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2 years ago

Why is representative money more useful than commodity money?

Business

2 answers:

love history [14]2 years ago

8 0

<span>Representative money is portable, durable, divisible, and acceptable.</span>

tatuchka [14]2 years ago

8 0

Before the invention of money, people exchanged the goods produced. For example, a corn producer traded with a sugar beet producer. This means that each commodity has an intrinsic value. The problem is that this value is difficult to predict. Representative money has emerged as a way of facilitating trade. Money has peculiar characteristics that differ from commodities. Money is easily carried, highly divisible and accepted by everyone. Since the creation of money, it has become easier to market goods and services.

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During December, Rainey Equipment made a $658,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.

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Answer:

Debit: Accounts Receivable 707,350

Credit: Sales Revenue 658,000

Credit: Sales taxes payable ([6% + 1.5%] × $658,000) = $49,350

Explanation:

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3 years ago

At the beginning of 2009, Little Company bought a bond with a $18 million face value and an annual coupon rate of 7.4%. It has a

aliya0001 [1]

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3 years ago

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of

SVEN [57.7K]

Answer:

$5.4 and $5.4

Explanation:

The formula and the computation is shown below:

= Total setup cost ÷ total direct labor hours

= $91,800 ÷ 102,000 hours

= $0.9

For plus:

Setup cost is

= $0.9 × 6

= $5.4

And,

For Max:

= $0.9 × 6

= $5.4

We simply multiplied the per unit with the direct labor per unit so that the allocation to each unit could come

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3 years ago

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $79,000 to an employee of the company and r

OLEGan [10]

Answer:

1 July 2017 Notes receivable $79000 Dr

Cash $79000 Cr

31 Dec 2017 Interest receivable $3950 Dr

Interest revenue $3950 Cr

30 June 2018 Interest receivable $3950 Dr

Interest Revenue $3950 Cr

1 July 2018 Cash $7900 Dr

Interest receivable $7900 Cr

1 July 2018 Cash $79000 Dr

Notes receivable $79000 Cr

Explanation:

The receipt of note against issuing loan will cause a credit to cash against notes receivable.

The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.

The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950

First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950

Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.

The cash will be debited and notes receivable account will be closed by crediting it.

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2 years ago

Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year.

WARRIOR [948]

Answer:

The amount of manufacturing overhead that would have been applied to all jobs during the period is $1,289,340.00

Explanation:

For computing the manufacturing overhead, first, we have to compute the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $684,000 ÷ 20,000 hours

= $34.20

Now the applied overhead would be equal to

= Actual direct labor-hours × predetermined overhead rate

= 37,700 hours × $34.20

= $1,289,340.00

4 0

3 years ago