PLEASE ANSWER<br> If The Fed reduces interest rates will banks make more loans or fewer loans?

Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in e

vichka [17]

Answer:

A. Description for :

Transaction 1 - Provided catering service for cash

Transaction 2 - Purchase of land for cash

Transaction 3 - Payment of cash for expenses

Transaction 4 - Purchase of supplies on account

Transaction 5 - Withdrawal of cash by owner

Transaction 6 - Payment of cash to creditors

Transaction 7 - Recognition of cost of supplies used

B. The amount of the net decrease in cash during the month = 13,900

C. The amount of the net increase in owner's equity during the month = 3700

D. The amount of the net income for the month = 5500

E. The net income for the month was retained in the business = 3700

Explanation:

a)

Description for :

Transaction 1 - Provided catering service for cash

Transaction 2 - Purchase of land for cash

Transaction 3 - Payment of cash for expenses

Transaction 4 - Purchase of supplies on account

Transaction 5 - Withdrawal of cash by owner

Transaction 6 - Payment of cash to creditors

Transaction 7 - Recognition of cost of supplies used

b.)

Net decrease = Closing Balance - opening Balance

= 27,600 - 13,700

= 13,900

⇒The amount of the net decrease in cash during the month = 13,900

c.)

Net increase in owner's equity = ( Opening capital balance - Drawing + Income earned during the year - Expenses incurred during the year ) - Opening capital

⇒Net increase = ( 92,700 - 1800 + 32,300 - 26,800 ) - 92,700

= 96,400 - 92,700 = 3700

⇒The amount of the net increase in owner's equity during the month = 3700

d.)

Amount of the net income for the month = Total Income - Expenses

= 32,300 - 26,800

= 5500

⇒Amount of the net income for the month = 5500

e.)

Net income for the month was retained in the business = Net Income - Drawings

⇒Net income was retained in the business = 5500 - 1800

= 3700

⇒Net income for the month was retained in the business = 3700

7 0

2 years ago

In a mixed-market economy, the government plays a role and can affect the circular flow of income. Governments participate in th

a_sh-v [17]

A government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.

<h3>What is a government spending?</h3>

It refers to the total money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, defense etc.

A government budget deficit arises from an excessive government spending and low levels of taxation that don't cover expenditure.

Hence, the government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.

Therefore. the Option C is correct.

Read more about government spending

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3 0

2 years ago

a company saw a drop in sales after negative publicity around a scandal involving safetry reports. the strategic changes the com

Montano1993 [528]

Answer:

The question is not complete, below is the complete question:

A company saw a drop in sales after negative publicity around a scandal involving safety reports. the strategic changes the company makes to deal with this situation are reactive changes?

(A) True

(B) False

Correct answer is (A) True

Explanation:

This shows that a company external environment, as an impact on the company sales of goods and services.

5 0

3 years ago

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock pri

horsena [70]

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

8 0

3 years ago

Jones Corp. reported current assets of $191,000 and current liabilities of $136,000 on its most recent balance sheet. The curren

stiks02 [169]

Answer:

acid-test ratio 1,4044

Explanation:

We are asked for a variation ofthe current ratio

whie current ratio is determinate like:

$\frac{current\: assets }{current\: liab}$

the acid-test will remove inventory from the current assets, leaving only cash, marketable securities and accounts receivables considered for the calculations:

191,000 current assets - 85,000 inventory = 106,000

136,000 current liabilities

191,600 / 136,000 = 1,4044

7 0

3 years ago

PLEASE ANSWER If The Fed reduces interest rates will banks make more loans or fewer loans?