Answer: c) potentially increase by $2,500 million.
Explanation:
If the Federal reserve buys $250 million worth of US Treasury bills then they are injecting money into the economy. This money will potentially be deposited in banks which will then use it to create money by continually loaning it out.
Should that be the case, the maximum amount that will be created is calculated by;
= Total cash introduced / reserve ratio
= 250/0.10
= $2,500 million
Cash will potentially increase by $2,500 million.
Um maybe a taxi if u already figured out the answer sorry
Answer:
The options are:
A $34,850.
B $163,350.
C $128,500.
D $188,200.
$ 163,350.00,option B is correct
Explanation:
At the beginning of the current year ,the stockholders equity is the difference between total assets of $877,000 and total liabilities of $748,500 i.e $128,500
.
However,the increase or decrease to stockholders' equity in the current year is the difference between increase in total assets of $59,700 and the the increase in liabilities of $24,850 i.e $ 34,850.00
Hence stockholders' equity=the initial stockholders' equity+increase=$128,500+$ 34,850=$ 163,350.00
Answer:
C. categorizes expenses according to the cost function
Explanation:
According to the contribution margin income statement, a company shows its sales revenue, fixed and variable expenses. In that case, the company does not show the cost of goods sold. The company directly deducts its variable expenses from sales revenue to determine the contribution margin. Therefore, option A is wrong. Each financial statement of performance (Whether for manufacturing or non-manufacturing), has to be shown. Therefore, the contribution margin format shows the net operating income. It is also false.
As in contribution margin format, fixed and variable expenses are deducted from sales. Therefore, option C is correct.
Answer: B. Record revenue that will be received in cash in a subsequent period.
Explanation: Accrual Accounting is a method that records transactions when they have inccured. Instead of when the cash is exchanged.
A. Incorrect. Impossible to record in earlier periods. As the past financial statements from previous years have already been closed off.
B. Correct. Accrued accounting entails recording the transaction when it has occurred. So the cash will be recorded as received. However the cash will only be transferred to the revenue account when the obligation has been met. Therefore it will only be transferred to revenue in the period that it applies to.
C. Incorrect. This is already general expense and general accounting rules apply. I.e. The expense is incurred in the same year and paid out in the same year. This is how most income and expenses are treated, except for prepaid and accrual income and expenses.
D. Incorrect. This is an example of a prepaid expense. Prepaid expenses are expenses that have already been paid even though they haven't been inccured yet. This is an asset, and is thus recorded on the debit side.