and ready for selling as they are. Alternatively, the company could supply the goods to partner companies for further manufacturing. The products are then transformed or combined to become a different product. It depends on where the company is in the supply chain. Inventory is classed as a company asset. You note it as such on your balance sheet. The costs associated with buying, storing and selling inventory are tax-deductible expenses. The gross profit from the sale of inventory must be declared on your tax return as income. Making note of the expenses you incur from the inventory can lower your income tax amount.
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Answer:
a. Total liabilities = $280,000
b. Total liabilities = $250,000
Total equity -= $250,000
Explanation:
As we know that
Total assets = Total liabilities + shareholder equity
So in the first case
The amount of the liabilities is
Total liabilities = Total assets - Total equity
= $700,000 - $420,000
= $280,000
And, in the second case, the total assets is $500,000
And, the liabilities and equity amounts are equal to each other
So in this case, the liabilities is $250,000 and the equity is $250,000
Answer: Decrease
Explanation:
According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.
That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.
We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream
Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.
