if in some year nominal GDP was $18 billion and the GDP deflator was 120 $15 billion will be the real GDP.
How would you work out genuine Gross domestic product utilizing Gross domestic product deflator and ostensible Gross domestic product?
By and large, computing genuine Gross domestic product is finished by partitioning ostensible Gross domestic product by the Gross domestic product deflator (R). For instance, on the off chance that an economy's costs have expanded by 1% since the base year, the collapsing number is 1.01. In the event that ostensible Gross domestic product was $1 million, genuine Gross domestic product is determined as $1,000,000/1.01, or $990,099.
What's the significance here on the off chance that the Gross domestic product deflator is 100 this year?
A Gross domestic product deflator of 79% implies that the total degree of costs diminished 21% from the base year to the ongoing year. At the point when the Gross domestic product deflator surpasses 100%, the cost level has expanded. The Gross domestic product deflator is like the purchaser cost record on the grounds that both measure the effect of cost changes.
Does Gross domestic product deflator gauge genuine Gross domestic product?
The Gross domestic product cost deflator assists with estimating the progressions in costs while contrasting ostensible with genuine Gross domestic product more than a few periods.
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An employee tells their employer how much income tax to withhold from their taxable wages by completing what form?.
Before a worker is entered into the payroll system for payment from an organization, they have to complete many forms regarding tax deductions and citizenship.
Some forms are updated annually because the federal agency starts with updated forms. Complete kind W-4 thus, your leader will withhold the proper federal taxation from your pay.
The W-4, additionally referred to as the employee's withholding allowance certificate tells employers what proportion of revenue enhancement to withhold from associate employees' pay.
As noted, the shape tells your leader what proportion of federal revenue enhancement to withhold from your payroll check.
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for which company can trend analysis be most useful? a banking company that recently changed its accounting practices, but not its business model a software company whose business model and accounting practices have remained stable over time a mining company that recently changed its business model, but not its accounting practices a retail company that recently changed its accounting practices and its business model
The target market is an example of a product or service’s potential customers. The ABC Company is not necessarily implying that the previous customers will not buy the plastic model cars in the new presentation.
If they change the packaging of their products to appeal to more discerning buyers. Instead, they are focusing on other consumer preferences.A community’s way of life is its culture. It includes the people’s dialect, worldviews, religious practises, customs, social mores, and other general traits.Different nations have various cultures.A company can provide relevant products and services by having a thorough understanding of the target market’s culture.A firm should endeavour to learn the culture of the people before growing abroad. A successful firm must provide goods and services that benefit customers. The Company will be able to avoid producing goods that are in opposition to the peoples’ way of life by having an understanding of culture.
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experts recommend that the incentive potential for outstanding performance compared to average performance should be:
Experts recommend that the incentive potential for outstanding performance compared to average performance should be three times that of average performance.
Employers can use incentives to recognize workers for their efforts while also increasing workplace motivation and productivity. Any program or award used in the workplace to promote employee performance and boost productivity is considered an employee incentive. Although rewards might be tangible items of value or material things, there are also many situations in which acts or intangible rewards are presented as rewards.
Average performers typically execute the tasks required of them at work and may think that is adequate. They don't frequently go above and beyond what their company expects of them, in contrast to high-performing employees.
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ariel is an acquisition and procurement specialist for the federal government. federal policies require at least three bids must be received from qualified suppliers and the lowest bid that meets specifications will be accepted. in this case, ariel is dealing with a(n)
In this case, ariel is dealing with a Programmed decision.
The essence of programmed judgments is repetitive and routine. That is, this sort of choice or response to a circumstance is typical and mostly automated inside the business.
Procedures, Policies, or Rules are commonly used to document programmed choices. Programmed decisions deal with somewhat routine issues. They're organized and repeated. Non-programmed decisions are concerned with one-of-a-kind decisions and odd challenges that are non-repetitive and ill-defined.
Examples of programmed choices include creating weekly work plans for part-time employees, making decisions about employees who are late for work, and replenishing office supplies.
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elect all that apply what are two main challenges that the bls faces when calculating the cpi? multiple select question. what price level to select for the base year. how to measure changes over time. what area of the country to include. which goods should be contained in the basket.
Two main challenges that the BLS faces when calculating the CPI is which goods should be contained in the basket, and how to measure changes over time.
Most CPI index series have a 1982 - 84 = 100 reference base.
