Answer:
The answer is B. government's spending exceeds its tax revenues
Explanation:
Government budget records deficit if its spending is more than its revenue. The main source of government revenue is from tax. And government record surplus if its revenue is more than its spending.
One of the disadvantages of government budget deficit is that inflation rate will be rising. Government might spend to stimulate the economy.
Answer:
B is the correct option.
Explanation:
It is the utility when the company tries to maximize the availability of the product for sale during the time which is most convenient for the customers. Most of the companies analyze for the creation and the maximization of their product's time utility. They also adjust their production process according to it. The creation of time utility involves deciding the number of hours and days a company wants to make its services available to the customers.
Answer:
b. A truck held for resale by an automobile dealership
Explanation:
Property plant and equipment are physical or tangible assets used by an organization in the ordinary course of business. They include Land and building used in ordinary business operations, plant and machinery used in production, Land improvements, such as parking lots and fences etc. Such assets are usually depreciated as they are used and in accordance with the organization's policy. However, assets held for sale are not used by the organization in the ordinary course of business rather, the company holds them till such assets are sold. No depreciation is computed on the assets held for sale. Hence, from the options given, a truck held for resale by an automobile dealership is the only item held for sale and does not qualify for recognition as property plant and equipment. The right answer is b.
Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
