A systems audit is performed to determine whether the new procedures are furthering productivity. Hence, option A is appropriate.
What is the meaning of a Systems audit?System audits are thorough examinations of several processes as well as their interactions. It examines how a company runs its business. The auditor might combine the auditing of the design, manufacturing, inspection, and other processes, for instance.
Practically speaking, systems audit work entails looking at the essential organizational practices, policies, and controls that enable effectiveness, including costing, performance measurement, reporting systems, and management's methods for comparing organizational performance.
System audits are performed to see if the organization's information system is effectively ensuring data integrity, protecting its assets, and assisting it in attaining its objectives and goals.
Hence, option a is correct.
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apple has decided to issue new stock to expand its facilities. where would the receipt of cash from the sale appear on the statement of cash flows?
The receipt of cash from the sales will appear on the Financing statement of cash flows.
Sales are actions involving the sale of products or the volume of items sold during a specified time frame. A sale also includes the provision of a service for a fee. When a purchase, appropriation, requisition, or direct engagement with the customer occurs at the point of sale, the seller or supplier of the products or services completes a transaction.
There is a passage of title of a item, and the settling of a price, in which consensus is achieved on a price for which the ownership transfer of the object will occur.
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Suppose the risk-free interest rate is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.32. What is its expected return?
The expected return is 5.92%. An investment that involves no risk offers a rate of return known as the risk-free rate.
The concept of the risk-free rate is somewhat speculative because every investment asset carries some element of risk, no matter how minor. It is commonly understood to refer to the interest rate on short-term government debt. The risk-free rate serves as the foundation for creating various valuation models. These models make use of the risk-free rate to explain how increasing your level of risk can affect the returns on your investments.
The greater rate of return that investors expect from riskier assets like equities is known as a risk premium. Owning stocks entails increased risk of financial loss but also offers the chance for better gains. The risk free rate is the first step in calculating a risk premium.
In the given question,
Expected return = Risk free rate + Beta *( Marker return
rate - Risk free rate)
= 4% + 0.32 *(10%-4%)
= 4% + 1.92%
= 5.92%
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when adopting nonoriginal work for a personal training business, a credentialed professional should:
When adopting nonoriginal work for a personal training business, a credentialed professional should give credit to the contribution.
To prove one's professional abilities and ability, one must earn and receive professional credentials from an academic institution or a reputable professional association. They attest to a formal procedure and the fulfillment of standards set forth by educational institutions, research institutions, and professional associations.
The public can rely on credentials as a reliable indicator of professional legitimacy. The allocated letters of one's qualifications are added after one's name once they have been earned.
You cannot make up your own qualifications by choosing which letters to add after your name. It is dishonest to use one's self-assigned letters or acronyms after one's name to market to the public an inferred specialty in one's profession; violators may face sanctions from state licensing bodies.
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ruby company is considering a project with an initial investment of $300,000 that will yield annual net cash flows of $90,576 and will be depreciated at $75,000 per year over its 4-year life. what is the approximate internal rate of return? (note: round the discount factor to five decimal places.)
IRR is the rate at which the present value of cash outflow equals the present value of cash inflows is 8%.
Present value of cash outflows = $300,000
Present value of cash inflows = $90,580 * present value of annuity factor
at IRR
$300,000 = 90,580 * present value of annuity factor
=> present value of annuity factor = 300,000 / 90,580
=>3.312.
from the table of annuity
we can see that for 4 periods, the factor 3.312 falls under 8%.
so the IRR for the given problem is 8%.
Deprecation is the discouragement of the usage of a few terminology, feature, design, or exercise, usually as it has been superseded or is not taken into consideration efficient or secure, without absolutely removing it or prohibiting its use. normally, deprecated materials aren't completely removed to ensure legacy compatibility or backup exercise in case new methods aren't functional in an abnormal situation.
The motion of not approving of something or pronouncing which you no longer approve of something: She couldn't hide the deprecation in her voice. The barman shook his head in deprecation. In present-day technical utilization, for one to the nation that a function is deprecated is simply advice in opposition to its usage of it. it is still feasible to provide a program or product without heeding the deprecation.
