Answer: The correct answer is D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Explanation: A principal in the context of a business is the owner of the business which in most cases are the shareholders. While the agents are those employed or hired to engage in the day to day activities of the business.
The principal most often aims to maximise shareholders wealth. Principal- agent problem may arise where the agent s of the business put their interests as priority as against the interests of the principal. Such interests of the agents may be to earn bonuses even if it would jeopardize the growth of the organisation.This is an ineffective way of running an organization.
Your assistant wants to use secondary data exclusively for the current marketing research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them?
A) It may not exist.
B) It may not be relevant.
C) It may not be impartial.
D) It is generally more expensive to obtain than primary data.
E) It may not be current.
Answer:
D) It is generally more expensive to obtain than primary data.
Explanation:
A) It may not exist.
Problem. Primary data may not yet be available due to its sensitivity of the primary data.
B) It may not be relevant
Problem. Published data may not be applicable to your region. For example published data for Asia might not be applicable to Africa.
C) It may not be impartial.
Problem. Primary data used to create the secondary data might not treated all rivals equally.
D) It is generally more expensive to obtain than primary data.
Not a problem. Secondary data is not expensive as compared to primary data.
E) It may not be current.
Problem. Primary data collected might be out of date thus can not be used recent decisions as many things would have changed.
The use of secondary data has some potential problems, but cost is not one of them.
Explanation:The answer option that is NOT one of the potential problems of using secondary data exclusively for a marketing research project is D) It is generally more expensive to obtain than primary data.
Secondary data refers to information that has been collected by someone else for a different purpose. While using secondary data has some potential problems, such as it may not exist, it may not be relevant, it may not be impartial, and it may not be current, cost is not typically one of them. In fact, secondary data is often less expensive to obtain compared to primary data, which requires collecting new data through surveys, experiments, or observations.
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Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers would be exemplifying the economic idea that:_____.
A. people are rational.
B. people respond to economic incentives.
C. optimal decisions are made at the margin.
D. equity is more important than efficiency.
Answer:
B. people respond to economic incentives.
Explanation:
Economic incentive is material given by someone, that is capable of motivating the other person to behave or act in a certain way. If economic incentives come from a government, it can be in form of tax incentives, subsidies or any monetary gift in form of cash or near cash.
To the economist, human being being rational, will respond to economic incentives in various forms.
Jackson Corp. has beginning retained earnings of $400. During the year Jackson had $800 of revenues and $200 in expenses. Jackson paid a dividend of $100. What is retained earnings at year-end?
Answer:
The retained earnings for the end of the year is $900
Explanation:
Retained earning is calculated as
Beginning retained earnings + Net income - cash dividend
in the questions we were given the beginning retained earning(BRE) as $400 and Cash dividend as $100. However we were not given the actual Net income but we can derive the net income by deducting the expenses from the total revenue.
solution
Net income = revenue - expenses = $800 - $200= $600
Now we can calculate our Retained earnings by adding
Beginning retained earning $400
Net income $ 600
and deducting the cash dividend $100
$400 + $600 - $100 = $900
If you were appointed to conduct a social audit of portion pac what type of information would you collect what questions would you as explain it answer
Answer:
The things related to the people would all be covered in a Social Audit of Portion Pac.
Explanation:
A Social Audit involves examination of the companies with respect to their responsibility towards the people as a whole. Hence, a typical Social Audit involves addressing the following questions-
Is Portion Pac giving a true and fair view of its Accounts? (Might affect the shareholders in the future)Is Portion Pac doing enough Corporate Social Responsibility (CSR) activities like donation towards the blind and charity to associations working on blood donation etc. ? ( Can better the needy people associated with respective donations and charities etc.)Is Portion Pac giving fair wages to its employees? (Affects the employee stability)Is Portion Pac's operations have an adverse impact on the environment? ( Affects the Sustainable Development of the country)Is Portion Pac's working conditions favorable for work? (Again affects the employee stability)Is Portion Pac sensitive on issues like deforestation and women empowerment across the world etc. ? ( These kind of issues impact the society as a whole)Making ethical decisions takes moral awareness, moral judgment, and moral character. Define each term and explain how you would use it in business.
