Answer:
The correct answer is option C.
Explanation:
Cyclical unemployment can be defined as the unemployment caused by business cycles mainly because of recession in the economy.
Structural unemployment can be defined as the unemployment caused by the mismatch in the skills of the workers and the skills required for the jobs available.
Frictional unemployment is the temporary unemployment cause because of shifts in the job. When people move from one job to another it causes frictional unemployment. But it exists only for a short period.
The cyclical unemployment is caused by downturns in the business cycle, neither frictional nor structural unemployment causes cyclical unemployment.
Answer:
7.20 %
Explanation:
Debt to income ratio is a measure of an individual's monthly debt repayment ability. The ratio is used in assessing the individual capability of absorbing more debts.
It is calculated by the formula.
Debt to income ratio = Total of Monthly Debt Payments/Gross monthly income x 100.
Total monthly debt is the aggregate or all debts payable on a monthly basis.
Gross income is the income before any deductions.
For Derek, gross income =$5900
Monthly debts =monthly credit card of $425
DTI= $425/ $ 5900 X 100
=0.0720 X 100
=7.20 %
Answer:
The correct statement is B
Explanation:
Relevant information:
Henry (H) and Charlotte (C) separated in the year 2018 and their divorce was finalized in 2019, January
During the year, 2019 C paid H alimony of $12,000
Now, will analysis the information:
As per the U. S (United States) IRS (Internal Service Revenue), if the divorce is finalized in 2019 or after that, then the payment of alimony are no longer is deductible, nor the recipient have to record or report them as an income.
So, in the given case, H is not required to report the alimony payment received as an income and C cannot claim the alimony paid as an adjustment to the income.
Therefore, the correct answer is B.
Note: The relevant information is taken from the case which is stated or given above before the question.
Answer:
H.T. Tan Company
Computation of the Ending Inventory, using lower of cost or net realizable value:
Item Quantity (FIFO cost) Net Realizable Value Valuation
A 50 $15 $12 $600 ($12 x 50)
B 80 30 40 $2,400 ($30 x 80)
C 10 48 52 $480 ($48 x 10)
D 70 25 30 $1,750 ($25 x 70)
E 350 10 5 $1,750 ($5 x 350)
Total 560 $6,980
Explanation:
Conservatism principle requires that in valuing inventory, an entity should choose a method that does not overstate the inventory value. The LCNRV method meets this requirement. The method takes the lower of the historical cost of the goods and the market price to determine the value of inventory.
Answer:
LIFO (Last-in-last-out)
Explanation:
Last in last out is the method of inventory valuation where the unit that was added in inventory last would be sold first. In case, of rising prices, the unit added in inventory would cost more than the one added first. So, if LIFO is used in case of rising prices, cost of goods sold would be higher. If COGS is higher, income will fall, thereby reducing tax liability.
So, if the firm wants to pay lower taxes during price rise, it should opt for LIFO method to value inventory.
