Answer:
increase total assets by $1,300.
Explanation:
The net effect is shown below
The first entry is
Cost of goods sold Dr $2,300
To Merchandise Inventory $2,300
(Being the cost of inventory is recorded)
Now the second entry is
Account receivable Dr 3,600
To Sales revenue 3,600
(Being the sales is recorded)
Now the net effect is
= 3,600 - 2,300
= 1,300
This 1,300 reflect the increase in the total assets
Answer: E.) Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000
Explanation:
The required reserve ratio = 20%
Checkable deposit liabilities = $500,000
Reserve = $120,000
The required reserve refers to a designated percentage of a commercial bank's deposit which is the minimum that must be held by a commercial bank. Regulation is usuay pronounced by the central bank of the nation.
Banking system loan increase :
Reserve ratio × Checkable deposit liabilities
20% × $500,000 = 100,000
Commercial bank maximum
Reserve amount - required reserve amount
$120,000 - (0.2 × 500,000)
$120,000 - $100,000 = $20,000
Answer:
has an unlimited territory.
Explanation:
In the given scenario Lucy is running an online business with the support of Notable Moments a franchise.
Businesses can be brick and mortar or physical buildings that requires clients to come to a particular location.
Secondly they can be via online channels like website in the case of Lucy where the clients she can reach are not in one location.
Because of the wide spread of the internet Lucy's territory is unlimited. A person on the other side of the world can patronise her business.
Question Options:
A. Department store
B. Discount store
C. Specialty store
D. Off-price retail store
E. Online retail store
Answer: Josie owns a SPECIALTY STORE.
Explanation: A specialty store can be defined as a retail business that is involved in the sale of only a particular type of goods. Examples include; Furniture stores, florists, sporting goods stores, and bookstores.
