<span>The price of coffee rose sharply last month, while the quantity sold remained the same can be a result of several situations and therefor there are several explanations that are possible:
</span><span>Demand increased, but supply was perfectly inelastic.
</span><span>Demand increased, but supply decreased at the same time.
</span>Supply decreased, but demand was perfectly inelastic.
Answer:
change; over-estimates
Explanation:
Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.
Answer:
$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet
Explanation:
Current Assets: The current assets are those assets which are converted into cash within one year.
Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.
The computation of the total current assets is shown below:
= Accounts receivable + Inventory + Prepaid insurance + Short term investment
= $14,000 + $40,000 + $3,650 + $30,800
= $88,450
The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years
= $7,300 ÷ 2 years
= $3,650
Answer:
a. have been recorded on the company's books but not yet by the bank
Explanation:
The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.
So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?
a) Corporate state
b) Mixed economy
c) Centrally planned
d) Perfectly competitive
Answer is b) Mixed economy
