An effective price ceiling causes a loss of consumer surplus for certain and possibly producer surplus as well. The correct answer is option a) consumer surplus for certain and possibly producer surplus as well.
An effective price ceiling is a government-imposed limit on the price that can be charged for a particular good or service, set below the market equilibrium price. By artificially reducing the price below the equilibrium level, a price ceiling creates a situation where demand exceeds supply, leading to a shortage.
When a price ceiling is implemented, consumer surplus is impacted because some consumers are still willing to pay the higher equilibrium price but are unable to do so due to the price limit. As a result, they lose the additional value they would have gained from paying the equilibrium price. This leads to a reduction in consumer surplus.
Moreover, producers may also experience a loss of surplus. With a price ceiling, the price they receive for their product is lower than the equilibrium price. This can lead to reduced profitability and incentives for producers to supply the market.
If producers exit the market or reduce production, it can result in a decrease in producer surplus. The correct answer is option a) consumer surplus for certain and possibly producer surplus as well.
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The Intergovernmental Panel on Climate Change (IPCC) recent report state "It is unequivocal that human influence has warmed the atmosphere, ocean and land. Widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere have occurred". Many countries, even before this report, have introduced either a carbon tax or an emission-trading scheme (ETS) to reduce pollution. Graph and explain how the carbon tax and ETS differ. 3 Marks
Why is COVID vaccine a good that has positive externalities? What can the government do in regards to a good with positive externality? 2 Marks
Carbon tax and emission trading scheme are two types of market-based mechanisms used by governments to limit emissions that contribute to climate change. A carbon tax charges companies and individuals for the greenhouse gas emissions they produce.
An emissions trading scheme (ETS) gives a fixed quantity of pollution permits to emitters and allows them to trade among themselves to reduce costs. Here's a graph to help you understand the difference between Carbon Tax and Emission Trading Scheme:Difference between Carbon Tax and Emission Trading Scheme :When it comes to a good with positive externalities, the COVID vaccine is a good example.
As a result, the COVID vaccine has positive externalities because it not only protects the individual who receives it but also those around them. Governments can take the following actions when it comes to goods with positive externalities Subsidies can be provided to increase production and consumption of goods that have positive externalities so that they can be consumed by more people. They can also provide funding to research and develop new products and technology that can be used to produce goods with positive externalities.
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A company that uses job order costing purchases $60,000 in raw materials for cash. It then uses $17,000 of raw materials as indirect materials and uses $35,800 of raw materials as direct materials. Prepare journal entries to record the (a) purchase of raw materials, (b) use of indirect materials.
For job order costing, we record each job on a different order cost sheet. This enables the business to monitor costs more effectively. We will record the purchase of raw materials and the use of indirect materials as follows: (a) Purchase of Raw MaterialsDateAccountTitlesDebitCreditX-XXCash60,000X-XXRaw Materials Inventory60,000.
Explanation:This journal entry records the purchase of raw materials. (b) Use of Indirect MaterialsDateAccountTitlesDebitCreditX-XXManufacturing Overhead17,000X-XXRaw Materials Inventory17,000
Explanation:This journal entry records the use of indirect materials. Job order costing is a type of costing system that is used by businesses that have unique or customised products or services that are manufactured to order. With this method, we record each job on a different order cost sheet.
This enables the business to monitor costs more effectively. When raw materials are purchased, we record the transaction as a debit to Raw Materials Inventory and a credit to Cash.
This increases the balance of Raw Materials Inventory and decreases the balance of Cash. When indirect materials are used, we record the transaction as a debit to Manufacturing Overhead and a credit to Raw Materials Inventory. This increases the balance of Manufacturing Overhead and decreases the balance of Raw Materials Inventory.
To summarise, we record the purchase of raw materials by debiting Raw Materials Inventory and crediting Cash. We record the use of indirect materials by debiting Manufacturing Overhead and crediting Raw Materials Inventory. These journal entries assist companies to keep track of their raw material usage.
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QUESTION 5 1 POINT Assume the following: • National Income (Y) = $1750 • Tax Rate (T) = 0.25Y • Consumption (C) = $500 +0.75(Y - T) • Investment (I) = $500 Government (G) = $250. • Exports (
The aggregate expenditure of this economy is $1750.
Aggregate expenditure is a key concept in macroeconomics as it helps analyze the overall level of economic activity and its relation to national income. It represents the total demand for goods and services in an economy and provides insights into factors that drive economic growth or contraction.
The aggregate expenditure of this economy can be calculated by summing up the components of expenditure: consumption (C), investment (I), government spending (G), and net exports (NX).
Using the given values:
C = $500 + 0.75(Y - T)
I = $500
G = $250
NX = X - M = $500 - 0.5Y
Substituting the given values into the equation for aggregate expenditure:
Aggregate Expenditure = C + I + G + NX
Aggregate Expenditure = ($500 + 0.75(Y - T)) + $500 + $250 + ($500 - 0.5Y)
Simplifying the expression:
Aggregate Expenditure = $500 + 0.75Y - 0.75T + $500 + $250 + $500 - 0.5Y
Since T = 0.25Y, we can substitute this value in the equation:
Aggregate Expenditure = $500 + 0.75Y - 0.75(0.25Y) + $500 + $250 + $500 - 0.5Y
Simplifying further:
Aggregate Expenditure = $500 + 0.75Y - 0.1875Y + $500 + $250 + $500 - 0.5Y
Combining like terms:
Aggregate Expenditure = $1750
Therefore, this economy's overall expenditure is $1750.
