The government is proposing expanding the number of
swimming pools across the state. This expansion will require
government purchases of approximately 1,000,000 tons of
concrete. This purchase will effect the price of concrete,
raising it from $5 per ton to $6 per ton. The government
economists have estimated the cost of concrete purchased for
the program to be $6,000,000—the total tons of purchased
concrete multiplied by the cost per ton. Would you agree with
this estimate as the best reflection of the social opportunity
cost of purchasing the concrete? Why or why not (explain your
answer)? If no, what would be your estimate of the social
opportunity cost of this purchase?

Answers

Answer 1

The government's estimate of the cost of concrete purchased for $6,000,000 may not be the best reflection of the social opportunity cost of purchasing the concrete as it does not account for additional cost due to price rise.

The  total social opportunity cost of the government's purchase would be $7,000,000.

The government's estimate of the cost of concrete purchased for the program is $6,000,000. This is calculated by multiplying the total tons of purchased concrete (1,000,000 tons) by the cost per ton after the price increase ($6 per ton). However, this estimate may not be the best reflection of the social opportunity cost of purchasing the concrete.

The social opportunity cost of a purchase is the value of the next-best alternative use of the resources being used for the purchase. In this case, it would involve considering the potential uses of the concrete and the resources required for those uses if the government were not to purchase the concrete for the swimming pool expansion program.

To calculate the social opportunity cost, we need to take into account the price increase of concrete due to the government's purchase. The price of concrete rises from $5 to $6 per ton, which means there is an additional cost of $1 per ton.

The total additional cost due to the price increase is 1,000,000 tons * $1 per ton = $1,000,000.

Therefore, the social opportunity cost of the government's purchase is not just the $6,000,000 estimated cost of the concrete but also includes the additional cost due to the price increase. The total social opportunity cost of the government's purchase would be $6,000,000 + $1,000,000 = $7,000,000.

In conclusion, the best reflection of the social opportunity cost of purchasing the concrete for the swimming pool expansion program is $7,000,000, which includes both the cost of the concrete itself and the additional cost due to the price increase.

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Related Questions

Question 1 (1 point) Assume Q, represents the quantity supplied at a given price and Q, represents quantity demanded at the same given price. Which of the following market conditions produces an upward movement of the price? a. Qₛ = 750, Q = 750 b. Qₛ = 1,000, Qd = 750 c. Qₛ = 1,000, Qd = 1,000 d. Qₛ = 750, Qd = 1,000

Answers

When Q represents the quantity supplied at a given price and Q represents quantity demanded at the same given price, the following market conditions produces an upward movement of the price is d. Qₛ = 750, Qd = 1,000.

Market equilibrium occurs when the quantity supplied is equal to the quantity demanded at a particular price. Any imbalance between the two will lead to a movement in the price. An upward movement in the price occurs when quantity demanded exceeds the quantity supplied.

In this scenario, there is excess demand for the product, which creates a shortage in the market. The shortage signals to producers that they can increase the price of the product to capture more profit. As the price increases, the quantity supplied also increases, and the quantity demanded decreases, moving the market towards equilibrium.

The increased price encourages producers to increase their output, while at the same time, it discourages buyers from purchasing the product. As a result, the market moves towards a new equilibrium point where the quantity supplied and quantity demanded are equal at a higher price. In conclusion, an upward movement in the price occurs when quantity demanded exceeds the quantity supplied, leading to a shortage in the market. So therefore the correct answer is D. Qₛ = 750 and Qd = 1,000.

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market supply is the:a tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the supply

Answers

Market supply refers to the total amount of goods and services that producers are willing and able to offer at various prices in a given market or during a specific period.

It's calculated by adding up all of the individual supplies of each supplier. The supply of a commodity is the amount of the good or service that producers are willing and able to sell at various prices, ceteris paribus, over a given period of time. At higher prices, suppliers are more willing to provide more, and at lower prices, they are less willing to provide more.

Producers' willingness to produce is influenced by many factors, including the cost of production, technology, input prices, and government policies. A higher price may cause existing producers to increase production, but it may also encourage new producers to enter the market. On the other hand, a lower price may cause some producers to leave the market, resulting in a decrease in supply. As a result, the supply curve is upward-sloping, indicating that as the price rises, the quantity supplied rises.

