Answer:
d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.
Explanation:
As for the information provided,
There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.
Thus, on the provisional basis such claims of $100,000 would have been provided ideally.
Now, after final judgement the court had cleared about the claim which is $150,000.
Thus, entry to record such claim of $150,000 will be:
Expenses A/c Dr. $50,000
Claims Payable A/c Dr. $100,000
To Cash A/c $150,000
The city bus system charges lower fares to senior citizens than to other passengers. Assuming that this pricing strategy increases the profits of the bus system, we can conclude that senior citizens must have a(n) <u>More elastic Demand </u>for bus service than other passengers.
Explanation:
Elasticity of demand defines relationship between the change in price and the purchases made by the consumer .
In case with the increase or decrease of the price the purchasing habit of the consumer remains the same then we say that the good has inelastic demand .
In case the consumer changes its purchasing habits with the change in price of the product or service then we say that the good /service has elastic demand.
In the question we can see that the bus service provider have changed the price of the tickets(reduce the price of the ticket) for senior citizens ,so we can say that the with the change in the price of the tickets the demand for the tickets by senior citizen must have increased .<u>Hence it is a example of Elastic demand.</u>
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Answer:
The correct answer is -3.963%.
Explanation:
According to the scenario, the given data are as follows:
Interest rate = 7.85%
Rate of inflation = 12.3%
So, we can calculate the real interest rate by using the following method:
Real interest rate =[ (1 + Interest rate) ÷ ( 1 + inflation rate) ] - 1
By putting the value, we get,
Real interest rate =[ (1 + 0.0785) ÷ ( 1 + 0.123) ] - 1
= -3.963%
So, the purchasing power of your savings decreased by 3.963%.
Themes were money and how it effected the teens
Answer:
I would Like to receive $100 in one month rather in two months.
I would like to take to take dinner in one month rather in two months.
Explanation:
Time value of money money describes that the amount now in hand is worth more rather having it after some time. All the money have potential earning capacity and it earn with the passage of time as time gone the earning will also lost. That is why it is better to receive money in one month rather in two months and have dinner in one month rather in two months.
