Answer: decrease
Explanation:
Demand is the amount of product or service that a economic entity wants to buy at a certain price at a particular time period.
When the world price of steel falls substantially, the demand for labor among steel-producing firms in Pennsylvania will reduce. This is because as price reduces, producers will want to supply less steel thereby demand for labor will reduce.
Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values. Assets LiabilitiesFederal reserves $A $B Commercial Banks Assets Liabilities Treasury bills C no change Reserves D
Answer:
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
No change
Explanation:
To Complete the tables that represent the financial position of the Federal Reserve and commercial banks
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
NO change in liabilities
Therefore the Federal Reserve assets will be TREASURY BILLS While the liabilities for Federal Reserves will be MONETARY BASE
On June 1, Murphy Company paid $5,400 for one year of advertising in advance. Murphy debited Prepaid Advertising. The advertising expense will be used evenly throughout the year. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:
Answer:
Expenses = Understated by $3,150
Assets = Overstated by $3,150
Explanation:
When Murphy Company paid for advertising in advance on June 1, the entries will be :
Prepaid Advertising $5,400 (debit)
Cash $5,400 (credit)
By the year end, December 31, 7 months advertising expense would have been expired the entries must be :
Advertising Expense $3,150 (debit)
Prepaid Advertising $3,150 (credit)
Advertising Expense Calculation = $5,400 × 7/12 = $3,150
Thus, if not adjusted the following are the effects :
Expenses = Understated
Assets = Overstated
Assume that the required reserve ratio is set at 0.125 . What is the value of the money (deposit) multiplier
Answer:
8
Explanation:
the money multiplier = 1 / required reserve ratio = 1 / 0.125 = 8
The money multiplier refers to the capacity of the banking system to "create" money, e.g. John deposits $1,000 dollars in bank A. Then bank A lends $875 to Frank which buys a bike from Sarah. Then Sarah deposits the $875 in bank B, which in turn borrows $765.63 to Anne. Anne pays her rent to Adam, who deposits the money in bank C and then bank C lends $669.92 to Joe, and ...
"A registered representative ("RR") has entered an order to buy 100 shares of ABC at $50 per share for a customer. The transaction is executed at $50 per share, and when the representative is reporting the trade to the customer, she notices that the account number on the executed order ticket is wrong. Which statement is TRUE?"
Answer: The "RR" may change the account number on the order ticket to the correct number if the branch manager approves in writing
Explanation: According to the scenario described above, the error in the executed order can only be effected based on approval by the branch manager after being notified by the registered representative of the error in the order ticket. The official approval to effect the change in the error made in the account details must be put into writing by the branch Manager for privacy and documentation sake as making such change to an order ticket requires following due process.
With any successful hedge, you can avoid the accounting ramifications of a loss on one side by keeping it off the books. you are guaranteed to lose money on one side. you are guaranteed to lose money on one side, but you can avoid the accounting ramifications of a loss on one side by keeping it off the books. none of the options
Answer:
none of the options
Explanation:
Hene in accounting is the situation whereby hedge managers where able to raise capital for a given business venture. The invested money helps in making further money for those hedge companies or its manager.
is the amount a business earns after deducting what it spends for salaries and other expenses.
Answer:
After deducting the expenses for salaries and other expenses like rent, the money you have left is the amount of money that you actually earned.
In an unregulated, competitive market consumer surplus exists because:___________.
1. some sellers are willing to take a lower price than the equilibrium price.
2. some consumers are willing to pay more than the equilibrium price.
3. some sellers will only sell at prices above equilibrium price (or actual price).
4. some consumers are willing to make purchases only if the price is below the actual price.
Answer: some consumers are willing to pay more than the equilibrium price.
Explanation:
Consumer Surplus is simply the difference between the price that is paid by a consumer and the price that the consumer was willing to pay in the first place.
In an unregulated, competitive market consumer surplus exists because some
consumers are willing to pay more than the equilibrium price.
1. You recently inherited some property between a wealthy neighborhood and a fairly poor neighborhood. You have constructed a building on the land and are preparing to open an upscale convenience store (which is allowed under zoning laws). Because your location, you believe that the wealthy neighbors will pay a premium for convenience as your store will be the only store in the area. Further, you believe that the residents of the poorer neighborhood will pay the higher prices because the only other convenience store in the area is farther into the poorer neighborhood which has a reputation for being dangerous. As you plan for your convenience store opening, how do you decide whether to charge higher prices than at other convenience stores in the general area
Answer:
Pricing is a very important component of Marketing. Marketing is essential for business performance.
