Q&A Hero

Q: On a hot summer day, a construction worker enters a McDonaldʹs fast -food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: ʺNo thanks.ʺ For the construction worker described above, we can say thatA) diminishing marginal utility set in only after he had consumed the second Big Mac.B) diminishing marginal utility began as soon as he had eaten the first Big Mac. C) diminishing marginal utility did not occur, he simply wanted to quit eating. D) the law of diminishing marginal utility only applies to durable goods.

Q: Sponsors of unit investment trusts earn a profit by ___________________. A. deducting management fees from fund assets B. deducting a percentage of any gains in asset value C. selling shares in the trust at a premium to the cost of acquiring the underlying assets D. charging portfolio turnover fees

Q: With respect to exchange rates, which of the following statements is true? A) An official exchange rate is the "market" rate resulting from the supply and demand for a currency. B) A floating exchange rate is the "market" rate resulting from the supply and demand for a currency. C) A government cannot set an exchange rate for their currency that is higher (weakens their currency) than the quoted interbank market rate. D) A government cannot set an exchange rate for their currency that is lower (strengthens their currency) than the quoted interbank market rate.

Q: PxQxPyQyPzQz$10100$2050$25200109018602522510701590252751250151002529015251512025320Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?A) -1.7273 B) -1.1176 C) -0.8947 D) +1.7273

Q: The greatest percentage of mutual fund assets are invested in ________. A. bond funds B. equity funds C. hybrid funds D. money market funds

Q: The exchange rates between the Australian dollar and the U.S. dollar were as follows: Jun 1 1$AUS = $.8328US Jul 1 1$AUS = $.8356US Aug 1 1$AUS = $.9111US This chart shows a A) strengthening Australian Dollar which makes it less expensive for Americans to buy Australian goods. B) weakening Australian dollar which makes it less expensive for Americans to buy Australian goods. C) strengthening Australian dollar which makes it more expensive for Americans to buy Australian goods. D) weakening Australian dollar which makes it more expensive for Americans to buy Australian goods.

Q: The actual value of price elasticity of demandA) measures the relative change in quantity demanded when there is a change in price. B) will change when the units good is measured in changes.C) varies with changes in supply. D) is always negative.

Q: A fund that invests in securities worldwide, including the United States, is called ______. A. an international fund B. an emerging market fund C. a global fund D. a regional fund

Q: Cass Corporation's balance sheet at December 31, 2011 included a $48,480 account receivable from Redmun Corporation of Mexico. The account receivable was denominated as 600,000 Mexican pesos. What entry did Cass make on January 16, 2012 when the account receivable was collected and the exchange rate for the peso was $.09? A) Cash 54,000 Accounts Receivable 54,000 B) Cash 54,000 Exchange Gain 5,520 Accounts Receivable 48,480 C) Cash 48,480 Accounts Receivable 48,480 D) Cash 48,480 Exchange Loss 5,520 Accounts Receivable 54,000

Q: ʺThe optimal level of pollution is zero.ʺ Do you agree or disagree? Why?

Q: Which of the following funds invest specifically in stocks of fast-growing companies? A. balanced funds B. growth equity funds C. REITs D. equity income funds

Q: On May 1, 2011, Deerfield Corporation purchased merchandise from a German firm for 78,000 euros when the spot rate for the euro was 1.48 euro per dollar. The account payable was denominated in the euro. Deerfield settled the account on August 1 when the spot rate for the euro was 1.39 euro per dollar. How much cash will Deerfield have to disburse to settle the account? A) $ 52,702.72 B) $ 56,115.11 C) $108,420.00 D) $115,440.00

Q: Which of the following is not a type of managed investment company? A. unit investment trusts B. closed-end funds C. open-end funds D. hedge funds

Q: Describe four of the five major income maintenance programs in the United States that were discussed in the text.

