Question & Answer

What are the benefits of peer-to-peer lending over bank lending, and how does it operate? (LO4)

How are traditional composites distinguished from synthetic composites?

Suppose you asked your favorite AI query tool the following question: “How do the tax laws treat family members for purposes of limiting the number of owners an S corporation may have?”  The AI tool provided the following response:

Describe an active monetary policy. (LO2; LO3)

How can adaptive expectations of inflation result in clockwise Phillips loops? Why would these loops not be completely regular?

1.      : Press the board to devise a more comprehensive set of selection criteria—including test results, but also taking into account supervisory experience, ability to motivate employees, and knowledge of agency procedures—that can be explained and justified to the board and to employees.

Try this simple test of the above argument. Draw a series of W lines of different slopes all crossing the J line at the same point. Now draw a second J line above the first. Mark the original equilibrium and all the new ones corresponding to each of the W lines. It should be quite obvious that the flatter the W line the more will Y have increased.

How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank? (LO2)

What are the criteria to recognize revenue?

Construct a table similar to Table 17.3, only this time assume that the mpcd is ¾. Show that national income will increase by £640 million.

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. Determine Ken’s gross income and complete page 1 of Form 1040 (through line 9) and Schedule 1 for Ken.

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for inventories.

How does the amount of liability allocated to a partner affect the amount of gain a partner recognizes when contributing property secured by a liability?

Draw a diagram like that in Figure 6.21. Now illustrate the effect of a rise in demand for the product. Mark the new profit-maximising price and output. Will the profit-maximising output, price, average cost and profit necessarily be higher than before?

Describe highly leveraged transactions (HLTs) and explain why regulators closely monitor a bank’s exposure to HLTs. (LO2)

What requirements do an abandoned spouse and qualifying widow or widower have in common?

How does a boring operation differ from a turning operation?

Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 50 units that cost $34 each. During June, the company purchased 150 units at $34 each, returned 6 units for credit, and sold 125 units at $50 each. Journalize the June transactions.

The total solidification times of three casting shapes are to be compared: (1) a sphere with diameter = 10 cm, (2) a cylinder with diameter and length both = 10 cm, and (3) a cube with each side = 10 cm. The same casting alloy is used in the three cases. (a) Determine the relative solidification times for each geometry. (b) Based on the results of part (a), which geometric element would make the best riser? (c) If the mold constant = 3.5 min/cm2 in Chvorinov's rule, compute the total solidification time for each casting.

Describe the major uses of funds by finance companies. (LO2)

What is meant by the terms narrow money and broad money? Does broad money fulfil all the functions of money?

During 2014, Simms Company redeemed $2,000,000 of bonds payable for $1,880,000 cash. Indicate how this transaction would be reported on a statement of cash flows, if at all.

What important alloy is formed from lead and tin?

An adhesive must cure in order to bond. What is meant by the term curing?

Explain how the Fed increases the money supply through the ample reserves framework. (LO2)