Answer:
shoe-leather costs
Explanation:
Inflation is a persistent rise in general price levels.
shoe-leather costs of inflation is the cost in terms of time and effort spent by individuals in reducing their cash holdings in order to avoid paying inflation tax.
Bob's shoe cost of inflation includes :
1. the time and effort expended in going to purchase items immediately he is paid
2. the time and effort expended in converting the money he didn't spend to a more stable foreign currency.
Answer:
25 years
Explanation:
4% of 100 is $4, $4 times 25 is $100
Answer:
Money need for one-year's tuition (A) = $11,590 (Approx)
Explanation:
Given:
Initial value (P) = $10,000
Annual rate of inflation (r) = 3% = 0.03
Time taken = 5 years
Find:
Money need for one-year's tuition (A)
Computation:
![A=p[1+r]^n\\\\A=10,000[1+0.03]^5\\\\A = 11,592.7407](https://tex.z-dn.net/?f=A%3Dp%5B1%2Br%5D%5En%5C%5C%5C%5CA%3D10%2C000%5B1%2B0.03%5D%5E5%5C%5C%5C%5CA%20%3D%2011%2C592.7407)
Money need for one-year's tuition (A) = $11,590 (Approx)
If supply decreases and demand remains stable, the price mechanically moves up since richer people are ready to pay more to get gasoline.
Of course companies selling gasoline want to maximize their profit so they will increase the price.
Right answer is A.
Answer:
The going-concern assumption - one reason for valuing assets such as buildings and equipment at cost rather than at their current market values is the assumption that the business will use these assets rather than sell them.
Explanation:
Accounting valuation is the process by which a company compares it's assets and liabilities for reporting purposes.
The generally accepted accounting practices (GAAP) are a set of rules that guide accountants in recording and reporting financial transactions.
These principles ensure uniformity in how transactions are treated by all accountants.
There are 5 of these principles:
- Revenue principle
- Expense principle
- Matching principle
- Cost principle
- Objectivity principle
The going concern assumption is not part of GAAP but rather is an accounting concept that assumes that a business will remain in operation.
In financial statements it is required disclosures are made when a business is going to fail. In this instance it is no longer a going concern
