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3 years ago

Why do businesses think that money in their bank accounts is part of their cash total?

Business

1 answer:

Brums [2.3K]3 years ago

7 0

Answer:

Because liquid assets are a part of the entire wealth/value of a company.

Explanation:

If Jeff Bezos has 60 billion of dollars worth of assets like buildings and physical investments, that isnt his total wealth, you have to count in his liquid cash as well.

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Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also assume that in 1984 each buck

goldenfox [79]

Answer:

A= 62.5; B=60%; C = $160,000 and $352,000

Explanation:

in 1984 each bucket of chicken was priced at $10 (nominal GDP)

in 2005 the price per bucket of chicken was $16 (real GDP)

GDP price index = nominal GDP divided by the real GDP × 100

=($10/$16)× 100

= 62.5

In 1984, Price of each bucket = $10

In 2005, Price of each bucket = $16

Percentage difference = price In 2005 - price in 1984/price in 1984 × 100

= (16 - 10)/10 × 100

=6/10×100

=60%

The price level rise by 60% from 1984 to 2005

In 1984, total buckets of chicken produced= 10,000

In 2005, total buckets of chicken produced = 22000

real GDP in 1984 = total buckets of chicken produced × current price per bucket in 2005

= 10,000 × $16

= $160,000

real GDP in 2005 = total buckets of chicken produced in 2005 × current price per bucket in 2005

= 22000 × $16

= $352,000

7 0

3 years ago

The classic quote from the movie Field of Dreams, "If you build (produce] it

-BARSIC- [3]

The correct answer is A. Say's Law

Explanation:

Say's Law proposed by the economist Jean-Baptiste Say establishes the supply (availability of a product) or the production itself is the factor that creates demand (customers willing to buy the product). For example, the production of a new model of cellphone or computer makes people want to buy the new model. This idea is expressed by the quote "If you build (produce] it they will come [purchase]" because in the quote it is explained the production of something make people go to buy that product.

6 0

3 years ago

Draw a curve that shows the relationship between the tax rate and the amount of tax revenue collected. The relationship between

maw [93]

Answer:

Laffer curve.

Explanation:

Laffer Curve is developed by

Arthur Laffer. It is used to show the relationship between tax rates and the amount of tax revenue collected by governments of a particular country. Laffer curve is used to demonstrate Laffer’s argument that sometimes cutting tax rates can increase total tax revenue.

Laffer curve shows the relationship that occurs between the tax rate and the amount of tax revenue collected

The relationship between the tax rate and the amount of tax revenue collected is called the LAFFER CURVE curve. This curve shows that TAX CUT CAN INCREASE TAX REVENUE.

The drawing of a laffer curve has been attached

8 0

3 years ago

Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classificatio

JulijaS [17]

Answer:

Item Classification

1. Buildings - Property, plant, and equipment

2. Copyright - Intangible assets

3. Supplies - Current assets

4. Unearned service revenue - Current liabilities

5. Prepaid insurance - Current assets

6. Common stock - Contributed capital

7. Rent payable - Current liabilities

8. Accounts receivable - Current assets

9. Allowance for doubtful accounts - Retained earnings

10. Bonds payable - Long-term liabilities

Explanation:

A. Current assets - Assets that exist for a period not exceeding 12 months such as supplies.

B. Property, plant, and equipment - Assets of a Physical Nature that are expected to be used for more than a year.

C. Intangible assets - Assets that do not have a physical nature and are expected to be used for more than a year.

D. Current liabilities - Short term obligation due within a period of 12 months.

E. Long-term liabilities - Long term obligations due within a period exceeding 12 months.

F. Contributed capital - Capital raised by owners of the company excluding reserves attributed to them.

G. Retained earnings - Amounts set aside out of profits that are distributable to the shareholders of the company. Therefore Incomes and expenses are found here.

3 0

3 years ago

Tom Gettback buys 100 shares of Jobnson Walker stock for $87.00. per share and a 3-mont Johnson Walker put option with an exerci

Bad White [126]

Answer:

b. $200 loss is the correct option

Explanation:

=100*(105-87)+(MAX(105-105,0)-20)*100

=-200

7 0

3 years ago