Answer:
Explanation:
LIFO which means “Last-In, First-Out”
can be regarded as method which is used in case of cost flow assumption purposes during the calculations of cost of goods sold . LIFO method can be used when placing accounting value on inventory. LIFO method works with the assumption that last item of particular inventory that was purchased is the first one that is sold
It should be noted that When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be greater than net operating income reported under variable costing.
Answer:
The answer is: B) His credit rating is poor because of his late payments
Explanation:
To have a good credit rating is extremely important for anyone trying to get a loan. Borrowers with good credit rating usually get lower interest rates and larger amounts. It is very important to pay your debt on time, or else your credit rating will suffer. If a person has a bad credit rating, banks will charge them higher interest rate and loan them smaller amounts of money. If your credit rating is too low, the bank might even reject your loan application.
Answer:
C- The term structure of interest rates and the time to maturity are always directly related
Explanation:
The term structure of interest rates represents the relationship that exist between interest rates and different terms (maturities). When it is graphed, the term structure receive the name of "yield curve".
Generally, yields increase at the same time maturity does it, this create an upward-sloping yield curve or a normal yield curve. But occasionally, long term yield can fall below short term yields, and this create an inverted yield curve that is regarded as it a recession is likely occurring or approaching.
Answer: Option (D) is correct.
Explanation:
From the information given in the question, it was observed that fiscal policy in year 2 is expansionary by comparing it with the fiscal policy in year 1.
The budget deficit in year 1 is $200 billion and in year 2 is $225 billion, so there is an increase in the budget deficit from year 1 to year 2. This means that there is an implementation of expansionary policy either by increasing government spending or decreasing taxes.
On the other hand, standardized deficit also increases from year 1 to year 2, which is also an indication of expansionary fiscal policy.
