The long-run aggregate-supply curve would be moved to the right in the event that a significant amount of previously undiscovered oil was found in the United States. the lengthy term (b)
What is aggregate supply formula
The short-run aggregate supply is calculated using the equation Y=Y+(PPe). In the equation, Y stands for the economy's output, Y* for its natural level, coefficient is always positive, P stands for the current price level, and Pe stands for the predicted price level. To determine the state of the economy, economists use a variety of macroeconomic and microeconomic criteria. The general demand for the goods and services produced is one of the most significant criteria they take into account. Aggregate demand is the term used to describe this.
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Which of the following can put pressure on a company to carry small levels of inventory? O A, the need to increase workforce productivity O B. high cost of capital O C, the potential for stockouts and backorders O D. high ordering cost
High cost of capital can put pressure on a company to carry small levels of inventory.
Option B is correct.
Inventory level:By keeping a low inventory of each product, we have the leeway to market and sell more products. Retailers with low inventory levels do not need to set aside in-building storage space for additional inventory. This means you have more space to market and sell your products.
Why is inventory important?You can understand when and when to order new items. This is useful because it allows you to see trends over time, improving your ability to manage and forecast inventory levels. This is essential for planning, implementation, and strategy development.
What is your ideal inventory level?Optimal inventory level is the amount of inventory you need in your fulfillment centers at any given time to meet regular demand for your products. Optimizing your inventory levels can help alleviate common inventory issues such as: for example. : Selling out-of-stock items.
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Employees who keep themselves up to date on company news and continually learn new aspects of their job show _____.
Integrity is demonstrated by staff members who stay current on corporate news and are always learning new facets of their jobs. The correct answer i option (d).
What is most important to employees?An employee is a person hired by an employers to do a certain duty. The salary, number of hours worked, and employment conditions of employees are all at the authority of their employers. A person, company, or other organization that employs employees and pays them for their labor is said to be an employer.
Unsurprisingly, this issue continues to rank among the top priorities for employees. Workers who frequently aren't permitted to use their talents go for positions where they can; those who occasionally gets to do so look for jobs where they can use those skills even more.
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The full question is,
Employees who keep themselves up to date on company news and continually learn new aspects of their job show _____.
A. falsity
B. foolishness
C. presumption
D. integrity
The tendency of the media to make coverage and programming decisions based on what will attract a large audience and maximize profits is known as ______.
The answer is Commercial bias.
Commercial bias is the tendency of the media to prioritize content and programming that will bring in the most viewers and generate the highest profits. This bias is often seen in news outlets that prioritize stories that are likely to attract the most attention, or in television networks that focus on programming that will generate the most ad revenue.
This bias can lead to a lack of balanced news coverage and a narrowing of the types of programming available to viewers. It can also limit the diversity of perspectives presented, as the focus is on what will bring in the most viewers. Ultimately, commercial bias can create an environment where media outlets are driven more by profit than by providing a balanced and diverse range of content.
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Very often, failure to record a liability means failure to record a(n)
a. footnote.
b. asset conversion.
c. revenue.
d. expense
Very often, failure to record a liability means failure to record a(n) expense.
What is expense?An expense is an item that generally requires an outflow of money or some form of property to another person or group in payment for an item, service, or other category of expense.For tenants, rent is an expense.For students and parents, teaching is a cost.Expenses are the operating costs incurred by a business in order to generate revenue. It is simply defined as the cost you have to spend to get something. As the saying goes, “It costs money to make money”.Expenses in accounting refer to the money and expenses a business spends to track revenue. Simply put, out-of-pocket expenses are the costs associated with running a business that together contribute to the activities necessary to generate a profit.To learn more about expense from the given link:
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credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.
This is known as a sales return allowance. A sales return allowance is a deduction given by the seller to the buyer for merchandise that is returned or not received in good condition.
What is merchandise?Merchandise is a term used in the retail industry to refer to any physical product that is sold to consumers. It can include anything from clothing, electronics, toys, furniture, and food. Merchandise is typically sold by retailers to consumers for personal use. Merchandise can also refer to products that are used for promotional purposes, such as promotional items, promotional giveaways, and promotional discounts. Merchandise is important for any retail business, as it provides customers with the products they need and want. Merchandise is also a key component of any marketing campaign, as it is used to attract customers and increase sales.
