Answer and Explanation:
The tax consequences for the following events -
a. The organization should record the amount of $10,000 in the year 2018 as they followed the cash basis and the cheque should be equal to the cash also troy could not able to record the bonus till it is actually collected
b. As per the accrual basis, the income should be recorded when they are earned not when they are received so the corporation should record the income in the year 2018 as the agent performed the service
c. Since the restrictions that are imposed on cheque for payment purpose should be treated as the substantial and the cheque should not be equivalent to the cash because the customer told that check should be held till Jan 2019 so the income should not be recorded in 2018
Answer:
When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Explanation:
According to the Keynesian perspective, firms produce output only if they expect it to sell.
While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.
Keynes termed a fall in the aggregate demand as a recessionary gap.
A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.
Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Answer:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
Answer:
Zero-cupon bond= $835.45
Explanation:
Giving the following information:
Face value= $1,000
YTM= 11.3%
Years to maturity= 16 years
<u>To calculate the price of the bond, we need to use the following formula:</u>
<u></u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= 1,000 / (1.113^16)
Zero-cupon bond= $835.45
The Franchiser under the franchise contract allows the franchisee to sell products and services under its business name.
Explanation:
- A franchise can be defined as a type of contractual arrangement or license that a party (Franchisee) acquires which allows the franchisee to have access to the proprietor's knowledge, process, and trademarks.
- whenever a business house intends to expand its geographical reach by incurring less expense it creates a franchise for its product and services