Answer: $25,000
Explanation:
The Money Multiplier allows us to calculate how much money banks can create in an economic given a certain reserve ratio.
The formula is;
Money Multiplier = 1 /reserve ratio
= 1/ 0.4
= 2.5
The reserve ratio is 40% which means the bank should be holding 40% of deposits as reserves.
= 100,000 * 40%
= $40,000
Yet they are holding $50,000. They are holding $10,000 more than required. Should they release that $10,000 then they will create;
= 10,000 * money Multiplier
= 10,000 * 2.5
= $25,000
Answer:
Accounts receivables 45,000 debit
Fees revenue 45,000 credit
Explanation:
Harry will record based on previous expenrience using the gross method that is, to record according to the nominal value of the invoice Thus account receivables and the revenue recognize will be for the full amount. If latter the customer uses the discount then, it will use the sales discount account to later determinate net sales in the income statement.
<span>D. serve as a guide to a numeric filing system.</span>
Answer: 59 days
Explanation:
Given data:
Sales = $938,300.
cost of goods sold = $764,500.
inventory = $123,600.
Therefore:
How long does it take the firm to sell of it inventory.
Days available for sales in a year = 365
= 365 / ($764,500 / $123,600)
= 365 / 6.185
= 59.01 days
It would take the firm approximately 59 days to sell of it inventory.
Answer: C. Focused Cost Leadership
Explanation:
Focused cost leadership happens when a company tries to focus on one part of the market such that it is able to take advantages of the unique opportunities offered there to offer the lowest prices to that specific part of the market.
Sun County Airlines is focusing on leisure destinations and yet offering it at low cost. It is therefore trying to focus specifically on that market whilst offering the lowest price which makes this a focused cost leadership strategy.