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a dispute resolution mechanism negotiated into most collective bargaining agreements is a (an): a. mediation service b. shared decision-making c. critical incidents method d. grievance mechanism qyizlet
D. grievance mechanism is a dispute resolution mechanism negotiated into most collective bargaining agreements
The process of resolving conflicts between parties is known as dispute resolution or dispute settlement. Conflict resolution and dispute resolution are sometimes used interchangeably. The use of dispute mechanisms to provide channels of dialogue between corporations and communities is becoming more and more effective.
A dispute mechanism is a formalized procedure for resolving disagreements or grievances between two or more parties involved in societal, commercial, or legal connections. In order to resolve disputes, dispute processes are used. These methods include negotiation, mediation, conflict resolution, and conciliation.
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the main activities of collaboration are . question 36 options: a) feedback and iteration b) meeting and conversing c) evaluation and measurement d) discussing and criticizing
The main activities of collaboration are meeting and conversing.
When two or more people collaborate, they aim to achieve a joint objective. To create a product, finish a project, or address a problem, teams may collaborate. Teams that have better cooperation skills collaborate more successfully on any given assignment. Strong communication skills, active listening, emotional intelligence, and conflict resolution are some of the abilities that contribute to good collaboration. Many jobs require the ability to collaborate with others, as employers depend on their workforce to work as a team to accomplish shared objectives. Working in a group is not only more productive than working alone, but it can also give you a chance to learn new abilities. You can get knowledge by working together at work.
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the creation of a relationship for the future based on trust, understanding, and mutual respect is the basis of: a. the federal mediation and conciliation service b. traditional bargaining c. interest-based bargaining d. good faith bargaining
The creation of a relationship for the future based on trust, understanding, and mutual respect is the basis of interest-based bargaining.
Interest based, or common increases bargaining at its establishment is based on the rule that an arranged settlement of any issue is generally better than different choices accessible. As a matter of fact, to decide if or this way to deal with 'bargaining' can be of any benefit to you, you initially should find whether different choices will give you an improved arrangement. Assuming they will, the standards of interest based bargaining are presumably irrelevant to your circumstance.
"good faith" - It basically implies each party should exhibit a genuine and legit expectation to agree and to be sensible in their bargaining positions, strategies, and exercises.
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in comparing bonds with notes, bonds are typically issued to a single lender while notes are issued to many lenders.a) trueb) false
False; notes are issued to a variety of lenders while bonds are typically issued to a single lender.
Describe the process for issuing bonds.Federal, state, and local governments, as well as their respective agencies and businesses, all issue bonds. US Treasury, municipal, and corporate bonds are the three categories into which bonds fall. A bond may be issued in the primary market in one of two ways: either through a public offering, in which any member of the public may buy the bonds, or through a private placement, in which only one investor or a small group of investors may buy the bonds either directly from the issuer or through an investment bank. Government bonds are obligations that a nation's government issues with a set interest rate. These bonds are regarded as low-risk financial instruments. Examples of government bonds include Treasury Bills, Municipal Bonds, Zero-coupon Bonds, and others.
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what is price competition? sellers compete with each other by charging as high a price as possible. sellers differentiate products so they can charge a higher price. sellers force competitors to lower their prices until the competitors have losses. sellers try to win customers through charging as low a price as possible
Competition in determining the price of merchandise carried out by traders as an effort to seize the market and beat their trading competitors. This price competition is very likely to occur in a market.
Business competition or business is the efforts of two parties/more companies, each of which is active in obtaining orders by offering the most favorable prices/conditions. Competition is when organizations or individuals compete to achieve desired goals such as consumers, market share, survey rankings, or required resources.
Business competition is carried out to win the hearts of consumers. Business actors try to offer attractive products and services, both in terms of price, quality and service. The combination of these three factors to win the competition to win the hearts of consumers can be obtained through innovation, application of the right technology, and managerial ability to direct company resources in winning the competition.
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using a spreadsheet, compare the hedging alternatives for the thai baht with a scenario under which blades remains unhedged. do you think blades should hedge or remain unhedged? if blades should hedge, which hedge is most appropriate?
According to the report, Blades should protect its exposure to the baht. Blades seems to benefit most from the money market hedging since it generates the biggest dollar value for the net baht inflows.
In the world of finance, to hedge is to take a counterbalanced position in a security or investment that lowers the price risk of an existing stake. Therefore, a trade performed as a hedge serves the objective of lowering the risk of unfavorable price changes in another asset. Typically, hedging involves taking the opposite position in a linked security or a derivative security that is dependent on the asset that has to be protected.
