Answer:
1. No par common stock is issued.
- I) INCREASE STOCKHOLDERS' EQUITY SINCE COMMON STOCK ACCOUNT WILL INCREASE.
2. Treasury stock is sold at cost for cash (assume the cost method).
- I) INCREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY, AND SINCE THE STOCKS WERE HOLD, EQUITY WILL INCREASE.
3. Treasury shares of preferred stock are purchased (assume the cost method).
- D) DECREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY.
4. A payment date occurs for a cash dividend.
- NE) NO EFFECT ON EQUITY, SINCE EQUITY HAD ALREADY DECREASED ON THE DAY THAT THE DIVIDENDS WERE DECLARED.
Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)
Explanation:
Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.
Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.
From the word itself, "values-led" business, this type of businesses are more inclined to doing what is right and moral by promoting values rather than thinking too much about the profit that comes from the sales of the manufactured goods. In the example above, the business leverages in the notion that recycling will lead to lesser pollution to the environment.
Health ,home owners ,and auto