In conclusion, the market supply is the total amount of goods and services that producers are willing and able to provide at various prices in a particular market. The supply curve is a graphical representation of the relationship between price and quantity supplied.

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which of the following statements is true about the effectiveness of od? multiple choice managers should engage in organizational change for the sake of change to keep ideas fresh. positive results of change are more likely when using multiple interventions and receiving support from management. od is more likely to succeed when top managers get out of the way and let middle-level managers lead the process. change programs are more successful when they are oriented toward achieving quick short-term results only.

Answers

The true statement about the effectiveness of OD (Organizational Development) is that positive results of change are more likely when using multiple interventions and receiving support from management. Option B is correct.

It is important for managers to engage in organizational change with a purpose and clear objectives rather than simply changing for the sake of it. Also, top managers play a crucial role in supporting the change process, but it is equally important to involve middle-level managers who have a deeper understanding of the organization's operational issues.

Change programs should be oriented toward achieving both quick short-term results and long-term sustainable changes. Therefore, statement B is correct.

which of the following statements is true about the effectiveness of od? multiple choice

A. managers should engage in organizational change for the sake of change to keep ideas fresh.

B. positive results of change are more likely when using multiple interventions and receiving support from management.

C. od is more likely to succeed when top managers get out of the way and let middle-level managers lead the process.

D. change programs are more successful when they are oriented toward achieving quick short-term results only.

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If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer is this considered in New York

Answers

If an insurer is incorporated in Rhode Island, but primarily does business in New York. This is called foreign insurer.

Who is an insurer?

An insurer can be defined as a person who  insured a person or a person who provide insurance coverage.

An Insurer has their business situated or established in the United States of America but carried out is business activities in another country like New york this  will be tend to be called foreign insurer in New york because the business is not domiciled in New york but United state of america.

Inconclusion this is called foreign insurer.

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Will you act immediately on the business opportunity \that you have identified?

Answers

Answer:

Yes because once one has found an opportunity one must seize it.

Explanation:

It is not advisable to act immediately on the business opportunity that is determined.  

A business opportunity includes the lease or sale of any specific product, equipment, or service that will help or make it possible for the purchaser-licensee to begin a business. It is important to consider certain other factors before immediately acting on the business opportunity that is determined. They are:

Size of the Market Relationships with potential investors or customers Capability to manage the Cash Flow Persistence and Passion Management skills  

Thus, we can conclude that one must not act immediately on the business opportunity that is determined before properly analyzing different factors associated with it.

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definition of the term small business​

Answers

Answer:

make me brainalist and keep smiling dude

Explanation:

Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.

In the model of mass-mediated communication, the: Select one: producers of the message control the reception of the content producers of the message control the interpretation of the content consumers interpret ads in a way that makes sense to them individually and serves their needs receiver's interpretations are always compatible with what the producer intended to convey

Answers

How information is conveyed is important,  mass-mediated communication allows information to reach a wide range of people.

What mass-mediated communication?

It is a communication method that involves sending messages through a medium either internet or television to a receiver (audience)  to produce some effect.

The communicator of the message controls the interpretation of the content to the receiver.

Therefore, in mass-mediated communication content producers of the message control the interpretation of the content

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the journal entry to retire old equipment that is not fully depreciated includes a: multiple select question. credit to equipment debit to cash debit to accumulated depreciation credit to loss

Answers

Debit to Cash (or any other asset received) for the amount received from the disposal/sale of the old equipment.

What is Debit Card?

A debit card is a payment card that allows a cardholder to access funds from their bank account to make purchases or withdraw cash. Unlike a credit card, which allows a cardholder to borrow money and pay it back later with interest, a debit card only allows the cardholder to spend the money they have available in their account.

Debit to Accumulated Depreciation for the total accumulated depreciation amount of the equipment over its useful life.

Credit or Debit to Gain or Loss account for the difference between the amount received from the disposal/sale of the old equipment and the net book value of the asset. If the amount received is higher than the net book value, then credit the Gain account, and if the amount received is lower, then credit the Loss account.

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An interest in or taking of land for its strategic location or products is called.