By comparing the price of a set basket of commodities across time, the CPI calculates price changes. The basket is based on what a target population spent during a specific reference period. The index only reflects pure price because the basket contains goods with constant or equivalent quantity and quality.
The change in the basket's price reflects the rate of inflation experienced by consumers as a whole. The basket is a representation of consumer purchasing habits. In order to create a representative basket, the Bureau of Labor Statistics (BLS) in the US gathers the prices of about 94,000 products each month from a sample of commodities and services that was chosen scientifically.
The data is then weighted in accordance with consumer purchasing patterns taken from a second poll of roughly 36,000 people in a given year in order to ensure that price changes do not reflect advances in product quality.
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hershey corporation has assiduously expanded and extended its business by developing new products and increasing global reach, but it has done so in a very careful manner, avoiding undue risks and protecting its existing business operations. which typology by miles and snow does this illustrate?
Hershey corporation has assiduously expanded its business by developing new products and increasing global reach, but it has done so in a very careful manner. This illustrates Analyzer typology of miles and snow.
One of the most well-liked categorizations of business-level strategies is the Miles-Snow typology. 36 Miles and Snow examined the business strategies of hundreds of organizations across a range of industries from the early 1970s to the mid-1980s.
Analysts operate in dynamic and stable product-market environments. Analyzers function frequently and effectively in a stable domain by making use of a formal structure and processes. Although they are not frequently "first movers" in more dynamic fields, rivals are keenly scrutinized for novel ideas.
The ideas that seem to have promise are then swiftly adopted by analysts. Analyzers often have a modest fundamental product line, few associated product and/or market potential, and cost-effective technology for new and stable goods.
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10. which of the following is the best description of special damages? a. damages which are calculated as the difference between the value of a contract and the value (if any) of the defendant's performance of the contract. b. quality of life damages in a contract case. c. easily calculated documented damages in a tort case. d. damages which are calculated based on financial losses that are caused by the defendant's breach of contract.
The best description of special damages is easily calculated documented damages in a tort case.
What are special damages contract?Special damages, often known as "consequential damages," protect against any harm brought on by a contract breach due to unique or unforeseeable circumstances. These are actual losses brought on by the breach, though not immediately and directly.The compensation you receive for intangible losses resulting from an injury, such as pain and suffering and mental anguish, is known as general damages in a personal injury case. Special damages, in contrast, cover losses that are easier to quantify, such as medical costs and missed wages.A notification of unique circumstances impacting a contract may be given to a party. If he violates the contract in such circumstances, he is responsible for both ordinary and exceptional damages.To learn more about special damages contract refer to:
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due to a recession, expected inflation this year is only 4.75%. however, the inflation rate in year 2 and thereafter is expected to be constant at some level above 4.75%. assume that the expectations theory holds and the real risk-free rate (r*) is 3.5%. if the yield on 3-year treasury bonds equals the 1-year yield plus 1.0%, what inflation rate is expected after year 1? round your answer to two decimal places.
After the first year, inflation is predicted to reach 7%. if the 3-year Treasury bond yield is the same as the 1-year yield plus 1.0%.
The term "inflation" refers to a rise in prices, which over time results in a inflation loss of purchasing power. The average price increase of a basket of chosen goods and services over time can be used to determine the rate at which purchasing power is decreasing. A unit of currency now effectively has less purchasing power than it did inflation in earlier periods due to the increase in prices, which is frequently expressed as a percentage. Deflation, on the other hand, is Treasury bond characterized by a drop in prices and an increase in purchasing power.
Return on 3 year bond = Real Risk Free Rate + Inflation Premium + 1.50% Treasury bond (given)
= 3.50% + 4.75% + 1.50%
= 9.75%
Inflation Premium = Return on 3 year bond - Real risk Free return
= 9.75% - 3.50%
= 6.25%
Inflation Rate after year 1 = ((Inflation Premium*3 years) - year 1 inflation Rate) / 2
= ((6.25% * 3) - 4.75%) / 2
= (18.75% - 4.75%) / 2
= 14% / 2
= 7%
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a situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called
A situation whereby companies choose their best strategy given the strategies chosen by the other firms in the market is called 'nash equilibrium'.
A nash equilibrium refers to a situation in which each enterprise chooses the best strategy, given the strategies selected by other enterprises. It is a situation whereby pursuing dominant strategies causes noncooperation that leaves everyone worse off called a prisoner's dilemma. It means that an individual firm can receive no incremental benefit from changing actions, assuming other enterprises remain constant in their strategies.