Because the relationship between the two is more or less well stated, derivatives can be useful hedging tools against their underlying assets. Securities that fluctuate in accordance with one or more underlying assets are known as derivatives. They consist of futures, swaps, options, and forward contracts. The underlying assets may include securities such as equities, bonds, commodities, currencies, indexes, or interest rates. Derivatives can be used to create a trading strategy whereby a loss on one investment is compensated or lessened by a gain on a similar derivative.
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An example of a correction of an error in previously issued financial statements is a change in the tax assessment related to a prior period. in the service life of plant assets, based on changes in the economic environment. from the cash basis of accounting to the accrual basis of accounting. from the FIFO method of inventory valuation to the LIFO method.
An example of a correction of an error in previously issued financial statements is a change in the tax assessment related to a prior period is:
From the cash basis of accounting to the accrual basis of accounting.
The correct option is (c).
"Information available from the question"
In the question:
An example of a correction of an error in previously issued financial statements is a change :
a) In the tax assessment related to a prior period.
b) In the service life of plant assets, based on changes in the economic environment.
c) From the cash basis of accounting to the accrual basis of accounting.
d) From the FIFO method of inventory valuation to the LIFO method.
Choose the correct answer.
Now, According to the question:
An example of correcting an error in previously issued financial statements is a change from the cash basis to the accrual basis of accounting. Under the cash basis, we don't account for transactions that do not involve cash, but we incorporate them under the accrual basis. A change in the accounting system requires a retrospective adjustment. Hence, we can consider this transaction as an example of correcting an error in previous records.
Hence, From the cash basis of accounting to the accrual basis of accounting.
The correct option is (c).
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The question is like this:
An example of a correction of an error in previously issued financial statements is a change :
a) In the tax assessment related to a prior period.
b) In the service life of plant assets, based on changes in the economic environment.
c) From the cash basis of accounting to the accrual basis of accounting.
d) From the FIFO method of inventory valuation to the LIFO method.
when the federal reserve increases the federal funds rate, how would it impact the economy?
When the Federal Reserve increases the federal funds rate, it typically increases interest rates throughout the economy, which tends to make the dollar stronger. The higher yields attract investment capital from investors abroad seeking higher returns on bonds and interest-rate products.
all chopped inc., a firm that manufactures ready-to-eat salads, offers incentives based on an employee's performance rating and the employee's compa-ratio. which payment plan is exemplified in this scenario? multiple choice piecework plan merit pay standard hour plan differential plan skill-based plan
Merit pay is the payment plan is exemplified in this scenario. Hence, option C is correct.
Merit pay is an exhibition based remuneration framework that offers rewards or base boosts in compensation to representatives who meet execution objectives or complete their obligations productively throughout a predetermined time span.
Merit pay and rewards contrast in that legitimacy pay is normally remembered for or added to the representative's base compensation while a reward is a one-time installment.
Merit pay is a savvy execution remuneration system that urges individuals to perform better, which thusly assists a firm with accomplishing its general benefit making goals.
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kyle is a stay-at-home dad who does not have a job. why is he not considered in the unemployment numbers?
Workers suffer, as do their families and the nation as a whole, when they are out of work. Laborers and their families lose compensation, and the nation loses the labor and products that might have been delivered. Additionally, these workers lose their purchasing power, which may result in the unemployment of additional workers.
Early every month, the Department of Work Measurements (BLS) of the U.S. Branch of Work declares the absolute number of utilized and jobless individuals in the US for the earlier month, alongside numerous attributes about them. Media coverage of these figures is extensive, particularly the unemployment rate, which indicates the proportion of the workforce without a job. Some people believe that the number of people receiving unemployment insurance (UI) benefits through state or federal programs is used by the government to obtain these figures on unemployment. In any case, certain individuals are as yet jobless when their advantages run out, and a lot more are not qualified by any stretch of the imagination or defer or never apply for benefits. Therefore, it is evident that UI data cannot be used as a complete source of information regarding the number of unemployed individuals.Others believe that the government counts every person who is unemployed each month. Just like in the population census every ten years, every home in the country would need to be contacted in order to accomplish this. The data would be produced using this method in an unreasonable amount of time and at a price. Additionally, it would soon become tiresome for census takers to contact individuals on a monthly basis, year after year, to inquire about activities related to their jobs.
