Fractional reserve banking is a system in which banks keep only a fraction of the money deposited by customers in reserve and lend out the rest.
For example, if a bank has $1,000 in deposits, it may keep $100 in reserve and lend out the remaining $900 to borrowers.
The problem with this system is that it creates a situation in which banks are relying on the fact that not all customers will demand their money at the same time.
Banks assume that only a small percentage of customers will withdraw their money on any given day, and they lend out the rest of the funds.
This means that if too many customers demand their money at the same time, the bank may not have enough cash on hand to meet those demands.
In this scenario, the bank may be forced to sell assets, borrow money from other banks, or even go bankrupt if it cannot meet the demands of its customers.
This is why fractional reserve banking leaves banks vulnerable to failure if too many consumers demand their money at the same time.
To mitigate this risk, governments often require banks to hold a certain percentage of their deposits in reserve, and central banks can provide emergency funding to banks that are experiencing a run on their deposits.
However, even with these measures in place, fractional reserve banking remains a system that is vulnerable to bank runs and financial instability.
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the citizens of lilliput spend a higher fraction of their income on food than do the citizens of brobdingnag. the reason could be that question 20 options: lilliput has lower food prices, and the price elasticity of demand is zero. lilliput has lower food prices, and the price elasticity of demand is 0. 5. lilliput has a lower income, and the income elasticity of demand is 0. 5. lilliput has a lower income, and the income elasticity of demand is 1. 5.
The reason why citizens of Lilliput spend a higher fraction of their income on food than do the citizens of Brobdingnag could be that 'Lilliput has a lower income, and the income elasticity of demand is 0.5' (option C).
Income elasticity of demand is a measure of how much the demand for a product changes in response to a change in consumers' income. When income elasticity of demand is less than 1, the good is considered a necessity. Therefore, a lower-income country like Lilliput may spend a higher fraction of their income on necessities like food. In contrast, the citizens of Brobdingnag have a higher income, and therefore, spend a lower fraction of their income on food.
Option c is answer.
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railroads are the best way to ship bulky items such as commodities, autos, and heavy equipment because, compared to other forms of transportation, railroads:
Railroads are often considered the best way to ship bulky items such as commodities, autos, and heavy equipment because they offer several advantages compared to other forms of transportation, including:
Cost-effectiveness: Rail transportation is often more cost-effective than other modes of transportation, especially for shipping large quantities of bulky items over long distances. Railroads can transport large volumes of goods at a lower cost per ton-mile than trucks or airplanes, making them ideal for shipping commodities and other heavy items.Capacity: Railroads have a high capacity for carrying bulky items, such as commodities, autos, and heavy equipment. They can transport large volumes of goods in a single shipment, reducing the need for multiple shipments and minimizing transportation costs.Safety: Rail transportation is generally considered to be safer than other forms of transportation, as it is less susceptible to accidents and theft. Railroads have strict safety regulations and procedures in place to ensure the safe transportation of goods.Environmental impact: Rail transportation is often considered to be more environmentally friendly than other modes of transportation, such as trucks or airplanes, as it produces less carbon emissions per ton-mile transported.Overall, the advantages of rail transportation make it an attractive option for shipping bulky items such as commodities, autos, and heavy equipment over long distances.
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henry is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising, and salaries for the coming financial year. henry is working on the____budget.
Henry is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising, and salaries for the coming financial year. henry is working on the operating budget
Henry is currently working on the operating budget for his firm. The operating budget is a detailed projection of all the expenses and income that a company expects during a specific period, such as the coming financial year. It helps businesses plan their financial activities and allocate resources effectively to achieve their objectives.
The operating budget includes various categories of expenses, such as supplies, travel, rent, advertising, and salaries, which are essential for the smooth functioning of the company. By projecting these costs, Henry can determine how much his firm will need to generate in revenue to cover these expenses and ensure the company's financial stability.
Creating an operating budget involves analyzing past financial data, current market trends, and the company's strategic goals. This enables Henry to make informed decisions about resource allocation and cost management, helping his firm maintain a strong financial position and achieve its desired growth.
Henry is working on the operating budget for the coming financial year to estimate the necessary expenditures for supplies, travel, rent, advertising, and salaries. This budget will guide his firm's financial planning, ensuring that resources are allocated effectively to meet the company's goals and maintain its financial health.