Answer:
Ethical decision-making requires moral conscience to understand that the problem has consequences.Moral judgment about understanding what morally acceptable acts are.Moral character, despite challenges, for the strength and persistence to act in accordance to your morality.Explanation:
Moral awareness is the ability to understand and acknowledge the socially responsible characteristics of someone's decision.Moral judgments apply to assessments with moral value; they can be used to assess situations, path to take, individuals, actions, etc. A subject of some metaphysical disagreement is the foundation of moral judgement. Many claim that the moral decisions are founded on experience or thought, sometimes linked to the emotions.Moral character is the nature of qualities such as dignity, bravery, power, sincerity and fidelity or lack thereof.
Moral awareness is recognizing ethical issues and their impacts, moral judgment involves making decisions that align with ethical principles. Moral character requires the resolve to act in line with these judgments, even if it's difficult. These concepts are applied in business to develop equitable, fair, and sustainable practices.
Explanation:The terms moral awareness, moral judgment, and moral character are all critical components of making ethical decisions in a business context.
Moral awareness is the ability to identify moral issues and understand their ramifications in a decision-making context. In business, this would mean understanding the wide-reaching effect of decisions, such as how a decision to cut costs might impact employee welfare or environmental sustainability.
Moral judgment relates to making decisions that align with ethical principles. In business, you would use your moral judgment to make decisions that are not just legally correct but also fair, equitable and beneficial for all stakeholders.
The moral character refers to the strength and resolve to stand by ethical principles, even when it might be easier or more profitable not to. In a business context, a strong moral character might mean deciding not to engage in a lucrative but unethical practice, such as using child labor.
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In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of___________.
Answer:
Lowering the prices for customers
Explanation:
Competitive market is the market where there are many producers are competing with each other in order to provide or offer the goods and services needed to the consumer or customers.
So, in this market, the furniture company plans to use the cheaper materials in order to decrease the production costs and also pass the savings. This would be an example of the lowering or decreasing the price for the customers, which in turn increase the sales of the business.
A broker listed a $75,000 property and the agreement read that the owner would NOT take more than a 25% cash offer. The broker produced a buyer who offered a full price 100% cash offer. Would the broker be due a commission?
Answer:
The correct answer is - No,
Explanation:
The correct answer is - No,
The answer is no because the broker brings a buyer who is ready to give 1005 cash offer which is against the legal agreement defined by the owner. owner state that he is only taking a 25% cash offer.
Therefore the owner wouldn't consider the broker and didn't due broker commission.
Due to an upwelling of public fear, cities across the country pass laws imposing taxes on and implementing inspections of any business that allows certain dog breeds, like Rottweilers and pit bulls, on its premises.
Check all that apply.
a. Political-legal
b. Competitors
c. General environment
d. Task environment
Answer: a.Political-legal b. General environment
Explanation:
Political-legal dimension of a company's legal environment include legal restrictions on a business as well as public uproar for that restriction.
Final answer:
The imposition of taxes and inspections for certain dog breeds in businesses classifies as a political-legal issue in the C. general environment, not the task environment or related to competitors.
Explanation:
When cities across the country pass laws imposing taxes on and implementing inspections of any business that allows certain dog breeds on its premises, these regulations fall under the political-legal aspect of the business environment. Specifically, this is an example of the general environment.
It encompasses regulatory changes that can affect numerous businesses and industries indirectly, as opposed to the task environment, which consists of stakeholders such as customers, competitors, and suppliers that a business interacts with directly. The additional economic burden and regulations do not pertain to competitors as an immediate environmental factor.
Which of the following challenges is most likely to be faced by service operations managers, rather than manufacturing operations managers?A. Customers are more directly involved in service processes, so their perceptions need to be consideredIt is a way to categorize elements of work activities.B. The "total product experience" is more important in services.C. Pure service operations need to be separated from pure goods producing operations.D. Operations is typically less financially important in service businesses.
