Answer:
A is the correct option
Explanation:
Revenue or income is recognized based on accrual concept of accounting where revenue or income is recognized when earned and expenses when incurred not when received or paid in cash.
As a result,on the 31st December Clarion Corp. has earned two months' interest on the 6-month certificate of deposit as it has invested for two months.
The correct option is A,Clarion recognizes interest revenue on 31st December ,2015 only.
It is also important to note that the since 2015 came to end the fraction of interest revenue relating to year 2015 needs to be recognized by debiting accrued income account and crediting investment on the face of the income statement
Answer:
d. ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.
Explanation:
Competitive dynamics refers to the ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.
This ultimately implies that, competitive dynamics comprises of various competitive actions or activities that a particular company or business firm engages so as to have a competitive advantage over its competitors in the same industry or market. Thus, it avails a business the opportunity to have a better market-share over rival firms.
Answer: <em>a. Multiplier = 3.33</em>
<em>b. Stimulation = $2000 billion</em>
Explanation:
In this particular case , it's given:
Marginal propensity to consume(MPC) = 0.7
Government spending = $600 billion
Therefore, we can evaluate the multiplier using the following formula:
Multiplier = 3.33
Noe, in order to find the stimulation in the economy we will multiple the new government spending with the multiplier. We will get ;
Stimulation = $2000 billion
Answer:
The present value of $4,300=$3,624.13
Explanation:
The present value is always used to estimate the value of an asset be it financial or financial equivalents to determine their current value accounting for annual interest rates. Continuous compounding is the mathematical limit that can be reached if it's calculated and reinvested into an account's balance over a theoretically infinite number of periods. The formula is expressed as;
F.V=P.V×e^(i×t)
where;
F.V=future value
P.V=present value
e=mathematical constant approximated as 2.7183
i=stated interest rate
t=time in years
In our case;
F.V=$4,300
P.V=unknown
e=2.7183
i=5.7%=5.7/100=0.057
t=3 years
replacing;
4,300=P.V×e^(0.057×3)
4,300=P.V×e^(0.171)
1.1865 P.V=4,300
P.V=4,300/1.1865
P.V=3,624.13
The present value of $4,300=$3,624.13
Answer:
Explanation:
Digital wallets can be used in conjunction with mobile payment systems, which allow customers to pay for purchases with their smartphones. A digital wallet can also be used to store loyalty card information and digital coupons.
