Answer:
$64,48 billion
Explanation:
marginal propensity ( MPC ) = 0.84 i.e ratio of disposable income to consumption is $1 to 84 cent
YEAR 1 disposable income = $412 billion
year 1 consumption = $368 billion
year 2 disposable income = $540 billion
calculate the level of saving in year 2
from given data
consumption = Co + 0.84 * 412
368 = Co + 346.08
therefore Co = 21.92
therefore for year 2
Consumption = Co + 0.84 * 540
= 21.92 + 453.6 = $475.52
hence savings level = disposable - consumption = 540 - 475.52 = $64,48 billion
Answer: D. All unfavorable variances are debited.
Explanation:
When recording variances in a standard cost system, all unfavorable variances are debited.
The reason for this is that it should be noted that the unfavorable variances simply means that there's excess production costs, and hence this will bring about reduction in the operating income. Hence, all unfavorable variances are debited.
Therefore, the correct option is D.
The historical cost principle requires that when assets are acquired, they be recorded at cost.
The historical cost principle is an accounting principle under the US GAAP. It entails recording the cost of an asset on the balance sheet at the cost with which the asset was purchased regardless of the changes in the value of the asset.
For example, if a machine was purchased at a cost of £2000. If the historical cost principle is used, the machine would be recorded at £2000 on the balance sheet.
A similar question was answered here: brainly.com/question/14417628
Answer:
The portfolio’s new beta will be 1.125
Explanation:
In this question, we are interested in calculating the portfolio’s new beta given the value of the beta of the stock which is used in replacing it.
We apply a mathematical approach here.
Mathematically;
Portfolio beta=Respective beta * Respective investment weight
=(50,000/200,000*1.5)+(50,000/200,000*0.8)+(50,000/200,000*1)+(50,000/200,000*1.2)
= 0.375 + 0.2 + 0.25 + 0.3 = 1.125
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
