Answer:
The correct answer is both the compensation for inflation as well as the real rate of interest.
Explanation:
Nominal rate of interest is the one which is described as the rate of interest before taking or considering the inflation into the account. The nominal could also defined as to advertised or state the rate of interest on the loan, without considering the account of any fees or any interest which is compounding.
So, the nominal rate of interest is the one which involve or comprise of the compensation for inflation and the real interest rate of the interest.
Answer:
It would take the form of a tax on houses in a small neighborhood, to pay for the new street lamps in that area.
Explanation:
Special taxes are taxes that have a specific application since they affect only a certain group of goods and services that, given their characteristics or effects, are chosen by the government or the tax authority to be subject to a particular tax.
Special taxes are indirect taxes that are applied to the consumption of certain goods or services (such as alcohol or hydrocarbons). They are linear in relation to disposable income.
Answer:C
Explanation: The option is illogical as anybody can be a marketing entrepreneur and not just a college graduate.
Answer and Explanation:
The computation of the minimum transfer price is shown below:
a. For Not operating at full capacity
Minimum transfer price = Variable cost + Opportunity cost
= $3 - $0.20 + 0
= $2.80
b. For operating at full capacity
Minimum transfer price = Variable cost + Opportunity cost
= $2.80 + $8 - $3
= $2.80 + $5
= $7.80
We simply applied the above formulas
So, that the each part could come
Answer:
Explanation:
When a company sells on credit the company usually creates an Allowance for uncollectible debts account which is simply a percentage of credit sales that the company anticipates they will not be collectable, meaning a company anticipates that a certain percentage of customers will not be able to settle their debts (Bad debts).
When a customer indeed fails to pay their debt, they must be written off. The Allowance for uncollectible debts account and account receivables must reduced.
When the Debtor that was written off later pays and settles the debt, we first need to reinstate the debtor in the account receivables and Allowance for uncollectible debt
s thus increasing the Receivables and Provision for uncollectible debts account because both account receivables and Allowance for uncollectible debts were reduced when the debtor was written off.
The journal entry to reinstate the debtor previously written off before recording income received,
DR Account Receivables
CR provision for uncollectible debts
then we need to record the income received
DR Bank/cash received
CR Account Receivables
to summaries the process when a debtor previously written off pays, we need to reinstate the debtor by increasing account receivable and allowance for uncollactible debts account then decrease the Account receivable and increasing bank to recognise cash received from a debtor