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In your opinion, does the volume of gold reserves
reflect the strength of the national currency locally or
externally? not or not The article should address the concept of
money, its types, the source
The volume of gold reserves can influence the strength of a national currency both locally and externally. Gold reserves act as a form of financial security, demonstrating a nation's ability to support its currency in times of economic uncertainty. In general, a higher volume of gold reserves may indicate greater stability and confidence in the national currency.
Locally, the volume of gold reserves can affect the currency's value as it contributes to the nation's overall wealth and financial health. Additionally, it serves as a measure of monetary stability, which can impact the domestic economy and inflation rates.
Externally, gold reserves can influence the exchange rate and international perception of the national currency. A strong reserve position often attracts foreign investment and can help maintain a stable exchange rate, leading to more robust international trade.
It's essential to understand that while gold reserves play a role in currency strength, other factors such as fiscal policies, economic indicators, and geopolitical factors also significantly impact a currency's value.
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economists think that most people are self-interested:____. because of ceteris paribus. because they respond to incentives in predictable ways. only rarely in response to incentives. only when money-related incentives are present.
Economists think that most people are self-interested because they respond to incentives in predictable ways.
This means that individuals are motivated to act in their own best interest and will make decisions based on what they believe will bring them the most benefit or utility. This does not mean that individuals are always selfish or that they never consider the needs or preferences of others, but rather that they are motivated by their own self-interest.
The concept of self-interest is an important assumption in many economic models and theories, including rational choice theory and the invisible hand theory of Adam Smith. The assumption of self-interest helps to explain how individuals make decisions in markets and how markets can function efficiently to allocate resources.
By understanding how individuals respond to incentives and act in their own self-interest, economists can make predictions and develop policies that promote economic growth and prosperity.
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Problem 7-72A (Algorithmic) Expenditures After Acquisition Pasta, a restaurant specializing in fresh pasta, installed a pasta cooker in early 2017 at a cost of $11,800, The cooker had an expected life of 5 years and a residual value of $600 when installed. As the restavrant's business increased, it became apparent that rencvations would be necessary so the cooker's output could be increased. In January 2020, Pasta spent $8,200 to install new heating equipment and $4,100 to add pressure-cooking capability, Apter these renovations, Pasta estimated that the remaining useful life of the cooker was 10 years and that the residual value was now $t,500. Required: 1. Compute 1 year's straight-ine depreciation expense on the cooker before the renovations. per year 2. Assume that three full years of straight-line depreciation expense had been reconded on the cooker before the renovations were made. Compute the book value of the cooker immediately after the renovations were made. 3. Compute 1 year's straight-line depreciation expense on the renovated cooker. per vear
1. The first year's straight-line depreciation expense before the renovations is $2,240 per year.
2. The book value immediately after the renovations is $17,380.
3. The first year's straight-line depreciation expense on the renovated cooker is $1,588 per year.
1. To compute 1 year's straight-line depreciation expense on the cooker before the renovations:
Original cost of the cooker: $11,800
Expected life of the cooker: 5 years
Residual value: $600
Straight-line depreciation expense per year = (Original cost - Residual value) / Expected life
= ($11,800 - $600) / 5
= $11,200 / 5
= $2,240 per year
2. To compute the book value of the cooker immediately after the renovations:
Straight-line depreciation expense for 3 years: $2,240 * 3 = $6,720
Book value before renovations: Original cost - Depreciation expense
= $11,800 - $6,720
= $5,080
Cost of renovations: $8,200 (new heating equipment) + $4,100 (pressure-cooking capability) = $12,300
Book value after renovations: Book value before renovations + Cost of renovations
= $5,080 + $12,300
= $17,380
3. To compute 1 year's straight-line depreciation expense on the renovated cooker:
New remaining useful life: 10 years
New residual value: $1,500
Straight-line depreciation expense per year = (Book value after renovations - New residual value) / New remaining useful life
= ($17,380 - $1,500) / 10
= $15,880 / 10
= $1,588 per year
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Graeme, Bella and Anne are partners with capital balances of $90,000, $70,000, and $50,000,
respectively. The partners agreed to share profits and losses as follows: Salary allowances of
$7,000 to Graeme, $8,000 to Bella and $14,000 to Anne. Interest allowances of 10% on
beginning-of-year capital balances Balance to be divided equally. If profit for the year is
$220,000, calculate each partner's share and prepare the appropriate journal entry to close the
Income Summary to the capital accounts.
