Question & Answer

Under what circumstances would a rightward shift in the DAD curve lead to a permanent increase in real national income?

Define yield strength of a material.

Define specific heat as a material property

Would the world benefit from the general imposition of controls on the movement of international finance?

What is a cermet?

What is the minimum amount by which the pay-off of £500 would have to increase in order for you personally to agree to wait for another 24 hours before receiving it?

Explain the nature of cryptocurrencies and their applications. (LO3)

Bowling Green Savings & Loan uses shortterm deposits to fund fixed-rate mortgages. Explain how Bowling Green can use interest rate swaps to hedge its interest rate risk. (LO1)

What is net interest? Identify the elements of net interest and explain how they are computed.

Bob’s Lottery, Inc. has decided to offer winners a choice of $100,000 in 10 years or some amount currently. Assume that Bob’s Lottery Inc. earns a 10 percent after-tax rate of return. What amount should Bob’s offer lottery winners currently to be indifferent between the two choices?

Explain the transaction approach to measuring income. Why is the transaction approach to income measurement preferable to other ways of measuring income?

How does a partner determine their basis in distributed assets when the partnership distributes other property in addition to money and hot assets?

Suppose it is desired to produce a memory device that will be contained in a dual-in-line package with 32 I/O leads. How many memory cells can be contained in the device, as estimated by (a) Rent's rule with C = 6.0 and m = 0.12?

1.      : Launch a full-scale investigation of employee complaints about Pate and make Pate aware that his documented history over the past ten years has put him on thin ice.

Where can authoritative IFRS related to the statement of cash flows be found?

It is desired to estimate the cutting temperature for a certain alloy steel whose hardness = 240 Brinell. Use the appropriate value of specific energy from Table 21.2 and compute the cutting temperature by means of the Cook equation for a turning operation in which the cutting speed is 500 ft/min, feed is 0.005 in/rev, and depth of cut is 0.070 in. The work material has a volumetric specific heat of 210 in lb/in3 -F and a thermal diffusivity of 0.16 in2 /sec. Assume ambient temperature = 88°F.

An orthogonal cutting operation is performed using a rake angle of 15°, chip thickness before the cut = 0.012 in and width of cut = 0.100 in. The chip thickness ratio is measured after the cut to be 0.55. Determine (a) the chip thickness after the cut, (b) shear angle, (c) friction angle, (d) coefficient of friction, and (e) shear strain.

Of what value is a common set of standards in financialaccounting and reporting?

What dangers are there in maturity transformation for (a) financial institutions; (b) society generally?

Penn Company was formed on July 1, 2012. It was authorized to issue 300,000 shares of $10 par value common stock and 100,000 shares of 8% $25 par value, cumulative and nonparticipating preferred stock. Penn Company has a July 1–June 30 fiscal year. The following information relates to the stockholders’ equity accounts of Penn Company. Common Stock Prior to the 2014–2015 fiscal year, Penn Company had 110,000 shares of outstanding common stock issued as follows. 1. 85,000 shares were issued for cash on July 1, 2012, at $31 per share. 2. On July 24, 2012, 5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2006 and had an estimated fair value of $220,000 on July 24, 2012. 3. 20,000 shares were issued on March 1, 2013, for $42 per share. During the 2014–2015 fiscal year, the following transactions regarding common stock took place. November 30, 2014 Penn purchased 2,000 shares of its own stock on the open market at $39 per share. Penn uses the cost method for treasury stock. December 15, 2014 Penn declared a 5% stock dividend for stockholders of record on January 15, 2015, to be issued on January 31, 2015. Penn was having a liquidity problem and could not afford a cash dividend at the time. Penn’s common stock was selling at $52 per share on December 15, 2014. June 20, 2015 Penn sold 500 shares of its own common stock that it had purchased on November 30, 2014, for $21,000. Preferred Stock Penn issued 40,000 shares of preferred stock at $44 per share on July 1, 2013. Cash Dividends Penn has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2015, are shown below. Declaration Common Preferred Date Stock Stock 12/15/13 $0.30 per share $1.00 per share 6/15/14 $0.30 per share $1.00 per share 12/15/14 — $1.00 per share No cash dividends were declared during June 2015 due to the company’s liquidity problems. Retained Earnings As of June 30, 2014, Penn’s retained earnings account had a balance of $690,000. For the fiscal year ending June 30, 2015, Penn reported net income of $40,000. Instructions Prepare the stockholders’ equity section of the balance sheet, including appropriate notes, for Penn Company as of June 30, 2015, as it should appear in its annual report to the shareholders

Explain how the failure of a large commercial bank could cause a worldwide swap credit crisis. (LO1, LO7)

If an industry regulator adopts an RPI – X formula for price regulation, is it desirable that the value of X should be adjusted as soon as cost conditions change?

How might the possibility of labour shirking affect the real wage firms are willing to pay?

Distinguish between the accounting treatment for availablefor- sale equity securities and trading equity securities.

Jim Carrie Company shows a balance of $181,140 in the Accounts Receivable account on December 31, 2013. The balance consists of the following. Installment accounts due in 2014 $23,000 Installment accounts due after 2014 34,000 Overpayments to vendors 2,640 Due from regular customers, of which $40,000 represents accounts pledged as security for a bank loan 79,000 Advances to employees 1,500 Advance to subsidiary company (due in 2015) 81,000 Instructions Illustrate how the information above should be shown on the balance sheet of Jim Carrie Company on December 31, 2013.