Customers are more directly involved in service processes, so their perceptions need to be considered , It is a way to categorise elements of work activities.
Option A is correct
Explanation:
Operations managers experience multiple problems on a daily basis.
I highlight five: Globalisation, conservation, ethical behaviour, Effective communication, and program architecture.
Globalisation: A system of engagement and convergence between individuals, businesses and governments through countries.
Conservation: Method to determine if a company can sustain existing methods without compromising future resources.
Ethical behaviour: To order to secure that neither the customer nor the environment is affected by the output process and/or practices.
Effective communication: The responsibility of the Operations Manager is to interact with all internal and external players effectively.
Program architecture: Output of appropriate quantities of quality products and services in an appropriate time frame.
The marginal benefit Bob gets from purchasing a third pair of gloves is Select one:_____.
a. the same as the total benefit he gets from purchasing three pairs of gloves.
b. less than the marginal cost of purchasing the third pair of gloves.
c. the total benefit he gets from purchasing three pairs of gloves minus the total benefit he gets from purchasing two pairs of gloves.
d. the total benefit he gets from purchasing four pairs of gloves minus the total benefit he gets from purchasing three pairs of gloves.
Answer:
d. the total benefit he gets from purchasing four pairs of gloves minus the total benefit he gets from purchasing three pairs of gloves.
Explanation:
Marginal benefits refer to the additional gains obtained by the sales, purchase, or manufacture of an extra unit. It the advantage associated with buying or selling one more unit. Marginal benefit is compared with the marginal cost to determine if continuous production is profitable.
Since marginal benefits are associated with an extra item, obtaining the value of the additional items must exclude the previous units. In this case, getting the marginal benefit of the fourth item can be calculated by adding up the gains of all the four gloves then subtracting the gains of the first three.
The marginal benefit Bob gets from purchasing a third pair of gloves is the total benefit he gets from purchasing four pairs of gloves minus the total benefit he gets from purchasing three pairs of gloves.
Explanation:The correct answer is d. the total benefit he gets from purchasing four pairs of gloves minus the total benefit he gets from purchasing three pairs of gloves.
Marginal benefit refers to the additional benefit derived from consuming or acquiring one more unit of a good or service. In this case, the marginal benefit Bob gets from purchasing a third pair of gloves can be calculated by subtracting the total benefit he gets from three pairs of gloves from the total benefit he gets from four pairs of gloves.
For example, let's say the total benefit Bob gets from three pairs of gloves is 30 units and the total benefit he gets from four pairs of gloves is 40 units. The marginal benefit of purchasing the third pair of gloves would be 10 units (40 - 30).
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Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really:________.
a) using his intuition.b) using bounded rationality.c) using perfect rationality.d) satisficing.
Answer:
A
Explanation:
By listening to his gut, Farrell is using his intuition (instinct).
One's instinct tells one what to do but there is usually no rationale behind the action taken
Answer:
A
Explanation:
I took the test
A builder must build fifty houses by the end of the year but he has run out of available land. Which best describes the builder's supply of houses?
Answer:
Inelastic supply
Explanation:
The builder's supply of houses is inelastic, because the supply of houses has less responsiveness on the availability of land.
Answer:
C I Believe.
Explanation:
Within the food industry, a growing trend is locavorism, which means consumers actively look for products that come from farms within _____ miles of where they live. A. 500 to 1000 B. 100 to 500 C. 50 to 100 D. Over 2000 E. 1000 to 2000
Locavorism refers to the trend of consumers seeking products from farms within a certain distance of where they live. The correct answer is C. 50 to 100 miles.
Explanation:Within the food industry, the growing trend of locavorism refers to consumers actively seeking products that come from farms within a certain distance of where they live.
In this case, the correct answer is C. 50 to 100 miles. This means that consumers are looking for products that are produced within a relatively close radius to their location.
For example, if someone lives in a city, they may prioritize purchasing fruits, vegetables, and other food products from local farmers or farmers' markets within a 50 to 100 mile range.
