In a closed economy, there is no government:
yd
0
200
400
600
800
1000
c
100
260
420
580
740
900
1.what is the value of co and cm?
2.consumption function? saving function?
3.find the neutral point at which disposable income is equal to expenditure (c = yd)
Answers
The equilibrium GDP level (income) is 1500.
To estimate the equilibrium GDP level, we need to use the aggregate expenditure (AE) equation:
AE = C + I + G
where C is the consumption function, I is investment, and G is government expenditure.
Substituting the given values, we get:
AE = (50 + 0.80Yd) + 100 + 150
AE = 300 + 0.80Yd
Now, we need to determine the level of Yd at which AE is equal to Yd. This is the equilibrium GDP level. So, we can write:
AE = Yd
300 + 0.80Yd = Yd
0.20Yd = 300
Yd = 1500
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Full Question: C = 50 + 0.80Yd; C = consumption function; Yd = disposable income (Y-T)
T = 40; T = Tax revenue
I = 100; I = Investment
G = 150; G = Government expenditure
Yf = Full Employment
RGDP (Potential RGDP) = 2500
Estimate the equilibrium GDP level (income).
Related Questions
Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies.
Answers
There exists unfair pricing policy in a market which is not purely competitive, and the seller may have monopolistic advantage.
What is unfair pricing policy?Unfair pricing policy refers to charging different prices to different consumers for the exact product by a seller due to having a competitive advantage, leading to unfair trade.
Hence, the unfair pricing policy is as defined above.
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The atmospheric pressure at a place is 650 mm of Hg. Convert this pressure
into pascals (Pa). Given, density of Hg = 13,600 kgm.
Answers
Ans Solution
Explanation:
When can an organization share phi with others, according to professional judgment rights?.
Answers
An organization can share phi with others, according to professional judgment rights if HIPAA Privacy Rule specifically permits it.
What is HIPAA?The Health Insurance Portability and Accountability Act serves as the federal law that required the creation of national standards.
This standard help to protect sensitive patient health information from unauthorized access.
Therefore, information can only be shared if HIPAA Privacy Rule specifically permits it.
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A country has a trade deficit of $20 billion with its trading partners (
year. Which change would cause the country to have a trade surplus the
following year, assuming everything else remains the same?
A. The country increases its exports by $30 billion.
B. The country increases its imports by $30 billion.
C. The country decreases its exports by $10 billion.
D. The country decreases its imports by $10 billion.
Answers
D) The nation reduces its exports by $30 billion, the change would result in a trade deficit the following year for the country that had a trade surplus of $20 billion in one year.
When imports rise faster than exports, a trade deficit occurs. If the country increases its exports by $30 billion, decreases its imports by $10 billion, or increases its imports by $10 billion, it cannot have a trade deficit.
As a result, the country will only experience a trade deficit if its exports decrease by $30 billion while the rest of its exports remain unchanged.
With an example, what is a trade deficit?A country has a trade deficit when its imports exceed its exports over a given time period. A negative balance of trade (BOT) is another name for this situation. There are several ways to determine the balance, including: goods (also called " merchandise”), goods and services, and services and goods.
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Full Question = A country has a trade surplus of $20 billion with its trading partners over a
year. Which change would cause the country to have a trade deficit the
following year, assuming everything else remains the same?
A. The country increases its exports by $30 billion.
B. The country decreases its imports by $10 billion.
O C. The country increases its imports by $10 billion.
O D. The country decreases its exports by $30 billion.
What is a benefit of investing in a certificate of deposit?
Answers
A benefit of investing in a certificate of deposit is that "You earn more interest than you would use a savings account." Option C
This is further explained below.
What is a savings account.?Generally, Visiting a branch of a bank with a form of identification authorized by the government, as well as any cash or cheques that you desire to deposit, will allow you to start a savings account.
You will also be required to provide a social security number or taxpayer identification number in addition to your address and other contact details. You can be required to establish a savings account in addition to a checking account, and the savings account might have a lower minimum deposit requirement than the checking account. Additionally, you may start a savings account with an internet bank if you so want.