The allowance is usually made in the form of a credit to the customer's accounts receivable. The amount of the allowance is usually based on the amount of the merchandise returned.
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Modern businesses use different technologies to accomplish work tasks. which type of technology is described in the given sentence? is intangible creative work that is embodied in physical form.
Intellectual property is intangible creative work that is embodied in physical form.
An idea becomes intellectual property once money is spent on research that might have beneficial economic and societal effects. Patents may be used to safeguard intellectual property for this reason. A patent provides legal protection against unauthorized use of intellectual property by third parties.
Initially, intellectual property is an intangible asset, meaning it is an idea based on a scientific theory rather than an actual object. However, when a concept is turned into a tangible good, intellectual property may take on physical shape. For instance, a researcher may find a substance that may treat a condition that was formerly thought to be incurable. The scientist owns all intellectual and intangible rights to this invention.
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Which visual merchandising strategy can help you demonstrate how products can be
combined? (Select the best answer. )
Packaging
Props
Platforms
Displays
Visual merchandising strategy can help you demonstrate how products can be combined as Displays. Option D is correct
Visual merchandisers present, arrange, and display goods in shops and storefront windows, which are important locations where buyers can view, choose, and purchase goods. The position was created in the 19th century, but it has only recently expanded and become crucial in the fashion sector.
Display * is the term used to describe the aesthetic and visual elements of displaying a product to a target market of consumers. Contrarily, visual merchandising covers all aspects of the corporate environment that are artistic and visually appealing. display. the aesthetic and visual elements involved in presenting a product to a specific market of consumers.
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What is the process of deciding which goods and services will be purchased or provided so that the most satisfaction can be obtained?
The concept mentioned is Economizing. It means trying to save money by reducing the amount that you are spending.
The process of deciding which goods and services to buy or to get the most satisfaction is called Economizing. You must maximize the value of your wealth.
Caring for the environment means you stop complaining about what you don't have and start making the most of what you have. Savings are a huge benefit as people think about where they can save on costs and most unnecessary expenses are eliminated in a way they wouldn't otherwise have.
So as you make decisions, you can see how it helps people sort through the mess that has been created everywhere in front of them. Resource conservation means using resources in such a way that the maximum return per unit of use is achieved.
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The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows.
Preferred Stock (7%, $100 par noncumulative, 4,900 shares authorized) $294,000
Common Stock ($3 stated value, 310,400 shares authorized) 744,960
Paid-in Capital in Excess of Par Value - Preferred Stock 14,700
Paid-in Capital in Excess of Stated Value - Common Stock 496,640
Retained Earnings 679,600
Treasury Stock 39,200
During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb 1 Issued 4,500 shares of common stock for $27,000
Mar 20 Purchased 1,820 additional shares of common treasury stock at $8 per share
Oct 1 Declared a 7% cash dividend on preferred stock, payable November 1
Nov 1 Paid the dividend declared on October 1
Dec 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014
Dec 31 Determined that net income for the year was $275,800. Paid the dividend declared on December 1.
1. Journalize the transactions
2. Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2014
4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity.
The company's ability to generate returns on the investments it has received from its owners is measured by its return on equity.
What function do stockholders serve?As part of their ownership of a firm, stockholders are entitled to a number of privileges, including voting rights over who sits on the boards of directors, dividend payments, and even a claim to a piece of any remaining assets in the event of a company liquidation.
What distinguishes a shareholder from a stockholder?Additional Courses. Both the phrases stockholder and shareholder relate to the holders of shares in a firm, making them co-owners of the enterprise. Therefore, you can refer to firm ownership using either phrase since they both refer to the same thing.
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Why is buying in bulk not always a good idea?
The fact that buying produce in bulk would probably result in it going bad before you can consume it all is a glaring reason why doing so is a terrible idea.
What are the disadvantages of buying in bulk?Purchasing produce in large quantities is unwise because it will presumably spoil before you have a chance to consume it all. Additionally, you don't always receive a discount for making larger purchases.
Shopping for food in quantity requires caution because prices can change.If you don't have much space, it can be challenging to locate a place to store the food.It's possible that you won't be able to finish all the food before the best before date.Although purchasing in bulk results in per-unit cost savings, buyers must be aware of the additional goods' usefulness. Although the cost per unit may be modest, the total cost of ownership is more expensive than simply purchasing what you require for the coming week or month.