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It is receiving $3,000/month from a disability income policy in which T's employer had paid the premiums. How are the $3,000 benefit payents taxable?
Answer:
T must pay income taxes for the $3,000 he receives.
Explanation:
If the beneficiary of the disability benefits paid the premiums, then the money received is tax free. On the other hand, if the premiums were paid by someone else (in this case his employer), then the benefits will be taxed as normal income.
You've asked an unclear question, the subject here is T.
Answer:
The benefits are taxable to T.
Explanation:
Note that, a disability income insurance policy provides a specific monthly benefits to insureds who are disabled as a result of injury or illness (disability).
Remember, also that T's employer had paid the premiums, and according to federal law if your an employer paid the disability insurance premiums, then the disability income is taxable to the employee (in this case T).
Journal entries are written in a certain format in the general journal. When writing a journal entry, which of the following is/are true? (check all that apply)
Select one or more:
a. A reference, often a date, should be written along with the journal entry.
b. Amounts written in the debit and credit columns represent dollar amounts.
c. The account to be credited is listed below and indented to the right of the debited account.
d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.
Answer:
a. A reference, often a date, should be written along with the journal entry.
b. Amounts written in the debit and credit columns represent dollar amounts.
c. The account to be credited is listed below and indented to the right of the debited account.
d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.
Explanation:
An accounting journal serves as a books of original entries that is utilized as the initial recording book before being posted to the general ledger.
A typical accounting journal has a date by the side., it has a space for narration or description, the dollar amount are in the debit and credit column, The account to be credited is listed below and indented to the right of the debited account.
Final answer:
In the general journal, entries must include a reference or date, and amounts in the debit and credit columns represent dollar amounts. The account to be credited is indented below the account to be debited, which is listed first with the amount.
Explanation:
When writing a journal entry in the general journal, the following statements are true:
a. A reference, often a date, should be written along with the journal entry.b. Amounts written in the debit and credit columns represent dollar amounts.c. The account to be credited is listed below and indented to the right of the debited account.d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.Each of these components helps to ensure that a journal entry is clear, precise, and follows the standard format for double-entry accounting. This system ensures that for every financial transaction, effects are recorded in at least two accounts, following the principle that every debit transaction must have a corresponding credit transaction. The structured format of journal entries is crucial for the accurate bookkeeping and preparation of financial statements.
A car had been on end of year clearance at 30% off the original price. today, the dealer is having a special sale and you can take another 25% off the clearance price. how much total discount (off the original price) does one get on this car?
Answer:
47.5%
Explanation:
Data provided in the question:
Clearance discount percentage offered = 30%
Additional discount = 25%
Now,
Let the price of the car be $100
Therefore,
Price after the clearance discount = $100 - 30% of $100
= $100 - $30
= $70
Therefore,
Price after additional 25% discount = $70 - 25% of $70
= $70 - $17.5
= $52.5
Thus,
Total discount percentage
= [ ( Original cost - Selling cost ) ÷ Original cost] × 100%
= [ ( $100 - $52.5 ) ÷ $100 ] × 100%
= 47.5%
The total discount is not 55% (computed from simply adding 30% plus 25%) but rather 47.5%, because the second discount is applied to the already discounted price.
Explanation:The total discount on this car isn’t a simple addition of the two discounts of 30% and 25% because the second discount is applied to the reduced price, not the original one. Here’s the calculation: let the original price of the car be 100%. After the 30% clearance discount, the price becomes 70% (100% - 30%). Now another 25% discount is applied on this reduced price. So 25% of 70% is 17.5%. Then we subtract this discount from the reduced price - that gives us 52.5% (70% - 17.5%).
So in comparison to the original price, that’s a total discount of 47.5% (100% - 52.5%).
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Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to alleviate its financial situation?
Answer:
Work out a plan with its financial intermediaries.
Explanation:
As mentioned in the question that Nguyen's Sporting Goods is having difficulty obtaining the credit, it needs to expand. The company should work out a plan with its financial intermediaries, in order to alleviate its financial situation. Because as we all know that a financial intermediary is a financial institution as well. So the company has to create a plan with there financial institution.
Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. The sales price of the item is $12 with a 20% profit margin. The average order is 50.
Answer:
7208.9
Explanation:
Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. The sales price of the item is $12 with a 20% profit margin. The average order is 50.
expected cost is the probability that a certain cost will be incurred multiplied by the cost.
Stockout cost can be defined as the lost income and expense in relation to a shortage of inventory.
Expected cost/stockout=Probability of stockout *expected demand
Probability of a back order is 67%
lost sale is 22%
probability of a lost customer is 11%.
expected demand for back order $50
The average order is 50.
lost customer is $65,000
The sales price of the item is $12 with a 20% profit margin
.67*50+.11*65000+.22*50+1.2*12
33.5+7150+11+14.4
=7208.9
To calculate the expected cost per stockout, multiply the probability of each stockout type by its cost and sum them up. The cost for a lost sale is calculated using the sales price and the profit margin. Use these values to find the expected cost per stockout.
Explanation:To calculate the expected cost per stockout, we need to consider the probability of each type of stockout and the respective costs associated with them. Given the probabilities and costs for a back order, lost sale, and lost customer, we can compute the expected cost per stockout using the following formula:
Expected Cost per Stockout = (Probability of Back Order × Cost per Back Order) + (Probability of Lost Sale × Cost per Lost Sale) + (Probability of Lost Customer × Cost per Lost Customer)
However, the Cost per Lost Sale is not provided directly; we can calculate it using the sales price and profit margin. The cost for a lost sale is the profit lost, which is calculated as follows:
Cost per Lost Sale = Sales Price × Profit Margin
Substituting the values:
Cost per Lost Sale = $12 × 20% = $2.40
Now we can plug all the values into the formula:
Expected Cost per Stockout = (0.67 × $50) + (0.22 × $2.40) + (0.11 × $65,000)
Please note that you have provided a list of various cost points and price information, which seems unrelated to the calculation at hand. Only the relevant information has been used in this calculation.
Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own stock. Under these circumstances, why might the determination of a fair value for the consideration transferred be difficult?
Answer:
Sometimes it is not easy to determine the fair market value of stocks, for example:
If Jones is a recently created corporation and the 50,000 shares are their IPO. Jones might not be a publicly traded corporation, it might be a closely held corporation so there is no fair market valueIf the 50,000 shares represent a huge increase in the number of outstanding shares it might cause a great variation in the price Jones's stock might have experienced large fluctuations in recent timesetc.An advertising executive takes over a Google Search ads campaign. On his Google Ads Recommendations page he notes that the campaign's optimization score is 40%. What does this score indicate?
Answer:
These are the options for the question:
The campaign could be improved by 60% if the listed recommendations are followed. The campaign is 60% less optimal than other company campaigns. The campaign is running 40% over budget. The campaign is 40% optimized for the given keywords chosen by the previous campaign manager.And this is the correct answer:
The campaign could be improved by 60% if the listed recommendations are followed.
Explanation:
If the optimization score of the firm's Google Search Ads campaign is 40%, it simply means that it can be improved by 60% in order to reach the full potential of the programme.
It does not mean that the campaign is 60% less optimal than others because the score only measures the firm's own campaign.
And it does not have any direct connection with the campaign's budget or keywords.
Jim holds a commercial lease. Last year his rent went up 4% based on a 4% increase in the wholesale price index. What type of lease does Jim have?
A) Revolving lease.
B) Wholesale lease.
C) Index lease.
D) Leading Indicator lease.
Which type of economist views economic systems as subsystems of the biosphere that depend heavily on irreplaceable natural resources?
Answer:
An Ecological economist
Brenda plans to reduce her spending by $50 a month. What would be the future value of this reduced spending over the next 10 years? (Assume an annual deposit to her savings account and an annual interest rate of 3 percent.) Use Exhibit 1-B. (Round FVA factor to 3 decimal places and final answer to 2 decimal places.)
To calculate the future value of Brenda's reduced spending over the next 10 years, we can use the formula for compound interest.
