<span>Suppose you were hired to calculate the Gross Domestic Product (GDP) by using the expenditure approach. You would count buying a new house as investment.
</span>Investment<span> is one of the items to consider to determine GDP by expenditure approach which includes residential construction, since residential buildings can be rented out, even if they are occupied by owners.</span>
Answer:
$4.4 million
Explanation:
The ending retained earnings of Lambert incorporation increases by $1.8 million
The net income earned during the year is $5.4 million
Therefore the amount of dividend declared and paid by Lambert incorporation can be calculated as follows
= $5.4 million - $1.8 million
= $4.4 million
Answer:
The answer is that the way the are obligated under law regarding the taxes is different and that is essentialy to know how to manage the corporation.
Explanation:
On the one hand, the "C" Corporation is a type of business structure from legal points of view under which the entity is considered to be taxed separatedly from the business' owners. Meanwhile in the other hand, the "S" Corporation is in the opposite a type of business structure which main characteristic is that the company under this form is taxed not separately from the business' owners and therefore that in this case there is only one taxation when it comes to legal terms while in the other case there are two. And that is the major difference between the both of them.
Answer:
B. violates the matching principle
Explanation:
The direct write-off method makes an accounting period take the bad debt expense for a sale which occur in a previous period. Therefore this expense was deferred over the accounting periods. This violates the matching principles.
The matching principles states the revenues and expenses should be acknowledge on the period they occur. In this case the bad debt expense, occur on the period of sale but, with the direct write-off method it is recognize on a subsequent period, generating a distorsion on the net income of the present and future accounting cycles.
Answer:
The amount of $64,000 which is should be D (Durango) budget for cash disbursement for the inventory in the month of November
Explanation:
The amount which is should be D budget for cash disbursement for the inventory in the month of November is as:
Amount = 60% of purchase of October + 40% of purchases of November
where
60% of purchase of October = 60% × $40,000
= $24,000
60% of purchase of October = 40% × $100,000
= $40,000
So, putting the values above:
Amount = $24,000 + $40,000
Amount = $64,000
