pete’s electronics is a small company that produces 8 gigabyte flash drives in a perfectly competitive market. the market price for 8 gigabyte flash drives is $15 each.

Answers

Answer 1

Angles on a straight line are the total of all the angles that can be arranged in a straight line. Straight line angles add up to 180 degrees.

Define market price.

The price at which a good or service can currently be purchased or sold is known as the market price. The dynamics of supply and demand influence the market price of a good or service.

Drawing a line of the Quantity 8GB flash drives:

(Total Revenue, Marginal Revenue, Average Revenue)

TR MR AR

(dollars)

$ $ $

10 150 15 15

20 300 15 15

30 450 15 15

40 600 15 15

50 750 15 15

60 900 15 15

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Related Questions

Which Vendor transactions are related to inventory purchases?



Multiple Choice

Placing product orders, reconciling account detail to a physical count, and paying bills.
Placing product orders, paying bills, and receiving customer payments.
Placing project orders, invoicing products, and receiving customer payments.
Placing product orders, receiving products, and paying bills.

Answers

The related transactions to inventory purchases are placing product orders, receiving products, and paying bills.

Inventory management is the process of overseeing and controlling the ordering, storage, and use of materials, parts, and finished products in a business. In its context, placing product orders involves choosing the products that a business wants to stock and making arrangements with suppliers to purchase those products.

Further, receiving products involves getting the products that were ordered and checking to ensure that they are in good condition and meet the business's specifications. Paying bills involves making payments to suppliers for the products that were ordered. These activities are all part of the process of managing inventory and ensuring that a business has the products it needs to meet customer demand.

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which of the seven montreal criteria and indicators regarding sustainable forestry addresses the rate at which timber and nonwood products are removed from forests, compared to the rate at which they are regenerated?

Answers

Productive capacity, relates to the ratio of the rate at which forests are harvested for their wood and non-wood products to the rate at which they are regenerated.

How is productive capacity determined?

The form of value of an economy is reflected in a country's productive capacity. The size of the labor is a factor (quantity of labour). This is the proportion of persons who are economically productive and of working age. Countries with high levels of productivity avoid that trap of concentrating on only a few production inputs.

What does productive capacity look like in practise?

Manufacturing. Based on the pace of the line's slowest workstation, a manufacturing line has a capacity of 350 units per hour. The quantity of goods or services that a company can produce using its operating resources at the time.

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On february 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. the sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the February 13 journal entry for the jewelry store by selecting the account names and dollar amounts from the drop-down menus.

Answers

Cash 10,000 debit

  sales tax payable   975

  sales revenue   9,025, This would be journal entry for the jewelry store.

Explain the above journal entry.

The double-entry bookkeeping system of accounting is the primary foundation for the journal entry format, which ensures that the debit side and credit side are always equal. Journal entry format is the standard format used in bookkeeping to keep a record of all the business transactions of the company. Five columns make up the typical format: Transaction Date, Business Transaction Details, Folio Number, Debit Entry, and Credit Entry.

the sale was made on cash, so we use cash account.

then to calculate the sale tax payable:

sales price x tax sale rate = sale tax payable

10,000 x 0.0975 = 975

finally the revenue will be the difference between the proceeds of the sale and the taxes.

revenue = price - tax = 10,000 - 975 = 9,025

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Which one of the following products is most likely made in a job shop environment? a. rolls of newsprint b. custom furniture c. television sets d. cigarettes e.

Answers

option b custom furniture products is most likely made in a job shop environment.

Job shops are typically small manufacturing systems that handle job production, which includes small- to medium-sized customer orders or batch jobs as well as custom/bespoke or semi-custom/bespoke manufacturing processes. When a work is finished, job shops often go on to another one (perhaps with a different customer). Jobs are not always limited to a single machine, which allows this production system processing flexibility. Job shops machines are aggregated in shops by the nature of the skills and technological processes involved; as a result, each shop may have different machines. The problem of job shop scheduling is regarded as strongly NP-hard in computer science.

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penalties for loan refusals based on the collateral location (redlining) are imposed by

Answers

The Holden Act imposes fines for loan rejections based on the location of the collateral (redlining).

If your loan application is rejected, what happens?

Being turned down for a loan or credit card has no impact on your credit scores. When you apply, creditors might still do a credit report check, and the ensuing hard inquiry might cause a small drop in your credit ratings. To avoid needless unpleasant queries, learn how to efficiently handle your next application.

How often do loans get denied?