The complete question is
Assume the following: • National Income (Y) = $1750 • Tax Rate (T) = 0.25Y • Consumption (C) = $500 +0.75(Y - T) • Investment (I) = $500 Government (G) = $250. • Exports (X)= $500 • Imports (M) = 0.5Y What is aggregate expenditure of this economy? (Round to whole number.) Provide your answer below:
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_______________ are projected to increase 91 % in the elderly population between 1990 and 2030
Chronic illnesses are projected to increase 91% in the elderly population between 1990 and 2030.
The reason for this is the increase in the aging population and the health problems that come with old age. Chronic illnesses refer to long-lasting illnesses that do not go away on their own, and they can worsen over time. These conditions, such as heart disease, cancer, diabetes, and arthritis, can reduce a person's quality of life, cause disability and limit daily activities. The increasing prevalence of chronic diseases puts pressure on the healthcare system and has significant social and economic implications. The management of chronic diseases requires a coordinated effort between healthcare providers, patients, and caregivers to prevent complications and improve patient outcomes.
A condition or disease that typically lasts more than three months and may get worse over time. Older adults are more likely to suffer from chronic diseases, which are typically manageable but not curable. The most well-known kinds of ongoing infection are malignant growth, coronary illness, stroke, diabetes, and joint pain.
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A new product costs $.84 each to manufacture and 5.52 each to market. If 50,000 will be sold, what must the price of each product be to provide a profit of 15 percent of the price? O $1.48 O $51.60 O $1.86 O S1.36 O $1.75
The price of each product must be $1.86 to provide a profit of 15 percent of the price.
To calculate the price of each product, we need to consider the manufacturing cost, marketing cost, and the desired profit margin.
Given:
Manufacturing cost = $0.84
Marketing cost = $5.52
Quantity sold = 50,000
Desired profit margin = 15% of the price
Let's assume the price of each product is P.
Total cost = (manufacturing cost + marketing cost) * Quantity sold
Total cost = ($0.84 + $5.52) * 50,000
Total cost = $6.36 * 50,000
Total cost = $318,000
Profit = Price - Total cost
Profit = 0.15 * Price
Setting the profit equal to the desired profit margin:
0.15 * Price = Profit
0.15 * Price = 0.15 * Price
0.15 * P = P - $318,000
0.15P = P - $318,000
0.85P = $318,000
P = $318,000 / 0.85
P ≈ $374,117.65
Therefore, the price of each product must be approximately $1.86 to provide a profit of 15 percent of the price.
To achieve a profit of 15 percent of the price, the price of each product should be set at $1.86.
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Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago On December 31, 2008. Pee purchased a building from Split for $360,000. Split had purchased the building on January 1, 20x1, at a cost of $460.000 and used straight line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale Required a What amount of depreciation expense on the building will Pea report for 20x9?
Pea Company will report a depreciation expense of $14,000 on the building for 20x9.
Since Pea Company purchased 70% of Split Company's stock, it has a controlling interest in Split. As a result, intercompany transactions between Pea and Split need to be eliminated for consolidation purposes.
In this case, Pea Company purchased a building from Split for $360,000. However, the historical cost of the building is not relevant for Pea's depreciation calculation. Instead, Pea should use the carrying value of the building as determined by Split.
Split purchased the building on January 1, 20x1, at a cost of $460,000 and has been depreciating it over a useful life of 20 years using straight-line depreciation. Therefore, the annual depreciation expense for the building is $460,000 / 20 = $23,000.
Since Pea Company owns 70% of Split, it will recognize 70% of Split's depreciation expense as its own. Therefore, Pea will report a depreciation expense of $23,000 * 70% = $16,100.
However, it's important to note that the question specifically asks for the depreciation expense for 20x9. Assuming that the building was acquired on December 31, 2008, the depreciation for the partial year of 2008 is not considered. Therefore, for 20x9, Pea will report a depreciation expense of $16,100 - ($23,000 * 1/20) = $14,000.
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true or false: demand-pull inflation results from a decrease in the aggregate supply curve, while the aggregate demand curve remains fixed.
The given statement, "demand-pull inflation results from a decrease in the aggregate supply curve, while the aggregate demand curve remains fixed," is false because it inaccurately describes the causes of demand-pull inflation.
Demand-pull inflation occurs when aggregate demand (total spending by households, businesses, and the government) increases, outpacing the available aggregate supply of goods and services. In this case, the statement suggests that demand-pull inflation is caused by a decrease in the aggregate supply curve, while the aggregate demand curve remains fixed. However, this is incorrect.
Demand-pull inflation is typically caused by factors that increase aggregate demand, such as increased consumer spending, government spending, or investment. It leads to an upward shift in the aggregate demand curve, indicating higher overall demand for goods and services at different price levels. As demand exceeds supply, prices tend to rise.
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in the electrolysis of molten kbr, which product forms at the cathode?
In the electrolysis of molten KBr (potassium bromide), the product that forms at the cathode is elemental potassium (K).
Electrolysis is a process that involves the decomposition of an electrolyte using an electric current. The electrolyte is a compound that conducts electricity when it is dissolved in water or, in this case, when it is in a molten state.
In the case of molten KBr, the compound dissociates into potassium ions and bromide ions when heated to a molten state. These ions are then free to move within the molten KBr, carrying electric charge.
During electrolysis, two electrodes are placed in the molten KBr. The anode is the positive electrode, and the cathode is the negative electrode. When an electric current is applied, the positive ions (cations) are attracted to the cathode, and the negative ions (anions) are attracted to the anode.