Q: Meric Corporation (a U.S. company) began operations on January 1, 2011, when the owner borrowed $150,000 to start the company. In the first month of operations, Meric had the following transactions: January 3, 2011 Bought inventory for 100,000 Brazilian real on account. Must be paid with Brazilian real. January 8, 2011 Sold 60% of inventory acquired on 1/3/11 for 32,000 British pounds on account. Invoice denominated in British pounds. January 10, 2011 Paid $3,000 in other operating expenses January 23, 2011 Acquired and paid half of the Brazilian real owed to the Brazilian supplier January 28, 2011 Collected half of the 32,000 pounds from the customer in Great Britain and immediately converted them into U.S. dollars The following exchange rates apply: Date Rate Rate January 3 $.6260 = 1 real $1.5950 = 1 pound January 8 $.6230 = 1 real $1.5760 = 1 pound January 10 $.6210 = 1 real $1.5880 = 1 pound January 23 $.6250 = 1 real $1.5610 = 1 pound January 28 $.6330 = 1 real $1.5570 = 1 pound January 31 $.6180 = 1 real $1.5720 = 1 pound Required: Complete the summary income statement and balance sheet for the month ended January 31, 2011 assuming there were no other transactions. January 31 INCOME STATEMENT Sales COGS Gross Margin Other Operating Expenses Exchange Gain / (Loss) Net Income BALANCE SHEET Cash Accounts Receivable Inventory Total Assets Accounts Payable Debt Retained Earnings Total Liab and Equity

Q: Which of the following is the BEST example of a monopsonist?A) a household hiring a gardenerB) a turnip farmer hiring seasonal helpC) Hersheyʹs Chocolate Factory in Hershey, PA D) Vinaka Coffee Shop in Carlsbad, CA

Q: The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so, the fund buys shares in each S&P 500 company __________. A. in proportion to the market value weight of the firm's equity in the S&P 500 B. in proportion to the price weight of the stock in the S&P 500 C. by purchasing an equal number of shares of each stock in the S&P 500 D. by purchasing an equal dollar amount of shares of each stock in the S&P 500

Q: Charin Corporation, a U.S. corporation, imports and exports small electronics. On December 1, 2011, Charin purchased components from an Egyptian manufacturer amounting to 500,000 Egyptian pounds. The purchase is payable in Egyptian pounds. At December 30, Charin wanted to take advantage of favorable exchange rates, but did not have the full amount required to pay off the entire amount. Charin wired the funds to pay off half of the balance owed, and expected to pay the remaining balance on January 3, 2012. Charin paid the remaining balance on January 3, 2012. The respective exchange rates were as follows: December 1, 2011 1 pound = $.170 December 30, 2011 1 pound = $.165 December 31, 2011 1 pound = $.175 January 3, 2012 1 pound = $.180 Required: Document the journal entries related to these transactions for the four dates shown. If no entry is required, record "no entry."

Q: Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note that the firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding. What is the net asset value (NAV) of these shares? A. $25.50 B. $22.50 C. $19.50 D. $1.95

Q: The United Steelworkers is an example of a(n)A) craft union. B) industrial union.C) public-sector union. D) guild.

Q: Plymouth Corporation (a U.S. company) began operations on September 1, 2011, when the owner borrowed $250,000 to establish the business. Plymouth then had the following import and export transactions with unaffiliated Chinese companies: September 6, 2011 Bought material inventory for 100,000 yuan on account. Invoice denominated in yuan. September 18, 2011 Sold 80% of inventory acquired on 9/6/11 for 110,000 yuan on account. Invoice denominated in yuan. October 5, 2011 Acquired and paid the 100,000 yuan owed to the Chinese supplier October 18, 2011 Collected the 110,000 yuan from the Chinese customer and immediately converted them into U.S. dollars The following exchange rates apply: Date Rate September 6 $0.1544 = 1 yuan September 18 $0.1607 = 1 yuan September 30 $0.1591 = 1 yuan October 5 $0.1578 = 1 yuan October 18 $0.1593 = 1 yuan Required: 1. What were Sales in the September month-end income statement? 2. What was the COGS associated with these sales? 3. What is the Accounts Receivable balance in the balance sheet at September 30, 2011? 4. What is the Inventory balance in the balance sheet at September 30, 2011? 5. What is the Exchange gain or loss that will be reported for the month of September?

Q: Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the net asset value (NAV) of these shares? A. $12 B. $9 C. $10 D. $1

Q: The more inelastic the consumer demand for the final product, theA) greater will be the economic profit in a competitive market.B) greater the impact on employment from a change in the wage rate. C) more inelastic the demand for labor producing the product.D) more responsive the output demand to a change in the price of labor.

