Answer: a. Dynamic forecasting
Explanation:
Dynamic forecasting has to do with when the forecasted value or the predicted value of the dependent variable that us lagged in a research is used rather than using the actual value.
The dynamic forecasting technique fits situations where more recent events carry greater influence.
Answer:
$0
Explanation:
Given that
Advertising expenses = $100,000
Employee training = $80,000
Customer outreach and consultation = $50,000
Since it is mentioned that this cost would be increased the fair value of the entire company by $325,000
So there is no information related to the takeover of the business so in this case, the goodwill recognized by the company is zero
Answer:
The correct answer is letter "B": journal to the ledger.
Explanation:
The activity in which accountants transfer information from the journals to the general ledger is called posting. By posting, only the balances are transferred to the general ledger, not individual transactions. There are no set intervals in which postings should be made. It depends on how often the activities of the company requests it.
If the spending multiplier is greater than 1, an increase in investment may result in a greater increase in aggregate demand.
The aggregate demand simply rises as a result of an increase in investment when the spending multiplier is said to be greater than one, in essence.
What is Spending Multiplier ?
- The spending multiplier is seen in terms of economics as a ratio between the change in GDP (Gross Domestic Product) and the change in autonomous expenditure.
- With the use of an income and spending model, it may be easily shown visually. The value produced by a government's expenditure is said to exceed the amount of such expenditure.
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Answer:
$77,217
$11,289
Explanation:
Fist we will calculate the present value of $10,000 payment
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $10,000
r = rate of return = 10% / 2 = 5%
n = number of period = 5 years x 2 semiannual payments per year = 10 payments
PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]
PV of Annuity = $77,217
Now we will use the discounting method to calculate the present value of lump sum payment of $20,000
Present value = Future value x Present value factor
PV = FV x ( 1 + r )^-n
PV = $20,000 x ( 1 + 0.1 )^-6
PV = $11,289