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In order to assess the performance of their firms and their supply chains, what do managers need to do to determine the needs of those customers?
Group of answer choices
a. Look at each segment of the markets they serve
b. Help identify new customer requirements
c. Rely on traditional performance measures
d. Collaborate in pricing of products
Option b help identifies new customer requirements is the correct choice.
For the managers, if they look to estimate the effectiveness of their supply chain, then they must look at the need of the customers and how well these needs are addressed.
Option a is not correct as effectiveness needs the identification of the customer's need.
Option b is correct as by knowing the needs of the customers, managers can know how well the firm is satisfying the customer's needs.
Option c is not the correct option as there are various methods to determine the performance of the firm.
Option D is not correct as only product pricing cannot be the sole factor result in better performance of the firm
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Why is a checking account a liability?
The money that bank customers deposit into checking, savings, or certificates of deposit account are seen as liabilities by the bank. After all, the bank owes these deposits to its clients, and is required to restore the money if the clients request a withdrawal.
To access their money, they can use ATMs, checks, or electronic debit or credit cards linked to their accounts. Don't worry, you have a lot of simple options to choose from. Use an ATM. If your bank account is connected to a debit card or ATM (Automated Teller Machine) card, you can withdraw cash there. Write a check for cash, make a cash withdrawal slip, and connect your account to a peer-to-peer payment service. When a debit is made, money is taken out of your bank account. Due to the fact that a credit adds money to your account, it is the opposite of a debit. Your account is debited frequently.
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write a short paper (at least 3 paragraphs in length, double-spaced) explaining roi and payback, and discussing the three areas typically addressed in a contract for the purchase of a technology system. write a paragraph elaborating each area.
ROI (return on investment) is a commonly used metric to assess how well investments in IT systems have performed.
It is frequently used to support IT projects, but it may also be used to assess project team effectiveness, monitor project returns at any stage, and consider other important aspects.
Which IT projects to embark on can be determined by comparing the ROI of various projects and bids. ROI demonstrates to corporate executives, shareholders, and other stakeholders the business's benefit from a given project investment.
If the ROI of a project is larger, the better, the project is more likely to move forward. A 200% ROI over 4 years, for instance, denotes a return of twice the project expenditure over that time frame.
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If a company’s operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.a. Trueb. False
If a company’s operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable. [FALSE]
About Operating cycleIn general, the operational cycle can be explained as the length of time it takes to buy raw materials, carry out the production process, and sell the product plus the time it takes to collect receivables if the sale is a credit sale. In short, the operational cycle shows the length of time required from the process of purchasing raw materials to receiving sales (either cash or credit sales). The thing that needs to be considered by business owners is to maintain the time range so that sales receipts don't take too long. The operational cycle is important for business people to pay attention to because it reflects efficiency.
The shorter this cycle, the better because the faster the business will receive cash from its operational activities. Of course, business people don't want to wait a long time to get cash from their sales because of the slow production process or the slow process of paying off receivables.
In the operational cycle there are several things that we need to calculate in order to know the length of the process needed to complete the cycle. Business players can measure conversion times to determine the length of the operational cycle.
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Monopolistically competitive firms are likely to have ______________ prices in the long run than will occur in a perfectly competitive industry producing similar goods.a. higherb. smallerc. the same asd. one cannot tell
Out of the choices provided above, it can be said that monopolistically competitive firms are likely to have higher prices in the long run than will occur in a perfectly competitive industry producing similar goods. Therefore, the option A holds true.
A monopolistic competition can be referred to or considered as a form of market structure wherein only a single seller holds a dominating position in the market with respect to the supply of a particular good or service. The other firms in such market do not have a dominating or a significant share in the market, and thus, there is a perfect competition being formed in the long run, wherein the prices of the goods are usually higher.
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Identify whether the given items are examples of imports, exports, or neither. Assume the United States is considered the domestic country.
Colby lives in the United States and purchases a video game produced in Japan.
A. Import
B. Export
C. Neither
Option (a), A case of import is when Colby, who resides in the United States, buys a video game made in Japan.
Which import do you mean?When a country exports something, it brings it into its own country as an import. The fundamental financial activities of global trade are import and export. In the context of international trade, import quotas and mandates from the customs authorities place restrictions on the importing and exportation of products.
We import and export because...The foundation of any sizable, prosperous company is the export and import of goods, which also contributes to the development and expansion of national economies. Each nation is equipped with a certain set of resources. A nation could also be short on resources that are necessary for economic growth and improvement.