To calculate the future value of Brenda's reduced spending, we can use the formula for compound interest:
FV = PV * (1 + r) ⁿ
Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.
In this case, Brenda plans to reduce her spending by $50 a month, so the present value (PV) would be -$50. The interest rate (r) is 3% per year, and the number of periods (n) is 10 years. Plugging these values into the formula, we get:
FV = -$50 * (1 + 0.03) ¹⁰
Simplifying the equation gives us the future value of Brenda's reduced spending over the next 10 years.
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Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6.0%. If both properties produce the same NOI, which property is worth more...?
Answer:
Worth of both the property will be same.
Explanation:
Data provided in the question:
Cap rate for the Property A which is a self storage capacity = 6%
Cap rate for the Property B which is an office building = 6%
NOI of both the buildings are equal
Now,
Mathematically,
Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]
or
Worth of the property = [ NOI ] ÷ [ Cap rate ]
Since, the NOI and cap rate for both the buildings are same
Therefore,
Worth of both the property will be same.
Final answer:
The investment should be made if the 6% return is the best available use for the firm's cash, as it is preferable to earn a return on the cash rather than nothing and it avoids the cost of borrowing at a higher interest rate of 8%.
Explanation:
The question asks whether a firm should make an investment with a 6% rate of return when it has the cash available and would otherwise have to pay 8% interest on a loan. To determine if the firm should make the investment, we can compare the potential return on investment (ROI) to the cost of capital. In this case, the firm can earn a 6% return without incurring any debt, as it has the necessary funds on hand.
If the firm were to invest in an asset with a 6% return using its own funds, it would be foregoing the opportunity to invest that money elsewhere at potentially higher rates. However, assuming no better use of the funds is available, earning a 6% return is preferable to not investing and earning nothing. Moreover, since the cost of borrowing is higher at 8%, the firm is better off using its own funds.
Therefore, if the investment's rate of return at 6% is the best available use for its cash, the firm should proceed with the investment because it will generate a positive return without taking on the cost and risk of debt financing at a higher interest rate.
Farmer Ted sells winter wheat in a perfectly competitive market. The market price for a bushel of winter wheat is $9. Ted has two hundred and seventy bushels of wheat to sell. If his total variable cost is $2,000 and his total fixed cost is $500, then Ted ________
Answer:
Farmer Ted will receive $9 x 270 = $2,430
This amount does not cover all of Ted's costs = $2,000 + $500 = $2,500, but it helps Ted to minimize his losses.
In a perfectly competitive market, a supplier cannot set the price, they are all price takers. But suppliers will keep selling their products as long as the price exceeds variable costs. in this case variable costs = $2,000, therefore $2,430 exceeds them.
Ted will not make a profit, but he will minimize his losses because the other option of not selling anything will result in a net loss of $500, while selling at the current price results in a net loss of $70.
A proprietorship has three important advantages:______________.
(1) It is easily and inexpensively formed,
(2) it is subject to government regulations, and
(3) it is subject to lower income taxes than are
Complete/Correct Question:
A proprietorship has three important advantages:______________.
(1) It is easily and inexpensively formed,
(2) it is subject to government regulations, and
(3) it is subject to lower income taxes than are corporations
Answer:
True
Explanation:
A proprietorship is an unincorporated business owned by an individual. Starting a proprietorship business is easy to start and has it most important advantage stated above in the question. it also has its limitations and as such some sole proprietorship businesses have converted to corporations when the business limitations are too overwhelming.
The limitations of sole proprietorship includes unlimited liability for the business or debts it might incure, the life of the business is a function of the life span of the owner, inability to secure huge capital from banks,etc.
A sole proprietorship is therefore used for small businesses.
Cheers.
Which accounting assumption or principle states that historical cost can lose relevance and other valuation methods may be more relevant to financial statement users?
A. recognition
B. accrual accounting
C. going-concern assumption
D. mixed attribute measurement model
Answer:
D. Mixed attribute measurement model
Explanation:
The mixed attribute measurement model is one which is used as a standard for measurement of the value of assets and liabilities under generally acceptable accounting principles.