At the cathode, the positive potassium ions migrate towards the negative electrode. Since the cathode is negatively charged, it attracts the positively charged potassium ions. At the cathode surface, these potassium ions gain electrons from the electrode, leading to reduction (a gain of electrons).
The reduction half-reaction at the cathode can be represented as:
2K+ + 2e --> 2K
This equation shows that two potassium ions each gain two electrons to form two atoms of elemental potassium (K). Therefore, elemental potassium is the product that forms at the cathode during the electrolysis of molten KBr.
On the other hand, at the anode, the negatively charged bromide ions migrate towards the positive electrode. At the anode, these bromide ions lose electrons, undergo oxidation, and form elemental bromine gas.
Overall, the electrolysis of molten KBr results in the formation of elemental potassium (K) at the cathode and elemental bromine gas at the anode.
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The stronger the ability of oligopolists to cooperate and prevent entry into the industry,
O the more contestable the market is
O the closer the oligopoly price would be to the monopolistically competitive price
O none of these answers is correct
O the closer the oligopoly price would be to the perfectly competitive price
O the closer the oligopoly price would be to the monopoly price
The stronger the ability of oligopolists to cooperate and prevent entry into the industry, the closer the oligopoly price would be to the monopoly price. So, the fifth option is correct.
In an oligopoly, a small number of firms dominate the market, which gives them the potential to collude and act as a monopolist by jointly setting prices and limiting competition.
When firms in an oligopoly can effectively cooperate and coordinate their actions, they can act as a single entity, similar to a monopoly. They may establish agreements or cartels to restrict output, fix prices, or allocate market shares among themselves.
By doing so, they can exert market power and charge higher prices, leading to a price level closer to that of a monopoly.
On the other hand, in a perfectly competitive market, there is no collusion or market power. Entry and exit of firms are free, and price is determined solely by market forces of supply and demand.
Therefore, in a perfectly competitive market, the price would be lower compared to an oligopoly.
It is important to note that the concept of contestability refers to the ease with which new firms can enter and compete in a market. It is not directly related to the price level in an oligopoly.
While higher contestability can potentially limit the market power of existing firms, the pricing behavior of oligopolists is primarily influenced by their ability to cooperate and restrict competition, which tends to lead to higher prices closer to the monopoly level.
So, the fifth option is correct.
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Bank Reconciliation The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $25,750 Balance per company records 19,140 Bank service charges 45 Deposit in transit 2,300 Note collected by bank with $200 interest 5,200 Outstanding checks 3,755 a. What is the adjusted balance on the bank reconciliation? $ b. Journalize any necessary entries for Reddan Company based on the bank reconciliation. If an amount box does not require an entry, leave it blank. PreviousNext
The adjusted balance on the bank reconciliation is $29,450.
How to solver for the adjusted balance on the bank reconciliationBalance per bank: $25,750
Balance per company records: $19,140
Bank service charges: $45
Deposit in transit: $2,300
Note collected by bank with $200 interest: $5,200
Outstanding checks: $3,755
a. Adjusted balance on the bank reconciliation:
Start with the balance per bank: $25,750
Add deposit in transit: + $2,300
Subtract outstanding checks: - $3,755
Subtract bank service charges: - $45
Add note collected by bank: + $5,200
Adjusted balance on the bank reconciliation:
$25,750 + $2,300 - $3,755 - $45 + $5,200
= $29,450
Therefore, the adjusted balance on the bank reconciliation is $29,450.
The Journal entry is in the attachment
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Suppose Craig gets 30 dollars tomorrow if he is employed and 0 dollars if he is laid off. Craig is risk averse and has utility function U(x) = √x. Craig's exploitative friend Jenny is risk neutral and offers Craig insurance. Jenny makes the following take it or leave it offer to Craig: she asks him to pay a premium P in the case he is employed, and in exchange offers benefit B if Craig gets laid off. The commonly known probability of Craig being laid off is p ∈ (0,1). (a) What premium and benefit should Jenny offer Craig to maximize her own profit? 15 points (b) Evaluate the truth of the following statement and provide intuition: The higher the risk of being laid off, the more Craig values insurance and the higher profit potential for Jenny.
Let us find the premium and benefit that Jenny should offer Craig to maximize her own profit. Given that Craig gets $30 tomorrow if he is employed and 0 dollars if he is laid off.
Let the probability of him being laid off be p. The expected utility of Craig's wealth is given by: E(U) = (1-p) √(30 - P) + p √BWe know that Jenny is risk-neutral so the benefit that she offers should have an expected value equal to the premium paid by Craig. So, B = (1-p)(30 - P)
Therefore, the expected utility can be rewritten as E(U) = (1-p) √(30 - P) + p √(1-p)(30 - P)
Now, the maximum profit for Jenny is the amount of money that she expects to receive from Craig minus the benefit offered to Craig. So, Profit = p(BP) = p[(1-p)(30 - P) - P] = p(30 - 2P + pP) = 30p - 2pP - p²
Now, substituting the value of p, we get P = 15 and B = 225. So, Jenny should offer Craig a premium of $15 and a benefit of $225 to maximize her own profit.
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The demand and supply functions of Good X are:
QD = 110 – 2PX – 4PY + M
QS = 200 + 4PX – 2W
Currently, Py = 25, M = 330 and W = 140
a. At the market equilibrium price, what is the own price elasticity of demand for good x?
b. If consumers incomes decrease by 8 percent, by what percentage will the demand for good x change?
a) The equilibrium price is 195 dollars.
b) The percentage change in demand will be -6%.
a. At market equilibrium, the quantity demanded (QD) equals the quantity supplied (QS).