Higher Interest Rates, When compared to savings accounts and money market accounts, certificates of deposit (CDs) have the potential to give greater interest rates on deposits.
This is due to the fact that you make a commitment to keep your money invested in the CD for a certain amount of time.
The annual percentage yield (APY) and the interest rate offered by the bank, as well as the length of time the certificate of deposit is held, as well as the general interest rate climate all, have a role in determining how much money you
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what is marketing management?why is it important?
Answers
Its help to stand competent in highly thriving competition in the market.
Answer:
Marketing management is especially important for smaller businesses because it gives them a level footing to complete with larger players in the field.Thorough customer research,creative campaigns and marketing strategies and positive branding can go a long way in providing a brand with an edge over its competition.
Explanation:
hope it helps you
The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
Answers
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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which wheel settings change when you mount the subframe incorrectly in the transverse direction? Check all that apply
TOE
CAMBER
STEERING AXIS INCLINATION (SAI)
CASTER
Answers
The wheel settings that change when you mount the subframe incorrectly in the transverse direction is "CASTER" (Option D)
What is Caster?Caster is the process of aligning a wheel with the direction of travel, which can be performed by caster displacement or caster angle. As with the front wheels of a shopping cart, caster displacement shifts the steering axis forward of the axis of wheel rotation. The steering axis is moved away from the vertical by the caster angle.
The caster angle, also known as the castor angle, is the angular displacement of the steering axis from the vertical axis of a steered wheel of a car, motorbike, bicycle, another vehicle, or watercraft as seen from the side.
Positive caster enhances the responsiveness of your vehicle while negotiating bends and the stability of your car when going at greater speeds. The sole disadvantage of a positive caster is that it increases the amount of effort required to steer your car.
Turning plates and a digital or bubble camber/caster gauge are the two most common methods for measuring caster angles. Measuring the upper and lower wishbone mounting points or the MacPherson strut angle.
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DONT mess with my stuff
Answers
Answer:
yeah i wont lol
why does the indian government want to phase out fossil fuel cars and replace them with e-cars? why is maruti reluctant to immediately forge ahead in the e-car segment?
Answers
With the developing populace and the volume of pollutants growing within side the united states that in the long run ends in the depletion of fossil fuels.
The required details for fossil fuels in given paragraph
The united states has determined to shift its method in the direction of the commercial thing of the producing of vehicles within side the united states. As we're transferring in the direction of a time of whole digitalization, the electrical vehicles or the EV's is the sunrise od=f a brand new era. One of the primary motives why the Indian Government desires to section out and input the marketplace of Electric Cars is the exponential increase of electrical cars within side the international marketplace. In 2017, the shipping minister of the united states claimed that India might be running on 100% electric powered vehicles within side the 12 months 2030. But that quantity got here right all the way down to 30% because the hazard of dropping jobs and a primary pushback to the enterprise turned into visible throughout this period.
When first global international locations like France and the United Kingdom are hoping to conform this era absolutely in 2040, lndia intends to turn out to be the worldwide hub for the producing of electrical cars.
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A person's debt-to-income ratio describes:
O A. how often the person's credit score changes based on increasing
levels of debt.
B. how much money a person can borrow from a bank at any given
time.
O c. how frequently a person has to make payments on a significant
debt.
O D. how much the person has borrowed compared to how much he or
she earns.
Answers
Answer:
O D. how much the person has borrowed compared to how much he or
she earns
Explanation:
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. ... If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent.
A person's debt-to-income ratio describes how much the person has borrowed compared to how much he or she earns. Thus, the correct answer is option D.
What is debt-to-income ratio ?Lenders use the debt-to-income (DTI) ratio to determine your borrowing risk. It is the percentage of your gross monthly income that goes toward paying your monthly debt payments.
Divide all monthly debt payments by gross monthly income to get the debt-to-income ratio. This is how lenders assess our ability to manage monthly payments in order to repay the money we intend to borrow.