The first objective of pricing is to ensure that the business is profitable.
The second is to ensure that one does not under price or over price. In order words, one would like to ensure that they get the best value possible for their products and or services.
A major factor for consideration when setting prices is the existence and behaviour of the competition and those of the customers.
According to the question, the convenience store will be the only one situated in the wealthy neighbourhood and those who are poor will not mind paying higher prices as the only other store which is the poorer neighbourhood is dangerous.
The challenge here is this, if the prices become too high for the poor residents to pay, they will start to think outside the box. They will opt for a solution(s) that will help them resolve the dilemma of having to choose between danger and having to spend so much at the new convenience store.
Their solutions could be to contribute some money to purchase a store at a safe location, where they can set up a business that will serve the community (both wealthy and rich) at reasonable prices.
Therefore, the best option is to ensure that the prices are just okay as an incentive for the poor to commute all the way to the new store rather than the one that has little or no security. The opportunity cost lost in terms of profit that would have been made is the cost to the company for ensuring that competition does not arise in the nearest future.
The consideration for whether or not the rich will pay is already attended to. Given that the wealthy don't have a convenience store within reach, this store most likely will be welcome as a relief to those who had to travel outside of their locality to do their shopping.
Cheers!
Suppose the Federal Reserve (Fed) decides the current money supply of $2.1 trillion is too low, and that an increase of $400 billion is necessary. What tool can the Fed use to accomplish this increase? Assume the current reserve ratio is 0.1 a. Sell govenment securities b. Buy govemment securities c. Increase the reserve ratio d. Increase the interest paid on bank reserves
Answer:
b. Buy government securities
Explanation:
By buying government securities, the FED will engage in an expansionary monetary policy that should increase the money supply to its desired level. Theoretically, since the reserve ratio is 10%, the money multiplier is 1/10% = 10, so the increase in the money supply should be accomplished by purchasing $40 billion in securities.
This can also be done by lowering the reserve ratio.
Karen bought her house in 1980 for $78,500. In 2005, it was worth $850,000. What’s the rate of return on Karen’s investment?
Answer:
the rate of return on Karen investment is 10%
Explanation:
Given that
Bought price = P = $78500
Sale price = S =$850,000
Time priod = n = 25 years (1980 to 2005)
Based on the above information
The Rate of return is
= (S ÷ P)^(1 ÷ n) - 1
= ($850,000 ÷ $78,500)^(1 ÷ 25) - 1
= 0.099973
= 10.00%
hence, the rate of return on Karen investment is 10%
We simply applied the above formula
Answer:
he rate of return on Karen investment is 10%. Explanation: Given that. Bought price = P = $78500. Sale price = S =$850,000.
Explanation:
The ability to see organizations as systems is called: A. system decomposition. B. systems thinking. C. organizational analytics. D. algorithmic analysis. E. analytical thinking.
Answer:
B. systems thinking
Explanation:
System thinking refers to thinking in which the person is helped in order to present a system in a broad perspective that involves entire structure, its patters, cycles instead of seeing in only specific events occurred in the system
In the given situation, the capability to view an organization as a system we called as a system thinking and the same is to be considered
Hence, the correct option is b.
Financing a startup venture’s business model is another key component of entrepreneurial finance. External financing involves various types of capital providers: angel investors, VC investors, creditors, suppliers (for trade credit), etc. These external financiers, together with founders and employees, design various deal structures and financial instruments (e.g., stock options, preferred stocks with various special rights, convertibles, debts with different seniorities and different collateral requirements, etc.) to carve up the venture’s value. What are your thoughts on the value partition issue in a new venture?
Answer:
John as an entrepreneur, and the founder of Johnson Global, requires funding for his new business ventures. He has contacted Paul as an angel investor or the managing director of Paulson Venture Capital Ltd. When Paul invests his money in Johnson Global, he has paid the piper and will invariably dictate the tune. He also decides how the economic value shall be partitioned between the entrepreneur and the investor. Similar scenarios play out with all entrepreneurial financing.
An entrepreneur can fund his or her startup ideas or venture from various sources. She can take bootstrapping, otherwise known as the internal source. She can also take the external financing source. This later source is where business angels, venture capitalists, management buy-outs, and other sources of finance are arranged.
