Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
Isadora, a finance manager, is budgeting for the company's new line of production equipment. this equipment, which will be used for 20 years or more, is handled out of a(n) <u>capital </u>budget.
When evaluating the profitability of a business opportunity or asset, such as when entering a new market or purchasing new machinery, capital budgeting uses a number of formulas.
The capital budgeting procedure used to decide strategically whether to accept or reject a suggested investment project.
Investors may view a business owner's decision to make a long-term investment without capital budgeting as reckless. You can better comprehend a project's possible risks and rewards by using the capital budgeting analysis.
When pursuing a new investment project, a capital budget can also help with securing additional financing from banks or investors.
To learn more about Capital Budgeting here
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Answer:
Keynesian economists might propose that government <em>reduces </em>taxes, which will cause the aggregate demand curve to shift to the <em>right </em>and Real GDP will <em>increases</em>.
Explanation:
Keynesian economics is demand-sided.
If the economy is producing at full capacity, increased demand will only cause inflation as goods and services cannot be increased although people are willing to pay more (real GDP the same)
However, if the economy is below capacity, the problem is that there is not enough demand to drive production (additional goods and services produced will not be bought). Keynesians would advocate reducing taxes to stimulate demand.
When taxes are reduced, goods become cheaper. People are willing to buy more at similar prices (that producers charge), causing the aggregate demand curve to shift to the <em>right. </em>As economy is below capacity, suppliers are able to responded by supplying more goods and services (supplier curve shift to the right) and Real output (GDP) would increase.
Explanation:
the formulary for calculating simple interest is
simple interest= principal×rate×time/100
