When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
Record on daily cash and sales report. b. Remove the cash register tape. c. Reconcile the tape to the cash in the drawer, and investigate any differences. d. Remit the tape and the cash to central office.
A monopoly is where you can set prices almost everywhere you want, and there is no other competition. This is referred to as predatory pricing, where companies charge a price lower than production costs. These companies believe their competitors can’t afford the loses. Cable companies don’t worry about competition due to the protection they enjoy from the government. The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price.
• A competitive firm has a u-shaped average cost curve whereas a monopolist does not. • A monopolist can influence market price whereas a perfectly competitive firm cannot. • There are many substitutes for a monopolist’s product whereas there are no substitutes for a competitive firm’s product. Want help? Click to download ECO 365 5).
Case 1 Solution: Problem Identification: How should a company report, if at all, cash and non-cash transactions owed to an entity’s financial subsidiary? Keywords: Cash flows; financ* subsidiaries; operating income. Conclusion: Per ASC 230-10-50-5), Mead should exclude transactions that involve no cash payments or receipts. However, per 230-10-45-17, it should record cash payments to GMCC for repayments of principle (and interest thereon) due to suppliers or their subsidiaries as operating cash (out) flows. Case 2: Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000.
The project’s Internal Rate of Return (IRR): In this case, something truly wondrous IS happening at the discount rate at which the NPV line cuts the discount-rate axis: it is the discount rate at which the NPV of the project would be exactly equal to zero. In finance, this rate is called the project’s “internal rate of return” or IRR. It is a much-used concept in the real world of business. The IRR has its name because that rate is determined strictly by the cash flow of the project—is “internal” to it—and is not at all related to the firm’s cost of financing (k) at all. For normal projects in which one or several cash outflows are followed by a series of only cash inflows, we can offer you the following decision rule concerning the IRR of a project 2
Didn't tie up cash waiting for reimbursement. Plus, I get cash rewards for using the card. 4. Describe a real or made up but realistic situation in which you would want to use non installment credit. (2-4 sentences.
B. They free customers from carrying cash or checkbooks. C. They help control overspending. D. They cause an immediate electronic withdrawal from a bank account. 3) Which of the following is not a situation to re-evaluate and, possibly, revise your financial plan?
If every penny lost was recovered then you would have lot of money. So why do we still choose to let them fall to the bottom of our bags, or in between the car seats, or the bottom of a junk drawer without the slightest care? Pennies play a big role in our currency, and should not be eliminated. Pennies are worth more than people seem to think. Yes, the penny is only worth one cent.
For those born to wealth, it is especially important to be taught the value of the dollar. They can also be taught the importance of charity and donating. Affluenza makes the misuse of money possible in today’s world, allowing for it be thrown away in hotels, pointless parties, and useless luxuries in life. This happens when the value of the dollar is never taught to our