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VARVARA [1.3K]
3 years ago
10

For the current accounting year, beginning and ending total liabilities were $15,000 and $31,000, respectively. At year-end, own

er's equity amounted to $29,000, and total assets were $21,000 larger than at the beginning of the year. If the owner's capital contributions for the year amounted to $5,000 and dividends paid to owners totaled $2,000, net income or net loss for the year was
Business
1 answer:
ivann1987 [24]3 years ago
4 0

Answer:

$8,000

Explanation:

<u>Changes during the year :</u>

Liabilities = $16,000 Increase ($31,000 - $15,000)

Assets = $21,000 Increase

<u>Accounting Equation states that :</u>

Assets = Equity + Liabilities

<u>Change in equity during the year will be :</u>

Equity = Assets - Liabilities

           = $5,000

<u>Causes of change in equity :</u>

Capital                         $5,000

Add Dividends           ($2,000)

Add Change                $5,000

Profit during the year  $8,000

therefore,

Net Income for the year was $8,000

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4 years ago
Select the true statement or statements regarding the loanable funds market. Foreign entities cannot save in the United States.
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<u>Solution: </u>

The following are the correct and incorrect options

<u>Correct option</u>: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.

<u>Correct option</u>: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).

<u>Other options are not correct: </u>

<u>Incorrect option</u>: Savings means personal savings, which are not yet kept into a bank.

<u>Incorrect option</u>: such purchases are investments but not savings.

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3 years ago
Determine if the people in the example have benefited (i.e., are winners) or have been harmed (i.e., are losers) by unexpected i
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Answer:

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
  • Herb, who keeps his savings in an old coffee can.
  • Joy, who has borrowed $40,000 to pay her college education.
  • The US federal government which had almost $15 trillion in debt in 2011.

Explanation:

When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.

By doing that, they want to stop it or slowly decelerate it.

So that it becomes more expensive to take a loan, the idea is to reduce consumption.

In Economics, it's a bad scenario after all. Few winners. Many losers.

So, let's examine them

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.

Losers

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Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.

  • Herb, who keeps his savings in an old coffee can.

Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.

  • Joy, who has borrowed $40,000 to pay her college education.

Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.

  • The US federal government had almost $15 trillion in debt in 2011.

Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.

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3 years ago
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Connected apps make use of these protocols to perform some actions such as authenticate, authorize, and also provide single sign-on (SSO) for external apps.

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The persuasive strategies are logos, ethos and pathos. The peak effective persuasive communication usually has a mix of all three strategies. Logos uses logic or reason to reach a conclusion, while ethos depends upon the credibility of the author or speaker.

Therefore, the correct answer is as given above

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