2 years ago

How is owner’s equity affected when is paid for expenses?

1 answer:

4 0

Answer:

Profit and loss are directly linked to the amount of money the company is spending to run its business -- its operating expenses. So changes in operating expenses naturally affect owner's equity.

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Giant Equipment Ltd. Is considering two projects to invest next year. Both projects have the same start-up costs. Project A will

klemol [59]

Answer: A.) Project A, because it has a higher present value than project B.

B.) Project B

Explanation:

Particulars --------- project A ----------- project B

Annual cash flow -- 42000 ------------ 48000

Interest rate --------- 12% ----------------- 12%

Number of years ---- 8 -------------------- 7

Calculating the present value of both projects using a financial calculator :

At 12% rate of return :

PV of project A = $233,677.77

PV of project B = $219,060.31

B.) At 14% rate of return:

PV of project A = $222,108.80

PV of project B = $234,656.04

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Like Michael Jackson once said. Look at the man in the mirror and make a change. and then help others to address their problems

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Studies show that Multiple Choice the more independent the central bank, the lower the average annual rate of inflation. the mor

Nostrana [21]

Answer:

Hmmm?

Explanation:

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2 years ago

Theresa works in a manufacturing plant where many of the male employees put up photographs of bikini-clad women in their work ar

MatroZZZ [7]

Answer: A hostile work environment.

Explanation:

Theresa's work place is a good example of a hostile work environment, as the workers and management of her company are not sensitive to female workers challenges. A hostile work environment is a work environment that makes it hard for an employee to carry out their job task.

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2 years ago

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Suppose that real GDP is currently $13.55 trillion and potential real GDP is $14.0 trillion, or a gap of $500500 billion. The

Georgia [21]

Answer:

$100 billion

Explanation:

Real GDP is currently = $13.55 trillion

Potential real GDP = $14.0 trillion

Gap = $500 billion

Government purchases multiplier = 5.0

Tax multiplier = 4.0

To increase aggregate demand by $500 billion, the required increase in government expenditure is:

= (1 ÷ government purchases multiplier) × change in aggregate demand

= (1 ÷ 5) × $500

= $100 billion

Therefore, the government expenditure need to be increased by $100 billion.

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2 years ago