Answer:
The correct answer is a. stay the same.
Explanation:
The method of assigning accounts receivable is performed in order to stop recognizing the accounts that are considered uncollectible, that is, in which all possible resources have been exhausted and therefore no action is expected from the customer. When this method is applied, what is done is to decrease the total value of the obligation, but without affecting the total value of the net accounts receivable.
Answer:
Total cost of purchase= $3,995
Explanation:
<u>To calculate the total cost of merchandise purchased, we need to use the following structure:</u>
Invoice cost of merchandise purchase
Less:
Purchase discount
Returns and allowances
Add:
Transportation costs
<u>In this case:</u>
Invoice cost of merchandise purchase= 4,000
Purchase discount= (4,000*0.02)= (80)
Returns and allowances= (275)
Transportation costs= 350
Total cost of purchase= $3,995
Answer:
Real GDP @ Constant Prices , Nominal GDP @ Current Prices
Explanation:
GDP is sum total of gross value of goods produced by an economy in its domestic territory during a given period of time (financial year) .
'Value' = Price X Quantity .
Nominal GDP takes current year prices to calculate GDP , Real GDP Constant (Base Year prices) to calculate GDP. So - Real GDP is a better measure of Economic Growth because it changes only due to change in 'quantity' of pr0duction (prices same) , but - Nomial GDP is a worse measure of Economic growth because it changes not only with 'quantity' of production & also with price change only (current price) .
Hence , Real GDP is also better for time series or Cross sectional Comparison .
However , Nominal GDP can be converted into Real GDP using GDP Deflator
( Nominal GDP / Real GDP ) x 100
The opportunity cost of attending class is the $15 that could have been made by watching a neighbor's child.
Opportunity cost refers to the benefits that one gives up in order to enjoy another benefit, that is, the benefit that is sacrificed.
In this question, two benefits are given up, but the real opportunity cost is the one that have the highest value, which is the $15.
Answer:
The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.
This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.
The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.
