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2 years ago

Which of these principles did adam smith believe essential to the survival of an economy?.

1 answer:

3 0

There are different kinds of theory. The principles that Adam Smith believe essential to the survival of an economy is the freedom to land and hold on to business profits.

<h3>What kinds of freedom did Adam Smith believe were vital to the survival of any economy? </h3>

Adam Smith was known to believe that the making of more resources available to all can make us to be more wealthier.

He believed freedom was important, such as the freedom to own land or property and hold on to the profits. He believed that people will participate in working very well, if they are given reward.

L earn more about Adam Smith from

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An aging of Lily Company’s accounts receivable as of December 31 revealed the following. Amount % Uncollectible Current $20,000

lana66690 [7]

Answer:

What is BAD DEBT EXPENSE for THIS year?

4000

Explanation:

Aging

Current 20000 2% 400

1-30 50000 4% 2000

31-60 30000 7% 2100

Over 60 10000 25% 2500

7000

Allowance bad debts 3000

Expense 4000

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3 years ago

You're considering an investment that you expect will produce an 8% return next year, and you expect that your real rate of retu

sveta [45]

Answer:

Explanation:

Using Fisher equation (Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) which goes like this

$1+i=(1+r)(1+\pi _{e} )$

where

$i = nominal interest rate\\e = real interest rate\\\pi _{e} = expected inflation rate$

Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)

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3 years ago

The useful life of a new plant asset _____. is the same as the asset's total productive life. might not exceed one year. might b

gulaghasi [49]

Answer:

The correct answer is letter "C": might be estimated based on the experience of others or on engineering studies and judgment if the company does not have past experience with a similar asset.

Explanation:

A company's assets represent the cash, patents, accounts receivable, equipment, plants, and land, among others, useful for the firm to generate profit. When it comes to plant assets, they are considered fixed assets for cost accounting purposes and are nothing but the land, buildings and machinery useful for manufacturing.

Calculating the useful life of a plant asset can be complicated and may require engineering studies. However, if the expertise of an employee is good enough to determine it the firm must take advantage of this strength but if there is nobody with this capability the institution should look for someone who does moreover when it does not have experience computing the useful life of such assets.

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3 years ago

Companies using target costing ________. start with an ideal selling price and then target costs that will ensure that the price

Anika [276]

Companies using target costing start with an ideal selling price and then target costs that will ensure that the price is met.

Companies use this approach to make sure they are setting a projects price point at appropriately. They want to make sure it meets the standards the price point is set at by quality and functionality of the product being worth the money a customer will spend for it. They are able to design their profit margin and build the target costs and revenue around that.

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3 years ago

Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales a

DerKrebs [107]

Answer:

d. 2.24%

Explanation:

total annual sales = $3,600,000

fixed asset turnover = total sales / fixed assets = 4, that means that total fixed assets = $3,600,000 / 4 = $900,000

debt = 50% = $450,000

equity = 50% = $450,000

EBIT = $150,000

net income = $150,000 x (1 - 40%) = $90,000

restricted policy:

asset turnover = 2.5

sales = $3,600,000 x (1 - 15%) = $3,060,000

EBIT = $135,000

net income = $81,000

assets = $3,060,000 / 2.5 = $1,224,000

equity = $1,224,000 x 50% = $612,000

ROE = $81,000 / $612,000 = 13.24%

relaxed policy:

asset turnover = 2.2

EBIT = $150,000

net income = $90,000

assets = $3,600,000 / 2.2 = $1,636,364

equity = 50% x $1,636,364 = $818,182

ROE = $90,000 / $818,182 = 11%

difference between ROEs = 13.24% - 11% = 2.24%

8 0

3 years ago