Answer:
The correct answer is option (a).
Explanation:
According to the scenario, computation of the given data are as follows:
Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.
Here, both accounts are or balance sheet items.
So, it will not affect any expenses account.
Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _<u>higher</u><u>_</u>and real GDP to be <u>higher.</u>
<h3>
What is Expansionary fiscal policy ?</h3>
Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.
In a situation were real GDP fall below potential real GDP this tend to lead to increase in both inflation rate and real GDP.
Inconclusion the inflation rate will be _<u>higher</u><u>_</u>and real GDP will be <u>higher.</u>
<h3 />
Learn more about Expansionary fiscal policy here:brainly.com/question/546292?source=archive
<span>Harvey purchased 10 shares of mvc stock for = $100 per share
</span><span>one year later he sold the 10 shares for = $130 a share
</span>The price level increased in a year from = 140 to 147
<span>harvey's before-tax real capital gain =
</span><span>$1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax</span>
Answer:
10.71%
Explanation:
The computation of the required rate of return on this preferred stock is shown below :
The Required return on preferred stock is
= Dividend ÷ market value of preferred stock
= 7.50 ÷ $70
= 10.71%
By dividing the dividend from the market value of preferred stock we can get the Required return on preferred stock and the same is to be considered
therefore we ignored the par value i.e $60 as this is not relevant
Answer:
Expenses will be understated, hence, Net Income will be overstated.
Rent prepaid will be overstated, hence, current assets will be overstated.
Explanation:
Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.
In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.