You might be curious how often underwriters reject loans. According to mortgage data provider HSH.com, about 8% of mortgage applications are denied, however denial rates vary by region and loan type. For instance, there are different requirements for FHA loans that may make the loan application process easier than it is for other loans.

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which of the following is not an example of mass and targeted media strategy?

Answers

Product Placement is not an example of mass and targeted media strategy.

Advertising goods or brands to a wide range of audiences is known as mass marketing. It's important to reach as many individuals as you can, whether or not they are interested. Advertising on television and radio are common examples. Target marketing, on the other hand, focuses on more focused audiences. One tactic to reach the maximum number of potential clients is mass marketing, which ignores niche demographic variances in favour of focusing on the largest segment of the market. The marketing strategy uses conventional radio, television, and print advertising to target high sales volumes at lower prices. Product placement, also referred to as embedded marketing, is a marketing strategy in which allusions to particular brands or products are inserted into another work, like a movie or television show, with the express purpose of promoting them.

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the complete question is :

which of the following is not an example of mass and targeted media strategy?

a) Product Placement

b) Public Relations

c) Outbound Advertising

d) Print Media

e) Online Word of Mouth

ursula company is considering the purchase of a new machine for $160,000. the machine would generate an annual cash flow before depreciation and taxes of $62,588 for four years. at the end of four years, the machine would have no salvage value. the company's cost of capital is 12%. the company uses straight-line depreciation with no mid-year convention and has a 40% tax rate. what is the internal rate of return (rounded to the nearest percent) for the machine? a.between 14% and 16% b.between 16% and 18% c.below 12% d.between 12% and 14%

Answers

The internal rate of return is $23,667.

IRR is the interest rate at which all cash flows sum to zero and is useful for comparing one investment to another. In the example above, if we replace 8% with 13.92%, the NPV will be zero, which is the IRR. Therefore, IRR is defined as the discount rate at which the project's present value is zero.

For example, in the world of commercial real estate, 20% IRR is considered good but it is important to remember that this is always related to the cost of capital. A good IRR is one that is higher than the initial amount that the company invested in the project.

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UESTION 1/15 What does clicking the + sign below do? 195 196 197 198 199 200 Basic Intermediate Advanced + Image not displaying?
O Adds a new Function
O Adds a new Column
O Adds a new Row
O Adds a new Worksheet
O Adds a new Char

Answers

Option 4 is right. It adds a new worksheet.

Steps to add worksheet in Microsoft Excel

Add a New Sheet with the New Sheet Button: The speediest and most straightforward method for insert another sheet in Excel is utilizing the New Sheet button situated to one side of the ongoing sheet tabs. Left click on the plus sign icon to the right of the sheet tabs and Excel will create a new blank sheet in your workbook

Microsoft Excel is a spreadsheet created by Microsoft for Windows, macOS, Android and iOS. It highlights estimation or calculation capacities, graphing tools, pivot tables, and a large scale programming language called Visual Basic for Applications (VBA). Excel forms part of the Microsoft Office suite of software.

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suppose the federal reserve decided to purchase $40 billion worth of government securities in the open market: a. by how much will m1 change initially if the entire $40 billion is deposited into transaction accounts? b. how will the lending capacity of the banking system be affected if the reserve requirement is 10 percent? c. how will banks induce investors to utilize the expanded lending capacity?

Answers

Banking system deposits increase by $40 billion, banking system deposits are part of M1, so when banking system deposits increase M1 also increases by $40 billion.

How will the lending capacity of the banking system be affected if the reserve requirement is 10 percent?

Increase in bank reserves = $40 billion

Reserve requirement = 10%

Required Reserves = Increased Reserves × Required Reserves = $40 Billion × 0.1 = $ 4 Billion

Excess reserve = New reserve - Required reserve = $40 billion - $4 billion = $36 billion

Money multiplier = 1/Reserve requirement = 1/0.1 = 10

Increase in lending capacity = excess reserves × money multiplier = $38 billion × 20 = $760 billion

This will increase the lending capacity of the banking system by $760 billion.

How will banks induce investors to utilize the expanded lending capacity?

As the money supply increases, interest rates fall. When interest rates fall, investors tend to borrow more because the effective cost of borrowing falls. As the money supply decreases, interest rates rise. As interest rates rise, investors tend to borrow less because the real cost of borrowing increases.

What is the banking system and its importance?

Banks also play a central role in the transmission of monetary policy. It is one of the most important tools for governments to achieve economic growth without inflation. Central banks control the money supply at the national level, while banks facilitate the flow of money in the markets in which they operate.