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suppose the risk-free return is 4%. the beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%. based on jensen's measure of portfolio performance, you would calculate the return on the market portfolio as:
Market Portfolio Return= 11%
A market portfolio is a theoretical collection of investments that includes every asset type available in the investment universe, with each asset weighted in proportion to its overall market presence. The anticipated return for a market portfolio is the same as the anticipated return for the market as a whole.
Alpha = R – Rf – beta (Rm-Rf)
Where:
R denotes the market portfolio return.
Rf is the risk-free rate of return.
A portfolio's systematic risk is represented by beta.
Rm denotes the market return as measured by a benchmark.
0.01 = R - 0.04 - 1.2 (0.14-0.04)
0.01 = R - 0.1
market portfolio return R = 0.01+0.1
market portfolio return R = 0.11
Market Portfolio Return= 11%
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The complete question is:
Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as Multiple Choice
16%.
11%.
14%.
15%.
blanchard discusses a number of ways in which his organization seeks to inspire employees, including coaching them, gainsharing, allowing them to participate in decisions, and leaving them inspirational messages. what other behaviors are essential for strategic leaders today? check all that applyportment according to high ethical standardsimplementation of controls to monitor deviation from performance objectivesability to navigate a multicultural environmentdemonstration of a commitment to diversity and inclusion
Rules according to high ethical standards, implementation of controls to monitor deviation from performance objectives and demonstration of a commitment to diversity and inclusion are the other behaviours essential for strategic leaders.
Four leadership philosophies—direct, coach, support, and delegate—that are flexible to the full spectrum of an employee's developing behaviour are included in the situational leadership paradigm. They apply high ethical standards that are met with the team spirit. They also make sure that the team is focused and not deviated as well as they make commitments that are fulfilled by the team members so as to raise the business.
Paul Hersey and Ken Blanchard established the situational leadership approach where they stated that there isn't a single leadership approach that is effective in every circumstance.
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return on equity (roe) is: group of answer choices a financial metric. an economic metric. an operating metric. a market metric. none of these answers is correct.
Return on Equity (ROE) is a financial metric. Therefore option (a) 'financial metric' is the correct answer.
Return on equity (ROE) is a measure that provides investors with insight into how efficiently an organization handles the money contributed by shareholders. In other words, Return on Equity (ROE) is a financial metric that measures the profitability of the organization in relation to equity given by stockholders. The higher ROE means that the organization is more efficient in generating income and growth from its equity financing.
ROE is used to compare an organization to its competitors and the overall market within the same industry, since ROE provides an indication of which organizations are functioning with greater financial efficiency.
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What will your credit score NOT tell the bank?
A: If you are responsible with your money
B: Your available credit limit
C: If you pay bills on time
D: The specific things you purchase
The thing that your credit score will NOT tell the bank is: A: If you are responsible with your money.
What is credit score?Credit score can be defined as the score that help to show if a borrower will always pay the amount they borrowed from a lender on time.
A person with high credit score will have the tendency of paying back the amount loan to them on them compare to the person that have a low credit score. A high credit score can tend to give a borrower more advantage over someone with low credit score based on the fact that lender will loan the person because they knows that the person will payback the loan amount within a stipulated period of time.
Credit score can not tell the bank whether you are responsible with your money or not.
Therefore we can conclude that credit score help lender to know the credit worthiness of a borrower.
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Pretend the first quarter statistics of 2022 show the US economy has an increase in inflation of 8.4%. In the first quarter, GDP has increased by 4.2% annual rate, and the unemployment rate is falling and hit 3.5%. As an economic advisor to the Federal Reserve, what advice would you give to Jerome Powell with regards to the tools of monetary policy. Write a paragraph explaining your recommendations, describing how three of the four tools (your choice which ones you use) will work to change aggregate demand and affect the other economic indicators listed above. Be sure to describe what needs to be done with each tool and the outcome it will produce.
There are a few important economic elements that can affect aggregate demand. Decisions made by consumers and businesses will be impacted by rising or lowering interest rates. A rise in household wealth boosts overall demand, while a loss typically results in a decrease.
What aggregate demand impact to the economic indicators?There are a few significant economic elements that can impact aggregate demand. Consumer and corporate decisions will be impacted by rising or lowering interest rates. A rise in household wealth boosts overall demand, while a loss typically results in a decrease.