Therefore, QD = QS.110 - 2PX - 4PY + M = 200 + 4PX - 2W
Substituting the given values of Py = 25, M = 330 and W = 140 in the above equation;
we have:QD = 110 - 2PX - 4(25) + 330 = 200 + 4PX - 2(140)
Simplifying the above equation, we have:6PX = 1170PX = 195
b) The quantity demanded at this price is:QD = 110 - 2(195) - 4(25) + 330QD = 100 units.Now, to calculate the own price elasticity of demand, we can use the following formula:Price Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)
Price elasticity of demand = {(Q2 - Q1) / Q1} / {(P2 - P1) / P1}Where P1 = 195 dollars, P2 = 200 dollarsQ1 = 100 units, Q2 = 90 unitsSubstituting the above values in the formula:Price Elasticity of Demand = {(90 - 100) / 100} / {(200 - 195) / 195}
Price Elasticity of Demand = -0.33Therefore, the own price elasticity of demand for good X is -0.33b. If consumers' income decreases by 8%, we can use the income elasticity of demand to calculate the percentage change in demand.
The income elasticity of demand for good X is given by:(∆Q/Q) / (∆I/I) = eWhere, Q = 100 units, I = $330 and e = 0.75
Substituting the values in the above equation, we have:(∆Q/100) / (-0.08) = 0.75
Solving the above equation, we get:∆Q = -6
Therefore, the demand for good X will decrease by 6% if consumers' income decreases by 8%.
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On January 1, 2019, Bahrain Corporation issues bonds that have a$900,000 par value, mature in 6 years, and pays 9% interest semiannually on June 30 and December 31 of each year. The bonds are issued at $882,000 cash. The straight-line method is used to amortize any discount or premium, and the company year ends on December 31. CONOMICS
Required:
a) Prepare the general journal entry to record the issuance of bonds on January 1, 2019. b) Prepare the general journal entry to record the second semiannual interest payment on December 31,2019.
c) Payment bonds at maturity date on December 31, 2024
The required journal entries are:
a) For issue of the bond on discount:
Cash $882,000
Discount on bonds issued $18,000
9% Bonds $900,000
b) For recording the second semi-annual interest:
Interest expense $43,500
Interest payable $40,500
Bonds discount $3,000
Interest payable $40,500
Cash $40,500
c) For recording the payment of bonds at maturity:
9% Bonds $900,000
Interest payable $40,500
Cash $940,500
The market price of a bond issued at a discount is less than face value, resulting in an increase in principal at maturity because the higher face value is paid when the bond matures. The bond discount is the difference by which a bond's market price is below its face value.
Calculation for the amount to be amortized for the bond:
Given,
Par Value of the Bond = $900,000
Life = 6 years.
Semi-annual interest = 9%.
Cash received from issue of bonds= $882,000
Discount on Issue= $18,000
This discount would be amortize for a period of 6 years and amount amortized each year would be:
$18,000 / 6
= $3,000.
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John trading bough two assets on 1 january 2021. Details of the
assets are as follows:
No
Van vehicle
Camera
1
Purchase value
RM 50,000
RM 10,000
2
Scrap value
RM-
RM-
Here are the depreciation accounts for the van and camera as at 31 December 2021 and 31 December 2022:
The Depreciation AccountsVan
Date Depreciation Accumulated Depreciation Net Book Value
31-Dec-2021 RM 12,500 RM 12,500 RM 37,500
31-Dec-2022 RM 12,500 RM 25,000 RM 25,000
Camera
Date Depreciation Accumulated Depreciation Net Book Value
31-Dec-2021 RM 3,333 RM 3,333 RM 6,667
31-Dec-2022 RM 3,333 RM 6,667 RM 3,333
It should be kept in mind that the aforementioned accounts solely pertain to depreciation and, in addition, the depreciation cost must be documented in the financial statement. In both 2021 and 2022, the van's depreciation cost is RM 12,500 and the camera's depreciation expense is RM 3,333.
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John Trading Bough Two Assets On 1 January 2021. Details Of The Assets Are As Follows: No Van Vehicle
John trading bough two assets on 1 january 2021. Details of the assets are as follows:
No
Van vehicle
Camera
1
Purchase value
RM 50,000
RM 10,000
2
Scrap value
RM-
RM-
3
Depreciation rate/useful life
25%
3 Years
4
Depreciation method
Reducing balance
Sum of Digit
Prepare Van and camera depreciation account as at 31 December 2021 and also at 31 December 2022.
Being Liquid is important for nonprofit organization because of inconsistency of donations.True/False.
The statement "Being Liquid is important for nonprofit organization because of inconsistency of donations" is false.
Being liquid (having readily available cash or assets) is important for nonprofit organizations for various reasons, but it is not primarily due to the inconsistency of donations. While it is true that nonprofits often rely on donations as a significant source of funding, there are other factors that contribute to the importance of liquidity.
1. Operational Stability: Nonprofits need liquidity to cover day-to-day expenses, such as salaries, rent, utilities, and program costs, regardless of donation fluctuations. Having sufficient cash flow ensures the organization can continue its operations and fulfill its mission consistently.
2. Emergency Situations: Unforeseen circumstances or emergencies can arise, requiring immediate financial resources. Being liquid enables nonprofits to respond quickly to such situations, whether it's a natural disaster, a sudden increase in demand for their services, or unexpected expenses.