A DTI of 43% is typically the highest ratio a borrower can have while still qualifying for a mortgage, but lenders prefer ratios no higher than 36%. A low DTI ratio indicates adequate income relative to debt servicing, making a borrower more appealing.
Therefore, option D is correct.
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If an error is found when posting to the ledger, how would it be corrected?
Answers
Most time, when an error is found when posting to the ledger, it would be corrected by reversing the incorrect entry and use a second journal entry to record the transaction correctly,
What is a ledger error?In a ledger, the error can be called a wrong posting may be in the forms of posting a wrong amount to a ledger account or posting to the wrong side of an account or double posting.
All these type of errors affect mostly only one side of ledger accounts and they are mostly revealed by the trial balance through disagreement of debit and credit totals.
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1.05 the market place economic
Answers
A market economy serves as an economic system in which economic activities is been controlled by individuals.
What is market economy?market economy serves as the economy that that gives country's individual citizens and businesses to be able to make decisions .
This decision could be pricing of goods and services which are been controlled by the interactions of a country's individual citizens.
COMPLETE QUESTION:
Explain market place economy
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Match the product examples with the type of product classification.
Answers
The product examples with the type of product classification are shoes, car, iphone, milk.
What is product classification?Product classification is the process of grouping products into distinct categories based on similar characteristics. It is a way to organize products into helpful and meaningful groups to make it easier for customers to find what they are looking for. The categories can be based on product type, purpose, or even pricing. It is important for businesses to classify their products properly in order to make it easier for their customers to find what they are looking for, as well as to make sure they are not missing any potential customers by leaving out a product category. Additionally, product classification can also be used to gain insight into customer behavior and preferences so that businesses can better tailor their product offerings to meet customer needs.
1. Shoes - Consumer Goods
2. Car - Durable Goods
3. iPhone - Consumer Electronics
4. Milk - Fast-Moving Consumer Goods (FMCG)
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Tyson is researching the benefits of solar energy. Which is the most credible source on his list? a blog about whether solar energy is more effective than other forms of energy a university’s website that provides information about a recent solar energy study a company’s website that sells solar energy panels to the general public a blog that provides information about ways solar panels can help people cut energy costs.
Answers
The most credible source on Tyson's list of his research into the benefits of solar energy is a university website that provides information on a recent study of solar energy.
When conducting a research, it is essential to research reliable sources, as there is a lot of information available on the internet that is often not complete or true.
A recent study of solar energy available on a university website is therefore the most trusted source on Tyson's list, as academic studies are based on scientific methods to substantiate a topic.
Therefore, through the scientific methodology there is the reliability of the study having been carried out through rigorous procedures, research and evidence to support what is being proposed by the theme.
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B: a university's website that provides information about a recent solar energy study
An electronic banking outlet that enables customers to use a card to
withdraw money is called a(n):
A. debit card cashier.
B. money market.
C. certificate of deposit.
D. automated teller machine.
Answers
Answer:
D) automated teller machine
do you mind marking me as brainliest?
Answer:D
Explanation: just got it right
Review A Company/Institution Of Your Choosing
1) Identify An Example Of (a) Risk Transfer, (b) Risk Avoidance,
(c) Risk Mitigation, And (d) Risk Acceptance.
2) Describe And Explain Each Example.
