Which phrase describes the income effect?A. the effect of demand and supply on income earned by producers
B. the impact of price on consumers’ purchasing ability and decisions
C. the increased income earned by suppliers because of high prices
D. the impact of consumers’ income on the supply of a product

Answers

Answer 1

Answer:

Answer: b). the impact of price on consumers’ purchasing ability and decisions.

Explanation:

Effect of a change in the price of good can be decomposed into income effect and substitution effect. When the price of a good falls, the consumer has some extra money left after purchasing the original bundle of goods. So, with this extra money he can buy more of the goods he likes. This is called the income effect. So, we can say that the income effect studies the impact of a price change on consumers purchasing ability and decisions.

Answer 2

Answer:

b the correct answer is b

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Financial Ratios help to identify some of the financial strengths and weaknesses of a company. What are two ways that the ratios provide for making meaningful comparisons of a firm's financial data?a. Smoothing out differences when comparing firms that use different accounting practices and restating accounting data in relative terms.b. Identifying year over year changes in balance sheet and income statement items.c. Examining ratios across time to identify trends and comparing the firm's ratios with those of other firms.d. Determining how long it takes to collect the firm's receivables and how long it takes to pay it accounts payables.

Which of the following statements is true of the current ratio? The larger the current ratio, the harder it is for the firm to pay its short-term debts. A current ratio below 1.0 signifies a company's inability to pay its short-term liabilities with its current assets. Current ratio is classified under the leverage ratio. Current ratio is computed by dividing the firm's current liabilities by its current assets.

Answers

The correct answer is this one: " A current ratio below 1.0 signifies a company's inability to pay its short-term liabilities with its current assets." It is the statement that presents a true description about the current ratio. Current ratio refers to the liquidity ratio in which the ability of the company is measured as to how they be able to pay short-term and long-term obligations.

Q 13.18: Which of the following statements is correct? A : Service companies prepare budget data using an expected input approach while manufacturers prepare budget data using an expected output approach. B : The budgets of service companies are approved by voters. C : The production budget is derived from the direct materials and direct labor budget. D : In the budget process for not-for-profit organizations, the emphasis is on cash flow rather than on revenue and expenses.

Answers

Answer: The correct answer is " D: In the budget process for not-for-profit organizations, the emphasis is on cash flow rather than on revenue and expenses.".

Explanation: The statement "D : In the budget process for not-for-profit organizations, the emphasis is on cash flow rather than on revenue and expenses." is correct because, as they are nonprofit organizations, the goal is not to generate an economic benefit, therefore Focus is placed on cash flow to ensure that the organization will be able to meet its commitments and obligations.

Andrea started a taxi business by transferring her car, at a value of $5,000, into the business. What accounting entries are required to record this transaction?

Answers

To record Andrea transferring her car valued at $5,000 into her taxi business, you would typically make the following accounting entries:

Debit (Increase) the "Assets" account:
Debit "Taxi Car" or "Vehicle" account for $5,000.
Credit (Increase) the "Owner's Equity" or "Capital" account:
Credit "Owner's Equity" or "Capital" account for $5,000.
This entry reflects that the value of Andrea's car is now an asset of the taxi business, and her ownership stake in the business (equity or capital) has increased by the same amount. Please note that specific account names and details may vary depending on the accounting system and chart of accounts used by the business. It's advisable to consult with an accountant or use accounting software for precise record-keeping.

The most economical way to purchase large items, such as furniture, is to buy with___________?

Answers

I believe the answer is: Cash

A method is considered to be the most economical if it resulted in the least amount of monetary expense for the buyer.

When using other method (such as credit or debit card), we need to pay either additional interest payment or administration fees.

The most economical way to purchase large items, such as furniture, is to buy with cash

What is cash in in business?

Cash is the term used to describe the actual cash that a firm owns, including any bank accounts and notes and coins. Cash management is crucial since it enables a corporation to pay its bills. The two types of cash payments a firm often makes are to its suppliers and employees. Cash in the context of banking and finance refers to any assets that can be converted into cash within a year.

Potential investors may find useful information in a company's cash flow, which displays the net amount of cash a business has after accounting for both incoming and exiting cash and assets.

Learn more about cash at;

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If a deaf person goes to court, do they call it a hearing?

Answers

Probably. They call a hearing a hearing because the judge hears both sides of the story, not the victim/convict.

Suchta buys a motorcycle for $7810 and spends $1095 on its repairs. If she sells the scooter for $10,505, what is her gain percent?

Answers

Explanation:

To calculate Suchta's gain percentage from selling her motorcycle, you can use the following formula:

Gain Percentage

Selling Price

−

Total Cost

100

Gain Percentage=

Total Cost

Selling Price−Total Cost

×100

Where:

Selling Price is the price at which she sold the motorcycle.

Total Cost is the sum of the purchase price and repair cost.

Let's plug in the values:

Selling Price = $10,505

Total Cost = $7,810 (purchase price) + $1,095 (repair cost) = $8,905

Now, calculate the gain percentage:

Gain Percentage

505

−

905

100

600

905

100

≈

17.98

Gain Percentage=

8,905

10,505−8,905

×100=

8,905

1,600

×100≈17.98%

Suchta's gain percentage from selling her motorcycle is approximately 17.98%.

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