Q: Blue Corporation, a U.S. manufacturer, sold goods to their customer in Hungary on December 12, 2011 for 6,000,000 Hungarian forints. The customer agreed to pay in Hungarian forints in 30 days. When the customer wired the foreign currency to Blue on January 11, 2012, Blue held them in their bank account until January 15 before selling them and converting them to U.S. dollars. The following exchange rates apply: Dec 12, 2011 $0.0055 Dec 31, 2011 $0.0049 Jan 11, 2012 $0.0063 Jan 15, 2012 $0.0059 Required: Record the journal entries that Blue would need related to the dates listed above. If no entry is required, state "no entry."

Q: The Federal Trade Commission Act was designed to A) prohibit bundling. B) increase foreign trade. C) prohibit cutthroat pricing. D) limit company profits from foreign sales.

Q: Net asset value is defined as ________________________. A. book value of assets divided by shares outstanding B. book value of assets minus liabilities divided by shares outstanding C. market value of assets divided by shares outstanding D. market value of assets minus liabilities divided by shares outstanding

Q: On November 4, 2011, the Oak Corporation, a U.S. corporation, purchased components for an assembly machine from Maple Industries, a Canadian Company, which were put into Parts Inventory. The purchase price was 80,000 Canadian dollars and Oak agreed to pay in Canadian dollars in 90 days. Both corporations are on a calendar year accounting period. Assume that the spot rates for the Canadian dollar on November 4, 2011, December 31, 2011, and February 2, 2012, are $0.9985, $1.0191, and $1.0064, respectively. Required: Record the November 4, December 31, and February 2 transactions in the General Journals of Oak Corporation and Maple Industries. If no entry is required on a particular date, indicate "No entry" in the General Journal.

Q: The primary measurement unit used for assessing the value of one's stake in an investment company is ___________________. A. net asset value B. average asset value C. gross asset value D. total asset value

Q: A market situation in which there are very few sellers isA) oligopoly. B) perfect competition.C) monopoly.D) monopolistic competition.

Q: In September of 2011, Gunny Corporation anticipates that the price of heating oil will increase soon, and wishes to lock in a firm price for the winter months. They enter into a forward contract with Selton Industries to buy 100,000 barrels of oil at $160 per barrel in December 2011. Selton's cost of production of the heating oil is $120 per barrel. Required: Determine the economic impact of the transaction to Selton (the seller of the heating oil) at the market price levels indicated in the table below, with and without the hedge. Market Price per Barrel Forward Price per Bushel Unhedged Market Gain / (Loss) Economic Gain / (Loss) on Forward Economic Income with Hedge $180 170 160 150 140

Q: Management fees for open-end and closed-end funds typically range between _____ and _____.A. .2%; 1.5%B. .5%; 5%C. 2%; 5%D. 3%; 8%

Q: Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third largest firm has sales of $2 million, and the fourth largest firm has sales of $1 million. The four-firm concentration ratio for this industry isA) 36 percent. B) 60 percent. C) 50 percent. D) 25 percent.

Q: The table below provides either a direct or indirect quote for a given foreign currency unit, and the related units of that foreign currency. Quote Foreign Currency Units U.S. Dollars 1 fcu : $0.0065 40,000 fcu $1 : .0098 fcu 980 fcu 1 fcu : $0.0796 80,000 fcu $1 : .0688 fcu 55,040 fcu 1 fcu : $0.3597 110,000 fcu $1 : .8443 fcu 25,329 fcu 1 fcu : $1.68 50,000 fcu $1 : 1.64 fcu 29,520 fcu 1 fcu : $12.67 5,000 fcu $1 : 184.66 fcu 738,640 fcu 1 fcu : $166.79 700 fcu Required: Complete the table, indicating the amount of U.S. Dollars that is the equivalent of the foreign currency shown, based on the direct or indirect quote provided.

Q: As of 2014, approximately _____ of mutual fund assets were invested in money market funds. A. 5% B. 18% C. 44% D. 66%

Q: The demand curve faced by a monopolistically competitive firm isA) horizontal. B) vertical.C) downward sloping. D) upward sloping.