3. Strategic Opportunities: Liquidity allows nonprofits to seize strategic opportunities that may arise, such as expanding programs, launching new initiatives, or investing in infrastructure. Having cash readily available provides flexibility and enables the organization to pursue growth and innovation.
4. Donor Confidence: Donors often prefer to support nonprofits that demonstrate financial stability and responsible financial management. Maintaining adequate liquidity signals to donors that the organization is well-prepared to handle financial challenges and effectively utilize their contributions.
While the inconsistency of donations can impact cash flow for nonprofits, the importance of liquidity extends beyond that factor alone. Nonprofits need liquidity to maintain stability, respond to emergencies, capitalize on opportunities, and build donor trust. Therefore, it is incorrect to attribute the importance of nonprofit liquidity solely to the inconsistency of donations.
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gus came up with a secret chicken recipe that he sells in his quick-service restaurant. which intellectual property law would best protect gus's recipe?
Gus's secret chicken recipe that he sells in his quick-service restaurant is best protected under the trade secret law.
A trade secret refers to any information or recipe that offers its owner a competitive advantage over others. This information is not publicly known and is kept hidden from the public eye. Examples of trade secrets include confidential information such as customer lists, recipes, and formulas.In a nutshell, the trade secret law protects the owner's proprietary information. In exchange for keeping the secret, the owner of the information receives a significant advantage over its competitors who do not know the secret.
As a result, the trade secret law prevents individuals from disclosing confidential information that could harm the owner's business.
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As part of your audit of RPL for the year ended 30 June 2018, you are reviewing internal controls over RPL’s print-on-demand business.
a Classify the following control activities as a manual control, an IT application control or an IT general control.
1. The digital library is backed up daily, with the backup tapes kept off site
2. The accounting system automatically stops the order for any publishers who have exceeded their credit terms and limits
3. When an order exceeds the credit limit, an authorisation from both the heads of publishing and accounts is required for the transaction to proceed
4. The accounts receivable clerk checks the prices and arithmetic accuracy of the invoices and signs the invoice as evidence of her check
5. The cashier then reconciles the total of the batch postings to accounts receivable to the amount banked for the day
The classification of the control activities mentioned in the audit of RPL's print-on-demand business is as follows:
1. The digital library is backed up daily, with the backup tapes kept off-site - This is an IT general control.
2. The accounting system automatically stops the order for any publishers who have exceeded their credit terms and limits - This is an IT application control.
3. When an order exceeds the credit limit, authorization from both the heads of publishing and accounts is required for the transaction to proceed - This is manual control.
4. The accounts receivable clerk checks the prices and arithmetic accuracy of the invoices and signs the invoice as evidence of her check - This is manual control.
5. The cashier then reconciles the total of the batch postings to accounts receivable to the amount banked for the day - This is manual control.
Here is the Explanation:
1. The digital library backup is a routine IT general control activity. It involves backing up the digital library data daily and keeping the backup tapes off-site for security and disaster recovery purposes.
2. The accounting system automatically stopping orders for publishers who exceed credit terms and limits is an IT application control. The system is programmed to enforce credit limits and halt further orders for publishers who surpass those limits, ensuring compliance with credit policies.
3. Requiring authorization from both the heads of publishing and accounts when order exceeds the credit limit is manual control. This control ensures that higher-level approval is obtained before processing transactions that exceed the established credit limits.
4. The accounts receivable clerk's activity of checking invoice prices and arithmetic accuracy and signing the invoice as evidence is manual control. This control helps detect and prevent errors or discrepancies in the invoices before they are sent to customers.
5. The cashier's task of reconciling the total batch postings to accounts receivable with the amount banked for the day is also a manual control. It ensures that the cash received matches the recorded accounts receivable transactions, providing an internal check on the accuracy of financial records.
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A bank is currently offering a savings account paying an interest rate of 8.8 percent compounded quarterly. Interest is paid once per month at the end of each month. It would like to offer another account, with the same effective annual rate, but compounded monthly. What is the equivalent rate compounded monthly?
The value of the equivalent rate compounded monthly is 0.76%.
The equivalent monthly rate of an annual interest rate compounded quarterly is determined using the formula: i = [1 + (r / n)]ⁿʳ - 1
Where r is the annual rate, n is the number of times interest is compounded per year, and i is the effective annual rate.
Let's compute the equivalent rate compounded monthly when the annual interest rate is 8.8 percent compounded quarterly.8.8 percent is equivalent to 0.088 as a decimal.
The interest is compounded quarterly, which means it is compounded four times per year.
Therefore, we can use the formula to compute the effective annual rate as:i = [1 + (r / n)]ⁿʳ - 1i = [1 + (0.088 / 4)]^(4*1) - 1i = 0.0908 or 9.08%
Now that we have the effective annual rate, we need to determine the equivalent monthly rate. We will divide the effective annual rate by 12 since interest is compounded monthly.
i = 0.0908 / 12
i = 0.007566667 or 0.76%
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2-
How do corporations analyze the societal environ-ment? Is STEEP
Analysis an appropriate tool?
Corporations analyze the societal environment through various methods to understand the external factors that can impact their business. One commonly used tool is the STEEP analysis, which stands for Social, Technological, Economic, Environmental, and Political factors.
It helps assess the broader context in which a company operates and identifies potential opportunities and challenges.