Historical valuation helps to under the range or historical cost of an asset but this valuation, overtime, becomes old and obsolete. Although the historical valuation helps to provide basic and authentic information about the asset, because it is old, its valuation now has to be redone. To revalue an asset in the current economic condition, the Financial Accounting Standard Board, FASB, as well as International Accounting Standard Board, IASB, have continually developed accounting standards to value assets and liabilities using current value.
The current value of the asset and liabilities according to these boards are meant to be fair to both seller and buyer. According to these boards, the fair value of assets and liabilities is the amount that is required to exchange or take over or settle assets and liabilities as appropriate.
I hope this helps.
The income statement:a. is a financial statement that shows the firm’s financial position at a particular point in time. b. details the firm’s assets and liabilities over a period of time. c. is a financial statement that summarizes a firm’s revenues and expenses over a period of time. d. is a financial statement that summarizes a firm’s revenues and expenses at a particular point in time.
An income statement is a financial statement summarizing a firm's revenues and expenses over a period of time. It is not meant to depict the firm's financial position at a particular point or account for its assets and liabilities, which is the role of a balance sheet.
Explanation:The Income Statement, also known commonly as the profit and loss statement, is a financial document summarizing a firm's revenues and expenses over a particular period of time. Its primary role is to depict how the revenues of a company are transformed into the net earnings (profit).
Therefore, the correct option is: c. is a financial statement that summarizes a firm’s revenues and expenses over a period of time. Assets and liabilities are summarized on the balance sheet, not the income statement, while the statement that shows financial position at a specific point in time is the balance sheet, not the income statement.
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An income statement is a financial document that summarizes a company's revenues and expenses over a period of time, unlike a balance sheet which shows a company's state at a specific point of time.
Explanation:An income statement, specified in option (c), is a financial statement that summarizes a firm's revenues and expenses over a particular period of time. This is not to be confused with a balance sheet which details a firm's assets and liabilities. A balance sheet reflects a company's state of affairs at a specific point in time, not over a period of time like the income statement. For a comparison, in the bank's balance sheet we're shown an example of this snapshot view of a firm's financial position, listing assets such as cash and liabilities like debt owed.
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"In the AD-AS framework, the simple Keynesian model includes an aggregate supply curve that is __________until the economy reaches its natural real GDP."
Answer:
horizontal
Explanation:
The AD-AS framework is based on the Keynes's The General Theory of Employment, Interest and Money and shows a simplified macroeconomic model.
Keynes believed that the economy was not self regulating like classical economists stated, since wages and prices tend to be inflexible (wages are extremely inflexible). Since wages and prices are a vital component of the economy, since they cannot adjust themselves as easily as the classical economic model believes, the economy will be inherently unstable.
Even when the economy is not growing or is in the middle of a recession, workers will not accept a decrease in their wage. To be honest, who would? Remember the CEOs, CFOs, COOs, etc. of GM and Chrysler that earned tens of millions while their companies went bankrupt? If they didn't take a cut on their pay, why should a normal average worker do?
Prices cannot be freely adjusted by the companies since competition exists. Imagine all the fast food restaurants decided to increase their prices by 20% because of high inflation, etc., but Burger King decides to keep their prices still. Burger King restaurants would have an excess of clients while the rest would see a significant decrease in their sales. The more competition, the more difficult it is to raise the price of your products.
The classical economic model is great in theory, specially in the long run, but in the real world it doesn't work that well.
For an imaginary economy, the value of the consumer price index was 140 in 2013 and 146.5 in 2014. The economy’s inflation rate for 2014 was:
Answer:
4.64%
Explanation:
The computation of the economy inflation rate is presented below:
= (Consumer price index in 2014 - Consumer price index in 2013) ÷ (Consumer price index in 2013) × 100
= (146.5 - 140) ÷ (140) × 100
= (6.5) ÷ (140) × 100
= 4.64%
We simply applied the above formula so that the economy’s inflation rate could come