Answer:
($500) = NA + NA + ($500)
Explanation:
In this question, the following accounting equation is used
Assets = Liability + common stock + retained earnings
As in the transaction, it is given that $500 cash is paid for advertising expense, so this event would be affecting the accounting equation for asset and the retained earning account i.e
($500) = NA + NA + ($500)
As cash is paid which reduces the asset balance plus the retained earning balance is also get reduced by $500
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
<span>The U.S. has an absolute advantage in producing toys, whereas China has a comparative advantage in producing toys. China does not need Adam Smith's absolute advantage of greater productive efficiency in toys, rather it needs David Ricardo's comparative advantage.</span>
<span>How are microlending agencies combining loans with other social improvements for individuals? Microlending agencies work with local agencies to help fund different social improvements for their community. Microlending is the practice of lending out small loans from an individual to fund a project rather than a bank or credit union. </span>
Answer:
D $4 million
Explanation:
Bank Reserves = Bank's Deposit at Central Bank + Vault Cash.
Bank Reserves = $15million + $5million = $20 million
Required reserves = 20% of $80 million = $16 million.
Bank Reserves = Required Reserves + Excess Reserves
Excess Reserves = Bank reserves - Required reserves
Excess Reserves = $20million - $16million =$4 million