Having money with which to buy goods and services is called purchasing power
Answer:
b. $588
Explanation:
Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:
Debit Receivable Account $1,000
Credit Revenue $1,000
On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:
Debit Revenue $400
Credit Receivable Account $400
The balance Receivable Account of Stuart Co. = $1000-$400 = $600
On July 24, Stuart Co. makes the payment, the sales discount was:
$600 x 2% = $12
The amount of cash received = $600-$12=$588
The following entry is made:
Debit Cash: $588
Debit Sales discount: $12
Credit Receivable Account $600
The interest rate that should be used when evaluating a capital investment project is sometimes called the appropriate discount rate and cost of capital.
The cost of capital refers to the minimum rate of return needed from an investment to make it worthwhile, whereas the discount rate is the rate used to discount the future cash flows from an investment to the present value to determine if an investment will be profitable. Appropriate Discount Rate means, at any time, the real (i.e., not inflation adjusted) weighted average cost of capital (after taxes payable by the concession business).
Cost of Capital = (Risk-Free Rate of Return + Credit Spread) × (1 – Tax Rate)
To know more about cost of capital here
brainly.com/question/16031467
#SPJ4
Answer:
<h2>
<em><u>$</u></em><em><u>250</u></em><em><u>0</u></em></h2>
Explanation:
<h3>
<em><u>Given</u></em><em><u>,</u></em></h3>
No. of peoples living in a country = <em>20,000</em>
GDP of the country is = 50 million dollars or<em> $50,000,000</em>
<h3>
<em><u>As</u></em><em><u> </u></em><em><u>we</u></em><em><u> </u></em><em><u>know</u></em><em><u>,</u></em></h3>
<h3>
<em><u>Therefore</u></em><em><u>,</u></em><em><u> </u></em></h3>
The per capita GDP of the given country will be
= $2500
<h3>
<em><u>Henceforth</u></em><em><u>,</u></em><em><u> </u></em></h3>
<em><u>The</u></em><em><u> </u></em><em><u>per</u></em><em><u> </u></em><em><u>capita</u></em><em><u> </u></em><em><u>GDP</u></em><em><u> </u></em><em><u>of</u></em><em><u> </u></em><em><u>the</u></em><em><u> </u></em><em><u>given</u></em><em><u> </u></em><em><u>country</u></em><em><u> </u></em><em><u>is</u></em><em><u> </u></em><em><u>$</u></em><em><u>250</u></em><em><u>0</u></em><em><u> </u></em><em><u>(</u></em><em><u>Ans</u></em><em><u>)</u></em>