Q: Slade Corporation, a U.S. company, purchased materials on account from a manufacturer in Mexico on June 15. The invoice was denominated in the shipper's currency for 480,000 pesos. The goods were paid for on July 18. Slade closes their fiscal year on June 30, and used the following indirect quotes to measure the amounts related to the transactions. June 15 $1.00 = 12.50 pesos June 30 $1.00 = 12.80 pesos July 18 $1.00 = 12.00 pesos Required: Show all related journal entries for Slade Company.

Q: Refer to the above figure. Profits for this firm areA) zero.B) negative. C) positive.D) undetermined without more information.

Q: Lincoln Corporation, a U.S. manufacturer, both imports needed materials and exports finished products. Their receivables and payables are listed below, prior to year-end adjustments or preparation of the closing entries. Foreign Currency Units Rate at Date of Transaction Per Books in U.S. Dollars Current Rate at 12/31/11 ACCOUNTS RECEIVABLE Japanese yen 14,678,000 $0.0109007 160,000 $0.0120 Euros 50,000 1.2372 61,860 1.4235 Hungarian forint 50,000,000 0.0044 220,000 0.0053 TOTAL 441,860 ACCOUNTS PAYABLE Euros 50,000 1.2378 61,890 $1.4235 Mexican pesos 1,250,000 0.0799 99,875 0.0845 Indian rupee 4,000,000 0.0216 86,400 0.0223 TOTAL 248,165 Required: Determine the amount at which receivables and payables should be reported on December 31, 2011, and the net exchange gain or loss that would be reported as a result of year-end adjustments.

Q: Which of the following is NOT true for a perfectly competitive firm in the long run?A) MR = MC B) MC > LAC C) Price = MC D) SAC = LAC

Q: Piel Corporation (a U.S. company) began operations on January 1, 2011, when common stock was issued for $250,000. In the first two months of operations, Piel had the following transactions: January 15, 2011 Bought inventory for 100,000 Mexican pesos on account January 26, 2011 Sold 70% of inventory acquired on 1/15/11 for 44,000 Saudi riyals on account January 27, 2011 Paid $1,000 in other operating expenses February 2, 2011 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S. company. February 15, 2011 Acquired and paid the 100,000 pesos owed to the Mexican supplier February 21, 2011 Paid $1,500 in other operating expenses February 28, 2011 Collected the 44,000 riyals from the Saudi customer and immediately converted them into U.S. dollars The following exchange rates apply: Date Rate Rate January 15 $.11 = 1 peso $.23 = 1 riyal January 26 $.12 = 1 peso $.24 = 1 riyal January 31 $.13 = 1 peso $.25 = 1 riyal February 15 $.14 = 1 peso $.26 = 1 riyal February 28 $.15 = 1 peso $.27 = 1 riyal Required: Complete the summary income statement and balance sheet for the month ended January 31, 2011 and February 28, 2011, assuming there were no other transactions. January 31 February 28 INCOME STATEMENT Sales COGS Gross Margin Other Operating Expenses Exchange Gain / (Loss) Net Income BALANCE SHEET Cash Accounts Receivable Inventory Total Assets Accounts Payable Common Stock Retained Earnings Total Liab and Equity

Q: The type of mutual fund that primarily engages in market timing is called _______. A. a sector fund B. an index fund C. an ETF D. an asset allocation fund

Q: For a firm in a perfectly competitive industryA) the demand curve is unitary elastic throughout.B) marginal revenue and product price are equal at every level of output. C) the price elasticity of demand is zero.D) more output can be sold only if the firm unilaterally lowers its product price.