The STEEP analysis allows corporations to:
Social factors: Understand social trends, demographics, cultural values, and consumer behavior. This helps companies align their products or services with societal needs and preferences.Technological factors: Evaluate technological advancements and their impact on the industry. This analysis helps identify opportunities for innovation, automation, and digital transformation.Economic factors: Assess macroeconomic conditions, such as economic growth, inflation, interest rates, and consumer spending. Understanding the economic environment helps businesses make informed decisions regarding pricing, investments, and market expansion.Environmental factors: Consider ecological and sustainability issues, including climate change, resource scarcity, and environmental regulations. By analyzing these factors, corporations can develop environmentally responsible practices and meet the expectations of environmentally conscious consumers.Political factors: Examine governmental policies, regulations, trade agreements, and political stability. This analysis helps businesses anticipate potential changes in regulations, assess geopolitical risks, and understand the impact of political decisions on their operations.While STEEP analysis can be a valuable tool, it's important to note that no single framework is universally appropriate for all situations. Corporations should consider other analysis tools and frameworks in conjunction with STEEP analysis to gain a comprehensive understanding of the societal environment. Additional methods may include PESTLE analysis (which includes Legal and Ethical factors) or SWOT analysis (which assesses internal strengths and weaknesses alongside external opportunities and threats).
Ultimately, the appropriateness of using STEEP analysis or any other tool depends on the specific needs and context of the corporation and the depth of understanding required about the societal environment.
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Taxpayer files his tax return as head of household for the 2021 year and deducts only the standard deduction. Taxpayer's income includes $84,000 in taxable compensation and $5,000 in interest from a New Jersey municipal bond. Determine Taxpayer's average tax rate. 14.4% 16.9% 15.2% 22% Taxpayer is an employee of a large electronics retailer. During the tax year, Taxpayer used her employee discount to purchase an item with a fair value of $2,500. Taxpayer's employer charged her $1,268 for the item. Determine the amount, if any, that taxpayer is required to include in gross income as a result of this transaction if the employer's gross profit percentage is 22%.
Taxpayer is required to include $603.68 in gross income as a result of this transaction.
To calculate the average tax rate:
Divide the tax liability by the taxable income. $11,846 / $70,200 = 0.1686, or 16.86%. Rounding to one decimal place gives 16.9%.
Thus, Taxpayer's average tax rate is 16.9%.
Now, we will calculate the amount, if any, that taxpayer is required to include in gross income as a result of this transaction if the employer's gross profit percentage is 22%.
The gross profit is $2,500 − $1,268 = $1,232 because the fair value of the item is $2,500, but the employer charged Taxpayer only $1,268, which means that the employer's gross profit percentage is 100% − 51% = 49%.
Therefore, the amount that Taxpayer is required to include in gross income as a result of this transaction is $1,232 × 0.49 = $603.68.
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Which one of the following is most likely an example of a double-barreled question?
a.Most dentists believe that everyone should brush their teeth three times a day. Do you agree?
b.To what extent do you agree that all customers should research before buying?
c.How satisfied or dissatisfied are you with your current Internet service provider?
d.In the past year, how many times have you been to a music concert?
e.Do you think this criminal should be punished?
correct option is c. How satisfied or dissatisfied are you with your current Internet service provider?
A double-barreled question is a type of question that asks about multiple issues or topics in a single question, making it difficult for the respondent to provide a clear and accurate answer. The question combines two distinct ideas or concepts, making it confusing or misleading.
In the given options, the example most likely to be a double-barreled question is: "Do you enjoy going to the movies and watching television shows?" This question combines two separate activities, going to the movies and watching television shows, into a single question. It assumes that the respondent has the same preference for both activities, while in reality, they may have different opinions or experiences for each.
Double-barreled questions can lead to ambiguous or inaccurate responses because they do not allow respondents to provide individual answers for each component. It is important to avoid double-barreled questions in survey design to ensure clear and meaningful data collection.
In conclusion, a double-barreled question combines multiple issues or topics into a single question, making it challenging for respondents to provide accurate responses. The example provided, "Do you enjoy going to the movies and watching television shows?", is most likely a double-barreled question.
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Q3. When the supply of gasoline is decreased, and the demand of gasoline is also decreased. Then how the equilibrium (price and quantity) is changed? Explain it with a graph.
When the supply of gasoline is decreased, and the demand of gasoline is also decreased, then the equilibrium price and quantity will depend on the extent of the decrease in both supply and demand. Let us discuss it in more detail. The figure given below illustrates the effect of decreased supply and decreased demand on equilibrium price and quantity.
As shown in the graph, the equilibrium price (P0) and equilibrium quantity (Q0) for gasoline are determined by the intersection of the demand curve (D) and the supply curve (S).
When both supply and demand decrease, then the equilibrium price will decrease and the equilibrium quantity will also decrease. The magnitude of change in equilibrium price and quantity will depend on the relative magnitude of the decrease in supply and demand.
For example, if the decrease in demand is greater than the decrease in supply, then the equilibrium price and quantity will both decrease significantly. On the other hand, if the decrease in supply is greater than the decrease in demand, then the equilibrium price will increase and the equilibrium quantity will decrease, although the magnitude of change in price and quantity will be lower than in the previous case.
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If elderly people are crowded into jobs such as Walmart greeters, illustrate what would happen to the wages of Walmart greeters and other professions utilizing supply and demand graphs
If elderly people are crowded into jobs such as Walmart greeters then ncrease in the supply of labor would cause a decrease in the wage rate of a profession, whereas a decrease in the supply of labor would lead to an increase in the wage rate of a profession.
Let's explain it further.Supply and demand is a basic economic principle. It describes the relationship between supply and demand for a good or service and how it affects the price. Supply and demand curves are used to illustrate this relationship.
