Answer:
Explanation:
1. Assuming an economy is experiencing a sharp and prolonged inflationary trend, I'll recommend the following changes:
a. Reserve ratio: I will increase the reserve ratio.
b. Discount rate: I will increase the discount rate.
c. Open market operations: I will recommend tightening the money supply through the selling of more government bonds.
2a. The reserve requirement is the central bank regulation which sets the minimum amount of reserves which must be held by a commercial bank. An increase in the reserve ratio will lead to less money in circulation.
b. the money supply: Thhe money supply will contract i.e tighten
c. Interest rates: Interest rates will rise leading to an increase in the investments which keeps money out of circulation and also lead to a decrease in inflation rates.
d. Aggregate demand. Aggregate demand would reduce, and this would lead to a reduction in inflation.
Answer:
Explanation:
The journal entries are shown below:
On May 2:
Purchase A/c Dr $4,200
To Accounts Payable A/c $4,200
(Being purchase is made on credit)
On May 3:
Freight Inward A.c Dr $290
To Cash A/c $290
(Being freight expenses are paid in cash)
On May 5:
Accounts payable A/c Dr $350
To Purchase return $350
(Being purchase return is recorded)
On May 10:
Accounts payable A/c Dr $3,850
To Cash A/c $3,773
To Discount $77
(Being full amount is paid and the remaining balance is credited to the cash account)
The discount is computed below:
= (Purchase - purchase return) × discount rate
= ($4,200 - $350) × 2%
= $3,850 × 2%
= $77
On May 30:
Accounts receivable A/c Dr $4,900
To Sales revenue $4,900
(Being sales is recorded)
Answer: d. $45,000 should be debited to Land Improvements.
Explanation:
Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.
The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:
= 30,000 + 15,000
= $45,000
Answer: C.) jargon
Explanation: Based on differing fields, profession or line of expertise, some words or terms are usually reserved to connote a special relevance or usage within such field. In many cases, these words are usually popular only within the circle of such profession and usage is usually rampant within professionals or individuals in such field. Such terms which are usually specific to a profession or field and may be difficult for those outside the profession to understand are called JARGON. In the context above, Alimony is usually used within the legal setting to mean a husband's provision package to his spouse after separation.
Answer: Debit to Product Warranty Payable
Explanation: Product Warranty Payable is a liability account that has a credit balance. To increase a liability a credit is recorded while to reduce a liability a debit is recorded to the liability.
The seller maintains the warranty as a liability and initially records a debit to its product warranty expense and a credit to its product warranty Payable.
When a repair is done on a product under warranty, the seller records a debit to the product warranty Payable to reduce it’s liability.
Also, a debit to either supplies or cash will increase the expense and assets accounts respectively which will amount to incorrect journal entries.