What does bank mean?

Banking is the business of protecting other people's money. Banks lend out this money, generating interest that benefits the bank and its customers. A bank is a financial institution authorized to accept deposits and make loans. However, other financial services can also be provided.

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assume that the economy is in a rapid expansion with a price level of p2 and output level y2. the government then adopts an appropriate discretionary fiscal policy. what will be the most likely new equilibrium price level and output?

Answers

The most likely new equilibrium price level and production are

P1 and Q3.

What is Equilibrium price?

When market supply & demand are balanced, prices become stable. The phrase for this is equilibrium. Generally speaking, a shortage or undersupply raises prices, therefore decreases demand, and a surplus or oversupply lowers prices, which promotes demand. the cost at which a commodity's supply and demand are balanced.

The market is considered to be in an equilibrium when a major index goes through a period of stabilization or sideways movement, indicating that the supply and demand forces are essentially equal. Competition is the mechanism through which equilibrium prices are established.

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think about all the restaurants that are located near your campus. you have probably noted some new ones appearing, and others closing because of lack of business. what type of competition exists in the restaurant business?

Answers

You have probably noticed some closing due to poor business and some new ones appearing. There is monopolistic competition in the restaurant industry.

Monopolistic competition: what is it?

When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition exists. A monopoly market industry has minimal entry requirements, and decisions made by any individual firm do not immediately affect those of its rivals.

What does "monopolistic competition" mean exactly?

Monopolistic competitive market markets are so-called because, despite some degree of competition among businesses for the same clientele, each business's offering is marginally distinct from that of the others, giving each business a kind of mini-monopoly.

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bank two has a portfolio of bonds with a market value of $200 million. the bonds have an estimated price volatility of 0.95 percent. what are the dear and the 10-day var for these bonds?

Answers

The Dear (expected loss) for these bonds is $190,000 ($200 million x 0.95%).The 10-day Value-at-Risk (VaR) for these bonds is $1.9 million ($200 million x 0.95% x 10 days).

The 10-day Value at Risk (VaR) for these bonds is the estimated maximum loss of the portfolio over a 10-day period, given a 95% confidence level. The 10-day VaR is calculated by multiplying the market value of the portfolio ($200 million) by the estimated price volatility (0.95%) and multiplying that result by the square root of 10 (which is 3.162). Therefore, the 10-day VaR for these bonds is $1.93 million.

The Dear is the estimated maximum loss of the portfolio over a single-day period, given a 95% confidence level. The Dear is calculated by multiplying the market value of the portfolio ($200 million) by the estimated price volatility (0.95%) and multiplying that result by the square root of 1 (which is 1). Therefore, the Dear for these bonds is $1.90 million.

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a. a business necessity defense. b. an affirmative action defense. c. a bona fide occupational qualification defense. d. no defense.

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c.  A business necessity defense is a bona fide occupational qualification defense.

A bona fide occupational qualification defense is a defense to a discrimination claim that is based on the employer’s need to meet certain qualifications in order to carry out the job duties. In other words, the employer can show that the qualifications in question are essential to the job and that there is no other way to perform the job without the specified qualifications.

This defense is often used in cases involving religion, age, gender, and disability. For example, an employer might be able to justify a policy that only hires people over the age of 65 if the position is for a retiree-only program. The employer must be able to prove that the qualification is a legitimate business necessity in order to successfully use this defense.

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Question 13 Minimum attractive rate of return refers to O The rate of return achievable from a safe government bond. O The rate of return that must be equaled or exceeded to render an investment attractive O The rate of return guaranteed on a bank savings account O The lowest rate of return required to attract foreign capital. Question 14: All of the following are examples of cash inflows except: O Income taxes O Asset salvage value O Operating cost reduction O Construction cost savings
Question 8 Items which are not easily expressed in terms of dollars are called: O Indirect costs O Variable costs O Intangible costs O Legal issues Question 9 Interest that is calculated using only the principal is called? O Simple interest
O Effective interest O Add-on interest
O Compound interest Question 15: All of the following are interest rates except: O Return on investment O MARR O Accrued interest O Rate of return

Answers

13: B- The rate of return that must be equaled or exceeded to render an investment attractive

The minimum attractive rate of return is that rate which is the minimum rate that must be attained in order to make an investment attractive.  The other options may or may not match the attractive rate.

