HELPPP ASAP ECON ?!!!!!!

Can you breifly explain why stockholders' investment and revenues increase stockholders' equity, while dividends and expenses de

Scilla [17]

From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.

Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.

Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).

5 0

3 years ago

when a market allocation of resources maximizes the total surplus received by all members of society we say there is

crimeas [40]

Whenever there is maximization of total surplus that is been received by those that are part of society by market allocation of resources then there is market Efficiency.

Economic efficiency can be regarded as economic state whereby there is allocation of resource to serve each individual or entity in way that everyone is satisfied while minimizing waste and inefficiency.

Therefore, When there is an economy efficiency, there would be maximization of total surplus.

Learn more at:brainly.com/question/15520856?referrer=searchResults

8 0

2 years ago

If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment

Fittoniya [83]

The federal reserve bank may decide to INCREASE THE INTEREST RATE. Interest rate refers to the amount that is charged for making use of a particular loan. Increasing the interest rate is one of the monetary policy which the federal reserve bank use to control the money supply in an economy.

7 0

3 years ago

A country has a population of 20,000 people and a GDP of 50 million dollars. What is the per capita GDP of the country?

Karo-lina-s [1.5K]

Answer:

Explanation:

<h3>Given,</h3>

No. of peoples living in a country = 20,000

GDP of the country is = 50 million dollars or $50,000,000

$per \: capita \: gdp \: = \frac{country's \: total \: GDP }{country's \: total \: population}$

<h3>Therefore, </h3>

The per capita GDP of the given country will be

$= \frac{country's \: total \: GDP }{country's \: total \: population}$

$= \frac{50,000,000}{20,000}$

= $2500

<h3>Henceforth, </h3>

The per capita GDP of the given country is $2500 (Ans)

3 0

1 year ago

You are a vice president in charge of personnel at a large manufacturing company. in-house detectives inform you that gates, an

andre [41]

Based on the situation above, the notices shouldn’t be posted because if the sign has been posted, this will only result to giving rise to a claim of defamation by which this is an act of destroying another individual’s reputation.

6 0

3 years ago