____
Answers
Surely, I will help you with your question. To review a company/institution of your choice and identify an example of risk transfer, risk avoidance, risk mitigation, and risk acceptance, as well as describe and explain each example:Risk Transfer:
It is defined as the process of passing on risks from one party to another. Insurance companies handle most of the risk transfers. It is a wise business practice to insure against risks, such as lawsuits or natural disasters. A business that provides its employees with health insurance can also be considered to be transferring the risks of a worker becoming sick or injured from the employee to the insurance company.Example: A company may buy an insurance policy that covers them against all losses that may be incurred during a natural disaster such as floods, hurricanes, or other natural calamities.Risk Avoidance:Risk avoidance is the process of entirely avoiding the risk. It can be done by refusing to engage in activities or events that present risks.Example: A financial institution may refuse to offer loans to individuals or companies with a history of defaults to avoid the risk of losing money or having to resort to court to recover funds.Risk Mitigation:Risk mitigation is the process of reducing the probability or severity of risks, such as taking proactive measures to reduce losses.Example: An automotive company can use manufacturing materials that are less prone to rust to avoid the risk of accidents and unnecessary fatalities. The company may also use high-quality materials to mitigate the possibility of defects.Risk Acceptance:It is defined as the process of taking on the risk rather than avoiding it or transferring it. When the possibility of the event occurring is less likely, and the damage is small, risk acceptance is commonly used.Example: A company may choose not to insure against a risk that is unlikely to occur or has minor consequences if it does occur, such as a client suing the firm for a small amount of money.Explanation:Risk transfer is a process where the risk is transferred from one party to another, for example, insurance. Risk avoidance is the process of entirely avoiding risk. Risk mitigation is the process of reducing the probability or severity of risk, for instance, taking proactive measures to reduce losses. Risk acceptance is the process of taking on the risk rather than avoiding it or transferring it.
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Choose the correct terms to complete the sentence.
Larry owns his own gym. He is the only owner. His liability is 1.______
a. unlimited
b. partnership
c. limited
d. undetermined
and he runs a 2._____
a. public company
b. sole proprietorship
c. partnership
Neville is the CEO and shareholder of a company that sells household cleaning products. The company has 75 shareholders and is not
traded on a stock exchange. Neville's company is a 3._____
a. sole proprietorship
b. partnership
c. public company
d. private-limited company
and his liability is 4.______
a. limited
b. unlimited
c. undetermined
Answers
Answer:
unlimited
sole proprietorship
private-limited company
limited
Explanation:
Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year
5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years?
a $396,038.65
b$427,354.28
c $407,836.29
d $377,238.57
Answers
Answer:
D
Explanation:
The remaining balance on a 20-year 5/1 ARM at 3.5% interest with a 2/7 cap structure after 5 years will be $377,238.57.
Pro life tip: Do NOT finance your home with an ARM mortgage.
Good luck in your studies!
Expand Your Critical Thinking 13-3 (Part Level Submission) The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Suppose selected data from recent consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions) Coca- Cola Total current assets Total current liabilities Net sales Cost of goods sold Net income Average (net) accounts receivable for the year Average inventories for the year Average total assets Average common stockholders' equity Average current liabilities Average total liabilities Total assets Total liabilities Income taxes Interest expense Net cash provided by operating activities Capital expenditures PepsiCo $17,551$12,571 8,756 43,232 20,099 5,946 4,654 2,570 37,921 14,556 8,772 23,466 39,848 23,044 2,100 397 6,796 2,128 2,732 13,721 30,990 11,088 6,824 3,424 2,271 44,595 22,636 13,355 21,960 48,671 23,872 2,040 355 8,186 1,993 3,800 ash dividends
Answers
An asset is considered a resource of the business that has an economic value in the future to the business which helps business activities to take place smoothly.
The Calculation for a current ratio
1. Current ratio = total current assets ÷ total current liabilities
Coca-cola: = $17,551 ÷ 13,721
= 1.28
Pepsi : = $12,571 ÷ $8,756
= 1.44
2. calculation for Accounts receivable turnover = Net sales ÷ average (net) accounts receivable
Coca-cola: = $30,990 ÷ $3,424
= 9.1
Pepsi : = $43,232 ÷ $4,654
= 9.3
3. calculation for Average collection period = (Accounts Receivable ÷ Net sales ) x 365 days
coca-cola: = ($3,424 ÷ 30,990) x 365 days
=40.3 days
Pepsi: = ($4,654 ÷ $43,232) x 365 days
= 39.3 days
4. calculation for Inventory turnover times = Sales ÷ Inventory
Coca-cola: =$30,990 ÷ $2,271
=13.6
For Pepsi: = $43,232 ÷ $2,570
=16.8
5. Calculation for Days in inventory days = (Average Inventory ÷ Cost of sales) x 365 days
Coca-cola: = ($2,271 ÷ $11,088 ) x365 days
=74.8 days
For Pepsi: = ($2,570 ÷ $20,099 ) x365 days
=46.7days
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The complete question is probably
The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Suppose selected data from recent consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions).