To calculate each partner's share, we need to follow the profit and loss sharing ratio agreed upon by the partners:
Graeme's share:
Salary allowance: $7,000
Interest allowance: 10% of $90,000 = $9,000
Balance to be divided equally: (1/3) x ($220,000 - $7,000 - $9,000) = $68,000/3 = $22,666.67
Total share: $7,000 + $9,000 + $22,666.67 = $38,666.67
Bella's share:
Salary allowance: $8,000
Interest allowance: 10% of $70,000 = $7,000
Balance to be divided equally: (1/3) x ($220,000 - $8,000 - $7,000) = $68,333.33/3 = $22,777.78
Total share: $8,000 + $7,000 + $22,777.78 = $37,777.78
Anne's share:
Salary allowance: $14,000
Interest allowance: 10% of $50,000 = $5,000
Balance to be divided equally: (1/3) x ($220,000 - $14,000 - $5,000) = $67,000/3 = $22,333.33
Total share: $14,000 + $5,000 + $22,333.33 = $41,333.33
To close the Income Summary to the capital accounts, we need to transfer the total profit or loss to each partner's capital account based on their profit and loss sharing ratio. Since the profit is $220,000, we will credit Income Summary for $220,000 and debit each partner's capital account for their respective share as follows:
Income Summary $220,000
Graeme's Capital $38,666.67
Bella's Capital $37,777.78
Anne's Capital $41,333.33
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this question relates to a comparison between monopolistically competitive market and a perfectly competitive market. what happens to the efficiency in the long run as firms enter and exit a perfectly competitive market, as compared to when they enter and exit in monopolistically competitive market. group of answer choices in the perfect competition price will intersect the average cost curve at a point where price
In a perfectly competitive market, firms entering and exiting the market do not affect efficiency in the long run. This is because, in the long run, firms will earn only normal profits, and the price will intersect the average cost curve at a point where price equals marginal cost.
On the other hand, in a monopolistically competitive market, firms entering and exiting the market can affect efficiency in the long run. This is because firms have some degree of market power due to product differentiation, and in the long run, firms may earn excess profits.
As new firms enter the market, these profits will be competed away, leading to a decrease in efficiency. Similarly, as firms exit the market, there may be a loss of diversity in the products offered, leading to a decrease in efficiency.
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E5-3 Downstream sales 1. The separate incomes of Pop Corporation and Son Corporation, a 100 percent-owned subsidiary of Pop, for 2017 are $2,000 and $1,000, respectively. Pop sells all of its output to Son at 150 percent of Pop's cost of production During 2016 and 2017, Pop's sales to Son were $9,000 and $7,000, respectively. Son's inventory at December 31, 2016, included $3,000 of the merchandise acquired from Pop, and its December 31, 2017 Inventory included $2,400 of such merchandise. Assume Son sells the inventory purchased from Pop in the following year. est share of consolidated net income ot: A consolidated income statement for Pop Corporation and Subsidiary for 2017 should show controlling inter- a $2,200 b $2,800 $3,000 d $3,200
None of the answer choices provided is correct. The consolidated net income for 2017 is -$1,600.
To determine the consolidated net income for 2017, we need to first calculate the total sales revenue and cost of goods sold for Pop and Son separately, and then eliminate the intercompany sales and inventory balances to arrive at the consolidated figures.
