Answer:
Option Total assets, total liabilities, and equity are unchanged.
Explanation:
The reason is that the double entry to record this transaction is as under:
Dr Cash Account $42,000
Cr Accounts Receivable $42,000
Hence there increase in one asset and decrease in other asset will have zero net impact on assets. As equity and liabilities are not effected by the transaction, hence they will also remain unchanged.
Answer:
11.57% and 9.02%
Explanation:
For computing the before-tax and after- tax cost of debt we use the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,050 - $20 = $1,030
Future value or Face value = $1,000
PMT = 1,000 × 12% = $120
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 11.57%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 11.57% × ( 1 - 0.22)
= 9.02%
Answer:
B. Fiscal policy is conducted by the executive branch of the U.S. government.
Explanation:
Fiscal policy can be defined as a policy that is put in place by the government of a country to monitor, regulate and adjust the rate at which the government spends money as well as the amount of taxes collected by the government.
Fiscal policy helps to keep the economy of a country stable by finding means to tackle unemployment issues as well as the prices of goods and services in that country.
We have 3 types of Fiscal policy. They are:
a. Expansionary policy
b. Contractionary policy
c. Neutral policy.
In the United States, Fiscal policy is conducted and coordinated by both the Executive and Legislative arms of the government.
One of the effects of fiscal policy when implemented is that it can lead to the rise of inflation in a country.
Time lags also known as the delay in amount of time it takes to implement a thing can affect the proper implementation of a fiscal policy.
An increase in the spending of a government leads to crowding out and this can have a negative effect on the fiscal policy in a country most especially the expansionary policy. This negative effect is that it reduces the impact or effect that a well implemented fiscal policy would have on a country.