All categories

3 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.

You might be interested in

Identify which accounts should be closed on May 31.

vaieri [72.5K]

Answer:

Cash ___________________ Not Closed

Supplies _________________Not Closed

Prepaid Insurance _________ Not Closed

Land ___________________Not Closed

Buildings ________________Not Closed

Equipment _______________Not Closed

Accounts Payable _________ Not Closed

Unearned Rent Revenue ____Not Closed

Mortgage Payable _________Not Closed

Common Stock ___________Not Closed

Rent Revenue ____________Closed

Salaries and Wages Expense_Closed

Utilities Expense __________ Closed

Advertising Expense _______ Closed

Interest Expense __________ Closed

Insurance Expense _________Closed

Supplies Expense __________Closed

Depreciation Expense _______Closed

Explanation:

In accounting, there are two types of accounts

Temporary
Permanent

Temporary

Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.

Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.

In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.

Rent Revenue

Salaries and Wages Expense

Utilities Expense

Advertising Expense

Interest Expense

Insurance Expense

Supplies Expense

Depreciation Expense

Permanent Accounts

Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.

Assets, Equity, and Liabilities accounts are permanent accounts.

In this question following accounts are permanent accounts

Cash

Supplies

Prepaid Insurance

Land

Buildings

Equipment

Accounts Payable

Unearned Rent Revenue

Mortgage Payable

Common Stock

5 0

3 years ago

Read 2 more answers

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The

CaHeK987 [17]

Answer: $9000

Explanation:

Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:

Cost of equipment = $120,000

Less accumulated depreciation = $66,000

Less: Amount Devin sold equipment to Pepe = $45,000

Consolidated loss= $120,000 - $66000 - $45000

= $9000

8 0

3 years ago

Trans Union Corporation issued 6,800 shares for $50 per share in the current year, and it issued 11,800 shares for $37 per share

oee [108]

Answer and Explanation:

The impact of the transactions on the financial statement are as follows

1. In case of Sold 5,000 Shares:

The total Assets Increased by $250,000 i.e (5,000 × $25) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $250,000 as it increased the overall equity

Net Income = No Change.

2. In case of sale of 10,000 shares

The total Assets Increased by $370,000 i.e (10,000 × $37) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $370,000 as it increased the overall equity

Net Income = No Change.

3. In case of Purchased 20,000 of Treasury Stock

The Total Assets Decreased by $900,000 i.e (20,000 × $45) as it reduced the cash balance

Total Liabilities = No Change

Total Stockholders Equity Decreased by $900,000 as it decreased the overall equity

Net Income = No Change.

Note:

The number of shares given i.e 6,800, 11,800 and 21,800 are incorrect use the 5,000 shares, 10,000 shares and 20,000 shares and we did the computation accordingly

7 0

3 years ago

A person starts her own business after quitting a job in which she made $75,000 a year. Expenses include $100,000 for wages and

romanna [79]

Explicit costs are business expenses that are easily identifiable and can be accounted for.

1) Wages and salaries = 100,000
2) Utilities expenses = 15,000
3) Materials and Supplies = 150,000
4) Gasoline expense = 5,000

100,000 + 15,000 + 150,000 + 5,000 = 270,000 answer is C.

5 0

3 years ago

Bill is employed by a company to design and maintain custom software applications used by the company's employees to determine i

Alona [7]

John is the <u>internal customer</u> of Bill.

An internal customer is someone within the business that relies on the assistance or work of <em>someone else in the business</em> to do their work. In this case John relies on the software that Bill creates.

Another example would be a marketer who relies on the graphic designer to create an ad before the marketer can use it in an ad campaign.

4 0

3 years ago