There are governments that totally control their economy and do not do business with other countries. There are governments that rule monetary policy and tax business, but do not become concerned in the markets otherwise. Similar to mixed economies, the positions of a government in the configuration of an economy is crucial to understand in order to understand the economics of the country. Concepts of Macroeconomics and Understanding Business or economic cycles focus on the variations, both anticipated and unexpected, within an economy. Variations in business cycles are able to be seen as short-term and long-term progression developments and they could shift.
Critical Thinking Question: Answer the following questions: Why are noncash transactions, such as the exchange of common stock for a building for example, included on a statement of cash flows? How are these noncash transactions disclosed? According to our book, Principles of Accounting: Volume ll, states, “Such transactions do not trigger a direct inflow or outflow of cash, but they are nonetheless highly significant investing/financing events” (N.A., 2012, para. 8). When considering the case of exchange of common stock for building there is no flow of cash.
Breach of Contract is one of the most common defenses raised by a party to a negotiable instrument. If there is a breach of contract and there was in this case this particular personal defense is effective only against an ordinary holder. Since Mortgage Finance is a holder in due course the Mahaffey’s cannot assert any personal defenses against Mortgage Finance. The Mahaffey’s can sue Five Star but will probably lose because the Mahaffey have no leverage against Five Star and the court action can be expensive and time consuming. However, the FTC rule which eliminates HDC status with regard to negotiable instruments arising out of certain consumer credit transactions can be asserted to prevent enforcement of a note that arose from a covered
Lack of clarity of purpose can be a risk and a legal issue leading to disputes. The major legal principle here is that, companies should always endeavor to clarify and understand each and every clause of the contract so that they know what they are committing themselves too. It lessens on the misery caused during times of disputes. No matter how easy and simple it may appear during the contract signing process, it becomes totally complicated to understand and agree upon a common interpretation of ambiguous clauses when disputes come up. For instance, in the simulation given, there were ambiguous clauses like “ordinary requirements change” which became a source of conflict because the software user and system requirements changed over time which were had to just incorporate into the contract because of the big effect they had on the project costs and
To provide a foundation from which to build more useful standards. c. Neither a nor b. d. Both a and b. S25. Which of the following is not a benefit associated with the FASB Conceptual Framework Project? a. A conceptual framework should increase financial statement users' understanding of and confidence in financial reporting.
To provide a foundation from which to build more useful standards. c. Neither a nor b. d. Both a and b. S25. Which of the following is not a benefit associated with the FASB Conceptual Framework Project? a. A conceptual framework should increase financial statement users' understanding of and confidence in financial reporting.
Depository institutions are supposed to be managed to limit risk. Their managers, thus, may not be conditioned to operate prudently in more speculative securities businesses... The case against preserving the Glass-Steagall Act: 1. Depository institutions will now operate in "deregulated" financial markets in which distinctions between loans, securities, and deposits are not well drawn. They are losing market shares to securities firms that are not so strictly regulated and to foreign financial institutions operating without much restriction from the Act.
While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxx]. The two broad reasons for a government to intervene in the economy are to promote efficiency and to promote equity. ANSWER: T TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxi]. Market failure refers to a situation in which the market does not allocate resources efficiently.
They also both break down into activities and both have the indirect and direct methods of reporting. Overdrafts from a bank are not included in the statement under GAAP while they can be IFRS. For GAAP, components of a transaction are classified on the main source of cash flow. In IFRS, those components within a transaction are classified separately. GAAP is more specific within each category while IFRS is more flexible.
One is the state federal relation--should states continue to charter and supervise banks or would an all-inclusive national banking system be preferable? While monetary economists and central-banking experts are virtually unanimous in their support of a unified national banking system, the political issue is a bitter one of long standing and there is probably no chance of abolition of the existing dual state-federal system short of another major crisis. Under the circumstances, action to abolish the dual state-federal system is not considered here, though this may be a practical requisite of the other changes considered. There would, however, be obvious, important monetary policy advantages in compulsory Federal Reserve membership for all banks, or at least in application of standard Federal Reserve requirements against deposits at all banks. Actually, Federal Reserve membership would be of secondary importance if common reserve requirements were made applicable, and this step could be accomplished for practical purposes within the limits of existing federal powers and without infringing on other aspects of state supervisory jurisdiction.