Venture capital and angel investors, suppliers, and employees design various deal structures and financial instruments first to capture where the value lies in a new venture and then decide how the finances are to be raised, when, and from whom. Having assigned an economic valuation to the startup idea, investors also conclude an effective funding contract with the entrepreneur and express their exit strategies.
Putting a value on a new venture is not an easy task. There are many uncertainties concerning development possibilities, and market and industry trends. There are informations gaps to deal with, the presence of soft assets, which are unique and rarely measurable in the marketplace, and associated volatility with market conditions, financial and product markets, and current value and potential profitability issues to be addressed.
Explanation:
Entrepreneurial finance covers the study of value and resource allocation, especially in a new venture. These aspects determine if the entrepreneur will get fresh finances for her ideas. They also determine who gets what from the economic value that will potentially result from the new venture.
"Finn Company reported assets of $1,000 and stockholders’ equity of $600. What amount will Finn report for liabilities?"
Answer:
Liabilities = $400
Explanation:
The basic accounting equation that is used states that the value of total assets is always equal to the value of the sum of total liabilities and total equity. The we can state the equation as,
Assets = Liabilities + Equity
To calculate the value of liabilities, we input the available value of assets and equity in the equation.
1000 = Liabilities + 600
1000 - 600 = Liabilities
Liabilities = $400
Which of the following types of tools is usually recommended for small projects and single users?
a. Low-end
b. Midrange
c. Upper range
d. High-end
Answer:
a. Low-end
Explanation:
Low end tools is usually recommended for small projects and single users. Low end is referred to the lowest priced merchandise in a manufacturer's line. This is good for smaller projects and freelancers. Low-end tools provide basic project management features and generally cost less for each user They are often recommended for small projects and single users.
Which of the following statements is CORRECT?
A. The beta of a portfolio of stocks is always smaller than the betas of any of the individual stocks.
B. If you found a stock with a zero historical beta and held it as the only stock in your portfolio, you would by definition have a riskless portfolio.
C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.
D. The beta of a portfolio of stocks is always larger than the betas of any of the individual stocks.
E. It is theoretically possible for a stock to have a beta of 1.0. If a stock did have a beta of 1.0, then, at least in theory, its required rate of return would be equal to the risk-free (default-free) rate of return, rRF.
Answer: C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.
Explanation:
The beta coefficient is used by an economic entity to measure how volatile an individual stock is when such stock is being compared to the market's systematic risk.
Of the options given in the question, the correct answer is option C which states that "C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future"
In January 2002, the Argentine peso changed in value from Ps1.00/$ to Ps1.40/$, thus, the Argentine peso ___________________ against the U.S. dollar. Question 50 options: stregthened weakened appreciated maintain natural parity
Answer:
Weakened
Explanation:
When initially in January 2002, the rate of exchange was 1 Argentine Peso for 1 U.S. Dollar.
Later on, it is observed that the rate of exchange is 1.40 Argentine Peso for 1 U.S. Dollar.
It is clear that buying capacity of dollar has increased and that of peso has decreased.
Argentine Peso is depreciated by 40% that earlier 1 Dollar = 1 Peso
Now, decreased value = 1.4 Peso - 1 Peso = 0.4 Peso.
Thus, (change in value)/(Actual Initial Value) = 0.4/1 = 40%
Peso has depreciated or weakened by 40%.
All of the following statements regarding FICA taxes are true except:_________.
a. FICA taxes are deducted from the employee.
b. Employers must pay withheld FICA taxes to the IRS.
c. The amount of FICA deducted from the employee is credited to a liability account.
d. A self-employed person is exempt from FICA taxes.
e. An employer must pay FICA taxes equal to the amount withheld from the employee.
Answer: d. A self-employed person is exempt from FICA taxes
Explanation:
The Federal Insurance Contributions Act is a federal payroll contribution in the United States that is paid by every employers and employees and employers in order to fund Medicare and the Social Security.
All of the following statements regarding FICA taxes are true except self-employed person is exempt from FICA taxes.
A corporation received $550 from a customer as a deposit and the company uses cash basis accounting. The effect of this transaction is to: Group of answer choices
Answer: increase asset
Explanation:
Cash basis accounting is an accounting method that is used to records revenue as at the point that the cash is received. Also, the expenses are recorded when expenses are paid in cash.
From the question, we are informed that a corporation received $550 from a customer as a deposit and the company uses cash basis accounting. The effect of this transaction is to increase assets.
