ANSWERS TO END-OF-CHAPTER QUESTIONS 14-2 The two principal reasons for holding cash are for transac¬tions and compensating balances. The target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives. 14-4 The four elements in a firm’s credit policy are (1) credit standards, (2) credit period, (3) discount policy, and (4) collection policy. The firm is not required to accept the credit policies employed by its
Chapter 1 1: The chapter entitled “The sound of the shell” because in chapter 1,Ralph and piggy first discovered it and piggy found that it can be used as a trumpet to summon other people in order to gather everyone in the group for any discussions. And whenever a boy holds the shell in his hand he gets to talk where everyone listens. So the shell was a reason for a better communication among them, which was their starting useful discovery in the island. 2: In the beginning Ralph does not want
Chapter 20 “The Minister in a Maze” 1. Where have Hester and Dimmesdale decided to go when they leave Boston ? Why do they choose to go to Europe rather than remain in the New World. He and Hester have decided to go to Europe, since it offers more anonymity and a better environment for Dimmesdale’s fragile health. 2. Why does Dimmesdale consider it fortunate that the ship is not to sail for 4 days? He wants to give his last final and most emotionally powerful sermon on Election Day. 3. Dimmesdale
Please read chapter 10 and answer the following questions: 1. (Varieties of Oligopolies) do the firms in an oligopoly act independently or interdependently? Explain your answer. 2. (Price Leadership) why might a price–leadership model of oligopoly not be an effective means of collusion in an oligopoly? * Price leadership practices violate US anti-trust laws. * The more differentiated the product is, the less effective price leadership is as a means of collusion. * There is no guarantee
ANSWERS TO End-of chapter QUESTIONS AND exercises Answers to Questions for Review 1. (Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not? Amos McCoy is not currently making an economic profit, despite the fact that he is making an accounting profit. This is so, because the accounting
Answers to Questions for Review 1. (Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry Market structure refers to the important features that determine the level of competition in an industry. These factors include (a) the number of buyers and sellers, (b) the products degree of uniformity, (c) the ease with which new firms enter or old firms exit the market, and (d) the ways in which firms in the industry compete
CHAPTER 3 RISK ASSESSMENT AND MATERIALITY Answers to Review Questions 3-1 Audit risk is the risk that the auditor may unknowingly fail to appropriately modify the opinion on a set of financial statements that are materially misstated. Engagement risk is the exposure to loss or injury to professional practice from litigation, adverse publicity, or other events arising in connection with financial statements audited and reported on. In simple terms, audit risk is the risk that an auditor will
turn black into white...’ Squealer sells the ideas and information of the pigs, to the farm animals, through manipulation of the facts, and his persuasive talking. Squealer is also set as having no opinion, and this is revealed within the first few chapters, as he never voices his outlook on the farm should be managed after the rebellion has taken place. His loyalties always
Chapter One: Cherries- First Impressions 1. What is the purpose of the title? What connotations does this title hold? What do you expect to find in the letters that will follow? The purpose of the title is to give the audience the impression that the following stories are not only the first impressions of the soldiers but the expectations they hold of the Vietnam War and the new experiences they are enduring as “Cherries” to the war. The meaning behind this title is that the soldiers are virgins
CHAPTER 8 Cost-Volume-Profit Analysis ANSWERS TO REVIEW QUESTIONS 8-1 a. In the contribution-margin approach, the break-even point in units is calculated using the following formula: Break-even point = fixed expenses unit contribution margin b. In the equation approach, the following profit equation is used: sales volume ⎞ ⎛ unit variable sales volume ⎞ ⎛ unit fixed ⎜ ⎟ −⎜ ⎟ − ⎜ sales price × ⎟ ⎜ expense × ⎟ expenses = 0 in units ⎠ ⎝ in units ⎠ ⎝ This equation is solved for the sales volume in