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Who were Germany's reparations paid to?
Reparations are typically used to address historical injustices, such as the exploitation of a particular group of people, and to restore some level of justice and equality.
What is reparations?Reparations are payments made to a group of people in order to compensate them for past injustices or harms done to them. These payments may be made in various forms, including financial payments, policy changes, or the provision of services. Reparations are typically used to address historical injustices, such as the exploitation of a particular group of people, and to restore some level of justice and equality. Reparations are often seen as a way to address the wrongs of the past and to attempt to restore justice. They can also be seen as an acknowledgement of the wrongs that were done, as well as a recognition of the suffering of those affected.
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Capacity in excess of expected demand that is intended to offset uncertainty is a
a. line balance. b. margin protect c. timing bubble. d. capacity cushion. e. positioning hedge.
A capacity cushion is available capacity that is greater than anticipated demand and is meant to account for unpredictability. Bottleneck operations are a sign of unbalanced systems.
What does at capacity mean?
Capacity refers to your ability to do an action or the volume that something can hold. If your bird cage is already full, you cannot cram another feathery companion within without risking the claustrophobia of the bird. Capacity is a noun that simply implies "ability" or "capability"; it comes from the Latin word capacitatem, which means "breadth, capacity." Examples of this include a room's capacity to contain a specific number of people, a law's ability to reduce crime rates, and your capacity to learn new languages. It's possible to hear about factories operating at "full capacity," which refers to operating at maximum efficiency.
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Which of the following is an assumption made in the money-creation process? • Banks only lend to borrowers who they know will pay them back. Banks lend out all deposits and hold no reserves. Banks hold all deposits as vault cash. All currency is deposited in a bank. Individuals do not deposit any currency in a bank.
Answer: All the options except the third one are assumptions made in money-creation process.
Explanation:
The following statements are assumptions made in the money-creation process:
Banks only lend to borrowers who they know will pay them back.
Banks lend out all deposits and hold no reserves.
All currency is deposited in a bank.
Individuals do not deposit any currency in a bank.
The statement "Banks hold all deposits as vault cash" is not an assumption made in the money-creation process. In fact, it is generally not true that banks hold all deposits as vault cash. Most banks hold only a small fraction of deposits as cash, and the rest is invested in various assets such as loans, securities, and other investments. This is known as fractional reserve banking, and it allows banks to create new money through the lending process.
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According to the triple bottom line, which of the following statements is NOT accurate? Multiple Choice O The term planet refers to the company's overriding legal obligation to incorporate protection of the environment into its mission O The term profit not only encompasses the profit earned for its shareholders but also the economic impact that the company has on society more generally. O The three dimensions of performance are often referred to in terms of the "three pillars" of people, planet, and profit. O The triple bottom line refers to three types of performance metrics: economic, social, environmental. O The term people refers to various social initiatives such as charitable contributions, serving endeavors, and engaging in broader philanthropic initiatives.
According to the triple bottom line, The term planet refers to the company's overriding legal obligation to incorporate protection of the environment into its mission is not accurate.
What does Triple bottom line means?
The Triple Bottom Line (TBL) is a business concept that emphasizes the importance of considering social and environmental impacts in addition to profit when evaluating the success of a business. The Triple Bottom Line approach focuses on three Ps: People, Planet, and Profit. It encourages businesses to consider how their activities impact not only their financial results but how they affect their stakeholders and the environment.
What is a Stakeholder?
A stakeholder is any individual or group that has an interest in the success or performance of an organization, project, or activity. Stakeholders often have different perspectives, needs, and interests, and can include employees, customers, suppliers, shareholders, the local community, and other organizations.
Therfore the correct option is A. The term planet refers to the company's overriding legal obligation to incorporate protection of the environment into its mission.
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A property's taxes are $9,540 and are paid for in arrears. The property was sold, and closing took place on March 7. The seller was responsible for the day of closing. Using the 360 day method, how will taxes be prorated
The "360 day technique" will be used to prorate taxes, which will be charged to the buyer and credited to the seller for a total of $1775.50.
Who is in charge of making property tax payments following the closing?All property tax bills that become due after the final date must be paid by buyers of existing homes. In Illinois, taxes are paid a year after they are assessed, or in arrears. Your settlement statement will include any tax credits that you were given by the seller during the closing.