Pop Corporation's sales revenue for 2017:
Sales to Son in 2017 = $7,000
Cost of production for Pop = $7,000 / 1.5 = $4,666.67
Sales revenue for Pop = $4,666.67 x 1 = $4,666.67
Son Corporation's sales revenue for 2017:
Sales revenue from Pop in 2017 = $7,000
Cost of goods sold for Son = $3,000 + ($7,000 / 1.5) - $2,400 = $5,800
Sales revenue for Son = $7,000 - $5,800 = $1,200
Consolidated sales revenue for 2017:
Sales revenue for Pop and Son = $4,666.67 + $1,200 = $5,866.67
Consolidated cost of goods sold for 2017:
Cost of production for Pop = $4,666.67
Cost of goods sold for Son = $5,800
Eliminate intercompany sales and inventory:
Cost of goods sold for consolidated entity = $4,666.67 + ($5,800 - $3,000) = $7,466.67
Consolidated net income for 2017:
Consolidated sales revenue = $5,866.67
Consolidated cost of goods sold = $7,466.67
Gross profit = $5,866.67 - $7,466.67 = -$1,600
Since the gross profit is negative, the consolidated net income for 2017 is also negative.
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If globalization pressures for a firm are relatively low, and if the firm has skills and assets that are transferable overseas, which of the following is the best strategy for the firm to use? O a. Defender strategy O b. Contender strategy O c. Dodger strategy O d. Extender strategy
The best strategy for a firm with relatively low globalization pressures and transferable skills and assets is the Contender Strategy.
This strategy involves the firm investing in new markets, products, and services in order to remain competitive and increase its global presence. The firm would use its skills and assets to develop new offerings in different markets and take advantage of opportunities in those markets.
This strategy would help the firm gain a competitive advantage as well as be nimble and agile in responding to changes in the global market. The firm would need to be mindful of the risks associated with entering new markets and invest in research and development to ensure that its strategies are successful.
Additionally, the firm should be open to partnerships and collaborations to ensure that it is able to maximize its resources and increase its global reach.
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An individual taxpayer, who is a sole proprietor, owns a specialized truck used to empty portable toilets used by migrant workers on nearby farms. last year, the taxpayer purchased new gloves and work boots to wear on the job. the taxpayer should deduct the cost of the gloves and boots on:________
The taxpayer should deduct the cost of the gloves and boots on their Schedule C (Form 1040), which is used to report income and expenses for their sole proprietorship. These items would be considered ordinary and necessary expenses directly related to their business of emptying portable toilets for migrant workers on nearby farms.
An individual taxpayer who is a sole proprietor and owns a specialized truck used to empty portable toilets used by migrant workers on nearby farms should deduct the cost of the gloves and boots on Schedule C (Form 1040).
Here's a step-by-step explanation:
1. The taxpayer is a sole proprietor, which means they are self-employed and report their business income and expenses on Schedule C (Form 1040).
2. The gloves and work boots are considered necessary and ordinary business expenses for the taxpayer's job.
3. On Schedule C (Form 1040), the taxpayer should report these expenses in Part II under the appropriate expense category, likely "Supplies" (Line 22) or "Other Expenses" (Line 27a) if a more specific category is not applicable.
4. By deducting these costs on Schedule C, the taxpayer will reduce their taxable business income, which in turn reduces their overall tax liability.
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for the firm whose production function and costs are specified in the table, its total-cost curve is a. constant. b. increasing at a decreasing rate. c. increasing at an increasing rate. d. unknown because there is no relationship between a firm's production function and its total-cost curve.
The total-cost curve is increasing at an increasing rate initially, then increasing at a decreasing rate, and finally, it becomes constant. Hence, the correct answer is (c) increasing at an increasing rate.
To determine the shape of the total-cost curve, we need to analyze the relationship between the total cost and the level of output. The table provided specifies the production function and costs of the firm.
Looking at the table, we can see that as the level of output increases, the total cost initially increases at an increasing rate (from 0 to 10 units of output).
This is because the marginal cost (MC) of production decreases initially but then starts increasing due to diminishing marginal returns. As the level of output continues to increase, the total cost increases at a decreasing rate (from 10 to 30 units of output).
This is because the marginal cost continues to increase, but at a slower rate than before due to economies of scale. Beyond 30 units of output, the total cost curve becomes constant as the firm reaches its minimum efficient scale and achieves constant returns to scale.
Therefore, the total-cost curve is increasing at an increasing rate initially, then increasing at a decreasing rate, and finally, it becomes constant. Hence, the correct answer is (c) increasing at an increasing rate.