Answers

Answer:

Geopolitics

Explanation:

An interest in or taking of land for its strategic location or products is called geopolitics.

the value of a european call option on an asset with no cash flows is positively related to all of the following except: group of answer choices exercise price. time to exercise. risk-free rate.

Answers

The value of a European call option on an asset with no cash flows is positively related to all of the following except the exercise price.

A higher exercise price will generally decrease the value of the call option, as the option holder has to pay more to purchase the underlying asset. In contrast, a longer time to exercise and a higher risk-free rate can increase the value of the call option. Therefore, the correct option is a. exercise price.

A European call option gives the owner the right to acquire the underlying security at expiry. For an investor to profit from a call option, the stock's price, at expiry, has to be trading high enough above the strike price to cover the cost of the option premium.

Typically, exercising an option means initializing the rights of the option so that a trade is executed at the strike price. However, many investors don't like to wait for a European option to expire. Instead, investors can sell the option contract back to the market before its expiration.

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TRUE/FALSE. an outlay of money for a profit, where the risk exists that either some or the entire original amount may be lost.

Answers

The given statement "an outlay of money for a profit, where the risk exists that either some or the entire original amount may be lost." is True because investments are subjected to risks.

An outlay of money for a profit, where the risk exists that either some or the entire original amount may be lost, is a characteristic of an investment. Investments involve the allocation of financial resources with the expectation of generating a return or profit.

However, investments are inherently subject to various risks, including the possibility of losing some or all of the initial capital invested.

When individuals or organizations make investments, they take on risks associated with market fluctuations, economic conditions, industry performance, and other factors that can impact the value of their investment.

The level of risk varies depending on the type of investment and its specific characteristics. For example, investing in stocks, bonds, real estate, or starting a business all involve risks where the potential for loss exists.

Investors assess the potential risks and rewards associated with an investment before making a decision. Diversification, risk management strategies, and thorough analysis of investment opportunities are commonly employed to mitigate risks and increase the chances of earning a profit.

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“ you should shop for the best place to open a checking account as carefully as you shop for the Best Buy in any product or service.“ give two reasons to support the statement

Answers

The two things that are considered while shopping is the least price for the same goods and services and the good quality within a price range.

What is checking account?

A person's account number, which is the second set of numbers from the left and ranges in length from 9 to 12 digits, may be found at the bottom of the checks. This number informs the bank which checking account to debit for the money.

A checking account is an account that permits both deposits and withdrawals of funds. A check, which is essentially a paper with instructions to the bank on how and, more crucially, to whom the money should be taken, was the traditional way to make a withdrawal.

Thus, shopping is the least price for the same goods and services.

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Someone in the 15 percent tax bracket can earn 10 percent annually on his investments in a tax-exempt IRA account. What will be the value of a $16,000 investment in 5 years? 10 years? 20 years? You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar.

Answers

Answer:

A. $60,653

B. $98,313

C. $136,217

Explanation:

The formula that is used for calculating the annuity value is as under:

Annuity Value in "n" years = Present Value * (1  - (1 + r)^-n) / r

For 5 years:

Annuity Value in "5" years = $16,000  *  (1  - (1 + 10%)^-5) / 10%

= $60,653

For 10 years:

Annuity Value in "10" years = $16,000  *  (1  - (1 + 10%)^-10) / 10%

= $98,313

For 20 years:

Annuity Value in "20" years = $16,000  *  (1  - (1 + 10%)^-5) / 10%

= $136,217

A restaurant has been operating in the same location for decades. However, a
new restaurant opens across the street and sells very similar food. Both
restaurants try to win over customers by lowering prices and creating new,
innovative dishes. Which element of the free enterprise system does this
situation best reflect?
A. Competition
B. Limited role of the government
C. Individual freedom for producers
D. Profit motive

Answers

Competition

Is the correct answer as shown in the image below.

A restaurant has been operating in the same location for decades. However, anew restaurant opens across

The element of the free enterprise system reflected here is competition. Therefore, the correct answer is option is A.

What is competition?

Competition refers to a situation in which individuals or organizations strive to gain an advantage over others. In a market economy, competition is the driving force behind innovation and economic growth. It is an essential element of the free enterprise system as it allows producers to improve their products and services while keeping prices reasonable.

