Answer:
debit Accounts Payable—Jones, credit Merchandise Inventory.
Explanation:
When inventory is purchased on account, it increases the merchandise inventory balance along with the liability towards the payment.
When some inventory out of the above is returned, it decreases the inventory, and thus accordingly it is credited by the same.
Further it decreases the accounts payable by the same as such amount is not required to be paid.
Therefore, correct option is
Statement A
The manager is likely using a graphic rating scale when
assessing his employees. The graphic rating scale is a way of having to rate
the traits of an individual and a way of having to quantify the behaviors of
the individuals that are employed.
Answer:
Explanation:
b)
BBB-rated corporate bond:
Face value = 1000
semiannual coupon = 9%/2 = 4.5%
semiannual yield = 10%/2 = 5%
number of payments = 5*2 = 10
PV of bond = PV of maturity + PV of interest
PV of maturity = Face value * PVF(5%;10) = 1000*0.614=614
PV of interest = interest *PVIFA(5%;10) = 45*7.7217= 347.4765
Price of bond = 961.4765
a)
semiannual yield = 8.4%/2 = 4.2%
US treasury security:
PV of maturity = Face value * PVF(4.2%;10) = 1000*0.66271=662.71
PV of coupon = 45*8.03074 = 361.3833
Price of bond = 1024
c) credit spread = BBB yield - risk-free yield = 10% - 8.4% = 1.6%
Answer:
A. The Supply Curve shifts Right.
As American Producers are paying less in dollar terms, their costs of production will reduce. The reduction in Cost of Production will spur producers to produce even more because inputs are cheaper and more will be bought and processed and so the Supply will increase and shift the Supply Curve left.
B. Aggregate Demand Curve shifts Right.
As a result of more money being in the Economy, more people will want to lend out the excess cash they have to earn some interest on it. This will reduce the cost of borrowing and will therefore spur people to borrow more to be able to afford things they want. With the people having more money, they will buy more things therefore upping Demand. The Demand Curve will shift to the Right as a result.
C. Supply Curve shifts Left
Wages are an input into Production. Should they increase that would mean that the cost of Production has risen as well for Producers. They will respond by reducing the amount of goods they produce so as to maintain Profitability and reduce those costs. This will cut supply and shift the Supply Curve to the left.
D. Movement along Short Run Aggregate Demand Curve
Aggregate Demand Curve is constructed based on the demand of the Economy at different prices levels. Should the Price Level decrease it is simply a movement along the Aggregate Demand Curve.
Answer:
farther to the right than temporary tax cuts
Explanation:
The permanent tax cuts have more impact on consumption spending than temporary one. A permanent tax cut raises the expected lifetime wealth and increases autonomous consumption, thus leading to an upward shift of the consumption function. Consequently the permanent tax cuts shift the AD curve farther to the right compared to the temporary tax cuts.