Challenge Problems 7-49 I. Given a) Honda Insight Original Price $17,995.00 b) Honda Insight Dealer Price $16,495.00 c) Terms: 1/15 n/30 II. Unknown a. How much is the rebate? b. What percent is the rebate? c. What is the amount of the discount if the dealer pays within 15 days? d. What is the dealer’s final price? e. What is the dealer’s total savings? III. Equation a. Rebate = Original Price – Dealer Price b. % Rebate = (Rebate / Original Price) x 100% IV. Solving and Solution
Multiple Choice Questions 1. The United States has many successful trade relationships. Four of these relationships account for a tremendous volume of trade. All of the following countries are among the top four producers of trade for the U.S. EXCEPT: A) Canada B) Mexico C) Japan D) France E) China 2. For every dollar the United States invested in the economic development and rebuilding of other countries after World War
Opportunity cost at which goods are produced domestically. B) Balance-of-trade ratio of one country to another. C) Price of one country's currency expressed in terms of another country's currency. D) Amount of currency that can be purchased with 1 ounce of gold. Answer: C Type: Complex Understanding Page: 437 2. An exchange rate is: A) Always fixed. C) The price of one currency in terms of another. B) Tied to the price of gold. D) All of the above. Answer: C Type: Basic Understanding
purchases when a company uses a. first-in, first-out b. last-in, first-out c. average cost d. retail method 11. The inventory method that assigns the most recent costs to cost of goods sold is a. FIFO b. LIFO c. Average d. specific identification 12. Inventory costing methods place primary emphasis on assumptions about a. flow of goods b. flow of costs c. flow of goods or flow of costs depending on the method d. neither flow or goods or flow of costs 13. The inventory costing method that reports
reporting that is understood by both the preparers and the users of financial statements d. Eliminate the need for professional judgment in preparing financial statements 2. The accounting principle of matching is best demonstrated by a. not recognizing any expense unless some revenue is realized. b. associating effort (expense) with accomplishment (revenue). c. recognizing prepaid rent received as revenue. d. establishing an Appropriation for
1. Executive Summary Blackmores Ltd is one of the leading contenders in the Health Care sector. The company specialises in a range of products including herbal and vitamin supplements. The company has a major share in the Australian and New Zeeland’s market generating almost 85% of the revenue from this region. Blackmore’s capital structure has been analysed as requested by the Board of directors to assist them in optimizing the company’s current capital structure. Firstly, the report analyses and
assortment of products D. focuses on satisfying customers' needs 2.A company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products. What type of statement is this? A. Qualifying B. Positioning C. Determining D. Clustering 3. The sales
the USA did not conduct normal trading relations with Vietnam. In 2001 a trade agreement was signed between the two countries which reduced tariffs, encouraged foreign direct investment and opened up export markets. a. How does the theory of comparative advantage explain why a developed country such as the USA might wish to trade with a developing country such as Vietnam?  b. Discuss what effect such a trade agreement might have on the economies of the participating countries.