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What will my investment of R100 500 be worth if my bank pays me simple interest of 9% per annum and I invest my money for 180 days?
Question Three
a) Giving explain the distinction between capital and revenue expenditure. (4mks)
b) Explain how the imprest system functions and state its advantages. (6mks)
c) State and explain FIVE errors associated with trial balance. How are they corrected? (10mks)
Hybird dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20 %according to the diminishing balance method


Prepare the depreciation and closing transfer entries in the general journal of hybird dealers on 31 March 2019 and 31 March 2020
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.
Required:
Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.
Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags. Now, illustrate that counter-cyclical monetary policy has been
implemented by the central bank. Again, use AE/PC Model (new set of graphs!).
Now your initial point is point B, mark the response as point C. There should be a
points B and C on both the upper graph and the lower graph, even if they are in the
same location. You can stop your analysis when the economy is stabilized (Y=Y*
again).
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Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags.
a). (2 point): To illustrate that shock, use AE/PC Model (carefully labeled!!)
without time lags (use the AE and PC graphs similarly to the textbook, place PC
graph below AE graph). For your analysis, choose as a starting point (marked A)
an economy operating at potential GDP (Y=Y*) and at its inflation target (
Assume that two shocks happen simultaneously: a positive expenditure shock (buy a bigger house) and a positive supply shock (prices on imported inputs decreased dramatically due to a substantial reduction in tariffs). Use AE/PC Model without time lags (use the AE and PC graphs similarly to the textbook, place PC graph below AE graph). For your analysis, choose as a starting point (marked A) an economy operating at potential GDP (Y=Y*) and at its inflation target (
Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
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Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
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What is a ledger statement
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