All categories

3 years ago

Which of the following statements best explains why the red bar goes up when the blue goes up?

Business

1 answer:

vesna_86 [32]3 years ago

8 0

Answer: Higher spending than taxing results in a deficit, which contributes to more debt.

Explanation:

Here the red bar is referred to the debt and the blue bar is referred to the spending. When the government spending is more it decreases the government revenue and creates a deficit in the funds. When there is deficit it means the government borrows funds for spending which increases the debts.

Government spending to improve the status of the economy in the country. It Invests is various activities for growth and development purpose. Only on collecting high taxes the revenue of the government will increase. When taxes collected are low the government revenue is also low.

You might be interested in

The following is a trial balance of Barnhart Company as December 31, Year 1: Account Title: Debit Credit Cash 12,500 Accounts Re

Tanzania [10]

Answer:

The total amount of assets is 15,750.

Explanation:

Reproducing the trial balance below for clarity:

Account Title Debit Credit

Cash 12,500

Accounts Receivable 3,250

Accounts Payable 2,800

Common Stock 6,600

Retained Earnings 4,500

Service Revenue 7,450

Operating Expenses 5,100

Dividends 500

Total 21,350 21,350

Calculation of Total Assets:

Total assets = Cash + Accounts Receivable

= 12,500 + 3,250

= 15,750

Note that among the given accounts, accounts cash and accounts receivable are assets; accounts payable is a liability; common stock and retained earnings are part of the capital; service revenue is a form of revenue; while operating expenses and dividends are expenses.

7 0

3 years ago

Fairway's april sales forecast projects that 7,400 units will sell at a price of $11.90 per unit. the desired ending inventory i

Marianna [84]

Purchases = Sales units + Closing inventory - Beginning Inventory
= 7,400 + (2,400 * 120%) - 2,400
= 7,800 units

6 0

4 years ago

The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Demand for the planters is stable and aver

Korolek [52]

Answer:

The average inventory which HG should carry during the year is 5,000 units.

Explanation:

Economic Order Quantity is the ideal inventory procurement which minimizes holding and ordering cost. The EOQ is used by businesses in order to determine the best possible inventory holding.

EOQ = $\sqrt{\frac{2*Annual Demand * Ordering Cost}{Annual Holding Cost} }$

EOQ = $\sqrt\frac{2*7,500*5,000}{10*0.3}$

EOQ = 5,000 units

6 0

3 years ago

Why did the artist, Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire l

Harman [31]

The reason that Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire life:

Pablo Picasso and Vincent van Gogh had more features in common. They had unanimously indistinct style of arts which had become immediately identifiable.

In spite of all that, Picasso died as a rich man owning an estate which is estimated at nearly 750 million dollar whereas Van Gogh died as a pauper.

Studies claim that the reason behind this would be that, Van Gogh remained to be a loner and socially inactive. He was depending on his brother to meet the social world and in contrast Picasso was a charismatic active member in various social clubs where her had multiple number of contacts and connections.

It's been said that Pablo Picasso was a hub who had a vast network of social lines and Vincent Van Gogh was a silent or solitary node.

But now, the paintings of both the greatest artists were well spoken and sell for more than 100,000,000 US Dollars.

5 0

3 years ago

On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c

Kruka [31]

Answer:

Options Include:

A. $20,000

B. $16,800

C. $18,200

D. $21,800 is Correct

Explanation:

Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.

Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.

Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).

6 0

3 years ago