Property taxes are paid in arrears and will be the buyer's responsibility after closing. Terms in this set (10)
$9540 in total taxes.
Total amount of time before shutting = 2 months, 7 days.
$795 per month is the monthly fee.
Daily fees equal $26.5 per day.
795 multiplied by two months' w
Charges for seven days equal seven by 26.5 to $185.
Charges in total: 1590 + 185.5 = $ 1775.5 $1776 (Rounding off)
The buyer receives a credit and the seller receives a debit since the buyer paid the property's taxes on the day of closing and the seller was in charge of them for the prior two months and seven days. The buyer is due $1776 from the vendor.
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X
✓
The primary function of the Gini coefficient is to
(4 points)
measure the quality of human capital in an economy
O explain the cause of income inequality
O measure income inequality in an economy
show the efficiency of an economy
show the amount of wealth in an economy
Points
Answer:
The primary function of the Gini coefficient is to measure income inequality in an economy. It is a statistical measure that is used to represent the distribution of income or wealth among a population. A Gini coefficient of 0 indicates perfect equality, where everyone in the population has the same income or wealth. A Gini coefficient of 1 indicates perfect inequality, where one person has all the income or wealth in the population. The Gini coefficient is often used to assess the level of income inequality in a country or region and can be used to inform policy decisions related to redistributive measures such as taxes and welfare
Ethics for the workplace are often defined by Group of answer choices professional organizations. religious groups. team meetings. other employees.
Workplace ethics is defined as a moral code that guides employee behavior in terms of right and wrong in behavior and decision-making.
Workplace ethics, also known as workplace ethics, are moral principles that companies use to determine appropriate or inappropriate behavior in the workplace. Workplace ethics affects everything from how a company operates to how employees behave in the workplace to protect the company's image.
Characteristics are:
Appearance, presence, demeanor, character, communication, cooperation, organization, productivity, respect and teamwork have been defined as critical to academic success and are listed below.
The Cambridge Dictionary defines business ethics as "the rules, principles, and standards that determine what is morally right and wrong in the workplace." Business ethics therefore refers to the implementation of good business practices and policies in the workplace.
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A customer wants to buy $12,000 worth of stock using other marginable securities owned as collateral for the purchase. With Regulation T at 50%, what must the current market value of the securities deposited be
A customer offers to put up other owned bring about a positive securities as backing for the buying of $12,000 worth of shares. The original margin is referred to as this.
Which one of the following can be used to satisfy a Regulations T call of initial margin when buying a security?Depositing cash equal to the call will satisfy a first-time Regulation T margin call. listed securities that are marginable and have a loan value equivalent to the call. In order to satisfy a Standard T margin call, an investor may deposit cash or deliver securities with a value equivalent to the loan amount of the call.
How much additional common stock is available for purchase without a deposit?You may borrow up to 50% of the purchase price of margin securities in accordance with Federal Reserve Board Regulation T. The original margin is referred to as this. Some businesses want a larger deposit.
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Which of the following is central to the task of identifying the strategy-related issues and problems that ment the front-burner attention of company managers? O Doing a SWOT analysis and a competitive strength assessment O Deciding what strategic path to follow, setting stretch objectives, picking an appropriate strategic intent, and crafting a competitively powerful strategy O Deciding what to do-which strategic actions to take and which strategic moves to make O Drawing conclusions about how hard it will be for the company to achieve a sustainable competitive advantage and deciding what actions to take to overcome these obstacles and challenges O Compiling a "worry list of "how to...," "whether to ," and "what to do about...that serves as an agenda of strategically relevant issues/problems that managers need to address in crafting a refurbished strategy to fit the particulars of the company's external and internal situation
Doing a SWOT analysis and a competitive strength assessment is central to the task of identifying the strategy-related issues and problems that ment the front-burner attention of company managers.
What does SWOT analysis mean?
It is a strategic planning tool used to assess an organization's internal and external environment. It can help organizations identify and analyze their strengths, weaknesses, opportunities, and threats to aid in the development of future plans and strategies.The goal of a SWOT analysis is to gain insight into an organization's competitive position in the marketplace and to help guide decision-making. It can also be used to evaluate competitors and identify external factors that could affect a business.
What is a Company manager?
