Suppose a college student is texting while driving and gets into an accident that causes $2,000 worth of damage to her car. When the student repairs her car as a result of this accident, GDP will: be unchanged because the car has less value now, but car repairs are a service produced by the economy. fall by $2,000 since the car has less value now. rise by $2,000 since car repairs are a service produced by the economy. rise by the amount that the car originally cost minus the $2,000. This example suggests that using GDP as a measure of well-being is: inadequate because the original value of the car is not considered in this example. standard and acceptable, even though the car repair, and not the car destruction, is included in the basic measure of GDP. imperfect because the car repair, and not the car destruction, is included in the basic measure of GDP. standard and acceptable, even though the original value of the car is not considered in this example.

On june 1 of the current year, chad wilson established a business to manage rental property. he completed the following transactions during june: opened a business bank account with a deposit of $28,000 from personal funds. purchased office supplies on account, $2,690. received cash from fees earned for managing rental property, $7,390. paid rent on office and equipment for the month, $3,310. paid creditors on account, $1,230. billed customers for fees earned for managing rental property, $6,130. paid automobile expenses (including rental charges) for the month, $740, and miscellaneous expenses, $370. paid office salaries, $2,330. determined that the cost of supplies on hand was $1,590; therefore, the cost of supplies used was $1,100. withdrew cash for personal use, $2,210. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300) answer

If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are: