Answer:
Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two.
Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions). Recessions are characterized by falling output and employment; at the opposite end of the spectrum is an “overheating” economy, characterized by unsustainably rapid economic growth and rising inflation. Capital investment spending is the most cyclical component of economic output, whereas consumption is one of the least cyclical. Government can temper booms and busts through the use of monetary and fiscal policy. Monetary policy refers to changes in overnight interest rates by the Federal Reserve. When the Fed wishes to stimulate economic activity, it reduces interest rates; to curb economic activity, it raises rates. Fiscal policy refers to changes in the federal budget deficit. An increasing deficit stimulates economic activity, whereas a decreasing deficit curbs it. By their nature, policy changes to influence the business cycle affect the economy only temporarily because booms and busts are transient. In recent decades, expansions have become longer and recessions shallower, perhaps because of improved stabilization policy, or perhaps because of good luck.
Answer:
John should include $1,600 as rental income on his Year 4 tax return as a result of the $2,000 payment.
Explanation:
As a cash-basis taxpayer, John's taxable income is based on the actual cash receipts and payments made in the accounting period. The refundable part of the rent should not be included as rental income since it is a security deposit that would be returned at the end of the lease period. If John were an accrual-basis taxpayer, the rental income to be included would have been only $800 representing income for Year 4.
Answer:
b)
Annual Depreciation expense= $58,800
Explanation:
<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>
So we will add the purchase cost to installation , freight charges.
Cost of assets = 300,000 + 14,000 + 40,000 =$354,000
Annual depreciation = (Cost - Scrap Value)/ Number of years
= (354,000 - 60,000)/5
=$58,800
Annual Depreciation expense= $58,800
The best three main roles of major credit reporting agencies are:
- Compile consumer credit
- Loan information and
- Provide it to lenders and businesses.
<h3>What is a credit reporting agency?</h3>
A credit reporting agency is a company that keeps track of people's and companies' credit histories. They get information from creditors and other sources, which they put into a credit report, which incorporates a credit score when it's released.
The best three main roles of major credit reporting agencies are:
- Compile consumer credit
- Loan information and
- Provide it to lenders and businesses.
Learn more about credit reporting agencies here:
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