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2 years ago

Indicate how the following transactions affect the accounting equation.

Business

1 answer:

jeyben [28]2 years ago

5 0

Answer:

Hopefully I understood the question correctly. Below is the affect on

assets-liabilities= owners equity

Explanation:

A. Increases assets, increases liabilty

b. Increases assets, decreases assets (a wash for assets)

c. Decreases owners equity, decreases assets

d. Increases owners equity, increases assets

e. Increases owners equity, increases assets

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A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost.

Flauer [41]

Answer

D) compared to the EOQ, the maximum inventory would be approx 30% lower.

Explanation

EOQ = √(2*Co*D/Cc)

EPQ= √ (2*Co*D/(Cc*(1-x)))

x=D/P

D = demand rate

P =production rate

Co=ordering cost

Cc=holding cost

1) The production rate would be about double the usage rate.

hence, P = 2D

x=D/2D=0.5

EPQ= √ (2*Co*D/((1-0.5)*Cc))

EPQ= √ (2*Co*D/0.5Cc)

EPQ=√ (1/0.5)*EOQ

EPQ=√ (2)*EOQ

EPQ=1.41*EOQ

Hence, EPQ is around 40% larger than EOQ.

Ans.: c) EPQ will be approximately 40% larger than the EOQ.

2) Compared to the EOQ, the maximum inventory would be

maximum inventory = Q

EPQ = 1.41 EOQ

EPQ = 1.41*Q

Q=EPQ/1.41

Q=0.71 EPQ

Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.

4 0

2 years ago

If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne

Stels [109]

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

5 0

2 years ago

Carlos is taking a class to learn presentation skills. Which type of communication is he using when he improves his PowerPoint s

rosijanka [135]

Answer:

visual ,i like your profile add my sn a p,joel.ewc123

Explanation:

5 0

2 years ago

You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee un-animously v

ivolga24 [154]

You reply that "OMOs are the purchase and sale of government securities. To increase the money supply we will buy government securities which increases the amount of reserves in the banking system and fuels deposit expansion".

Option: A

Explanation:

The action of central bank to offer or take liquidity from or into a bank or a collection of banks in its exchange rate currencies is understood as an open market operation or OMO. The central bank is the only origin of such policy which may either purchase or sell the bonds of government on the open market or in what is now often the acceptable option, engage into a repo or protected lending agreement with a commercial bank: the central bank lend the monetary as a reserve over a given period of time and concurrently selects the qualified asset as security.

Here the Chair of the Federal Reserve Board explained OMO for the purpose of their use in the scenario of increasing money supply, by purchasing or selling the bonds or securities of public authorities to eligible bodies for the increment of assets in banking sector to drive the expansion of deposits.

8 0

2 years ago

A. Fiscal Policy involves changing _______________. In the United States, Fiscal Policy is implemented by the ____________.

Ede4ka [16]

Answer:

a. Fiscal Policy involves changing government purchases and tax. In the United States, Fiscal Policy is implemented by the federal government.

b. An expansionary fiscal policy can be used to address a Recessionary Gap by reducing taxes and increasing government purchases.

Explanation:

Fiscal policy can be described as the employment of the government purchase and taxation level by the federal goveernment with the aim of influencing the aggregate demand and economic activity level.

Expansionary fiscal policy occurs when the government increases its purchases and reduces taxes in order to close Recessionary Gap, while contractionary fiscal policy is when the government reduces it purchases and increases taxes.

Based on this explanation, we have:

a. Fiscal Policy involves changing government purchases and tax. In the United States, Fiscal Policy is implemented by the federal government.

b. An expansionary fiscal policy can be used to address a Recessionary Gap by reducing taxes and increasing government purchases.

6 0

2 years ago