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Suppose velocity is constant, money supply is growing at a rate of 6% per year, real GDP is growing at a rate of 1% per year, and the real interest rate is -2%. The nominal interest rate is O 5 percen
The nominal interest rate is 3 percent when money supply is growing at a rate of 6% per year, real GDP is growing at a rate of 1% per year, and the real interest rate is -2%.
Based on the information provided, we can use the Fisher equation and the Quantity Theory of Money to find the nominal interest rate.
The Fisher equation states that the nominal interest rate (i) equals the real interest rate (r) plus the inflation rate (π): i = r + π.
The Quantity Theory of Money states that MV = PY, where M is the money supply, V is the velocity of money, P is the price level, and Y is real GDP. Since velocity is constant, the percentage change in money supply (∆M) will equal the percentage change in nominal GDP (∆PY).
Given that the money supply is growing at 6% per year and real GDP is growing at 1% per year, we can determine the inflation rate (π) using the equation:
∆PY = ∆M - ∆Y
π = 6% - 1% = 5%
Now, using the Fisher equation with the real interest rate of -2% and the calculated inflation rate of 5%:
i = -2% + 5% = 3%
The nominal interest rate is 3%.
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which of the following are remedies available to the principal when an agent has breached the duty of loyalty?retroaction disgorgement disclaimer rescission
When an agent breaches the duty of loyalty to the principal, there are several remedies available to the principal. Two main remedies are disgorgement and rescission.
1. Disgorgement: This remedy involves the agent having to return any profits or benefits they have obtained as a result of their disloyal actions. Disgorgement ensures that the agent does not financially benefit from their breach of loyalty and helps the principal recover any losses or damages they may have suffered.
2. Rescission: Rescission is the process of canceling or terminating a contract due to the agent's breach of duty. In this case, the principal can void any transactions or agreements made by the agent during the period of disloyalty. This helps restore the principal's position as if the breach had never occurred and protects them from any potential harm caused by the agent's actions.
In summary, when an agent breaches the duty of loyalty, the principal can seek remedies like disgorgement, which forces the agent to return any profits they gained, and rescission, which allows the principal to cancel any agreements made by the disloyal agent. These remedies help the principal recover from the agent's breach and protect their interests.
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A small open economy with a floating exchange rate is initially in equilibrium at a with holding all else constant, if domestic consumers develop greater preferences for imported goods, then the ___________ curve will shift to__________
The demand for foreign exchange curve will shift to the right. This is because domestic consumers wanting to buy more imported goods will need to exchange domestic currency for foreign currency.
This increase in demand for foreign currency will cause the exchange rate to appreciate, meaning that the domestic currency becomes more expensive and the foreign currency becomes cheaper.
The exchange rate is determined by the demand and supply of foreign exchange, with the demand curve representing the amount of foreign currency that domestic agents are willing to buy at a given exchange rate.
When domestic consumers increase their demand for foreign goods, it increases the demand for foreign currency, shifting the demand curve to the right. This shifts the entire market equilibrium to a higher exchange rate, meaning that foreign currency is cheaper and domestic currency is more expensive.
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Karen is a Certified Management Accountant and is bound by the IMA's Standard of Ethical Content. Her superior has asked her to try to influence the firm's outside auditors with expensive gifts and favors. if Karen complies, she will violate the competence standard. a. true
b. false
False. Karen is a Certified Management Accountant and is bound by the IMA's Standard of Ethical Content. Her superior has asked her to try to influence the firm's outside auditors with expensive gifts and favors.
She will violate the ethical standard of integrity and potentially confidentiality. However, it is not related to the competence standard.
The statement "If Karen complies, she will violate the competence standard" is false. If Karen complies, she will be violating the "Integrity" standard of the IMA's Standards of Ethical Content, as she would be engaging in unethical behavior by trying to influence auditors with expensive gifts and favors.
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the balance of payments as applied to a course in international finance may be defined as
The balance of payments is a crucial concept in the study of international finance. It refers to the record of all financial transactions that take place between a country and the rest of the world over a specified period. This includes the trade of goods and services, investment flows, and other transfers such as aid and remittances.
A country's balance of payments can be classified into two categories: the current account and the capital account. The current account measures the flow of goods and services in and out of the country, while the capital account measures the flow of capital, including foreign investment, into and out of the country. Understanding the balance of payments is essential for analyzing a country's international finance, economic performance, assessing its financial health, and formulating effective policy measures to address any imbalances.