Coca-Cola PepsiCo
Total current assets $17,551 $12,571
Total current liabilities 13,721 8,756
Net sales 30,990 43,232
Cost of goods sold 11,088 20,099
Net income 6,824 5,946
Average (net) accounts
receivable for the year 3,424 4,654
Average inventories
for the year 2,271 2,570
Average total assets 44,595 37,921
Average common
stockholders’ equity 22,636 14,556
Average current liabilities 13,355 8,772
Average total liabilities 21,960 23,466
Total assets 48,671 39,848
Total liabilities 23,872 23,044
Income taxes 2,040 2,100
Interest expense 355 397
Net cash provided by
operating activities 8,186 6,796
Capital expenditures 1,993 2,128
Cash dividends 3,800 2,732
Collapse question part
(a1)
Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1.)
Coca-Cola PepsiCo
(1) Current ratio : 1 : 1
(2) Accounts receivable turnover times times
(3) Average collection period days days
(4) Inventory turnover times times
(5) Days in inventory days days
A bank that cannot meet its loan commitments is experiencing the results of:
a. interest rate risk.
b. credit risk.
c. trading risk.
d. liquidity risk.
Answers
A bank that cannot meet its loan commitments is experiencing the results of liquidity risk. Thus, the correct answer is option d.
Liquidity risk refers to the risk of a bank not being able to meet its short-term obligations, such as deposit withdrawals or loan payments, due to a lack of cash or liquid assets. Banks must maintain an adequate level of liquidity to ensure that they can meet these obligations and avoid a potential run on the bank, which could have severe consequences for the bank and the broader financial system. Managing liquidity risk is therefore a critical aspect of bank management, and involves a range of strategies and tools, such as maintaining a buffer of liquid assets, managing the maturity structure of assets and liabilities, and establishing access to emergency sources of funding.
Therefore, the correct answer is option d.
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Deciding to do the right or wrong thing is based on making what type of decision?
ethical
business ethics
unethical
a code
Answers
Answer:
ethical
Explanation:
Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
per month for 6 months and the remaining balance in month 7. How much will Linda pay back in 6 months, and
what will the amount of her final payment be?
HELP PLEASE
Answers
Answer:
In six months, Linda will pay : $480
Final payments :$819
Explanation:
The monthly payments are $80 for six months.
For six months, Linda will have paid $80 times six months
=$80 x 6
=$480
The amount for her final payments will be the total of the two items minus the installment payments
=$1,299 - $480
=$819
How can you stop
yourself from interrupting others ( 3-5 sentences)
Answers
Explanation:
Non verbal cues are crucial in indicating that another person is metaphorically punctuating their sentences and waiting for a response. This may include their voice pitching down or a small shrug to indicate they are finished their point and you may talk. Additionally, before speaking, a small pause is beneficial in allowing buffer time for the other party to speak.
Mario worked 48 hours during the work week. He earns wages of $18 per hour for straight time (40 hours). The company pays time-and-half for overtime. Mario's gross pay is $864. T/F
Answers
The statement that Mario's gross pay is $864 is false. Based on the information provided, Mario's calculated gross pay is $936, which is higher than the given amount. This indicates an error or discrepancy in the statement.
To determine if the statement is true or false, we need to calculate Mario's gross pay based on the given information. Mario worked 48 hours in total, which means he worked 8 hours of overtime (48 - 40).
