Answer:
$15,000
Explanation:
Closing retained earnings is the accumulated value of an entity`s profit reserve from its earnings from both current and past accounting periods.Closing retained earnings is calculated by deducting dividend paid from earnings after tax of the current year and adding the balance to opening retained earnings.
= Opening retained earnings + (Earnings after tax - Dividend paid)
Based on the information supplied, the closing retained earnings will be:
$
Service Revenue 10,000
Total Expenses (6,000)
Operating profit 4,000
Dividend <u> (1,000)</u>
Retained Earnings 3,000
Retained Earnings b/f <u> 12,000</u>
Closing Retained Earnings <u> 15,000</u>
Note: No information in regard of tax, so the operating profit is used as profit after tax.
The correct answer is (a.) True. Overdraft protection means the bank will protect your funds from excessive taxation. This protection is most likely to be offered by small business since it helps them to gain additional income fees.
Answer:
Core PCE deflator inflation rate;
the Output gap
Explanation:
Goals of Monetary Policy
There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.
The Fed has two possible instruments:they includes;
1. Monetary base
2. Federal funds rate
Output Gap
When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds
The Stables Prices Goal
The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.
Answer:
a) Sarah failed to evaluate a potential ethical issue
Explanation:
A financial fraud refers to misrepresentation of financial data by inflating or reducing a figure amount with the motive to deceive the users of the financial statements and thereby depict better financial position and state of affairs.
The above concept is also referred to as window dressing of accounts.
In the given case, the purpose behind increasing the value of inventory and creation of miscellaneous expense account is to depict fake financial picture. With an increase in the inventory balance, the profits would be inflated. Crediting miscellaneous expenses again would reduce expenses balances and further inflate the profits.
Thus, Sarah failed to evaluate a potential ethical issue when she blindly directed her staff to incorporate such changes.