14: A- Income taxes

Income tax is a cash outflow because taxes are to be paid.  Assets salvage value is a cash inflow because salvage amount comes into the business.  Operating cost reduction and construction cost savings our cash inflows since they are saving the cash outflow from the business.

8: C- Intangible costs

Intangible costs are those costs which cannot be measured in monetary terms such as loss of valuable Manpower.  Other costs can be measured in financial terms.

9: A-Simple interest

Simple interest refers to interest on the principal amount only.  There is no interest on interest accumulated which is the case with the other options

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the systematic risk principle argues that the market does not reward risks . multiple choice question. in any circumstances that are systematic that are borne unnecessarily that are dangerous

Answers

According to the systematic risk principle, the market does not reward unnecessary risks.

What is the principle of systematic risk?

Risk that is systemic is: risk that only affects a few securities. defined as the total risk of unexpected events. calculated using the standard deviation.

Is systematic risk rewarded by the market?

Systematic risk, also known as market risk, is the risk that is associated with the market as a whole. The primary reason you earn a positive return over time is because of this kind of risk, which cannot be avoided.

What is the principle of systemic risk?

According to the systematic risk principle: The only factor that determines an asset's expected return is its systematic risk. Therefore, the systematic portion of an asset's risk is only relevant when determining its expected return (and risk premium), regardless of its total risk.

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according to heilbroner, what did keynes believe was the most important factor in determining how the economy would behave?

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According to HeilBroner, General Theory of Employment did Keynes believe was the most important factor in determining how the economy would behave.

The General Theory of Employment is a book which wrote by the John John Maynard Keynes. To tell the people about the employment and economy relationship with that.

The Employment is the necessary thing in the development and improving the live of an individual persons. The employment is a contract or agreement between the employee and employer that the employee work in a certain job.

The General Theory of Employment is also reflects the connection of the inflation and unemployment. If inflation increases then unemployment decreases. The government try to make stability between inflation and unemployment.

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Dekak Motors, a car manufacturer, launches a new car that is priced much lower than other cars in the same segment. The firm is able to keep costs down by eliminating processes that do not add value to the product and by employing skilled workers who can perform multiple tasks. From the given information, it can be inferred that Dekak Motors most likely

a. uses a traditional assembly line
b. has a fixed position layout
c. carries a large inventory of raw materials
d. uses lean production

Answers

Deka Motors, a car manufacturer uses a traditional assembly line. Hence, option A is appropriate.

What is the Assembly line?

A production method known as an assembly line divides the creation of a good across steps that are finished in a predetermined order. Assembly lines are the method used the most frequently in the mass production of commodities because they train unskilled workers to complete particular activities, and they lower labor costs.

A particularly typical and well-known example is the production of cars, where numerous pieces are individually put together to make the finished vehicle. The process may begin with engine installation and proceed to chassis assembly lines.

Hence, option A is correct.

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g the demand curve for labor of a monopolist part 2 a. is horizontal even though the demand curve for labor for a competitive firm is downward sloping. b. slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. c. slopes upward because monopolists use more capital than do perfectly competitive firms. d. slopes down for the same reason as the demand curve for labor of a perfectly competitive firm.

Answers

A​ monopolist's demand curve for labor slopes down because of the law of diminishing marginal returns and because the monopolist must lower prices to sell additional units of the good.

A monopolist's demand curve is the graphical representation of the relationship between the quantity of a good or service that a monopolist is willing and able to sell at a given price and the price of the good or service.

The demand curve is downward sloping, reflecting the fact that as prices fall, consumers are willing and able to purchase more of the good or service. The monopolist's demand curve is also the firm's marginal revenue curve.

Hence, the correct option is "B".

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why did the intensification of competition among european states cause price fluctuations? ap world

Answers

Despite this new level of global connectivity, this era saw major disruptions and changes in trade networks. Attempts by Portugal and Spain to monopolize trade in the Indian Ocean led to the down fall of the Swahili cities and the fall of Malacca

Prior to 1450, regional trade flourished as more traders and goods flooded the Silk Roads, Indian Ocean network, and Trans-Saharan routes. By 1450, Europeans were determined to discover a quicker way to reach Asia.Following World War II, governments frequently assumed a significant role in directing economic activity in order to foster development. Many countries supported free-market economic policies and advocated economic liberalization in the late 20th century, a movement that was hastened by the end of the Cold War.

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select 4 to 8 key metrics that matter to your target customers in their buying decisions.