Answer: a. Increase assets
Explanation:
The cash basis of accounting recognises revenues and expenses only when actual cash has been exchanged. As a result, when the customer paid the $550, this amount would be reflected immediately as a cash inflow to the company.
As cash is an asset, when it is received into the company it increases the asset account.
An increase in the interest rate A. increases the percentage yield of holding money. B. decreases the opportunity cos
Answer:
increases the opportunity cost of holding money
Explanation:
An increase in the interest rate actually increases the opportunity cost of holding money.
The opportunity cost of holding money is the nominal interest rate. Opportunity cost can be referred to as the interest rate that is forgone on alternative assets. So, when interest rate increases, the opportunity cost of holding money also increases.
Under perfect competition, a firm is a price taker because:________.a. setting a price higher than the going price results in zero salesb. each firm's product is perceived as differentc. each firm has a significant market shared. all of the above
Answer:
a. setting a price higher than the going price results in zero sales
Explanation:
Perfect competition markets are theoretical since there is not perfectly competitive market in the world, but some markets, specially commodities, work in similar ways. All the markets that work similarly to perfect competition markets have many sellers and buyers, and that prevents any individual seller or buyer from having to much market power, so all of them must be price takers if they want to sell their goods.
If Roten Rooters, Inc., has an equity multiplier of 1.52, total asset turnover of 1.20, and a profit margin of 6.2 percent, what is its ROE
Answer:
11.30%
Explanation:
Roten rooters have an equity multiplier of 1.52
The total assets turnover is 1.20
The profit margin is 6.2%
= 6.2/100
= 0.062
Therefore the ROE can be calculated as follows
= 0.062× 1.52×1.20
= 0.1130×100
= 11.30%
Hence the ROE is 11.30%
Answer:
The answer is 11.31 percent
Explanation:
ROE means Return on Equity. It is a Profitability ratio.
The most common formula for Return on Equity (ROE) is:
Net income / equity.
To calculate the Return on Equity (ROE) for this question, we use dupont formula:
Equity multiplier x total asset turnover x profit margin
= 1.52 x 1.2 x 0.062
0.1131
Expressed as a percentage is:
11.31 percent
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. Which measurement should be examined
Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will an increase in accounts receivable affect each ratio
Answer:
Increased
Explanation:
The current ratio is calculated by dividing the current assets with the current liabilities. As the receivable is known as a current asset, the increase in receivable will no doubt increase the current asset, and as we all know when the numerator increases the final result also increases. The same case in quick ratio as the receivable increase the numerator will also increase and due to that the final result will also be increased.
Crane Company reported the following on its income statement: Income before income taxes $504000 Income tax expense 153000 Net income $351000 An analysis of the income statement revealed that interest expense was $80000. Crane Company's times interest earned was
Answer:
Crane Company's times interest earned was 6.30 times.
Explanation:
The Times Interest Earned ratio (TIE) shows how well a company covers its interest obligation.
Times Interest Earned ratio (TIE) = Earnings Before Interest and Tax (EBIT) ÷ Interest
= $504,000 ÷ $80,000
= 6.30 times
Which of the follow is not one of the issues complicating the taxation?
The available options are:
A. Taxes raised are used for different government purposes.
B) Sales taxes and policies vary by state and country.
C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
Answer:
A. Taxes raised are used for different government purposes.
Explanation:
Taxation is a term that simply explained a process in which a tax authority, oftentimes an agency of a government imposes or charges tax.
However, there are several issues complicating the taxation. Considering the available options, these issues are:
1. Sales taxes and policies vary by state and country.
2. Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
3. Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
Hence, the correct answer is option A, which is Taxes raised are used for different government purposes, as it does not affect the issue or process of taxation.
prepare a financial report that compares what ashley and jason each owns and owes on september 30. make a list of any decisions you had to make when preparing your report
Question Completion:
On September 30, Ashley and Jason started arguing about who is better off. Jason said he was better off because he owned a PlayStation console that he bought last year for dollar 250. He figures that, if needed, he could sell it to a friend for dollar 180. Ashley argued that she was better off because she had dollar 1, 000 cash in her bank account and a piece of art that she bought two years ago for dollar 800 but could now probably sell for dollar 1, 400. Jason countered that Ashley still owed dollar 250 on a loan and that Jason's dad promised to buy him a Porsche if he does really well in his accounting class. Jason said he had dollar 6, 000 cash in his bank account right now because he just received a dollar 4, 800 student loan. Ashley knows that Jason also owes a tuition installment of dollar 800 for this term. Ashley and Jason met again in early November. They asked how each other was doing. Ashley claimed that she'd become much more successful than Jason. She had a part-time job, where she earned dollar 1, 500 per month. Jason laughed at Ashley because he had won dollar 1, 950 on a lottery ticket he bought in October, and that was merely for the "work" of standing in line for a minute. It was just what he needed because his apartment costs dollar 800 each month. Ashley, on the other hand, pays dollar 470 for her share of the rent. Both Ashley and Jason have other normal living costs that total dollar 950 each month.