Therefore, The changes along the aggregate demand curve are mostly caused by price. The actual money supply shrinks as the price level rises, which forces an increase in interest rates.
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6. (2pts) apocalyptica corporation is expected to pay the following dividends over the next 4 years: $1, $2, $3, and $4. afterwards, the company pledges to maintain a constant 5% growth rate in dividends, forever. if the annual required return on the stock is 10%, what is the current share price?
The current share price is $30.66
Dividend for year 5 = $4 * 1.05 = 4.2
Value of dividend at the end of year 4 for 5th year & onward =Dividend for 5th year/(discount rate - growth rate)
= 4.2 / (0.15-0.05)
= $42
PV factor = 1 / 1.15^a
Where a = Year
PV of cash flow (d) = b*c
Where b = Cash flow
Share price = sum of all PV of cash flow (d)
Share price would be present value of annual dividend
A share price is the price of a single share of a company's saleable equity shares. In layman's terms, the share price is the highest amount of money someone is willing to pay for the stock, or the lowest amount for which it can be purchased.
Analysts in economics and financial theory use random walk techniques to model the behavior of asset prices. This is the assumption that investors act rationally and objectively, and that they value an asset based on future expectations. Under these conditions, all existing information influences the price, which only changes when new information becomes available.
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why does it make intuitive sense that the slope of the yield curve is considered a leading economic indicator
A yield curve is a line that shows the connection between the amount of interest a bond pays and when it matures. The line serves as a fantastic leading economic indicator because it predicts if a bond will have a favorable or negative impact on the economy.
Define a leading indicator.A leading indicator is a variable that alters before the economy experiences any cyclical changes. A piece of data or a group of facts related to the economy that may predict future movement or change in the economy is known as a leading indicator.
Future events and trends in business, markets, and the economy can be predicted and projected with the use of economic leading indicators. In other words, the lagging indicator only gauges the goal, whereas the leading indicator forecasts the possibility of reaching it.
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the outputs of which process include change request status updates, project management plan updates, and project document updates?
Updates to the project management plan, change request status, and project documents are among the outputs of the monitoring and controlling process.
What results do you get when you monitor and manage a project's work?Among the products of the Monitor and Control Project Work are some of the following: Requests for changes (including CAPA and defect repairs, CAPA – Correct and Preventive Actions) alterations to the project management plan. Revisions to the project's documents
What does the process group for monitoring and controlling mean?The procedures needed to monitor, evaluate, and control the project's performance, as well as to spot any areas where plan adjustments are necessary and start the necessary changes, make up the Monitoring and Controlling Process Group.
The performance of the project is continuously monitored, reviewed, adjusted, and reported. It's crucial to monitor a project's progress, determine whether it will be completed on schedule, and carry out agreed revisions. By doing this, the project is kept on schedule, under budget, and without delay.
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which of the following considerations is not a factor in deciding which forecasting model a firm should choose? multiple choice accuracy required data availability product analyst availability time horizon to forecast
When choosing a forecasting model, Option(b) product considerations should not be taken into account.
What are Products?The term "product" refers to anything you supply to customers to meet their needs or wants. They can either be physical or virtual. There are two types of physical products: durable goods (such as cars, furniture, and computers) and nondurable goods (such as food and beverages). A virtual product is a service or experience (such as education, software, or streaming services).
There are also hybrid products, which include both physical and virtual aspects (such as kitchen appliances with mobile apps). As traditional analog products incorporate digital technology as a means of reaching and serving consumers more effectively, hybrid products are becoming more common.
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what process involves deciding how to approach and plan the risk management activities for the project?
A risk management plan is the procedure' primary result. The process of identifying hazards is identifying the risks that are most likely to have an impact on a project and noting their specifics.
The process of identifying risk is identifying the risks that are most likely to have an impact on a project and noting their specifics. A risk registry, risk report, and project document updates are the process' primary outputs.
So in any business, risk management starts with 4 broader steps —
1. Identification of Risk
2. Risk Assessment
3. Risk Mitigation
4. Risk Control
You can approach or identify the risk with 2 options —
a. Brainstorming
b. SWOT
In a brainstorming session, you and the other team members sit down and discuss potential risks in order to come up with as many as you can. This choice will assist in considering the risk coming from various angles because numerous minds are involved.
