Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".
Answer: Option (B) is correct
<u>Explanation:</u>
Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.
Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.
The aspect of the SMART goal that is missing is that of TARGET DATE.
SMART goals refers to goals that are Specific, Measurable, Attainable, Result oriented and Time bound. The aspect of the time bound was not included in the scenario given in the question.
Answer: A greater than $1 billion increase
Explanation: According to the Keynesian Model which says that government should increase demand to boost growth.
Keynesian believes that Government spending on infrastructure, unemployment benefits, and education will increase consumer demand. They also believe that consumer demand is the primary driving force in an economy.
If the debtor continues not to pay the underlying debt, the creditor can foreclose on the debtor's real property to collect the amount due.