depends on what the following is.
Answer:
C. real interest rates rise and investment spending falls
Explanation:
Due to the decrease in the money supply, keeping other things remain constant. The investment spending falls and due to the shortage of money, the real interest rate is rise so that it will become expensive for the customer to take out the loan.
Hence, it shows a direct relationship between the change in money supply and the investment spending while in respect of real interest rate it shows an inverse relationship between the change in money supply and real interest rate.
Hence, all other options are wrong except C.
Answer:
1. $66,000
2. $66,000
Explanation:
The computations are shown below:
1. Before written off:
= Account receivable balance - uncollectible amount
= $70,000 - $4,000
= $66,000
2. After written off:
= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount
= $70,000 - $700 - $4,000 + $700
= $66,000
Answer:
C. Debit to Cash Over and Short for $2.
Explanation:
The term cash over and short refers to an expense account that is used to report overages and shortages to an imprest account such as petty cash. The cash over and short account is used to record the difference between the expected cash balance and the actual cash balance in the imprest account.