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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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During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the
ivanzaharov [21]

Answer:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

Explanation:

Data provided in the question:

Cost of the inventory purchased = $200,000

Amount paid in cash =  one-fourth

= one-fourth of $200,000

= $50,000

For the remaining balance signed a note i.e = $200,000 - $50,000

= $150,000

Now,

This transaction will be recorded as:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

3 0
3 years ago
An investment projects requires that a company incurs maintenance in the second year. Under the net present value method, the co
ycow [4]

Answer:

Pretty sure its a I am not sure however

Explanation:

7 0
3 years ago
What is the south african government providing and for whom ?
Goryan [66]
Welfare payment is an amount of money that is paid by the government to someone who is ill,poor. Consumer subsidies is a grant assistance given by one part for support welfare payment is the amount of money paid by the goverment regularly to assist the people of the country . it can be in a broader and narrower sense. narrower sense reffers to the needy, ill, and poor(social grant). the broader refers to everyone(public goods)
4 0
3 years ago
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,
IrinaK [193]

Answer:

a. Premium

b. Discount

c. Discount

Explanation:

a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium

Therefore, Valley's bond will sell at a premium.

b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, Spring's bond will sell at a discount.

c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, River Inc.'s bond will sell at a discount.

3 0
3 years ago
From a neoclassical perspective, which of the following would most likely be viewed as an element that underpins long-run produc
Sliva [168]

Answer: Investment in human capital

Explanation:

  The investment in human capital is one of the important element in the economical concept as it helps in developing the growth and productivity of an economy and also expanding the various types of skills, ideas and knowledge.

The human capital is one of the type of intangible asset in an organization that helps in analyzing the economic value on the basis of the employees skills and ability.

 According to the given question, the investment in human capital is one of the long run growth in the economy. Therefore, Human investment capital is the correct answer.  

3 0
3 years ago
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