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zvonat [6]
2 years ago
9

How will the increase in government spending financed by borrowing affect national savings?.

Business
1 answer:
Whitepunk [10]2 years ago
8 0

Increament in government spending which is financed by borrowing will most likely affect national savings.

This is because borrowing money means you are spending from your future income.

The negative effect of spending borrowed money will most likely be felt when the money is not used for money yielding ventures.

This means that when borrowed money is not used to boost the economy of a country, it will most likely lead to the depletion of the national savings or reserve.

<h3>Viable areas to utilizing borrowed money</h3>

  • Infrastructure development
  • power
  • Education
  • Health
  • Transportation
  • Research

Learn more about National Savings at brainly.com/question/15109837

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Biloxi Gifts uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general jou
SpyIntel [72]

<u>Solution and Explanation:</u>

<u>The following journal entries are passed in the books of accounts.</u>

Purchase of merchandise on credit - no entry is to be passed

Contribution of automobile to the company:

Date           Details                      debit                 credit

12- nov     Automobiles          17000

                      TB Capital                                      17000

( To record contribution of automobile to the company)

Sale of merchandise on credit:

Not recorded in gernal journal

Return of merchandise sold:

Date           Details                                            debit                 credit

19- Nov       Sales return and allowances      175

                     accounts receivable - KM                                 175

3 0
3 years ago
Dave's Scooters is a small manufacturer of specialty scooters. The company employs 14 production workers and four administrative
katrin [286]

Answer:

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Explanation:

3 0
2 years ago
In tax year 2020, a married taxpayer with AGI of $300,000 had gross investment income of $6,150 (which included a long-term capi
Irina-Kira [14]

The amount of net investment income tax that the taxpayer is required to pay is $231.

<h3 />

<h3>What is net investment income tax?</h3>

Net Investment Income Tax are generally imposed by the Internal Revenue on entities' net investment income.

Net investment income tax = ($6,150 - $75) * 3.8%

Net investment income tax = $6,050 * 3.8%

Net investment income tax = $231

In conclusion, the amount of net investment income tax that the taxpayer is required to pay is $231.

Read more about income tax

<em>brainly.com/question/25257355</em>

8 0
1 year ago
If the United States could produce five televisions per hour of labor and China could produce three televisions per hour of labo
IRISSAK [1]

Answer:

US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.

Explanation:

Absolute Advantage is when a country can produce more output per input of a commodity, than other country.

Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)

China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.

However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.

7 0
2 years ago
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1
zepelin [54]

Answer:

These can be prepared as shown below:

Explanation:

1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.

To do this, the income statement is first prepared by ignoring tax as follows:

Fightin' Blue Hens Corporation

Income Statement

for the year ended December 31, 2018.

Details                                                                    $

Service Revenue                                           300,000

Salaries Expense                                         (200,000)

Rent Expense                                                  (10,000)

Depreciation Expense                                   (20,000)

Interest Expense                                           <u>   (3,000) </u>

Earnings for the year                                   <u>   67,000 </u>

Therefore, we have:

Fightin' Blue Hens Corporation

Statement of Stockholder Equity

for the year ends December 31, 2018

Details                                                                    $

Common stock                                               100,000

Retained Earnings                                           40,000

Earnings for the year                                    <u>   67,000</u>

Stockholder Equity                                      <u> 207,000 </u>

2. Prepare a classified balance sheet as of December 31, 2018.

A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:

Fightin' Blue Hens Corporation

Classified Balance Sheet

for the year ends December 31, 2018

Details                                                          $                   $

<u>Fixed Assets</u>

Equipment                                           200,000

Accumulated Depreciation              <u>   (115,000) </u>    

Net Fixed Assets                                                          85,000  

<u>Current Assets</u>

Cash                                                        10,000

Accounts Receivable                           130,000

Prepaid Rent                                            4,000

Supplies                                               <u>  20,000 </u>

Total current assets                             164,000

<u>Current Liabilities</u>

Accounts Payable                                (10,000)

Salaries Payable                                    (9,000)

Interest Payable                                   <u>  (3,000) </u>

Working capital                                                            142,000

<u>Long-term Liabilities</u>

Notes Payable (due in two years)                              <u> (20,000) </u>

Net Total Assets                                                         <u> 207,000</u>

Financed by:

Common stock                                                              100,000

Retained Earnings                                                          40,000

Earnings for the year                                                   <u>   67,000</u>

Stockholder Equity                                                      <u> 207,000 </u>

Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.

6 0
3 years ago
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