ANSWER : TRUE
EXPLANATION :
GDP denotes the total (gross)value of goods & services produced by an economy, during a period of time (financial year) .
This total value of goods can be calculated by both Income & Spending approach , based on assumption that 'one person expenditure is other person income'. Because both reflect the total value of goods produced .
This is evident from two methods to calculate GDP :
1. Expenditure Method
NDP (net value) = Compensation of Employees + Opereating Surplus + Mixed Income ;
Where - 1st COE is income of labour , 2nd OS (Rent + Interest + Profit) income of other factors - land , 3rd MI income from self employed .
2. GDP = Private Final Consumption Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports ;
Where - 1st PFCE is expenditure by private households , 2nd GFCE expenditure by govt , 3rd GDCF investment expenditure by firms , 4th expenditure by Abroad .
Answer: $150
Explanation:
Breakeven point in units sold = 2,000
Variable expenses per unit = 500
Total fixed expenses = $150,000
The break even in units is calculated as:
= Fixed Cost / Contribution per Unit
Therefore,
1000 = 150000/ Contribution per unit
Contribution per Unit will now be:
= 150000 / 1000
= 150
It should be noted that after the break even point, every unit sold will lead to an increase in the contribution per unit to the net operating income. Therefore, the amount that'll be contributed to net operating income by the 2,001st unit sold is $150.
If you have a large amount of money to save at one time, a
savings bond would be the best investment to earn interest. If you do not need the money right away, a
savings bond will allow you to earn interest at a faster rate. Since savings
bonds are longer-term investments, the other options would not fit the purpose
as much due to needing the funds at a quicker rate. If you were to put the
money directly into a savings account over a bond, you have easier access to
the funds; however, the interest is very small in comparison.
Answer:
Depreciation each year is $5,805.56 and Schedule for the depreciation attached with this answer please find it.
Explanation:
Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.
Total Cost = Truck Purchase price and Additions = $35,000 + $26,000 = $61,000
Salvage value = $8,750
Useful life = 9 years
Depreciation = ($61,000 - $8,750) / 9 = $5805.56
We will use the straight line depreciation method.
Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.
Answer:
c.45%
Explanation:
The Formula for return on sales=Operating profit/Net Sales
Sales=$2,000
Less:
Cost of Goods Sold $ (1,100)
Operating profit $900
Return on sales=$900/$2,000=45%
It should be noted that in many cases to reach out on operating profit, the operating expense are also deducted from operating profit for the sake of this formula. In that scenario the correct answer would have been 10% return on sales i.e $900-$700=$200/$2,000=10%
As the 10% option is missing in MCQ, therefore 45% is selected