Q: Johnson Corporation (a U.S. company) began operations on December 1, 2010, when the owner contributed $100,000 of his own money to establish the business. Johnson then had the following import and export transactions with unaffiliated Mexican companies: December 12, 2011 Bought inventory for 150,000 pesos on account. Invoice denominated in pesos. December 15, 2011 Sold 60% of inventory acquired on 12/12/11 for 120,000 pesos on account. Invoice denominated in pesos. January 1, 2012 Acquired and paid the 150,000 pesos owed to the Mexican supplier January 15, 2012 Collected the 120,000 pesos from the Mexican customer and immediately converted them into U.S. dollars The following exchange rates apply: Date Rate December 12 $.11 = 1 peso December 15 $.12 = 1 peso December 31 $.13 = 1 peso January 1 $.14 = 1 peso January 15 $.15 = 1 peso Required: 1. What were Sales in the income statement for the year ended December 31, 2011? 2. What was the COGS associated with these sales? 3. What is the Accounts Payable balance in the balance sheet at December 31, 2011? 4. What is the Inventory balance in the balance sheet at December 31, 2011?

Q: Which of the following result in a taxable event for investors? I. Short-term capital gain distributions from the fund II. Dividend distributions from the fund III. Long-term capital gain distributions from the fund A. I only B. II only C. I and II only D. I, II, and III

Q: OutputFixed CostsVariable CostsTotal CostsAverage Total CostsAverage Marginal Variable Costs Costs0 $0$100 1 30 2 50 3 60 4 120 5 200 In the above table, what are the total fixed costs for an output of 4?A) $0 B) $120 C) $100 D) $220

Q: Rank the following fund categories from most risky to least risky: I. Equity growth fund II. Balanced fund III. Sector fund IV. Money market fund A. IV, I, III, II B. III, II, IV, I C. I, II, III, IV D. III, I, II, IV

Q: For a hotdog vender, the hotdog stand represents hisA) fixed input. B) variable input.C) diseconomies of scale. D) none of the above.

Q: Behd Company, a U.S. firm, sold some of its inventory to Edinburgo Company, a company based in Scotland, on November 27, 2011, when the local currency unit (the pound Sterling, "GBP") was trading at $1.64 : 1 GBP. The sales agreement called for Edinburgo to pay 140,000 GBP on January 26, 2012. Additional exchange rates are shown below: December 31, 2011 $1.7125 January 26, 2012 $1.7220 Required: Show all related journal entries for Behd Company.

Q: The average maturity of fund investments in a money market mutual fund is _______. A. slightly more than 1 month B. slightly more than 1 year C. about 9 months D. between 2 and 3 years

Q: A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and accounts payable detail at September 30, 2011, their fiscal year end. ACCOUNTS RECEIVABLE Receivables denominated in U.S. dollar $426,000 Receivable denominated in 40,000 Australian dollar 43,000 Receivable denominated in 70,000 Canadian dollar 71,750 $ 540,750 ACCOUNTS PAYABLE Payables denominated in U.S. dollar $ 107,000 Payable denominated in 50,000 Canadian dollar 51,250 Payable denominated in 200,000 Hong Kong dollar 26,500 $ 184,750 As Ace prepared to close their books, they noted that the September 30 exchange rates for the Australian dollar, Canadian dollar and Hong Kong dollar were $1.0366, $1.0301 and $0.1284, respectively. Required: Determine the exchange gain or loss to be included in the 2011 financial statements, and the amount of Accounts Receivable and Accounts Payable that will be included on the September 30, 2011 balance sheet.

Q: Which of the following statements about business organizations is TRUE?A) Partnerships are more common than proprietorships and are responsible for a larger percentage of business receipts.B) Proprietorships are more common than either partnerships or corporations but are responsible for the smallest share of total business receipts.C) Corporations are larger in number than either proprietorships or partnerships and also receive a larger percentage of total business receipts.D) Partnerships are larger than both proprietorships and corporations but are less numerous than corporations.

Q: Mutual funds provide the following for their shareholders. A. diversification B. professional management C. record keeping and administration D. all of these options

Q: Tank Corporation, a U.S. manufacturer, has a June 30 fiscal year end. Tank sold goods to their customer in Columbia on May 27, 2011 for 18,000,000 Columbian pesos. The customer agreed to pay pesos in 60 days. When the customer wired the funds to Tank on July 26, Tank held them in their bank account until July 31 before selling them and converting them to U.S. dollars. The following exchange rates apply: May 27 $0.00055 June 30 $0.00052 July 26 $0.00058 July 31 $0.00056 Required: Record the journal entries related to the dates listed above. If no entry is required, state "no entry."