Answers

Metrics of consumption. This is the most basic kind of content metric, and regrettably, it's also where many programmer begin and end. Metrics Exchange,  Sales Metrics. Lead Generation Metrics.

The methods customers use to choose, purchase, and use goods and services are collectively referred to as consumer behavior. Target markets are segments of the market that businesses identify as having a higher propensity than other segments to buy their goods or services. Personal traits: The audience's age, culture, profession, and background all significantly influence the interests and attitudes of the audience. Social determinants: A person's social networks have an effect on their purchasing behaviours. Their financial resources, level of education, and social standing all affect their shopping habits. A target market can be thought of as the type of consumer most likely to purchase a specific product. The person's demographic, regional, psychographic, and behavioral characteristics are taken into consideration.

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Based on the case, Nokia’s use of social media allows for all of the following benefits except

A. crowdsourcing

B. upward communication

C. horizontal communication

D. downward commnication

E. connecting in real time over distance

Answers

E. Real-time remote connection, this is one of the advantages that Nokia's use of social networks does not allow.

What are social networks?

They are all those structures that are formed on the Internet by people or organizations which allow individuals to connect to share common interests or values.

Social networks have become essential for companies as they are advertising media where they publicize their product or service in order to reach many more people. However, in some companies there is no real time connection through social networks because many people have a change of schedule which does not allow effective communication.

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Early in the 20th century, the advent of the tractor revolutionized the production of wheat. 1. Draw a properly labeled market graph of supply and demand to show the effect that this new production technique had on the price and quantity of wheat.
2. To stabilize prices, the government established an effective price floor for wheat. On a new graph, show graphically the price floor and identify what happened to each of the following in relation to equilibrium:
3. Quantity demanded
4. Quantity supplied
5. Consumers surplus
6. Years later, the government abolished the effective price floor causing the price of wheat to return to equilibrium. 7. Identify if the price increased or decreased after the law was abolished.
8. Identify how abolishing the law affected quantity supplied and quantity demanded

Answers

A surplus will occur from a price floor that is higher than the competitive equilibrium price. A surplus will occur from a price cap above the level of the competitive equilibrium price. A shortage will occur if the price cap is lower than the price of competitive equilibrium.

Government-mandated minimum and maximum prices for specific goods and services are known as price floors and ceilings. In severe economic circumstances, it is typically done to manage limited resources, safeguard consumers and suppliers, or both. Price floors stop a price from dropping below a specific markdown. Amount provided will exceed quantity required when a price floor is placed above the equilibrium price, leading to excess supply or surpluses.Nothing occurs. The market may continue to determine supply and price in the same manner since the floor is below equilibrium.

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, the degree to which a new product is difficult to understand or use, is especially important when it comes to innovation in high-tech consumer products. question 50 options: a) observability b) relative advantage c) compatibility d) complexity e) trialability

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The degree to which a new product is difficult to understand or use, is especially important when it comes to innovation in high-tech consumer products observability.

What does the term "observability" mean?

The capacity to gauge a system's internal conditions by looking at its outputs is known as observability. If the current state of a system can be determined solely from information from outputs, such as sensor data, then the system is said to be "observable."

Observability requires insight into metrics, traces, and logs - the three pillars.

The process of clearly determining a system's internal state based on its external outputs is known as observability. Logs, metrics, and traces—three essential elements of a complex system—are utilized by observability.

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43.A potential entrepreneur needs to realize thata.there are no principles of innovation.b.principles of innovation can be learned.c.monetary gain is the principal motivator in all innovation.d.profitability is the ultimate key to success.

Answers

A potential entrepreneur must understand that innovative concepts may be learned. So, option (B) would be the appropriate response.

A potential entrepreneur is someone who is not now an entrepreneur but who would like to be one in the future.

The ability to constantly learn is not only an essential entrepreneurial skill but also a very useful life skill that any potential entrepreneur must keep in mind.

A solid growth strategy built on inborn business acumen and abilities are necessary for each firm. So one should always try to acquire knowledge and learn constantly.

Potential business owners believe that starting a business is worthwhile, and doable for them personally and that the environment is encouraging.

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home health manufactures medical supplies. for the month of april, it projects the following selling and administrative expenses: sales commissions: 8% of sales shipping expense: $12,800 advertising and marketing costs: $4,200 electric and water utilities: $1,900 equipment depreciation: $18,700 bad debt expense: $3,000 sales for the month of april equal $694,000. what is the total of expenses that will be reported on the budgeted income statement? $96,120 $619,580 $597,880 $74,420

Answers

The total expenses that will be reported on the budgeted income statement are $96,120.