The two restaurant lowered prices and created new and innovative dishes. They did so to get ahead of their competition.

Thus, the element of the free enterprise system reflected here is competition. Therefore, the correct answer is option is A.

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A small island country has recently begun an initiative aimed at attracting more businesses to revitalize the economy. An increase in bed and breakfasts, resorts, casinos, hotels, and restaurants has created several jobs, as well as brought in more tourist dollars. However, the island’s president isn't satisfied and has announced a special effort to attract small- to medium-size suppliers and manufacturers. Why do you think he wants to put additional emphasis on businesses that produce goods rather than provide services?


Service jobs have higher salaries than manufacturing jobs.

Manufacturers pay more in taxes.

Manufacturing has the most significant multiplier effect.

Service businesses conflict with manufacturing.

Answers

Option (b) Manufacturing has the most significant multiplier effect.

Manufacturing is the basic to produce any product or to start any business. As in the case study we studied small island country has taken initiative to attract more and more business. On the other hand, president has announced a special effort to attract small- to medium suppliers and manufactures because to firstly balance everything in the economy like reduce unemployment, providing proper wages so that workers would encourage to perform best in their fields.Once the everything is balanced then it can lead to hike in the economy.

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Barbara incurred the following expenses during 2020: $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition, $240 for multiple vitamins and antioxidant vitamins, $3,500 for a smoking cessation program, $250 for nonprescription nicotine gum, $2,600 for insulin, and $7,200 for funeral expenses for her mother who passed away in June. Barbara's AGI for 2020 is $54,000. Which of these expenses may be included in computing the medical expense deduction? Select "May be included" or "May not be included", whichever is applicable. May not be included b. a. $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition $240 for multiple vitamins and antioxidant vitamins $3,500 for a smoking cessation program $250 for nonprescription nicotine gum $2,600 for insulin C. d. May not be included May be included May not be included May be included May not be included e. f. $7,200 for funeral expenses What is Barbara's medical expense deduction for 2020?

Answers

Barbara's medical expense deduction for 2020 would be the sum of $840 + $3,500 + $250 = $4,590.

According to the information provided, the following expenses may be included in computing the medical expense deduction:

a. $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition
c. $3,500 for a smoking cessation program
d. $250 for nonprescription nicotine gum

The expense for joining the health club may be included because it was recommended by her physician for the purpose of improving her general physical condition. The smoking cessation program and nonprescription nicotine gum expenses may also be included as they are directly related to her efforts to quit smoking.

The following expenses may not be included in computing the medical expense deduction:

b. $240 for multiple vitamins and antioxidant vitamins
e. $2,600 for insulin
f. $7,200 for funeral expenses

Expenses for vitamins and antioxidants are generally not considered deductible medical expenses unless they are prescribed by a physician. Insulin expenses may not be included as they are typically considered a personal expense. Funeral expenses are also not considered deductible medical expenses.

Barbara's medical expense deduction for 2020 would include the total of the expenses mentioned in the "May be included" category (a, c, and d).

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which argument says that stakeholder management realistically depicts how companies really work?

Answers

The argument that says that stakeholder management realistically depicts how companies really work is a descriptive argument. Option A.

A descriptive argument is one that describes how something works in reality.

The argument that stakeholder management realistically depicts how companies work is an example of a descriptive argument.

Stakeholder management is an approach that recognizes the importance of stakeholders in a company's success.

It focuses on engaging with stakeholders, understanding their needs, and managing their expectations and relationships with the company.

This approach ensures that all stakeholders have a voice in the company's decision-making process and have their interests taken into account. It is hence a descriptive argument.

It also allows companies to better manage their resources and ensure that all stakeholders are satisfied with the company's performance and outcomes.

Although a part of your question is missing, you might be referring to this question:

Which argument says that stakeholder management realistically depicts how companies really work?

a. Descriptive argument.

b. Instrumental argument.

c. Normative argument.

d. Fiduciary argument.

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in traditional organizations, directing includes both giving assignments to workers and providing feedback on their performance.

Answers

Directing in traditional organizations involves both assigning tasks to workers and providing feedback on their performance.