Q: The budget constraint shows thatA) the consumer faces a trade-off in the consumption of goods. B) the consumer can have as many goods as he wants.C) as consumers spend more on one good, they spend more on others.D) total income equals total spending on one good.

Q: Part B of a mutual fund prospectus contains information about: I. Fund holdings by directors and officers II. Front-end and back-end loads III. Securities held by the fund at the end of the fiscal year A. I only B. I and II only C. I and III only D. I, II, and III

Q: Crabby Industries, a U.S. corporation, purchased inventory from a company in Sweden on November 18, 2011 when the Swedish krona was trading at 1 krona = $0.161. The transaction was for 600,000 krona, and was to be paid in krona in 90 days. Crabby closed their books at December 31 for financial reporting purposes when the krona was trading at $0.167. On February 16, 2012, Crabby paid the invoice when the krona was trading at $0.156. Required: Show the journal entries recorded by Crabby on November 18, 2011, December 31, 2011, and February 16, 2012.

Q: On a hot summer day, a construction worker enters a McDonaldʹs fast -food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: ʺNo thanks.ʺ Why?A) For the construction worker, total utility increased at an increasing rate.B) Marginal utility increased at an increasing rate.C) Marginal utility declined as he consumed additional Big Macs.D) The law of diminishing marginal utility does not apply to consumption of Big Macs.

Q: In the United States in 2014, there were approximately _______ mutual funds offered by fewer than _______ fund complexes. A. 12,000; 600 B. 7,000; 100 C. 8,000; 800 D. 9,000; 300

Q: On April 1, 2012, Button Industries enters into an agreement with Bows Incorporated to lock in the price of cotton. Button agrees to purchase (and Bows agrees to sell) 100,000 pounds of cotton at $1.19 per pound, six months from the date of agreement. On October 1, 2012, the price of cotton is $1.17 per pound. The contract allows for net settlement. Required: Determine the net settlement on the forward contract.

Q: PxQxPyQyPzQz$10100$2050$25200109018602522510701590252751250151002529015251512025320Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between X and Y?A) -2 B) -1 C) 0 D) +1

Q: A contingent deferred sales load is commonly called a ____. A. front-end load B. back-end load C. 12b-1 charge D. top-end sales commission

Q: Jefferson Company entered into a forward contract with Washington Company on October 1, 2011, under which Jefferson agreed to buy (and Washington agreed to sell) 10,000 tons of coal at $80.00 per ton in 90 days. On October 1, 2011, the price of coal is $82.00 per ton. On December 29, 2011, the price of coal is $85.00 per ton. The contract allows for net settlement. Required: Determine the net settlement on the forward contract.

Q: Relative percentage changes are used in measuring price elasticity of demand, so thatA) it does not matter whether price increases or decreases when calculating the elasticity. B) it does not matter what units are used to measure prices or quantities.C) we always obtain a positive number.D) larger numbers indicate greater responsiveness.

Q: The two principal types of REITs are equity trusts, which _______________, and mortgage trusts, which _______________. A. invest directly in real estate; invest in mortgage and construction loans B. invest in mortgage and construction loans; invest directly in real estate C. use extensive leverage; distribute less than 95% of income to shareholders D. distribute less than 95% of income to shareholders; use extensive leverage

Q: On November 1, 2010, the Yankee Corporation, a US corporation, purchased and received an extruding machine from Wales Corporation, a UK company. The purchase price was $10,000(U.S. dollars) and Yankee agreed to pay in pounds on February 1, 2011. Both corporations are on a calendar year accounting period. Assume that the spot rates for the British pound on November 1, 2010, December 31, 2010, and February 1, 2011, are $1.60, $1.62, and $1.66, respectively. Required: Record the November 1, December 31, and February 1 transactions in the General Journals of Yankee Corporation and Wales Corporation. If no entry is required on a particular date, indicate "No entry" in the General Journal.

Q: Explain how the optimal quantity of air pollution is determined.