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Suppose that price and total revenues move in opposite directions, meaning if prices increase, total revenues decreases or if prices decrease, total revenues increases. If that is true, what can we conclude about where we are on the demand curve?
If prices and total revenues move in opposite directions, it suggests that you are in the elastic region of the demand curve. In this region, the percentage change in quantity demanded is greater than the percentage change in price, which leads to an increase in total revenues when prices decrease, and a decrease in total revenues when prices increase.
If price and total revenues move in opposite directions, it means that the demand curve is elastic. This is because when prices increase, consumers are less likely to purchase the product, leading to a decrease in total revenues. On the other hand, when prices decrease, consumers are more likely to purchase the product, leading to an increase in total revenues. Therefore, the position on the demand curve can be inferred to be at a relatively high price point, where a decrease in price would lead to a significant increase in total revenues due to the high elasticity of demand.
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Suppose you invested $17,000 in a fund that paid 8% interest per year. How much is your investment worth in 9 years? 1 mark for the formula. 3 marks for the correct answer and showing your work Let's say that you invested $27,000 last year and now that investment is worth $37,402. What is your rate of return? Show your work for full marks the rate of interest would be
The amount in your investment in 9 years will be worth $31,412.29. The rate of return for the investment is 38.53%.
It is given that you invested $17,000 in a fund that paid 8% interest per year. The amount in your investment in 9 years is determined using the following formula:
A = P(1 + r)^t
where,
P = Principal amount (initial investment) = $17,000
r = Interest rate = 8% = 0.08
t = Time in years = 9 years
Plugging the values into the formula:
A = P(1 + r)^t
A = 17000(1 + 0.08)^9
Calculating the result:
A ≈ $31,412.29
Your investment will be worth approximately $31,412.29 in 9 years.
It is given that you invested $27,000 last year and now that investment is worth $37,402. In order to determine the rate of return, use the following formula:
Rate of return = ((Current value - Initial investment) / Initial investment) * 100
In the given case:
Current value = $37,402
2. Initial investment = $27,000
Plugging the values into the formula:
Rate of return = ((37,402 - 27,000) / 27,000) * 100
Calculating the result:
Rate of return ≈ 38.53%
Your rate of return for this investment is approximately 38.53%.
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a company began its fiscal year with inventory of $186,000. purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. what was the amount of ending inventory reported in the balance sheet?
The amount of ending inventory reported in the balance sheet is $149,000.
To find the amount of ending inventory reported in the balance sheet, we can use the formula:
Ending inventory = Beginning inventory + Purchases - Cost of goods sold
Plugging in the given values, we get:
Ending inventory = $186,000 + $945,000 - $982,000
Ending inventory = $149,000
Ending inventory refers to the value of goods or products that remain in stock at the end of an accounting period. This inventory can include raw materials, work-in-progress, and finished goods that have not been sold or used in the production process.
The value of ending inventory is important for determining the cost of goods sold (COGS), which is a key component of a company's income statement. The cost of goods sold is calculated by subtracting the value of ending inventory from the cost of goods available for sale during the accounting period.
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t/f a firm in a monopolistically competitive market creates a similar deadweight loss to a monopoly.
True, a firm in a monopolistically competitive market creates a similar deadweight loss to a monopoly.
In a monopolistically competitive market, there are many firms competing with each other, each producing a slightly differentiated product. This leads to some market power for each firm, as consumers may have a preference for one product over another. However, because there are many competitors, firms cannot charge a price that is significantly above their cost of production without losing customers to their rivals.
Despite this competition, monopolistically competitive firms still create a deadweight loss. Like a monopoly, they charge a price above their marginal cost of production in order to earn profits. This leads to a reduction in the quantity demanded and a deadweight loss, as some consumers are priced out of the market.
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Which of these business events results in an accounting transaction? monitor production defects receive damaged goods back from customer evaluate employee performance measure carbon footprint
Out of the given business events, receiving damaged goods back from a customer is the only event that results in an accounting transaction.
This is because the business needs to record the transaction of returning the damaged goods and processing the refund for the customer in their accounting records. This event affects the accounts receivable and inventory accounts of the business, as the goods returned will need to be recorded as a decrease in inventory and the refund issued to the customer will decrease the accounts receivable balance.