SWOT — Strengths, Weakness, Opportunities & Threats
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firms can greatly increase the likelihood of success if they carefully define their objectives and develop a plan for meeting those objectives. this activity is referred to as
If strategic planning clearly defines its goals and creates a plan to achieve those goals, it can considerably boost the likelihood of success.
Leaders of a company develop their future vision and determine their organization's goals and objectives through the process of strategic planning. Establishing the order in which these objectives should be accomplished can help the organisation attain its stated vision.
Upper-level management of a corporation must put a lot of thinking and planning into the strategic planning process. Executives may look at a wide range of choices before deciding on a course of action and then figuring out how to strategically implement it.
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a company's balance sheet shows cash of $29,000, accounts receivable of $35,000, equipment of $60,000, and equity of $77,000. what is the amount of liabilities?
The amount of liabilities is $47,000 in the company's balance sheet.
What is a liability?A liability is described in financial accounting as the forfeitures of future economic benefits that an entity must make to other entities as a result of prior transactions or other prior events, the resolution of which may result in the transfer or use of assets, provision of services, or other future yielding of economic benefits. They typically consist of payables like wages, accounts, taxes, and accounts payable, unearned income from adjusting entries, portions of long-term bonds that must be repaid this year, and short-term obligations. Current liabilities are debts with a reasonable expectation that they will need to be paid off within the next year or operating cycle, whichever comes first, by using current assets, creating additional current liabilities, or providing services.
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A sales representative sells products from two competing companies without disclosing to either company. Which agent duty owed to a principal applies to this situation?.
A sales representative sells products from two competing companies without disclosing to either company. The correct answer is a conflict of interest.
A conflict of interest happens once somebody's or entity's unconditional interests raise a matter of whether or not their actions, judgment, and/or decision-making. A conflict of interest exists once 2 or additional contradictory interests relate to employee activity by a private or an establishment.
A conflict of interest arises once what's in a person's best interest isn't in another person's or organization's best interest.
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pierre martina is comparing the cost of credit to the cash price of an item. if pierre makes a $70 down payment and pays $34 a month for 24 months, how much more will that amount be than the cash price of $695?
The cash price is $191
Find how much she will be paying over the 24 months:
34(24)
= 816
Add the down payment to this:
816 + 70
= 886
Find the difference between this and 695:
886 - 695
= 191
So, the difference will be $191.
A home down payment is the part of a home's purchase charge that you pay in advance and does now not come from a mortgage lender thru a mortgage. Suppose you need to buy a house priced at $three hundred,000. In case you had been to position $nine,000 in the direction of the acquisition rate, or three percent down, you'll take out a loan for the remaining $291,000.
In case of cancellation of the contract, The consumer is entitled to a 50% refund of his total payments. If the buyer has paid five years or extra, the consumer is entitled to a boom of five% every 12 months and so on… however, the coins surrender cost shall now not exceed ninety% of his general bills.
While you put a down fee on a vehicle, the dealer is the only one who gets it. You will need to make your check out to them. Because the dealership gets your own price, you frequently are eligible for added incentives or discounts in case you pay a better quantity.
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in the study of cross-cultural data about the division of labor from 185 societies worldwide mentioned in chapter 9, there is no mention of group of answer choices household work. manual labor. trade and market activity.
'in the study of cross-cultural data about the division of labor from 185 societies worldwide is trade and market activity.
Market activity describes the consumption composition of a product in a particular region, taking into account trade between producers and consumers and, if necessary, product losses during the transportation of products.
Market activities focus on the function of consuming goods/products, while non-market activities focus on the production of goods/products. Market transactions may add or subtract values depending on individual sales volumes.
Market activity is the reward for those who perform their services. H. Activities performed for reward or profit. 1. Non-metallic activities are production for own consumption. 2. This includes the production of goods or services, including government services.
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Which of the following rain-related losses WOULD be covered under this renters insurance policy?
The statement of rain-related losses that WOULD be covered under this renters insurance policy is when your mattress is ruined because part of the apartment's roof blew off during a major rainstorm, creating a stream of water landing directly on your bed.
What is the renters insurance policy?Basically, the renters insurance is similar to the homeowners insurance but it is for people who rent or lease properties, such as houses and apartments. A renters insurance refers to an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property.
If we rent an apartment, home or even a dorm, the renters insurance are more recommended for protecting your space and belongings in the event of a covered accident. Therefore, the Option B is correct.