Calculate the sales commissions:

Sales commissions = 8% x $694,000 = $55,520

Calculate the total expenses that will be reported on the budgeted income statement:

Total expenses = Sales commissions + Shipping expense + Advertising and marketing costs + Electric and water utilities + Equipment depreciation + Bad debt expense

Total expenses = $55,520 + $12,800 + $4,200 + $1,900 + $18,700 + $3,000

Total expenses = $96,120

Therefore, the total expenses that will be reported on the budgeted income statement are $96,120 and option number 1 is correct.

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why would it be cheapter to have pullition credits compared to reducing pollution units microeconomics

Answers

When Company A stops emitting pollution or lowers air pollution, a pollution credit may be created.

The federal Clean Air Act of 1990 (CAA) gave businesses a mechanism to comply with rules meant to reduce air pollution through the creation of pollution credits. Since 1995, a "cap and trade" system developed by the Environmental Protection Agency (EPA) and other states has given utilities and businesses permission to emit a set amount of particular pollutants. While assisting in upholding the requirements necessary to preserve cleaner air, this approach gives businesses considerable flexibility in their compliance. By voluntarily lowering its polluting emissions below the EPA's set limitations, a business can obtain pollution credits. After then, earned credits can either be sold to another business that struggles to keep its emissions within legal bounds or stored for later use.

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the long run, every purely competitive firm tends to operate at its ______.

Answers

In the long run, every purely competitive firm tends to operate at its minimum ATC.

Total Average Cost (ATC)

Total Average Cost (ATC) The average total cost is the total of the average variable and fixed expenses. In other words, it is the total cost divided by the number of units manufactured. Because the marginal cost of producing the next unit of the output always affects the average total cost, the marginal cost curve always intersects the average total cost curve at its lowest point.

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the following data is available for box corporation at december 31, 2019: common stock, par $10 (authorized 30,000 shares) $250,000 treasury stock (at cost $15 per share) $ 1,200 based on the data, how many shares of common stock are outstanding? 30,000. 25,000. 29,920. 24,920.

Answers

There are 25,000 shares of common stock outstanding.

25,000 actually issued out of the 30,000 authorized.

Solution:

The computation of the issue of common stock is shown below:

= (Value of shares) ÷ (par value of shares)

=  ($250,000) ÷  $10

= 25,000 shares

Common stock is a type of tradable asset or security that represents ownership of a company. If you own a company's common stock, you have the right to vote on company policies, board decisions, and more. Common stock is just one type of stock that trades on public exchanges. Preferred shares do not give shareholders voting rights, while common shares do.

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The GDP deflator is a price index that includes the following components of GDP: a) Consumption, Investment plus Exports minus Imports b) Consumption c)Consumption, Investment,Government plus Exports minus Imports d) Consumption plus Investment but not Exports

Answers

The GDP deflator is a price index that includes the following components of GDP c)Consumption, Investment, Government plus Exports minus Imports .

The GDP (gross domestic product) price deflator estimates changes in the prices of all the goods and services produced in an economy. It is sometimes referred to as the GDP deflator or the implicit price deflator.

The overall output of goods and services is measured by the GDP, or gross domestic product. However, the statistic does not take the effects of inflation or rising prices into account when GDP increases and decreases.

This is addressed by the GDP price deflator, which first establishes a base year and then compares current prices to those in the base year to demonstrate the impact of price changes on GDP.

The GDP price deflator, to put it simply, illustrates how much a change in GDP depends on changes in the level of prices.

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The journal entry a company uses to record the estimated product warranty liability expense is

A. debit Product Warranty Expense; credit Product Warranty Payable

B. debit Product Warranty Payable; credit Cash

C. debit Product Warranty Payable; credit Product Warranty Expense

D. debit Product Warranty Expense; credit Cash

Answers

The correct answer is A). debit Product Warranty Expense; credit Product Warranty Payable. A corporation makes a debit journal entry to record the projected product warranty liability expense. Cost of the product's warranty; credit Payable Product Warranty.

Debit the warranty expense account and credit the warranty liability account to accumulate the warranty expense. Debit the warranty liability account and credit the inventory account for the cost of the replacement items and parts shipped to consumers as actual warranty claims are received.

a liability account that details the anticipated cost for repairing or replacing a product within its warranty period. The amount of the liability is noted at the time of the sale. It's also when the spending is reported at that point.

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