Question & Answer

Define federal funds, the federal funds market, and the federal funds rate. Who sets the target federal funds rate? (LO2)

What is accuracy in measurement?

With regard to the profit motive, how are credit unions different from other financial institutions? (LO3)

Using the same facts from the previous problem, how would your answer change if Randy estimates that there is only a 20 percent chance that the position will be sustained upon audit or judicial proceeding?

In what way will the nature of aggregate supply influence the effect of a change in aggregate demand on prices and real national income?

Identify some reasons why people resist change and the implementation tactics that managers can use to overcome resistance.

What Motivates You?

Using one or more diagrams like Figures 19.2, 19.7, 19.8, 19.9 and 19.10, illustrate the following: (a)  The effect of a contraction in the money supply on national income. Refer to both the interest-rate and the exchange-rate transmission mechanisms and show how the shapes of the curves affect the outcome. (b)  The effect of a fall in investment on national income. Again show how the shapes of the curves affect the outcome. Specify your assumptions about the effects on the supply of money.

One writer recently noted that 99.4 percent of all companiesprepare statements that are in accordance with GAAP. Why then is there such concern about fraudulentfinancial reporting?

Give two examples of price discrimination. What category of price discrimination are they? In what ways do the consumers gain or lose? What information would you need to be certain in your answer?

Veldre Company provides the following information about its defined benefit pension plan for the year 2014. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 64,000 Benefi ts paid 40,000 Plan assets at January 1, 2014 640,000 Projected benefi t obligation at January 1, 2014 700,000 Accumulated OCI (PSC) at January 1, 2014 150,000 Interest/discount (settlement) rate 10% Instructions Compute the pension expense for the year 2014.

1.      : Donate the $1,000 to Northeast High, and consider the $10,000 bonus a good return on your investment. There is nothing illegal or immoral about making the donation.

Data for Krauss Company are presented in E23-5. Instructions Prepare the operating activities section of the statement of cash flows using the indirect method.

Compare and contrast the method of allocating income or loss to owners for partnerships and for S corporations.

To produce a 10 megabit memory chip, how many I/O pins are predicted by Rent's rule (C = 6.0 and m = 0.12)?

What are the two most common alloying metals used in solders?

Describe profile milling.

The strength coefficient and strain-hardening exponent of a certain test metal are 40,000 lb/in2 and 0.19, respectively. A cylindrical specimen of the metal with starting diameter = 2.5 in and length = 3.0 in is compressed to a length of 1.5 in. Determine the flow stress at this compressed length and the average flow stress that the metal has experienced during deformation

Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows?

Briefly describe the two fundamental qualities of useful accounting information

Name some of the FMS software and control functions

provides products and services to oil and natural gas exploration, production, transmission, and processing companies. The following is taken from a recent income statement. (Dollaramounts are in millions.) Sales revenue $2,697.0 Service revenue 1,933.9 Share of earnings of unconsolidated affi liates 92.4 Total revenues 4,723.3 Cost of sales 1,722.7 Cost of services 1,799.9 Total costs of sales and services 3,522.6 Gross earnings $1,200.7 Selling, engineering, administrative and general expenses (919.8) Special charges (70.0) Other income (deductions) Interest expense (47.4) Interest earned 19.1 Other, net 4.8 Earnings before income taxes and other items below 187.4 Income taxes (79.4) Noncontrolling interest (10.3) Earnings from continuing operations 97.7 Discontinued operations (35.3) Earnings before extraordinary items 62.4 Extraordinary items (6.3) Net earnings $ 56.1 Instructions Assume that 177,636,000 shares of stock were issued and outstanding. Prepare the per share portion of the income statement. Remember to begin with “Earnings from continuing operations.”

Olga is married and files a joint tax return with her husband.  What amount of AMT exemption may she deduct under each of the following alternative circumstances?  a.  Her AMTI is $390,000.

Assume that (1) investors and borrowers expect that the economy will weaken and that inflation will decline, (2) investors require a small liquidity premium, and (3) markets are partially segmented and the Treasury currently has a preference for borrowing in shortterm markets. Explain how each of these forces would affect the term structure, holding other factors constant. Then explain the effect on the term structure overall. (LO3)

How does aggregate planning differ from the master production scheduling?