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what type of communication channels do not follow the chain of command and develop outside the formal structure of the organization?
unofficial channels Additionally, it is a formal method of communication with lax standards. A hierarchy or chain of command may not be necessary in this type of communication.
What are the five communication channels?
There are five different ways or styles of communication that can be used. They are mathematics, writing, speaking, writing, and listening. To be comprehensive communicators, engineers and other technical professionals need knowledge and abilities in all five domains.
Which media currently monopolizes communication?
Spoken, written, and non-verbal communication channels can be categorized into these three basic groups. Humans commonly use numerous channels simultaneously, and each of these communication avenues has unique benefits and drawbacks..
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janice is in the market for a new smartphone when she sees an ad online touting the new features of the latest samsung model. she had not thought about buying a samsung and doesn’t know how much it costs, but the ad made her want to research this type of smartphone further. what feature of advertising does her response exemplify?
Janice is in the market for a new smartphone when she sees an ad online touting the new features of the latest Samsung model. The characteristic of advertising that Janice's response to advertising exemplifies is persuasion.
It is comparable to the marketing strategies employed by businesses to arouse the urge to buy in potential customers through the elicitation of psychological reactions. When a customer is drawn to an advertising because of the message, look, value, or other aspects of the product or service, persuasion has taken place. The needs, values, and wants of the customer must be reflected in every advertising.
Since the smartphone brand advertising successfully persuaded Janice to want to learn more about the product, the value it created for existing customers as well as luring in new ones, it was a success in promoting the brand.
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the amount of goods and services you can buy with a dollar in the global market ______.
The amount of goods and services you can buy with a dollar in the global market increases with a rising dollar value.
What occurs when the Fed raises the money supply?When an economy's money supply expands more quickly than its capacity to generate goods and services, inflation results. A rise in the money supply has two effects: it lowers interest rates, which encourage investment, and it puts more money in the hands of consumers, which makes them feel wealthier and encourages consumption.
Inflation is a possibility when the Federal Reserve expands the money supply. Prices will almost always go up, the cost of commodities will fluctuate, and inflation is almost certain. Short-term interest rates are lowered by an increase in the money supply. This reduced cost of borrowing money encourages investment spending and moves the AD curve to the right.
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Answer:
increasing with a rising doller value
Explanation:
a private sector not-for-profit hospital billed patients $2,000,000 in january. contractual adjustments with insurance providers total $500,000. of the remaining amount, the hospital expects implicit price concessions to total $300,000. how should these be reported
The correct answer is: Net patient service revenue is 1,200,000 and Bad debt expense is 0.
Both contractual adjustments and implicit price concessions are treated as reductions in revenue, not bad expenses.
What is a bad debt expense?
When a receivable is no longer recoverable as a result of a customer's inability to pay an outstanding debt owing to bankruptcy or other financial issues, a bad debt expense is recorded. Companies that offer credit to their clients record bad debts as an allowance for doubtful accounts, sometimes referred to as a provision for credit losses, on their balance sheet.
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A sudden storm threatens the property of Marina Bay LLC. Ngoc, Marina Bay’s sales agent, is on site, but lacks the express or implied authority to bind the firm to the cost of appropriate protective measures. Unable to communicate with Marina Bay, Ngoc a. has emergency powers to deal with the situation. b. must await the principal’s express ratification to act. c. can imply a power of attorney to assume the needed authority.
A sudden storm threatens the property of Marina Bay LLC. Ngoc, Marina Bay’s sales agent, is on site, but lacks the express or implied authority to bind the firm to the cost of appropriate protective measures. has emergency powers to deal with the situation.
Brothers Peter and William O'Connell led the improvement effort to begin Marina Bay inside the early 1980s. After driving out difficult monetary times inside the early Nineteen Nineties such as a financial ruin, they maintain to own an awful lot of the vicinity.
An incorporated motel notable for transforming Singapore's metropolis skyline, it contains 3 fifty five-storey towers of extravagant lodge rooms and luxury suites with private butler offerings. further, its architecture is made complete with the Sands SkyPark® which crowns the 3 towers.
Marina Bay is a bay placed within the imperative region of Singapore, surrounded via the fringe of 4 other planning areas, the Downtown center, Marina East, Marina South and Straits View. The vicinity surrounding the bay itself, also referred to as Marina Bay, is a 360 hectare extension to the adjacent significant business District.
