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3 years ago

Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.

Business

1 answer:

Archy [21]3 years ago

4 0

Answer:

b) $10 trillion

Explanation:

Price level = NGDP / RGDP = 2

NGDP / RGDP = 2

As per the quantity theory of money,

MV = PQ

M.(2) = 20

M = 10 trillion

Therefore, The money supply is $10 trillion.

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Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

nignag [31]

Answer:

LIFO conformity rule.

Explanation:

LIFO refers to the Last in first out method. In this inventory system, the firm sells last units at first stage and then sells according to that

According to the given situation, the LIFO conformity rule requires that the taxpayer follow the same inventory cost flow as used for tax reporting purposes in the financial statement.

Therefore the correct answer is LIFO conformity rule.

7 0

3 years ago

Adam, Ben and Erica are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balance

ser-zykov [4K]

Answer:

Adam = $41,000 , Ben = $31,000 , Erica =$20,000

Profit and loss sharing Ratio respectively =1:1:2

Requirement 1

Cash available $72,000

Add: Cash received from sale of $50,000

non-cash assets

$122,000

Less: Cash paid against account $20,000

receivables

Cash to be distributed $102,000

Distribution

Adam= $102,000 * 1/4 = $25,500

Ben = $102,000 * 1/4 = $25,500

Erica = $102,000 * 2/4 = $51,000

Requirement 2

Cash available $72,000

Add: Cash received from sale of $25,000

non-cash assets

$97,000

Less: Cash paid against account $20,000

receivables

Cash to be distributed $77,000

Distribution

Adam= $77,000 * 1/4 = $19,250

Ben = $77,000 * 1/4 = $19,250

Erica = $77,000 * 2/4 = $38,500

3 0

3 years ago

The matching principle

Delicious77 [7]

Answer: The matching principle "d. states that the revenues and related expenses should be reported in the same period".

Explanation: The application of this principle is a consequence of double entry; In the specific case of the Correspondence Principle we refer to the relationship that exists between an income and expense at the time of registering a transaction. It can be summarized in the following statement:

For every income there is an expense and for every expense there is an income.

6 0

3 years ago

Optimization in Daily Life: Think about your favorite activity, hobbies or any kind of activity from your daily life. Find a pro

Serggg [28]

Answer:

I like to go to learn driving everyday. I love driving car and go to mountains. I have a dream to have my own car and then go for long drives near the sea coast.

Explanation:

1. The decision to make is to buy a car to fulfill the hobby.

2. The main objective is to enjoy the favorite activity and pleased by the beauty of mountains and sea.

3. The main constraints are financial constraint. Money is required to buy a car and then fulfill the dream.

3 0

3 years ago

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as fo

agasfer [191]

Answer:

Using LIFO:

TOTAL Sales : $19,875,500

COGS = $11,021,250

GROSS PROFIT = $8,853,750

Explanation:

KINDLY CHECK ATTACHED PICTURE

4 0

3 years ago