Answer:
Will rents a car while his car is in the shop.
Explanation:
If Will has his car in the workshop and has a Personal Auto Policy, then he can claim a temporary substitute while his car is being repaired.
A temporary subsititute is defined as an automobile that a person with an insurance policy uses in the interim when their vehicle is being repaired, has broken down, has suffered loss, or is being serviced.
Will borrowing a car while his own is in the shop is considered temporary substitution.
Answer: B. 1/R, where R represents the reserve ratio for all banks in the economy.
Explanation:
The Money Multiplier is the money that Banks generate given a certain RESERVE REQUIREMENT/RATIO.
A Reserve Requirement is money that the Central Bank requires that Banks do not loan out and instead keep in reserve.
For example, if the reserve rate is 10% and a bank has $10 they can only loan out $9.
Assuming they loan out $9 then they created $19 in the economy because their customers still own the original $10 but now they have also given loans of $9. The people who take the loans then deposit it in another bank. That bank would keep $0.90 in reserve and loan out $8.10 meaning that $27.10 now exists in the economy.
The process goes on and on until it gets to $100.
A simpler way to get to the final figure is to divide 1 by the reserve requirement = 1/r which is the money multiplier.
Using the above example, that would be 1/0.1 which is 10.
Multiplying this 10 by the initial deposit of $10 will give you that same $100.
Answer:
$1,311,000
Explanation:
The computation of the operating cash flow is shown below:
As we know that
Operating cash flow = Cash flow from assets + capital spending - change in net working capital
where,
Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders
Cashflow to Creditors = Interest paid - Change in long term debt
= $140,000 - ($2,950,000 - $2,700,000)
= -$110,000
Now
Cashflow to Stakeholders
= Dividends paid - New issuance of the equity
= $500,000 - (($500,000 + $3,500,000) - ($460,000 + $3,200,000))
= $160,000
So,
Cashflow from Assets is
= -$110,000 + $160,000
= $50,000
Now
Operating cashflow is
= $50,000 + $1,320,000 + (-$59,000)
= $1,311,000
Answer:
Explanation:
The adjusting entry is shown below:
Office supplies expense A/c Dr $257
To Office supplies $257
(Being adjusted entry recorded in respect of office supplies)
Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:
= Office supplies debit balance - unused office supplies
= $363 - $107
= $257
Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.
Answer:
Explanation:
Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.