Monitoring production defects, evaluating employee performance, and measuring carbon footprint are important business activities, but they do not necessarily result in accounting transactions. These events may have indirect effects on the business's financial statements, but they do not result in a direct entry into the accounting records.
In summary, only the event of receiving damaged goods back from a customer results in an accounting transaction, while the other events do not necessarily have an immediate impact on the accounting records.
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The income summary account is ____ (debited/credited) for the sum of all revenue accounts and is ____ (debited/credited) for the sum of all expense accounts and its balance will be transferred to the ____ (Retained earnings/ cash) account.
The income summary account is credited for the sum of all revenue accounts and is debited for the sum of all expense accounts. Its balance will be transferred to the Retained Earnings account.
The income summary account is a temporary account used in the closing process to summarize the revenues and expenses for the period. This account facilitates the transfer of the net income or loss to the retained earnings account. The retained earnings account is a permanent account that reflects the accumulated profits or losses of the business since its inception.
The transfer of the balance of the income summary account to the retained earnings account allows for the preparation of a new income statement for the next period. The use of the income summary account and the retained earnings account is critical in ensuring accurate financial reporting, which is essential for making informed business decisions.
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does your population appear to be well-suited to the new environment? explain what you think might happen to your population of paper dots
It appears that your population of paper dots is well-suited to the new environment. I think the population will adapt and thrive due to their compatibility with the surroundings.
To elaborate, if the paper dots have characteristics that allow them to survive and reproduce in the new environment, they are considered well-suited. This could include factors such as coloration that enables camouflage, or size and shape that allow them to fit into their surroundings.
As a result, the population of paper dots may increase over time as they become more efficient at utilizing resources and evading predators. Furthermore, through the process of natural selection, advantageous traits will become more common within the population.
As generations pass, the paper dots will continue to adapt to their environment, resulting in an increasingly well-suited population. Overall, the compatibility of the paper dots with their new environment will lead to a thriving population with improved survival and reproductive success.
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Which of these factors will shift the short-run aggregate supply to the left?
A) a decrease in the price level
B) a decrease in the cost of production
C) a decrease in the size of the labor force
The factor that will shift the short-run aggregate supply to the left is C) a decrease in the size of the labor force.
When the size of the labor force decreases, there are fewer workers available to produce goods and services, leading to a decrease in the overall output of the economy. This results in a leftward shift of the short-run aggregate supply curve, indicating that the economy can produce less at any given price level. A decrease in the price level (A) and a decrease in the cost of production (B) would actually shift the short-run aggregate supply curve to the right, as they both increase the overall output of the economy.
The factor that will shift the short-run aggregate supply (SRAS) to the left is C) a decrease in the size of the labor force. This is because a smaller labor force results in less overall production, which in turn decreases the short-run aggregate supply.
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yan yan corporation has a $2,000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. the yield to maturity of the bond is 5.05 percent. what is the dollar price of the bond?
The dollar price of Yan Yan Corporation's bond with a $2,000 par value, a coupon rate of 4.7% paid semiannually, and 13 years to maturity with a yield to maturity of 5.05% is $2,083.60.
To calculate the dollar price of the bond, we need to use the present value formula. The coupon payment is $47 ($2,000 par value x 4.7% coupon rate / 2 semiannual payments), and there are 26 semiannual periods left (13 years x 2 semiannual payments per year).
Using a financial calculator or Excel, we can find that the present value of the semiannual coupon payments is $791.50.
Next, we need to calculate the present value of the bond's principal payment. Using the same formula, we can find that the present value of the principal payment is $1,292.10.
Finally, we add the present value of the semiannual coupon payments and the present value of the principal payment to find the dollar price of the bond, which is $2,083.60.
Therefore, the dollar price of Yan Yan Corporation's bond with a $2,000 par value, a coupon rate of 4.7% paid semiannually, and 13 years to maturity with a yield to maturity of 5.05% is $2,083.60.
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suppose that the equilibrium price in the market for widgets is $5. if a law increased the minimum legal price for widgets to $6, producer surplusquestion 9 options:would necessarily increase even if the higher price resulted in a surplus of widgets.would necessarily decrease because the higher price would create a surplus of widgets.might increase or decrease.would be unaffected.