Giving assignments to workers is a crucial aspect of directing. Managers assign tasks, projects, or responsibilities to employees based on their skills, expertise, and job roles. By assigning specific tasks, managers ensure that work is allocated effectively and that each employee has a clear understanding of their responsibilities and objectives.

However, assigning tasks alone is not sufficient. Providing feedback on performance is equally important. Feedback serves as a mechanism to assess employees' performance, provide guidance, and facilitate their growth and development.

Managers provide feedback to employees regarding their progress, strengths, areas for improvement, and alignment with organizational expectations. This feedback can be both formal, such as through performance appraisals or regular meetings, and informal, through ongoing communication and coaching.

By providing feedback, managers not only evaluate performance but also guide employees towards enhancing their skills, correcting any deficiencies, and reinforcing positive behaviors. Constructive feedback helps employees understand expectations, learn from their experiences, and make adjustments to improve their performance.

It also creates a supportive and collaborative work environment where employees feel valued, motivated, and empowered to contribute their best efforts.

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Gabriel Joseph has begun a new delivery and warehousing business. To begin his deliveries, he has leased a new truck. The 0ve-year lease arrangement provides formonthly payments based on the $35,000 cost of the truckand an a greedonrate of 1 5 percent compounded monthly.What will Mr.Joseph's lease payment be each month?

Answers

Bbnnnnnnnnjjnnub. Bro

Following are the different health signs in an animal. Which of these are the signs of good health in an animal?
I. bright eyes
II. membranes of the eyes are pink
III. rapid respiration

Answers

Answer:

I & II

Explanation:

plato:)

You've been meaning to fix those rotted boards on your porch for years. Finally, last week the deck gave way. The replacement will cost you $3,000. Will you be able to recover the cost of replacement (less your deductible) from your homeowner's insurance?

Answers

We will not be able to recover the cost of replacement (less deductible) from the homeowner's insurance policy.

What is homeowner's insurance?

This is an insurance that provide cover on the insured's home's structure and belongings in the event of a destructive event such as a fire, storm, hurricane, lighting, flood etc

A natural destruction resulting from a wear and tear is not covered under the homeowner's insurance.

Therefore, you will not be able to recover the cost of replacement from the homeowner's insurance policy.

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Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario it can be inferred that Thomas has adopted a(n) _________ mechanism for coordinating. Group of answer choices

Answers

Group of answer choices.

a. bureaucratic

b. authoritative

c. centralized

d. behavioristic

Answer:

d. behavioristic.

Explanation:

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

A span of control can be defined as the number of people (employees or workers), functions, activities which are being directly controlled effectively and efficiently by a manager in an organization.

In this scenario, Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario, it can be inferred that Thomas has adopted a behavioristic mechanism for coordinating because he doesn't exert too much control over his subordinates.

Jerry and Anat each own a bicycle tire shop and sell bicycle tires. Suppose the equilibrium price for bicycle tires is $42 but the market price falls to $37. Neither is able to earn a profit at the lower price, and both go out of business. If there are no other sellers in this market, what effect does this have on producer surplus

Answers

Answer:

Producer surplus decreases to zero

Explanation:

Marty is collaborating with collegues to plan a surprise party for their boss. Marty does not add an ideas to the party but chooses to just go with the flow. Marty leaves the meeting feeling angry and feels like his coworkers don't care about his ideas. What communication style is Marty using?

a
passive
b
aggressive
c
passive-aggressive
d
assertive

Answers

Answer:

a passive

Explanation:

Passive behavior is when an individual decides not to act or react but follow what others want. In passive, an individual does not express their feeling or thoughts. They remain inactive and allows others to take control. behavior

Marty attended the meeting but decided not to make any contributions. By deciding to follow the flow, he exhibited passive behavior. Marty felt angry because he failed to express his honest feelings, thoughts, and beliefs. He violated his rights to speak and be heard.



The school zone has posted speed limits of 25mph during school hours. Define Incentives, and provide an example of one negative incentive

and an example of one positive incentive that could be used to encourage motorists to obey the speed limit.

Answers

Answer:

To encourage someone to do something.

Explanation:

Incentives is defined as a thing that encourages someone to do something. One negative incentive is to charge a big fine on the motorists for the high speed in the school hours so that they obey the laws strictly while on the other hand, example of positive incentive is to give rewards or gifts or medals to those who obeys the law of speed limits in the school hours.