Missing options "a. Your laptop is ruined because you left your window open during a moderate rain shower b. Your mattress is ruined because part of the apartment's roof blew off during a major rainstorm, creating a stream of water landing directly on your bed C. Your carpet is ruined because your roommate negligently left her wet boots, umbrella, and raincoat sitting in a pile on the rug all afternoon D. You lose a day's wages because a horrible rainstorm makes it impossible to get to your job"
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true or false: thanks to the popular national flood insurance program, the economic impact of the 1997 red river of the north flood was greatly reduced.
It is true thanks to the popular national flood insurance program, the Asian financial crisis of 1997 red river of the north flood was greatly reduced.
What was Asian financial crisis?The Asian financial crisis, which began in July 1997 and affected most of East Asia and Southeast Asia, caused panic over the possibility of a global financial collapse. However, the rebound in 1998 and 1999 was swift, and concerns about a meltdown vanished. The Thai government was obliged to allow the Thai baht to float on July 2 as a result of a lack of foreign cash to support the baht's peg to the US dollar. This event is known in Thailand as the "Tom Yam Kung crisis" and marked the beginning of the global financial crisis. Almost immediately, there was a capital flight, which set off a global domino effect. Thailand was currently burdened with foreign debt.
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a(n) is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods. group of answer choices
An agent and broker is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange but does not take title to the goods.
What are agent and broker?Agents and brokers are described as the traders that conduct the trade of goods, or can associate with buying and selling processes. It is important to mention that agents and brokers form an important link in influencing a supplier, trading of products, and movement of goods.
The agents and the brokers do not possess the goods but act as an important intermediary who makes it easy to buy and sell. In other words, the agents and the brokers bring the sellers and the buyers together so that an effective negotiation process can be conducted.
It can be concluded that an agent and broker is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange but does not take title to the goods.
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beauty corp. is planning to add manufacturing capacity by installing new high-tech machines. the machines would increase revenues by $200,000 per year and increase costs by $50,000 per year. the new machines cost $560,000 and would fully depreciated at the time of purchase. investment in net working capital of $30,000 would be required at the time of installation. the firm is planning to keep the machines for 7 years and then sell them for $80,000. the firm has a required rate of return on investment projects of 13% and a marginal tax rate of 25%. what is the initial outlay in the year zero?
The initial outlay for the new high-tech machines Beauty Corp. plans to add to its manufacturing capacity is $450,000.
What is the initial outlay?The initial outlay is the initial investment required for a project.
The initial outlay can be computed by adding the cost of new machines to the operating expenses and subtracting tax reductions recorded in the year zero.
Depreciation in year 0 = $560,000
Marginal tax rate = 25%
Cost of new machines = $560,000
Net working capital = 30,000
Tax reduction in year 0 = (140,000) ($560,000 x 25%)
Initial outlay $450,000
Thus, Beauty Corp. will incur an initial outlay of $450,000 in year zero.
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all of the following are classified as fixed assets except question 9 options: a) computers held for resale. b) property. c) buildings. d) factory equipment. e) a company car.
A fixed asset is a phrase used in accounting to describe assets and property that may not be quickly changed into cash. Hence option A is correct .
What is Fixed Assets ?
It is also known as long-lived assets, property, plant, and equipment. Fixed assets are distinct from current assets, which include liquid assets like cash and bank accounts.
Land, machinery, vehicles, furniture, computer equipment, buildings, and other equipment are examples of fixed assets. Depending on how a corporation conducts business, fixed assets can vary.
A long-term, visible item of property or equipment that a company owns and utilizes in its operations to make money is referred to as a fixed asset. In general, fixed assets are thought to last for at least a year before being consumed, turned into cash, or both.
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mackenzie company sold $480 of merchandise to a customer who used a regional bank credit card. regional bank charges a 4.0% fee for sales on its credit cards. the journal entry to record this sales transaction would be:
If regional bank charges a 4.0% fee for sales on its credit cards. the journal entry to record this sales transaction would be: Debit Cash $460.80, Debit Credit Card Expense $$19.20, Credit Sales $480
How to prepare journal entry?If the company sold merchandise of the amount of $480 to customer in which the bank charges 4%. The appropriate journal entry to record this transaction is:
Debit Cash $460.80
Debit Credit Card Expense $$19.20
($480 × 4%)
Credit Sales $480
(To record credit card expense)
Therefore the entry is to debit cash, debit credit card and credit sales.
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