Q: The NAV of which funds is fixed at $1 per share? A. equity funds B. money market funds C. fixed-income funds D. commingled funds

Q: On October 15, 2011, Napole Corporation, a French company, ordered merchandise listed on the internet for 20,000 Euros from Adams Corporation, a U.S. corporation. The euro rate was $1.20 (U.S. dollars) on October 15. On November 15, 2011 Adams shipped the goods and billed Napole the purchase price of 20,000 Euros when the euro rate was $1.30. Napole paid the bill on December 10, 2011, and Adams immediately exchanged the 20,000 Euros for US dollars when the Euro rate was $1.28 on December 10, 2011. Required: Compute the foreign currency gain or loss on the December 31, 2011 financial statements of Adams and show the related journal entries.

Q: How can absolute poverty be eliminated? How can relative poverty be eliminated? Does the elimination of one lead to the elimination of the other? Explain.

Q: Which of the following typically employ significant amounts of leverage? I. Hedge funds II. REITs III. Money market funds IV. Equity mutual funds A. I and II only B. II and III only C. III and IV only D. I, II, and III only

Q: On September 1, 2011, Bylin Company purchased merchandise from Himeji Company of Japan for 20,000,000 yen payable on October 1, 2011. The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October 1. The purchase was paid on October 1, 2011. Required: 1. Did the U.S. dollar strengthen or weaken from September to October and what are the implications for Bylin's business? 2. What journal entry did Bylin record on September 1, 2011? 3. What journal entry did Bylin record on October 1, 2011?

Q: Advantages of investment companies to investors include all but which one of the following? A. record keeping and administration B. low-cost diversification C. professional management D. guaranteed rates of return

Q: In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?A) Q1 B) Q2 C) Q3 D) Q4

Q: On January 1, 2011, Gregory Company acquired a 90% interest in Subway Company for $200,000 cash. On January 1, 2011, Subway Company had the following assets and liabilities: Book Value Fair Value Cash $5,000 $5,000 Accounts Receivable 30,000 35,000 Inventory 40,000 50,000 Other Current Assets 10,000 10,000 Plant Assets 60,000 80,000 Total Assets $145,000 $180,000 Liabilities $25,000 $25,000 Common Stock 100,000 Retained Earnings 20,000 Total Liabilities & Stockholders' Equity $145,000 The plant assets have 20 years of useful life remaining. Straight-line depreciation is used. The excess fair value over book value associated with Accounts Receivable and Inventory is realized in 2011. In 2011, Subway reported net income of $35,000 and declared and paid common dividends of $10,000. Gregory reported Income from Subway in 2011 of $17,100. Required: Assume both companies use the entity theory. Prepare the elimination entry(ies) on consolidating work papers for the year ending December 31, 2011.

Q: A __________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. A. commingled pool B. unit trust C. hedge fund D. money market fund

Q: The CIO was formed as a(n)A) closed shop. B) association of industrial unions.C) union shop. D) bilateral monopoly.

Q: On January 1, 2011, Brody Company acquired an 80% interest in Kristin Company for $240,000 cash. On January 1, 2011, Kristin Company had the following assets and liabilities: Book Value Fair Value Cash $10,000 $10,000 Accounts Receivable 50,000 50,000 Inventory 50,000 70,000 Plant Assets 100,000 100,000 Total Assets $210,000 $230,000 Liabilities $100,000 $120,000 Capital Stock 100,000 Retained Earnings 10,000 Total Liabilities & Stockholders' Equity $210,000 Push-down accounting is used for the acquisition. Both companies use the entity theory. Required: 1. What is the goodwill associated with Kristin Company on January 1, 2011? 2. Prepare the journal entry(ies) on Kristin's books on January 1, 2011. 3. Prepare the journal entry(ies) on Brody's books on January 1, 2011. 4. Prepare the elimination entry(ies) on the consolidating working papers on January 1, 2011.

Q: ______ are partnerships of investors with portfolios that are larger than most individual investors but are still too small to warrant managing on a separate basis. A. Commingled funds B. Closed-end funds C. REITs D. Mutual funds

Q: Suppose a new technology allows firms to substitute mechanical tomato pickers for farm laborers. As a result, the demand curve for farm laborers willA) become less elastic. B) become more elastic. C) shift to the right. D) not be affected.

Q: The Federal Trade Commission regulates which of the following?A) Unfair trade practices by businesses B) Financial marketsC) Trade with third world countries D) The banking industry