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dimulka [17.4K]
3 years ago
10

Alex manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday,

he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the:____of inflation.a. menu cost.b. shoe-leather costs.c. unit-of-account costs.
Business
1 answer:
statuscvo [17]3 years ago
3 0

Answer: b. shoe-leather costs

Explanation:

This is the shoe-leather cost inflation. It refers to the time and effort expended by people to ensure that they are able to avoid their cash losing too much value to inflation. Includes for instance, going to the bank multiple times because you are holding little cash on hand so it does not lose value.

It is named shoe-leather costs as a play on words because it is assumed that the time and effort put will result in walking around alot and degrading the quality of your shoes.

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3 years ago
Nancy Company has a balance of $15,000 in accounts receivable on December 31, of which $1,500 is more than 30 days overdue. The
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Answer:

E. $330 credit to allowance for doubtful accounts

Explanation:

With regards to the above, the adjusting entry on December 31st is computed as;

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Stear Corp. decides to deposit $1,000 in its bank account. This cash was paid from the cash register of the company. What will b
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Explanation:

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