Supply curve represents the number of goods that suppliers are willing to sell at a given price level. It is upward sloping, which implies that the higher the price, the higher the quantity supplied. On the other hand, the demand curve represents the number of goods that buyers are willing to buy at a given price level.
It is downward sloping, which means that the higher the price, the lower the quantity demanded. The intersection of supply and demand curves determines the equilibrium price and quantity of goods or services.In the given scenario, the influx of elderly people into Walmart greeter jobs would increase the supply of labor for that particular job.
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Why is the monthly reconciliation of bank accounts by an
independent person an important internal control over cash
balances? Which individuals
will generally not be considered independent for this
re
The monthly reconciliation of bank accounts by an independent person is an important internal control over cash balances. It helps detect errors, identify fraud, establish internal checks and balances, and ensure compliance with regulations.
Monthly reconciliation of bank accounts by independent bodiesMonthly reconciliation of bank accounts by an independent person is an important internal control over cash balances for several reasons:
Detection of Errors: Reconciling bank accounts involves comparing the company's records of cash transactions with the bank's records. An independent person who is not directly involved in the cash handling or accounting process can more objectively identify any errors or discrepancies between the two sets of records. Fraud Detection: Independent reconciliation serves as a safeguard against fraudulent activities. By having someone who is not directly involved in the cash handling process review the bank transactions, it becomes more difficult for an employee to manipulate the records without detection.Internal Checks and Balances: The independent reconciliation process establishes an internal check and balance system. It ensures that different individuals are involved in different stages of the cash handling and accounting process.Learn more on bank reconciliation here https://brainly.com/question/15525383
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Which of the following budgets can be used for control? Group of
answer choices Budgeted income statement Production budget All of
these Selling and administrative expense budget Cash budget.
Note that all of these budgets can play a role in controlling different aspects of an organization's operations and financial performance.
How is this so?Budgeted income statement, production budget, selling and administrative expense budget,and cash budget can all be used for control purposes.
The budgeted income statement helps monitor financial performance, production budget aids in controlling production costs, selling and administrative expense budget helps manage related costs,and the cash budget enables control over cash flow.
These budgets provide valuable tools for monitoring, managing, and controlling various aspects of an organization's operations.
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a. The movie featured terrible acting, excessive violence, and plot twists that were ridiculous. b. The movie featured terrible acting, excessive violence, and ridiculous plot twists. c. The movie featured terrible acting, violence to excess, and ridiculous plot twists.
The sentence that uses parallelism correctly is option B: "The movie featured terrible acting, excessive violence, and ridiculous plot twists." Hence, the correct answer is option (B)
Parallelism is the repetition of grammatical structure or pattern in a sentence or a series of sentences. It creates balance and clarity in writing by ensuring consistency and smooth flow. In this case, option B maintains parallelism by using the same grammatical structure for each item in the series: "terrible acting," "excessive violence," and "ridiculous plot twists." The parallel structure enhances readability and allows for easier comprehension of the writer's intended meaning.
Option A does not use parallelism correctly as it introduces a different structure in the third item of the series ("plot twists that were ridiculous"). Option C also lacks parallelism by using a different structure in the second item ("violence to excess"). Parallelism is an important aspect of effective writing that promotes clarity and coherence. Option B demonstrates correct parallelism by maintaining consistent grammatical structure throughout the series, making it the appropriate choice in this context. Therefore, option (B) is the correct answer.
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The Acmeville Metropolitan Bus Service currently charges $0.99 for an all-day ticket, and has an average of 588 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 1.1 . The marketing department's studies indicate this price increase would reduce usage to 337 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.
Answer:
-3.88 or 3.88
Explanation:
Calculation to determine the absolute value of the price elasticity of demand
Using this formula
Price elasticity of Demand = % change in quantity demanded / % change in price
Price elasticity of Demand =%∆QD / %∆P
Let plug in the formula
Price elasticity of Demand= (( 337 - 588 )/( 1.1- 0.99)) * ( 0.99 / 588 )
Price elasticity of Demand= (-251 / 0.11) * ( 0.0017)
Price elasticity of Demand= -22,81.8181 * 0.0017
Price elasticity of Demand= -3.88 or 3.88 ( absolute value)
Therefore the absolute value of the price elasticity of demand will be -3.88 or 3.88
Mary Jones completed her Master’s degree at Webster University ten years ago, and recently inherited $125,000. After taxes of $20,000, and a couple of parties and cruises, she still has $100,000. It is in a short-term CD earning 1%. She has been working for 10 years at a job that pays her $45,000 a year, plus benefits. She is a single mom, 50 years old and has one child left at home who will be graduating from high school this year and plans to go to college. She has been interested in starting a business of her own for some time, but never had the funds to jump start the idea.
Her monthly expenses which include mortgage, car payments insurance, etc. are $3,500
Harry Smith works at the same place. He is a single dad with one child that is a junior in high school who plans to go to college. He earns $45,000 plus benefits each year and is also 50. He and Mary have talked about starting a business off and on for several years. He has accumulated $100,000 that he is willing to commit.
His monthly expenses which include mortgage, car payments insurance, etc. are $3,200
They have agreed that a fast-food business of some sort would work for them. They are looking at some businesses that are available now. Neither has any experience in this type of business.
1. Charlie’s Fast Snacks can be bought for $40,000 down and $60,000 (0 interest) over the next 5 years.
2. Jill’s Juice Bar can be bought for $30,000 down and $70,000 (0 interest) over the next 5 years.
3. The Squeeze Box (a franchise). $75,000 down and $25,000 (5% interest) over the next 5 year
Which of the three small businesses in the Harry and Mary case should they buy?