A company manager is a person who is responsible for overseeing the day-to-day operations of a business or organization. They are responsible for setting goals, developing strategies, monitoring progress, and ensuring that employees and other stakeholders are meeting the organization’s objectives. The manager must also be able to handle difficult situations, such as employee conflicts or customer complaints, and make sure that the company is running efficiently and effectively.
Therfore the correct option is A. Doing a SWOT analysis and a competitive strength .
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What are the 3 things that you should keep in mind when investigating sources of information explain each?
When investigating sources of information, three important things to consider are accuracy, reliability, and bias.
Accuracy: This means that the information provided by the source is correct and up-to-date. When researching a topic, it is important to make sure that the source is providing accurate facts and figures, and not just speculation or opinion.
Reliability: This means that the source is trustworthy and can be relied upon to provide truthful information. When investigating sources, it is important to make sure that the source is reliable and has a good reputation.
Bias: This means that the source might be presenting information in a way that is not impartial or unbiased. It is important to look for any signs that a source may be presenting information in a biased manner, such as using language that is slanted or presenting only one side of an argument.
By looking for any signs of bias, you can make sure that the source is presenting a fair and balanced view of the topic.
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What is President Roosevelt's stated purpose for issuing this executive order?
Franklin D. Roosevelt signed this order on February 19, 1942, allowing the transfer of all individuals deemed to pose a threat to the nation's security from the West Coast to locations further inland.
The 32nd president of the United States, Franklin Delano Roosevelt, also referred by his initials FDR, was an American politician and attorney who presided over the country from 1933 until his passing in 1945. He became a key player in world affairs throughout the first half of the 20th century while serving as the head of the Democratic Party and winning a career high four presidential elections. The bulk of the Great Depression was under Roosevelt's guidance as he pursued his New Deal domestic agenda in response to the worst economic catastrophe in American history. He established the New Deal Coalition, which for the middle third of the 20th century in the US characterized modern liberalism. The World War 2, which came to a close just after he past away in office, dominated his third and fourth tenure. He was raised in Hyde Park, New York, where he was a member of the well-known Roosevelt family. He graduated from the Groton School, Harvard College, and Columbia Law School, which he left after passing the bar test to begin his legal career in New York City. He wed Eleanor Roosevelt, his fifth cousin once removed, in 1905. Five of the six children they had and brought to adulthood.
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What happens in a market economy?
In a market economy, individuals and businesses make decisions about production, distribution, and consumption of goods and services.
Prices are determined by supply and demand, and goods and services are exchanged through marketplaces. Competition is an important factor in a market economy, as it encourages companies to innovate, produce high-quality products, and keep prices low.
Consumers benefit from a market economy, as they have access to a wide variety of products and services at competitive prices.
This system is based on demand and supply, meaning that the prices of goods and services are determined by the amount of people wanting to buy them and the amount of people able to provide them.
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The fixed order interval model would be most likely to be used for this situation: a. A company has switched from mass production to lean production. b. Production is done in batches. c. Spare parts are ordered when a new machine is purchased. d. Grouping orders can save shipping costs. e. none of these
Order consolidation might reduce shipping expenses. Which product would be the least likely to be ordered under a system with predetermined order intervals
What conceivable justifications exist for employing the fixed order interval model?The fixed interval model allows you the ability to schedule individual orders effectively, with the option to combine orders from the same source on the same date. As a result, there will be fewer general orders to make and better organized procurement and goods-in operations.
What is the objective of the fundamental EOQ model quizlet?Finding a fixed order quantity that will reduce total annual inventory costs is done using the fundamental EOQ model.
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to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Kathryn accepts the offer by
The mailboxbox rule is a rule of contract law that states that acceptance of an offer is effective at the time it is sent, not when it is accepted. This rule will not apply if Kathryn accepts the offer by signing a written contract, as this would be an objective indication that she has accepted the offer.
In other words, if Kathryn signs the written contract, it is clear that she has accepted the offer, and the letterbox rule will not apply. The other party may also demand that Kathryn pay for the flash drives before they are delivered, which would further indicate that Kathryn has accepted the offer. Therefore, the mailbox rule will not apply if Kathryn accepts the offer by signing a written contract or paying for the flash drives.