A company's income statement shows sales of $2,000, cost of goods sold of $700, pre-interest operating expense of $500, and interest expense of $200. The company's interest coverage ratio is closest to:

Answers

The interest coverage ratio measures a company's ability to cover its interest expense with its earnings before interest and taxes (EBIT). It is calculated as:

Interest Coverage Ratio = EBIT / Interest Expense

In this case, we are given the following information:

Sales = $2,000 Cost of goods sold = $700

Pre-interest operating expense = $500 Interest expense = $200

To calculate the EBIT, we need to subtract the cost of goods sold and pre-interest operating expense from sales:

EBIT = Sales - Cost of goods sold - Pre-interest operating expense

EBIT = $2,000 - $700 - $500 EBIT = $800

Now, we can calculate the interest coverage ratio:

Interest Coverage Ratio = EBIT / Interest Expense

Interest Coverage Ratio = $800 / $200 Interest Coverage Ratio = 4

Therefore, the interest coverage ratio is closest to 4.

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Compute interest and find the maturity date for the following notes. (Round answers to 0 decimal places, e.g. 825) Date of Note Principal Interest Rate (%) Terms (a) June 10 $78,110 7% 60 days (b) July 14 $46,200 8% 90 days (c) April 27 $11,700 9% 75 days

Answers

Answer:   Interest                                             Maturity Date

(a) 78110×7%×(60/360) = $911                          August 9

(b) 46200×8%×(90/360)= $924                          October 12

(c) 11700×9%×(75/360) = $219                                 July 11

Explanation:

To compute the interest we apply the following formula:

Interest= (Principal) × (Interest Rate) ×(Terms ÷360)

For the Maturity date, we add Terms to the Date of note .

By using the above formula for the given table, we get the following values

      Interest                                             Maturity Date

(a) 78110×7%×(60/360) = $911      August 9

(b) 46200×8%×(90/360)= $924     October 12

(c) 11700×9%×(75/360) = $219      July 11

Question: Choose the products that are regulated by federal tobacco sales law:
C
O Chewing tobacco
Cigars (including regular, little, and flavored cigars)
O Rolling papers containing tobacco as an ingredient
O E-cigarettes & e-liquid
O All of the above are regulated

Answers

All of the above are regulated :)

If the account is interest bearing, how would you account for the interest when you reconcile your account?

1. subtract the interest from your running balance

2. add the interest to your running balance

3. forget about it since it is probably a small amount

4. keep a separate entry for interest

Answers

Answer:

the answer is 1 I do in fact think

The account for the interest when you reconcile your account is subtract the interest from your running balance Option(1) is correct. Stores have filled unequivocally as of late, despite the fact that there has been no development in interest-bearing protections.

What is Interest Bearing?

An interest-bearing record is a kind of financial balance that pays the client an interest rate in return for them storing their cash at the bank.

The return and interest rate offered will change by bank and rely upon the record agreements. They can likewise change over the long run. There are various reasons you ought to open an interest-bearing record.

Not exclusively will you bring in cash from your reserve funds, yet you can keep it where you will not be enticed to spend it. It's dependably really smart to set aside cash and keeping one or even a few records that procure you interest is a shockingly better thought.

Families contribute around two-fifths of their monetary resources in interest-bearing resources. These resources are prevalently held straightforwardly in stores and furthermore through superannuation and other venture reserves.

Therefore Option(1) is correct.

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Ming Corporation pays its employees $4,000 in salaries for the current period. Recording the payment of salaries would include a. debit to salary expense.

Answers

The journal entry would look like this:
1. Debit Salary Expense: $4,000
2. Credit Cash: $4,000

When Ming Corporation pays its employees $4,000 in salaries for the current period, the accounting process involves recording the payment using the terms you mentioned.

To record the payment of salaries, you would first debit the Salary Expense account. This means that you would increase the Salary Expense by $4,000. Debiting an expense account is appropriate because expenses are increased with debits according to the rules of double-entry accounting.

Next, you would credit the Cash account for the same amount, $4,000. This is done to show that the cash has been reduced by the payment of salaries to employees. This completes the journal entry to record the payment of salaries.

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