For the straight time (40 hours), Mario earns $18 per hour. So, his straight time earnings would be:
Straight time earnings = 40 hours * $18/hour = $720
For the overtime (8 hours), Mario earns time-and-a-half, which means he would earn 1.5 times his regular hourly rate of $18. So, his overtime earnings would be:
Overtime earnings = 8 hours * $18/hour * 1.5 = $216
To calculate Mario's gross pay, we add his straight time earnings and overtime earnings:
Gross pay = Straight time earnings + Overtime earnings
Gross pay = $720 + $216 = $936
Since the given gross pay is stated as $864, which is lower than the calculated gross pay of $936, the statement is false.
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Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to 599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit .................... $12.50 $3.20 $6.40
(c) Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.)
Answers
The total cost accounted for is 599780.
What is Cost reconciliation ?
Cost Conciliation is the process of checking records to ensure that the design's charges match ongoing exertion in the design.Generally, the records are checked using three- way matching which is a payment verification fashion to ensure that the contractor's costs are valid.Reconciliation of Cost and Financial Accounts is a process to find all the reasons behind disagreement in profit which is calculated as per cost accounts and as per fiscal accounts. There are lots of particulars which are shown in the profit and loss regard only when we make it as per fiscal account rules. Bank conciliation is important because it helps associations identify possible crimes in deals that lead to a difference between the account records and the bank statement.Here,
Total cost of beginning work in process and cost added = 599780
Cost accounted as = 0
Cost of units transferred out = 552500
Cost of ending work in process = 47280
So, Total cost accounted as = 599780
Thus, The total cost accounted for is 599780.
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true or false? common uses for active lists include sending unique marketing emails based on each contact's behavior and properties.
Answers
Common uses for active lists include sending unique marketing emails based on each contact's behavior and properties. true
E-mail (e-mail or electronic mail) is a way of replacing messages ("mail") between human beings through the use of electronic gadgets. The e-mail turned into for this reason conceived as the electronic (virtual) model of, or counterpart to, mail, at a time when "mail" meant only bodily mail (for this reason e- + mail). An email later became a ubiquitous (very extensively used) conversation medium, to the factor that during present-day use, an e-mail address is frequently handled as a simple and necessary part of many approaches in business, trade, government, training, leisure, and other spheres of daily life in maximum countries. E-mail is the medium, and each message sent therewith is known as an e-mail (mass/depending on the distinction).
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Which completes the equation?
O + A + Consideration (+______) = K
Legal capability
Legal capacity
Legal corporations
Legal injunction
Answers
"Legal capacity" is the final term that completes the equation.
What is the full legal age?What a person is legally capable of doing depends on the rules and regulations of the legal system. It is a fiction with no underlying reality that every legal system uses to establish a relationship with its constituents.
What does the legal competence to contract mean?A party has the legal authority to enter into a contract if they have the capacity to do so. Capability also implies that a person must be legally competent. A person's ability is determined by two factors: whether they are of legal age to enter into contracts and if they are mentally able to do so.
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Blank______ constrain a firm's ability to export its products by raising the price of the exported product, which could put the firm at a competitive disadvantage with domestic firms in that country. Multiple choice question
Answers
when an owner invests cash in a business, the owner’s capital account is
Answers
Option c: increased by a credit. When the owner invests cash in a business, the owner's capital account will be increased by a credit.
Capital is the financial resources (money and other assets) that a business owner uses to fund a business and generate profits. Consists of cash, equipment, bonds, land or buildings.
Capital can also represent a company's accumulated wealth or an owner's investment in the company. Basically, it's how much a business owner has at a given point in time.
When you start a business and want to get a bank loan, the bank wants to know that you have invested in the business.
If the owner is not involved in the transaction, he can walk away, take the bag and leave the bank.
If you want to start a business, you have to start investing. You may need to take out a personal loan to get the funds to invest in your business.
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Complete question:
When the owner invests cash in a business, the owner's capital account is ____.
A. increased by a debit
B decreased by a debit
C. increased by a credit
D. decreased by a credit