Which of the following is a characteristic of a competitive market?

If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that

mote1985 [20]

Answer:

e. consumer spending will increase.

Explanation:

If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that consumer spending will increase because, unless in the event that the increase will be funded by borrowing from the private sector which will cause a crowding out effect, The increased spending by congress (government) will create a multiplier effect by causing job creation for the unemployed, which will imply that people will have more income to spend leading to rise in aggregate demand or consumer spending.

Furthermore, the fact that there will be no increase in taxes implies that consumers will have a higher disposable income for consumption purposes leading to a rise in consumer spending

3 0

3 years ago

Presented below are various account balances of K.D. Lang Inc.

yulyashka [42]

Answer:

a. Contra Liability and expense account

b. Long-term liability

c. Long-term and current liability

d. current liability

e. Long-term liability

f. Current asset

g. Current liability

h. current liability

i. current liability

Explanation:

Req. A, B and C

A. Contra liability is a credit liability account for that has an explicit debit liability account. In that case, unamortized premium on bonds payable is a liability for which there is a premium, which is a debit liability. $3,000 is an expense, so it is an expense account.

B. Since the current year is 2017 and the maturity date is 2021, it is a long-term liability.

C. As $200,000 will be matured at the end of the year, it is a current liability. $800,000 is a long-term liability.

Req. D, E and F

D. Due to income tax purpose, employees' wages will be withhold for a specific time, it is a current liability.

E(1,2). Since the notes payable will be matured in 2020, it is a long-term liability. (as operating cycle is more than one year, it is a long-term liability. Whatever assets are used, they are long-term liabilities.

F. Accounts receivable is a current asset account. Therefore, if the balance is credit due to returns, it will not change the account.

Req. G, H and I

G. Since the bonds payable is matured at the end of this period, the entire amount will be current liability.

H. Bank Overdraft is a current liability account whatever the scenario pretends.

I. Since customers paid and goods have not been provided to them, it is a liability for the company. As it is related to products, it is a current liability.

6 0

4 years ago

On December 31, Year 1, Gaskins Co. owed $4,500 in salaries to employees who had worked during December but will not be paid unt

frez [133]

Answer:

b. Decrease in net income; no effect on cash flow from operating activities

Explanation:

The adjusting entry is shown below:

Salaries expense A/c Dr $4,500

To Salary payable A/c Dr $4,500

(Being the accrued salary is recorded)

As we can see that the salaries expense is an expense account due to which the net income got decreased plus the salary payable has come under current liabilities of the balance sheet so there is no impact on the cash flow from operating activities

4 0

3 years ago

Review the following statements regarding a petty cash fund used in a business. Select the one that is correct. Multiple choice

valentinak56 [21]

Answer:

Only the petty cashier is responsible for paying cash from the fund.

Explanation:

A petty cash fund can be regarded as small amount of cash that is kept on hand or kept in a locked drawer which could be used in payment for minor expenses. These expenses could be office supplies expenses or reimbursements. There should be periodic reconciliations for a petty cash fund, and the transactions should also be recorded on the financial statements. As regards to petty cash fund used in a business, Only the petty cashier is responsible for paying cash from the fund.

3 0

3 years ago

The Sarbanes-Oxley Act of 2002 was primarily aimed at which functional unit of a corporation? Marketing Production Sales IT Fina

Alla [95]

Answer:

The Sox Act was a federal law that established sweeping auditing and financial regulations for public companies. Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices.

Explanation:

6 0

3 years ago