1. Provide the definitions of throughput, inventory and operational expense given in The Goal. How do they compare with the traditional definitions? Do you find them useful, and why? Throughput is the rate at which the system generates money through sales while inventory is all the money that the system has invested in purchasing things which it intends to sell.
Bond - A type of debt or a long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. 9. Capital - Measure of the accumulated financial strength of an individual, firm, or nation, created by sacrificing present consumption in favor of investment to generate future returns above investment costs. 10. Debit - Duty or obligation to pay money, deliver goods, or render service under an express or implied agreement.
Currency risk- if unexpected changes in currency values affect the value of the firm 4. Identify and describe the ways in which a US company can participate in international commerce. 5. The price of a currency forward contract is determined by the relationship between interest rates of the two countries in question and the time period covered by the contract. Is this statement exactly true, partly true or false?
a. They are recorded at cost and adjusted for inflation. b. They are recorded at market value for financial reporting because historical cost is arbitrary. c. Accounting principles require that companies report assets on the income statement.
(a) Accounts Receivable. Debit (b) Cash. Debit (c) Dividends. Debit (d) Accounts Payable. Credit (e) Service Revenue.
4. (TCO 6) Discuss the role of intermediaries in B2B. Distinguish between buy-side and sell-side intermediaries. (Points : 35) The major role of intermediaries in B2B transactions is to make sure that buy-side and sell-side conditionals coincide. Buy-side transactions focus on one buyer purchasing goods/services from many different sellers.
| | Answer Key: C | | | Question 2 of 10 | 10.0 Points | When we are forced to make choices we are facing the concept of: | | A.ceteris paribus. | | | B.free goods. | | | C.scarcity. | | | D.the margin. | | Answer Key: C | | | Question 3 of 10 | 10.0 Points | An economic system is the set of rules that define _______ and _______ .
2. Which of the following statements about valuing a firm using the APV approach is most CORRECT? a. The value of operations is calculated by discounting the horizon value, the tax shields, and the free cash flows at the cost of equity. b.
ECON 1312 Homework Assignment # 2 Chapter 4 1. Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price? Answer: To measure or to compare the demand of the two unrelated goods or services. 2. Define the price elasticity of demand and show how it is calculated.
The common methods of a chart of accounts include Accounting types – assets, liabilities, equity, revenue, expenses and revenue, followed by order of liquidity, and the account numbers. How does the order of liquidity apply to the balance sheet? The order of liquidity exclusively applies to those accounts in the balance sheet that can be liquidly turned in cash, expenses and revenue accounts are exempt. a good example of liquidity are U.S. bonds and common stocks, some believe that real estate might be a good one , but it is not , property prices can be under valued forcing to sale under actual