Answer:
Under Cash Basis all transactions for which cash is exchanged whether paid or received is accounted for.
Cash Basis Income Statement
Sales Revenue = $6,650
Customer Deposits = $4,550
Total Revenue = $11,200
Less: Expenses:
Wages = ($700)
Net Income = $10,500
Under Accrual basis, the transactions are recorded as to the period they relate, and it is not necessary to exchange cash for the same.
Accrual Basis Income Statement
Sales Revenue = $12,050
Total Revenue = $12,050
Expenses
Wages = ($700)
Utilities = ($330)
Total Expenses = ($1,030)
Net Income = $11,020
Answer:
14.57%
Explanation:
A stock has a beta of 1.4
The expected return is 18%
The risk free rate is 6%
Therefore, the expected return on the market portfolio can be calculated as follows
18%= 6% + 1.4(market return-6%)
18%= 6% + 1.4market return - 8.4
18%= 6-8.4 + 1.4market return
18%= -2.4% + 1.4market return
18%+2.4%= 1.4market return
20.4= 1.4market return
market return= 20.4/1.4
= 14.57%
Hence the expected return on the market portfolio is 14.57%
Answer:
D. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to an increase in induced spending.
Explanation:
We know,
Multiplier = Changing real equilibrium GDP ÷Change of government spending.
If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.
From what I understand here, it is the company that will be creating the 5000 monthly income. This is an example of a specific measurable goal since the goal of Robert is to make sure that the monthly net income of his company would reach at least 5000. Since he is the boss of his company, this is also probably his personal mission for his company so that he will be motivated to keep on bringing his company to better heights. This will also probably motivate his employees to work harder as well.
