Answer:
DR Prepaid expense $9,000
CR Cash $9,000
Explanation:
Based on the information given about Plum Co. In which we were been told that the company paid the amount of $9,000 in cash in order for management services to be performed and since the company record all prepaid expenses to their asset accounts this means that on July 1 Plum should:
DR Prepaid expense $9,000
CR Cash $9,000
If there is an initial (autonomous) decrease in spending, the eventual decline in aggregate demand will be much larger because of the multiplier effect.
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What is Multiplier Effect ?</h3>
The multiplier effect refers to the effect on national income and product of an exogenous increase in demand.
For example, suppose that investment demand increases by one. Firms then produce to meet this demand. That the national product has increased means that the national income has increased. Consequently consumption demand increases, and firms then produce to meet this demand.
The multiplier theory refers to when an economic factor increases, it generates a higher total of other economic variables than the increase of the initial factor. When there is an autonomous change in aggregate spending more money is spent in the economy. People will earn this money in the form of wages and profits.
Thus the national income and product rises by more than the increase in investment. The multiplier effect is greater than one.
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Information systems have automated information management, making it quicker to process large amounts of information, but it can also create issues such as information security and IT competitiveness.
Information security is a problem arising from information systems that can configure fraudulent techniques to steal sensitive data from people and organizations and gain benefits, so it is essential to be prepared for the risks and support from specialized security companies.
The advancement of artificial intelligence can also correspond to a risk in the work environment, such as the competitiveness with IT of professionals who are not prepared to deal with digital innovations.
Therefore, it is necessary that organizations use IT to bring benefits in the speed of organizational processes, preparing themselves for risks and offering training and qualification to their employees to deal with digital systems.
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Answer
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Explanation
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