Answer:
Current Liability are those liability that are to be repaid within a short period of time, usually within a year. Example Accounts Payable.
Non Current Liability is that liability that is to be repaid in a long period of time, example Bonds Payable.
Notes Payable will be paid on 1 Aug 2021, which is 7 months after 31 Dec 2020 (within a year) and hence will be classified as Current Liability.
Interest Payable is also a current liability.
Correct Answer: Option #2
Notes Payable – Current Liability
Interest Payable – Current Liability
Explanation:
Answer: Axle has the better turnover for both years.
Explanation:
Accounts Receivable Turnover ratio is used to measure the amount of times in a year that a company is able to collect payment from it's Receivables.
A higher Accounts Receivable Turnover ratio indicates that the company is doing well in collecting their Receivables and as such are not trying down working capital because it is not be reinvested to put back into the business.
Axle had a Turnover ratio of 11 last year and a Turnover of 9.9 this year which is better than Betterman in both years. This means that Axle had the best Turnover for both years.
Answer:
The correct answer is a. an increase in the money supply lowers the equilibrium rate of interest.
Explanation:
The preference for liquidity is a recurring expression in the study of economics, especially important in Keynesian theory and which assumes that people consider it better to have their savings in liquid form, that is, as money.
This concept, very recurrent in macroeconomics, assumes the existence of an outstanding trend in human and rational behavior whereby individuals prefer to have their assets in an accessible and liquid way compared to other possibilities. Originally, the definition of liquidity preference was coined by Keynes when explaining the concept of monetary demand and its mode of action.
This theory suggests that there is a direct relationship between interest rates or rates and people's preferences in terms of liquidity, since both keeping money effectively and not doing so carry certain costs for them. In other words, saving money can translate into financial gain.
For Keynes, there were three reasons why the individuals who make up the money demand opt for liquidity and money: transactions, caution and speculation.
Answer: Charging one price at all times for all customers (D)
Explanation:
Price discrimination is a pricing strategy where identical or similar goods or services are sold at different prices by the same producer to the customers. In price discrimination, companies charge customer different prices based on the willingness and ability of the customers to pay.
This can be seen on cinemas as people are charged different prices and airline companies. In the question above, charging a lower price for children, matinees and people over 65years are price discrimination. For price discrimination not to exist, everyone must pay the same price for enjoying similar good or service.