Answer:
a) Comparison of Assets and Liabilities as of September 30:
List of Assets (ownings) and Liabilities (owings):
Ashley Jason
Net Worth $2,150 $680
Ashley is certainly better off as of September 30.
Explanation:
a) Data and Calculations:
List of Assets (ownings) and Liabilities (owings):
Ashley Jason
Playstation $280
Cash balance $1,000 $6,000
Artwork 1,400
Porsche car
Liabilities:
Payable (250) (4,800)
Tuition Payable (800)
Net Worth $2,150 $680
b) To compare what Ashley and Jason own and owe, I list their assets and liabilities by preparing a balance sheet as of September 30 for each person. This helps to determine the missing value called "net worth." The missing value is the basis for making the comparison. Therefore, I subtract the liabilities from the assets, to obtain the net worth of each individual. In a business setting, it is called the Owners' Equity. This actually shows what belongs to Ashley and Jason when their liabilities are taken away from their assets. The Porsche had no value attached as it is a contingent asset (it depends on Jason getting a good grade in accounting). The event is not probable and the amount of the promise cannot be reasonably ascertained at this point.
Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding
Answer:
FV= $240.08
Explanation:
Giving the following information:
Sue now has $125.
Number of periods= 8 years
Interest rate= 8.5% with annual compounding
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
FV= 125*(1.085)^8
FV= $240.08
Define the principles that govern the conversation process, and mention five examples if you are not apply these principles
The correct answer to this question is the following.
The principles that govern the conversation process are the following.
First, there is an opening. In this first part of the conversation process is when we greet the other person with a simple "Hello," "How is it going?"
The second part is called the Feedforeard, in which we try to make an introduction of the conversation with general statements or questions such as "Nice weather, ha?" or "I really wanted to meet you."
The third part is the Business part, in which we go straight forward to the reason for our conversation. We state our arguments, the purpose of the talking, what we need from the other person, and so on. The fourth part is the Feedback process, in which we listen to the arguments of the other individual, and make clarifications. The firth part is the Closing, in which, we thank for the conversation and casually or formally, we say goodby to the other person.
If part of an assembly for automobiles is automated, then demand for automobile workers will _______________ .
Answer:
Demand for automobile workers will fall.
Explanation:
Companies are always looking for ways to reduce costs in the production profits, in order to raise revenue and profit.
Workers are form of factor of production known as labor, while machines, which make automation posssible, are another form of factor of production, known as capital.
If employing machines to automate the production process becomes cheaper than hiring workers, then, the firm will use more machines and hire less workers. This is simply because using machines is cheaper, and will likely raise profits.
The following partially completed T-accounts summarize last year's transactions for Kelshaw Company. At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
Raw Materials:
Beg Balance 4,000 (1) 18,000______(2) 20,000
Work in Progress
Beg Balance 8,000 (2) 12,000 (4) 15,000 (6) 28,000_______(7) 50,000
Manufacturing Overhead (2) 8,000 (3) 12,000 (4) 5,000 (4) 5,000______(6) 28,000
Accounts Payable No Debits (1) 18,000 (5) 4,000
Finished Goods
Beg Balance 17,000 (7) 50,000 End Balance: 12,000
Wages and Salaries Payable: No Debits______Beg Balance 6,000 (4) 30,000
Sales Salaries Expense (4) 10,000
Cost of Goods Sold
Accumulated Depreciation (Factory) No Debits______Beg Balance: 90,000 (3) 12,000
1. The indirect labor cost is:_____.
2. The cost of goods manufactured is:_____.
3. The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:_____.
4. The manufacturing overhead applied is:______.
5. The cost of direct materials used is:______.
Answer: 1. The indirect labor cost is:___$5000_.
2. The cost of goods manufactured is:_$50000____.
3. The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:__$180000___.
4. The manufacturing overhead applied is:__$194000____.
5. The cost of direct materials used is:_$52000_____.
Explanation: