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2 years ago

Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.

1 answer:

3 0

You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.

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Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using F

stepladder [879]

Answer:

(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Cost of Inventory 4,900

Cost of goods sold 13850

(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Cost of Inventory 6,300

Cost of goods sold 12450

Sales = 36,000

FIFO

Gross profit Margin = (36000 - 13850) / 36000 = 61.5%

Gross profit Margin = (36000 - 12450) / 36000 = 65.4%

Explanation:

The working is attached in an MS Excel file with this answer. Please find it.

7 0

2 years ago

Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes: Date Face

Alla [95]

Explanation:

The computation of given question is shown below:-

Note Due date Calculation Amount

1. 13 Feb $33,000 × 30 ÷ 360 × 4% $110

2. 23 Apr $60,000 × 45 ÷ 360 × 7% $525

3. 10 Oct $48,000 × 90 ÷ 360 × 5% $600

4. 6 Nov $16,000 × 75 ÷ 360 × 6% $200

5. 14 Jan $36,000 × 60 ÷ 360 × 8% $480

6. 8 Feb $24,000 × 60 ÷ 360 × 6% $240

B. 10 Oct

Accounts receivable Dr, $48,600

To Interest revenue $600

To Notes receivable $48,000

(Being dishonor of notes receivable is recorded)

C. 31 Dec

Interest receivable $452

To Interest revenue $452

(Being Interest accrued on notes is recorded)

Note:- Accrued interest = ($36,000 × 8% × 46 ÷ 360) + ($24,000 × 6% × 21 ÷ 360)

= $368 + $84

= $452

a. 14 Jan

Cash Dr, $36,480

To Interest receivable $368

To Interest revenue $112

To Notes receivable $36,000

(Being notes and matured honored is recorded)

b. 8 Feb

Cash Dr, $24,240

To Interest receivable $84

To Interest revenue $156

To Notes receivable $24,000

(Being notes and matured honored is recorded)

Note 5:- Interest revenue = Interest receivable - Interest accrued

= $480 - $368

= $112

Note 6:- Interest revenue = Interest receivable - Interest accrued

= $240 - $84

= $156

5 0

3 years ago

Roles of competition policy authorities in south Africa

gladu [14]

Answer:

I hope you understand please follow me

4 0

2 years ago

When both supply and demand decrease, the equilibrium price: a. increases and equilibrium quantity increases. b. is indeterminat

frosja888 [35]

Answer:

The answer is e.

Explanation:

First you draw a supply and demand graph. When you move to the left on the graph, you decrease and when you move to the right, you increase. Being that both supply and demand will decrease, you will end up in the left triangle of the original graph. In that area, you can't really decide the price because it's not clear if it increases or decreases. It is clear that the quantity decreases. So (e) is the answer.

5 0

3 years ago

A commercial bank holds $500,000 in checkable deposits liabilities and $120,000 in reserves. If the required reserve ratio is 20

scZoUnD [109]

Answer: E.) Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000

Explanation:

The required reserve ratio = 20%

Checkable deposit liabilities = $500,000

Reserve = $120,000

The required reserve refers to a designated percentage of a commercial bank's deposit which is the minimum that must be held by a commercial bank. Regulation is usuay pronounced by the central bank of the nation.

Banking system loan increase :

Reserve ratio × Checkable deposit liabilities

20% × $500,000 = 100,000

Commercial bank maximum

Reserve amount - required reserve amount

$120,000 - (0.2 × 500,000)

$120,000 - $100,000 = $20,000

7 0

3 years ago