Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.
<h3>What is inflation?</h3>
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
- Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
- A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
- Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
- Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.
To learn more about Inflation refer to:
brainly.com/question/15692461
#SPJ4
Answer:
Production budget = 835
Explanation:
<em>T</em><em>he production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>
Production = Sales budget + closing inventory - opening inventory
Inventory at the end of July = 40%×650= 260
Opening inventory = 75
Sales budget = 650
Production budget = 650+ 260 - 75= 835
Production budget = 835
Available Options:
He could try to save more money.
He could get a student loan for the extra amount he
needs.
TO He could apply for a scholarship
He could ask his friends to loan him money.
He could ask his family to contribute.
Answer:
All of the above
Explanation:
The best option is to be self reliant which means that Justin must apply for scholarships, save money now and during the program execution and if still there are any expenses due then he can ask his family to contribute to meet his exense and still if there are unpaid expenses then he can borrow from his friends if he thinks that he can repay the loan to his friends in the mutually agreed time. If Justin can not pay its amount borrowed then he must consider long term loan option to fund his studies.
The order of finance is given as under:
- Save Money
- Scholarship
- Ask his Family
- Loan from Friend
- Long term Loan
Answer:
b. Liability, $9,000,000; expense, $0.
Explanation:
An asset retirement obligation (ARO) refers to an obligation with respect to the acquisition , construction, development, etc. The liability should be recognized the liability at the present value that should be expected to be paid for settling the obligations
Here the $9,000,000 million represents the liability
Also the journal entry is
Asset Dr
To liability
(Being the asset placed is recorded)
There is no expense should be recorded in the income statement