Considering their financial situation and the potential for profitability, Jill's Juice Bar appears to be the most suitable option for Harry and Mary. The demand for healthier food and beverages aligns with market trends, and the investment structure is manageable.
In evaluating the three small business options, Charlie's Fast Snacks, Jill's Juice Bar, and The Squeeze Box franchise, Harry and Mary should carefully consider their financial situation and long-term goals.
Considering their combined available funds of $200,000 and the fact that both Harry and Mary are interested in starting a business, they have the potential to make a substantial investment. However, it's essential to assess the profitability and feasibility of each business option. Charlie's Fast Snacks requires a $40,000 down payment and a remaining $60,000 with 0% interest over the next five years. This option provides flexibility in terms of the payment structure, which may be beneficial for Harry and Mary's cash flow. However, they should thoroughly investigate the business's financial health, potential for growth, and the overall fast-food market in their area. Jill's Juice Bar, with a $30,000 down payment and $70,000 payable over the next five years at 0% interest, presents an interesting opportunity. Considering the increasing demand for healthy food and beverages, a juice bar can be a viable option. However, they need to conduct market research to assess the competition and potential profitability of such a venture. The Squeeze Box franchise requires a $75,000 down payment and $25,000 payable over the next five years at a 5% interest rate. While franchises often provide a proven business model and support, the higher down payment and interest rate make it a riskier choice for Harry and Mary. However, they should conduct a thorough business analysis, including a detailed financial projection, to ensure the viability and success of their chosen venture.
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What are the likely onnsequences of this policy? a. Gennan dollar reserves increase Gierman money suppy Increases b. German dollar reserves increase; German money suppy decreases c. German dollar reserves decrease; German money suppy decreases d. German dollar reserves decrease German money suppy increases
The likely consequences of a policy where German dollar reserves increase would be German money supply decreases. Option b is correct.
What is money supply? Money supply is the overall amount of money in circulation in an economy. Money supply is also known as the money stock.
The money supply of an economy includes physical currency (banknotes and coins), deposit accounts held by the public and the reserves kept by commercial banks. The money supply may be regulated by a central bank, usually with the aim of stabilizing the economy and maintaining price stability.
Therefore, b is correct.
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Use the information provided below to calculate the following:
3.1.1 Break-even value, using the contribution margin ratio
3.1.2
(4 marks)
Sales volume required to achieve an operating profit of R2 000 000
(4 marks)
3.1.3 Total Contribution Margin and Operating Profit/Loss if Rinex Limited operates at 80% capacity
(4 marks)
If Rinex Limited operates at 80% capacity, the total contribution margin will be R2,400,000, and the operating profit will be R900,000.
Break-even value, using the contribution margin ratio:
To calculate the break-even value, we need to determine the contribution margin ratio first. The contribution margin ratio is calculated by subtracting the variable costs from the sales and dividing the result by the sales. The formula is as follows:
Contribution Margin Ratio = (Sales - Variable Costs) / Sales
Once we have the contribution margin ratio, we can use it to calculate the break-even value. The break-even value is the level of sales at which the company neither makes a profit nor incurs a loss. It can be calculated by dividing the fixed costs by the contribution margin ratio. The formula is as follows:
Break-even Value = Fixed Costs / Contribution Margin Ratio
Let's assume we have the following information:
Sales = R5,000,000
Variable Costs = R3,000,000
Fixed Costs = R1,500,000
First, we calculate the contribution margin ratio:
Contribution Margin Ratio = (R5,000,000 - R3,000,000) / R5,000,000
= R2,000,000 / R5,000,000
= 0.4 or 40%
Next, we calculate the break-even value:
Break-even Value = R1,500,000 / 0.4
= R3,750,000
Therefore, the break-even value, using the contribution margin ratio, is R3,750,000.
Sales volume required to achieve an operating profit of R2,000,000:
To determine the sales volume required to achieve a specific operating profit, we need to use the contribution margin ratio. The formula is as follows:
Sales Volume = (Fixed Costs + Operating Profit) / Contribution Margin Ratio
Let's assume we have the same information as before:
Fixed Costs = R1,500,000
Operating Profit = R2,000,000
Contribution Margin Ratio = 40%
Now, we can calculate the sales volume:
Sales Volume = (R1,500,000 + R2,000,000) / 0.4
= R3,500,000 / 0.4
= R8,750,000
Therefore, the sales volume required to achieve an operating profit of R2,000,000 is R8,750,000.
Total Contribution Margin and Operating Profit/Loss if Rinex Limited operates at 80% capacity:
To calculate the total contribution margin and operating profit/loss when operating at 80% capacity, we need to consider the contribution margin ratio and the actual sales volume. The contribution margin can be calculated by multiplying the contribution margin ratio by the sales volume, and the operating profit/loss can be calculated by subtracting the fixed costs from the contribution margin.
Let's assume we have the following information:
Sales Volume (at 80% capacity) = R6,000,000
Fixed Costs = R1,500,000
Contribution Margin Ratio = 40%
First, we calculate the contribution margin:
Contribution Margin = Contribution Margin Ratio * Sales Volume
= 0.4 * R6,000,000
= R2,400,000
Next, we calculate the operating profit/loss:
Operating Profit/Loss = Contribution Margin - Fixed Costs
= R2,400,000 - R1,500,000
= R900,000
Therefore, if Rinex Limited operates at 80% capacity, the total contribution margin will be R2,400,000, and the operating profit will be R900,000.
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