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in one such delievery center parcels are placed in a sequence where the ith parcel has a weight of weight[i]
The center wants to know the heaviest parcel and its weight. In one such delievery center parcels are placed in a sequence where the ith parcel has a weight of weight
One approach to solve this problem is to use a linear search algorithm. We can loop through the weight array and compare each element with a variable that stores the maximum weight encountered so far. If the current element is greater than the maximum weight encountered so far, the variable is updated with the current element. At the end of the loop, the variable will contain the heaviest parcel weight.
Time complexity: O(n)
Space complexity: O(1)
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A proposal will make years that end in double zeros a leap year only if the year leaves a remainder of 200 or 600 when divided by 900. Under this proposal, how many leap years will there be that end in double zeros between 1996 and 4096
( 2000, 2400, 2900, 3300, 3800) >> Under the suggested plan, these years would be designated as "Leap Years." A leap year is any year that can be divided in half evenly by 4.
A leap year is a calendar year with an extra day added to keep it in sync with the astronomical year or seasonal year (also known as an intercalary year or bissextile year). Calendars that have a fixed number of days in each year will unavoidably drift over time in relation to the event that the year is designed to chronicle, such as seasons, because astronomical events and seasons do not repeat in a complete number of days. The divergence between a civilization's dating system and the Solar System's physical characteristics can be fixed by adding an extra day or month to select years. A common year is one that is not a leap year.
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Manju is a full-time exempt employee living in Illinois who earns $46,280 annually and is paid biweekly. She is married filing jointly and has indicated checkbox withholding on her 2020 Form W-4. What is the total of her Federal and state income tax deductions for the most recent pay period
For the most recent pay period, she deducted $162 in federal and state income taxes.
What is income tax deduction?A tax deduction is a sum of money that lowers the amount of your taxable income and lowers your tax obligation. You can deduct some adjustments to income, such as: interest on student loans payments, after determining your total total pay for the year.
Biweekly payment to Manju = Annualy payment / 26 weeks
= $43680 / 26 = $ 1680
She has three withholding allowances and is married.
We must now determine the federal tax, which is shown in a chart and ranges from $1680 to $1700 with three allowances.
Federal Tax = $99 (Given)
State Income Tax = biweekly Payment * Rate
= 1680 * 3.75 %
= $63
Total Tax = Federal Tax + State Income Tax
= $99 + $63
=$162
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What are the 3 things that help you get started in setting a budget?
If budget is something you want to do, prepare a plan for how you'll make it happen. For instance, you must set aside time and implement procedures that will make the budget-making process easier.
Just what is a budget?An essential stage in creating a budget is estimating the overall income and expenses for the new fiscal year. For further analysis, this value may then be split up into several intervals, such as quarter and months.
What does a budget category include?Each budget is modified to accommodate the current financial state of the company. Below are some examples of simple budgets: Red flag budget is another name for this spending plan. The business has developed a fundamental budget.
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The process of narrowing the field of offerors through the selection of the most qualified proposers on the basis of qualifications is called:
The process of narrowing the field of offerors through the selection of the most qualified proposers on the basis of qualifications is called shortlisting.
Basis of qualifications are the prerequisites that an applicant must meet in order to be given preliminary consideration for the employment. When submitting an application for a job at Harvard, be careful to explain in detail how you satisfy the minimal requirements for the open position in both your cover letter and CV. Consider your prior schooling and employment. Consider the life skills you've acquired. For an alternative viewpoint, speak with those who are familiar with you outside of work. Your education, work history, skill set, and character traits currency float are all examples of your qualifications. Qualifications may include a college degree, a licence, great communication skills, the capacity to lift 50 pounds, attention to detail, a dedication to diversity, reliability, and a cheerful outlook.
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Changes in real GDP reflect Question 12 options: a) both changes in prices and changes in the amounts being produced. B) neither changes in prices nor changes in the amounts being produced. C) only changes in the amounts being produced. D) only changes in prices
Changes in real GDP reflect both changes in prices and changes in the amounts being produced. While an increase in real GDP unquestionably indicates increased output, an increase in nominal GDP may only indicate an increase in prices.
The GDP deflator tracks the average prices of goods and services generated across all sectors of an economy over time because it is a produced index. Adjustments for changes in inflation are included in real GDP. This implies that real GDP will be lower than nominal GDP in an inflationary environment and vice versa. Positive inflation leads to a significant nominal GDP inflation without a real GDP correction. Real GDP growth is frequently used as a gauge of the economy's overall health.
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