Question & Answer

Explain how investors’ preferences for commercial paper change during a recession. How would this reaction affect the difference between commercial paper rates and T-bill rates during recessionary periods? (LO1)

Solve Problem 21.25 except that the feed = 0.0075 in/rev and the work material is stainless steel (Brinell Hardness = 240 HB)

A shaft made of aluminum is 40.0 mm in diameter at room temperature (21°C). Its coefficient of thermal expansion = 24.8 x 10-6 mm/mm per °C. If it must be reduced in size by 0.20 mm in order to be expansion fitted into a hole, determine the temperature to which the shaft must be cooled.

Assuming that Y rises each year as a result of increases in productivity, can money supply rise without causing inflation? Would this destroy the validity of the quantity theory?

Explain how legal business entities differ in terms of the liability protection they provide their owners.

} Assume Ellina earns a 10 percent after-tax rate of return, and that she owes a friend $1,200.  Would she prefer to pay the friend $1,200 today or $1,750 in four years?

Specific identification is sometimes said to be the ideal method of assigning cost to inventory and to cost of goods sold. Briefly indicate the arguments for and against this method of inventory valuation.

A leadscrew coupled directly to a dc servomotor is used to drive one of the table axes of an NC milling machine. The leadscrew has 5 threads/in. The optical encoder attached to the leadscrew emits 100 pulses/rev of the leadscrew. The motor rotates at a maximum speed of 800 rev/min. Determine (a) the control resolution of the system, expressed in linear travel distance of the table axis; (b) the frequency of the pulse train emitted by the optical encoder when the servomotor operates at maximum speed; and (c) the travel speed of the table at the maximum rpm of the motor.

1.      : Are Connie and her staff on the right track to avoid manager mishaps by defining a new set of leader rules and core values and imposing it by fiat, from the top down?

Why is biology so closely associated with nanoscience and nanotechnology?

Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets assuming equal before-tax rates of return?

Compare the relative merits of using GNY statistics with those of various basic needs indicators when assessing both the level and the rate of a country’s economic development.

Under what circumstances would (a) contractionary and (b) expansionary policies cause no conflict between internal and external objectives?

Explain how the Covid-19 pandemic affected the credit risk premium and liquidity in the commercial paper market. (LO1)

This is not tax planning.  Instead, this strategy is tax evasion.  The rewards of tax evasion include stiff monetary penalties and imprisonment.

Mechanical surface treatments are often performed for reasons other than or in addition to cleaning. What are the reasons?

What is a precedence constraint in process planning?

The before-tax income for Lonnie Holdiman Co. for 2014 was $101,000 and $77,400 for 2015. However, the accountant noted that the following errors had been made: 1. Sales for 2014 included amounts of $38,200 which had been received in cash during 2014, but for which the related products were delivered in 2015. Title did not pass to the purchaser until 2015. 2. The inventory on December 31, 2014, was understated by $8,640. 3. The bookkeeper in recording interest expense for both 2014 and 2015 on bonds payable made the following entry on an annual basis. Interest Expense 15,000 Cash 15,000 The bonds have a face value of $250,000 and pay a stated interest rate of 6%. They were issued at a discount of $15,000 on January 1, 2014, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2014 and 2015. Repairs in the amount of $8,500 in 2014 and $9,400 in 2015 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Instructions Prepare a schedule showing the determination of corrected income before taxes for 2014 and 2015.

What does the accumulated adjustments account represent? How is it adjusted year by year? Can it have a negative balance?

Explain why securities firms from the United States have expanded into foreign markets. (LO1)

1.       : Do you agree with the idea that people have innate biases and will automatically discriminate if left to their own devices? Discuss.

Use the information for Rode Inc. given in IFRS19-7. Assume that it is probable that the entire net operating loss carryforward will not be realized in future years. Prepare the journal entry(ies) necessary at the end of 2014.

1.    How might a corporate management team go about determining whether the company should diversify? What factors should team members consider? What kinds of information should they collect?

How do parents determine who claims the child as a dependent if the child is a qualifying child of both parents when the parents are divorced or file separate tax returns?

The two-bin approach is used to control inventory for a particular low-cost component. Each bin holds 1200 units. The annual usage of the component is 45,000 units. Cost to order the component is around $70. (a) What is the imputed holding cost per unit for this data? (b) If the actual annual holding cost per unit is only 7 cents, what lot size should be ordered? (c) How much more is the current two-bin approach costing the company annually, compared to the economic order quantity?