The equilibrium price in the market for widgets is the price at which the quantity demanded of widgets equals the quantity supplied of widgets.
At this price, both consumers and producers are satisfied and there is no excess supply or demand in the market.
If a law is passed that increases the minimum legal price for widgets to $6, it means that no widgets can be sold at a price lower than $6.
This would create a surplus of widgets in the market because the quantity supplied would exceed the quantity demanded at the higher price of $6.
In this situation, producer surplus might increase or decrease depending on the elasticity of supply for widgets.
If the supply of widgets is relatively elastic, producers may be able to increase their production in response to the higher price and still sell most of their widgets, resulting in an increase in producer surplus.
On the other hand, if the supply of widgets is relatively inelastic, producers may not be able to increase their production enough to sell all their widgets at a higher price, resulting in a decrease in producer surplus.
Therefore, the correct answer is that producer surplus might increase or decrease if a law increased the minimum legal price for widgets to $6, even if the higher price results in a surplus of widgets.
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In the US, alcohol is taxed by both the Federal government and individual states.
Which of the following is true of wine taxation in the US?
a. Most states have no alcohol tax
b. The Federal Tax rate is the same for all wines
c. The Federal Tax is lower for sparkling wines than table wines
d. The Federal Tax increases with alcohol content
e. The State alcohol tax is highest in California
d. The Federal Tax increases with alcohol content.
In the US, alcohol is taxed by both the Federal government and individual states. Regarding wine taxation in the US, the true statement is:
This means that as the alcohol content in wine increases, so does the federal tax rate applied to it.
Federal income taxes apply to all forms of earnings that make up a taxpayer's taxable income, including wages, salaries, commissions, bonuses, tips, investment income, and certain types of unearned income. In the U.S., federal income tax rates for individuals are progressive, meaning that as taxable income increases, so does the tax rate. Federal income tax rates range from 10% to 37% and kick in at specific income thresholds. The income ranges to which the rates apply are called tax brackets. Income that falls within each bracket is taxed at the corresponding rate.
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Offering payments to government officials is a practice widely accepted in Africa. Which of the following ethical theories is defined as a belief in time-and-place ethics and holds that ethical truths depend on the circumstances?
a. Deontological theory
b. Moral relativism theory
c. Casuist ethical theory
d. Utilitarian ethical theory
The ethical theory that is defined as a belief in time-and-place ethics and holds that ethical truths depend on the circumstances is Moral Relativism Theory (option b).
Moral relativism theory posits that there is no universal moral standard or absolute truth, and what is right or wrong depends on the particular cultural or historical context. Therefore, actions that are considered ethical in one culture may be considered unethical in another culture. This theory has been criticized for potentially justifying unethical behavior and for being subjective and not providing a clear ethical framework.
Option b is answer.
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a. How can government fiscal imbalances lead to a financial crisis? (2 marks)
b. How can financial liberalization lead financial crises? (2 marks)
c. How can opening up to capital flows from abroad lead to a financial crisis? (2 marks)
d. How can a bursting of asset-price bubble in the stock market lead to a financial crisis? (2 marks)
e. What is shadow banking system, and why was it an important part of the 2007–2009 financial crisis? (2 marks)
a) & b) Government fiscal imbalances occur when the government's expenditures exceed its revenue, resulting in budget deficits. This may lead to the government borrowing to finance its operations, which can lead to an increase in public debt.
c) If investors begin to doubt the government's ability to pay back its debt, they may demand higher interest rates on their loans, which can lead to a vicious cycle of even higher borrowing costs, further budget deficits, and ultimately, a financial crisis.
d) The shadow banking system refers to a network of financial institutions that operate outside of traditional banking regulations. This includes hedge funds, investment banks, and other non-bank financial institutions that engage in lending and other financial activities.
e) During the 2007-2009 financial crisis, the shadow banking system played a significant role in the collapse of the housing market. These institutions were heavily invested in subprime mortgage-backed securities and other complex financial products, which led to a widespread credit crunch when the housing market crashed. The lack of transparency and regulation in the shadow banking system contributed to the severity of the crisis.
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