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if you perceive that your boss is bored at a business lunch, you are most likely observing which type of nonverbal communication?
Answer: Facial Expressions
Explanation:: Using artifacts is an example of nonverbal communication, but it is not indicative of boredom.
Touch behaviors are an example of nonverbal communication, but they are not indicative of boredom.
Facial Expressions of nonverbal communication
What is the Communication?
Giving, receiving, and exchanging information are all parts of communication, which might take the form of talking, writing, listening, or reading. Listen intently, talk or write properly, and appreciate many points of view when communicating
In daily life, communication enables us to connect with people, share our experiences and needs, and strengthen our bonds. It gives us the chance to communicate our views, share information, and express our emotions. We must all communicate.
Nonverbal communication is the exchange of messages or signals through nonverbal cues including body language, gestures, and nonverbal cues like eye contact and facial expressions. It makes use of kinesics, distance, physical environments/appearance, voice, and touch in addition to social cues.
Therefore, Expressions of nonverbal communication
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34) the amount that individuals would have been willing to: group of answer choices a) pay minus the amount that they actually paid, is called consumer surplus b) pay plus the amount that they actually paid, is called consumer surplus c) pay minus the amount that they actually paid, is called deadweight loss d) b and c
People might have been prepared to pay in terms of: group of possible responses. Pay less what they really paid, which is referred to as consumer surplus.
What is the formula for consumer surplus?The following is the simplest technique for figuring out the consumer surplus: Maximum Price - Market Price equals Consumer Surplus. The enlarged version of the equation is as follows from there: Quantity at Equilibrium = (1/2) Consumer Excess (max - equilibrium)
What is an excess of consumers versus producers?The difference between the amount a consumer is prepared to pay and what they actually spent for a product is referred to as the consumer surplus. The difference between both the market rate and the best cost a manufacturer will accept to create a good is known as the producer surplus.
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Because cash transactions occur more frequently than other transactions, there is more chance for making recording errors affecting cash.
a. True
b. False
Cash transactions are more likely to be recorded incorrectly than other types of transactions since they happen more frequently.
What do you name a transaction?A transaction is what? An executed contract between such a seller and a buyer to trade goods, services, or capital instruments in exchange for money is known as a transaction. The phrase is also frequently used in business accounting. In corporate bookkeeping, this easy notion could be difficult to apply.
Do you mean by transaction "payment"?A transaction is the outcome of a contract between such a seller and a buyer. In a trade, the seller exchanges cash for the provision of goods, services, or other financial assets. A company's lifeblood is its financial activities, which enable them to produce a consistent revenue stream and manage cash flow.
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how did changes in navigation and multiple-masted cargo ships impact trade? a. merchants gave up using overland trade routes such as the silk road. b. political authorities did not profit as much from maritime trade as they had from caravan trade. c. inland oases remained vital as transshipment points for goods to the coasts. d. most shipping firms were government owned.
Political authorities did not profit as much from maritime trade as they had from the caravan trade. did changes in navigation and multiple-masted cargo ships impact trade.
What is trade?The act of exchanging goods or services between people, companies, or countries is referred to as a trade. In every aspect of foreign trade, the negotiations for a new trade agreement fell squarely under the purview of the ministry.
Due to the lower cost of shipping big volumes via sea routes, as well as the fact that they may cover greater distances than land routes, sea routes are preferred by traders overland routes for trade.
The coastal traders organized caravans to travel to the interior in search of products and return to the coast with those things. 10. Bartering, or the exchange of goods for goods, served as the method of transaction in this trade.
Therefore, Thus option (B) is correct.
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what is the short-run effect on output and the price level of the fed pursuing expansionary monetary policy?
In the near term, an increase in the interest rate is caused by a drop inside the money supply while a fall in the money supply was caused by an increase.
The preferred countercyclical strategy is frequently monetary policy. Such a countercyclical strategy might result in the intended expansion of such output (and employment), but would also raise prices since it would expand the money supply.
Lower interest rates make borrowing money more affordable, which encourages people to spend more on products and services as well as businesses to purchase new machinery.
The confluence of the aggregate supply as well as demand curves in the near term yields the maximum price level as well as the equilibrium amount of total production. The production in the near term may be under and above potential.
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