# Consumption spending is:__________ A. spending by households, businesses, and government on all goods used up within one year. B. spending by individuals and households on both durable and nondurable goods. C. spending on goods and services by heads of households. D. spending by individuals and households on only nondurable goods, since they are used up quickly.

b. spending by individuals and households on only non-durable goods.

Explanation:

Consumption spending is spending by individuals and households on only non-durable goods. Consumption is a component of GDP which includes spending on goods and services by individuals and households as it includes non-durable as well as durable goods on the basis of consumption patterns.

## Related Questions

holds huge reserves of oil. Assume that at the end of 2017​, Amplify Petroleum​'s cost of oil reserves totaled \$ 80 comma 000 comma 000​, representing 100 comma 000 comma 000 barrels of oil. Suppose Amplify Petroleum removed and sold 20 comma 000 comma 000 barrels of oil during 2018. Journalize depletion expense for 2018.

you could of solved it in the time u typed thai

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation is: A stock with no maturity is an example of a perpetuity. Quantitative Problem: You own a security that provides an annual dividend of \$115 forever. The security’s annual return is 5%. What is the present value of this security? Round your answer to the nearest cent. \$

The present value of security is \$2300

Explanation:

The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,

Value of perpetuity = Cash flow / r

Value of perpetuity = 115 / 0.05

Value of perpetuity = \$2300

Dana wants to give Fleesum's employees more freedom to schedule when they begin and end their work days. Her plan still requires employees to work eight hours per day, but allows them to start as early as 7:00 a.m. or as late as 9:00 a.m., and leave as early as 4:00 p.m. or as late as 6:00 p.m. Her plan also requires all workers to be on the job between 9:00 a.m. and noon, and between 2:00 p.m. and 4:00 p.m. The type of plan Dana wants to implement is known as a:

The correct answer is letter "B": flextime plan.

Explanation:

A flextime plan consists in linking production hours with the availability of the individuals involved in a project or work. The different timeframes of availability do not affect the operations' peak hours either the total amount of hours those individuals must work in day or week.

The flextime plan aims to provide individuals the flexibility to choose the working schedule that matches better with their personal activities which may increase their commitment to the firm and productivity.

Assume that your credit sales for March was \$12,764,for April was \$27,406 and May was \$28,706. If credit sales are collected 55% during the month of sale, 25% the month following the sale, and 15% in the second month following the sale, what is the total expected cash collections to be received in May? Round your answer to one dollar.

Total expected cash collections for May are \$24554

Explanation:

The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,

Collection for March's sales = 12764 * 0.15  =  \$1914.6

Collection for April's sales = 27406 * 0.25 = \$6851.5

Collection for May's sales = 28706 * 0.55 = \$15788.3

Total expected cash collections for May = 1914.6  +  6851.5  +  15788.3

Total expected cash collections for May = \$24554.4 rounded off to \$24554

Earnings available to common shareholders are defined as net profitsSelect one:a. after taxes.b. after taxes minus preferred dividends.c. after taxes minus common dividends.d. before taxes.

The correct answer is b. after taxes minus preferred dividends.

Explanation:

Net profit:Add all the revenues of the firm and deduct all the expenses of the firm. If the amount come in positive, the firm earns profit else suffered loss.

In mathematically,

Net profit = Sales revenue - all expenses

The earning which is available to shareholders is net profit after paying preference dividend to preference shareholders.

As first we have to pay the dividend to preference shareholders then we distribute the income to equity shareholders.

In mathematically,

EBIT - taxes - Preferred dividend

Hence, the correct option is b. After taxes minus preferred dividends.

Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred:Feb. 28 Sold merchandise to Lennox, Inc., for \$10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.
Mar. 31 Sold merchandise to Maddox Co. that had a fair value of \$7,200, and accepted a noninterest-bearing note for which \$8,000 payment is due on March 31, 2022.
Apr. 3 Sold merchandise to Carr Co. for \$7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts.
11 Collected the entire amount due from Carr Co.
17 A customer returned merchandise costing \$3,200. Evergreen reduced the customer’s receivable balance by \$5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur.
30 Transferred receivables of \$50,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met.
June 30 Discounted the Lennox, Inc., note at the bank. The bank’s discount rate is 12%. The note was discounted without recourse.
Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank.

Required:
1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold.
2. Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end.
3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes

The answer provides the necessary journal entries for Evergreen, including transactions, adjusting entries, and the effect on income before taxes.

### Explanation:

1. Journal Entries:

Feb. 28: Debit Notes Receivable-\$10,000; Credit Sales-\$10,000
Mar. 31: Debit Notes Receivable-\$7,200; Credit Sales-\$7,200
Apr. 3: Debit Accounts Receivable-\$7,000; Credit Sales-\$7,000
Apr. 11: Debit Cash-\$6,860; Debit Sales Discounts-\$140; Credit Accounts Receivable-\$7,000
Apr. 17: Debit Sales Returns-\$0; Debit Accounts Receivable-\$5,000; Credit Cost of Goods Sold-\$3,200; Credit Sales-\$5,000
Apr. 30: Debit Cash-\$49,500; Debit Finance Charge Expense-\$500; Credit Transfer of Receivables-\$50,000
June 30: Debit Cash-\$9,105; Debit Loss on Discount of Note Receivable-\$895; Credit Notes Receivable-\$10,000
Sep. 30: Debit Cash-\$10,560; Credit Notes Receivable-\$10,000; Credit Interest Income-\$560

Dec. 31: Debit Interest Receivable-\$340; Credit Interest Income-\$340 (to recognize accrued interest on the Lennox note)

3. Income Before Taxes:

The journal entries will impact the 2021 income before taxes as follows:
- Sales of merchandise will increase the income
- Sales returns and discounts will decrease the income
- Interest income and finance charge expense will affect the income