Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
Answer:
The correct answer is letter "D": The customer service center.
Explanation:
The customer service center is a web attractor that allows customers to self-assist in basic operations or by accessing basic data of their own. Balances, statements, payment history, and recent transactions are among the information consumers can access to in a blink of an eye thanks to this online data feed. In case a piece of information is unclear, this feed usually has direct access to reach a customer service representative for an explanation.
Answer:
C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000
Explanation:
Assuming for now that credit customer will avail the cash discount, the following journal entry shall be made on November 10 by Flores mills in respect of credit sales made by it.
Debit Credit
Accounts receivable $7,840
Cash discount $160
(8000*2%)
Sales $8,000
Based on the above discussion, the answer shall C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000
Answer:
a. Decrease
b. Decrease
c. Decrease
d. Increase
e. Increase
Explanation:
a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.
b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.
c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.
d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.
e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.
Answer:
9.59%
Explanation:
The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:
<u>Particulars Amount Interest </u>
9%, 5-year note payable $2,458,400 $221,256
10%, 4-year note payable $3,504,400 $350,440
Total $5,962,800 $571,696
So, Weighted-average interest rate is
= $571,696 ÷ $5,962,800
= 9.59%
