All categories

3 years ago

One person’s spending becomes another person’s income. This statement is

Business

1 answer:

Paha777 [63]3 years ago

8 0

Answer:

d. the Circular Flow Model

Explanation:

Based on the information provided within the question it can be said that this statement is an example of the Circular Flow Model. This model (like mentioned in the question) illustrates the flow of cash from different people or company's in different industries. Where one person/company pays another, which takes it in as income and uses that to pay another company for what they need and so on.

You might be interested in

For a not-for-profit private animal rescue agency, which account should be credited to record a gift of cash from an outside par

sesenic [268]

Answer:

Unrestricted net assets - contributions

Explanation:

Unrestricted net assets are donations made to any nonprofit organization (in this case the animal rescue agency) that can be used for unrestricted general expenses. The rescue agency can use this money for their normal day to day expenses or for whatever other expense that they consider necessary without any type of restriction.

While restricted net assets are donations that must be used for an specific purpose set by the donor.

8 0

3 years ago

Assuming Year 2 net credit sales totaled $122,000, what was the company's average days to collect receivables

Montano1993 [528]

Answer:

44.88 days

Explanation:

Note: The full question is attached

Average amount of accounts receivables = ($16,000+$14,000)/2

Average amount of accounts receivables = $15,000

Average days to collect receivables = Days * AR / Credit sales

= 365 * $15,000 / $122,000

= 44.87704918032787 days

= 44.88 days

4 0

3 years ago

Three years ago, James Matheson bought 300 shares of a mutual fund for $23 a share. During the three-year period, he received to

pochemuha

Answer:

1350

Explanation:

(300 x 0.70) + (300 x 0.80) + (300 x 26)

= 210+240+7800

=8250

8250- (300 x 23)

8250-6900 = $1350

Therefore his total return for this investment is 1350

7 0

4 years ago

Read 2 more answers

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec

liberstina [14]

Answer:

(A)

The total relevant cost would be: 495,000

Buy 15,000 x 35 = 525,000

It would be better to keep producing.

(B) relevant cost 495,000

Buy 525,000 - 150,000 = 375,000

In this scenario is better to buy the procuct, as this alternative will come with the 525,000 cost but 150,000 contribution margin in the new product

Explanation:

The relevant cost would be:

Direct Materials 14

Direct labor 10

Variable Overhead 3

traceable fixed overhead 6

Total 33

15,000 x 33 = 495,000

<u>The depreciation is a sunk cost,</u> already incurred when the machine was purchased. Is not relevant to decide wether to produce or buy

The potencial new product would be opportunity cost:

It should be considered as a decrease in the cost of buy the product

7 0

3 years ago

Jefferson davis has invested in something that acts like a mutual fund and that invests in hospitals all over the country. he kn

antoniya [11.8K]

Answer:

REITs

Explanation:

Based on the scenario being described it can be said that the type of investment that Jefferson has made is known as a REIT. This term stands for Real Estate Investment Trusts, and are companies that own or finance income-producing real estate across a range of property sectors, such as hospitals, hotels, apartment buildings etc. This investment trade on major stock exchanges and the companies must meet certain requirements to qualify as a REIT such as needing to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders.

5 0

3 years ago