Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposit falls over time.b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit.d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.

Answer:

The options which is NOT correct is C.

Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.

Explanation:

Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.

Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.

Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.

Cheers!

Sunland Chemicals Company acquires a delivery truck at a cost of $30,400 on January 1, 2022. The truck is expected to have a salvage value of $3,200 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method.

If a Cournot duopolist announced that it will double its output A. the other firm will double output also. B. the other firm does not view the announcement as credible. C. the other firm will shut down. D. it becomes the leader.

Five consumers have the following marginal utility of apples and pears:
Consumer Marginal Utility of Apples Marginal Utility of Pears
Alex 5 9
Becky 5 10
Clancy 4 8
Eileen 4 10
Hubert 3 4
The price of an apple is $1, and the price of a pear is $2.
Which, if any, of these consumers are optimizing over their choice of fruit?
A) Alex
B) Becky
C) Clancy
D) Eileen
E) Hubert

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you are asked to estimate what would happen to the sales of Ford Mustangs as a result of a change in (i) the price of a Chevrolet Camaro, (ii) the price of gasoline, and (iii) consumer incomes. You are given the following elasticities:________. 1. Price elasticity of demand for Ford Mustangs = -2.5 2. Cross-price elasticity between Ford Mustangs and Camaros = 1.5 3. Cross-price elasticity between Ford Mustangs and gasoline = -0.80 4. Income elasticity of demand for Ford Mustangs = 3.00

A consumer values a house at $525,000 and a producer values the same house at $485,000. If the transaction is completed at $510,000, what amount of tax will result in unconsummated transaction

Lean AccountingCom-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The processconsists of a lean cell for each product. The data that follow concern only the Lion Model lean cell.For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell:Conversion Cost Categories BudgetLabor $166,300 Supplies 63,000 Utilities 22,700 Total $252,000 Com-Tel plans 3,000 hours of production for the Lion Model cell for the year. The materials cost is $71 per unit. Each assembly requires 18 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.The following summary events took place in the Lion Model cell during May:Electronic parts were purchased to produce 10,200 Lion Model assemblies in May.Conversion costs were applied for 9,700 units of production in May.9,510 units were completed and transferred to finished goods in May.9,220 units were shipped to customers at a price of $336 per unit.If required, round your answers to the nearest cent.Required:1. Determine the budgeted cell conversion cost per hour.$ per hour2. Determine the budgeted cell conversion cost per unit.

Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $2,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor cost. The pre-determined overhead rate is 150% of direct labor cost. The total cost that would be recorded on the job cost sheet for job 731 would be:

Rolf Steps is the production manager for a local manufacturing firm. This company produces staplers and other items. The annual demand for a particular stapler is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. The production rate for this product is 80 per day. If Rolf decided to produce 200 units each time he started production of the stapler, what would his maximum inventory level be

A semi-annual coupon bond has a coupon of 6% and its duration is 5.78 years. It trades at a yield of 7%, or a price of $94.54 per $100 face. The comparable Treasury rate is 5%. If the yield curve shifts up across the board by 50 bp and the spread increases to 280 bp, what is the new price of the bond

Place in order the events that occur in the short run when the Federal Reserve enacts expansionary monetary policy.


a. The increased borrowing leads to increased investment and purchasing of goods and services.

b. The aggregate demand curve shifts rightward.

c. Market equilibrium shifts toward more money being lent at a lower interest rate.

d. As the Fed buys bonds, new money enters the loanable funds market.

On July 1, ABC Company borrowed $440,000 cash by signing a 10-year, 10% installment note requiring equal payments each June 30 of $71,608. What is the journal entry to record the first annual payment? Multiple Choice Debit Interest Expense $44,000; credit Cash $44,000. Debit Interest Expense $71,608; credit Cash $71,608. Debit Cash $440,000; debit Interest Expense $71,608; credit Notes Payable $511,608. Debit Interest Expense $44,000; debit Interest Payable $27,608; credit Cash $71,608. Debit Interest Expense $44,000; debit Notes Payable $27,608; credit Cash $71,608.

Crystal Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $80 per unit, of which $54 is product cost and $26 is selling and administrative expenses. In addition, the total cost of $80 is made up of $40 variable cost and $40 fixed cost. The desired profit is $55 per unit. Determine the markup percentage on product cost.

Long-Term Notes Receivable and TVM.  Use the following present value tables to help answer the following questions.   *Do not round any answer until your final answer.  Round your final answer to the nearest whole dollar.  When entering your final answer, do not use commas or $ sign.  (Sorry...Blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation.)
PV of $1
Periods 4% 6% 8% 9%
3 .89 .84 .79 .77
5 .82 .74 .68 .65
9 .70 .59 .50 .46
10   .68   .56   .46   .42
Present Value of an Ordinary Annuity            
Period 4% 6% 8% 9%
3 2.77 2.67 2.57 2.53
5 4.45 4.21 3.99 3.89
9 7.43 6.80 6.25 5.99
10 8.11 7.36   6.71 6.41
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS:Sun Devil Inc. accepts a $1,000,000, 8% note on January 1, 2019, in exchange for merchandise. The note is due in 5 years and requires the customer to pay interest quarterly, beginning March 31, 2019. Principal will be received at maturity. The customer’s normal borrowing rate is 12%. Determine the amount of Sales Revenue Sun Devil can recognize on Jan 1, 2019: $_____________Using the information in #1 above, determine the carrying value of the Note Receivable at December 31, 2021: $_________________Using the information in #1 above, determine the Total Interest Revenue Sun Devil will earn over the entire 5-year lending agreement:$_______________________

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.

You just received a bonus of ​$4 comma 000. a. Calculate the future value of ​$4 comma 000​, given that it will be held in the bank for 7 years and earn an annual interest rate of 5 percent. b. Recalculate part ​(a​) using a compounding period that is​ (1) semiannual and​ (2) bimonthly. c. Recalculate parts ​(a​) and ​(b​) using an annual interest rate of 10 percent. d. Recalculate part ​(a​) using a time horizon of 14 years at an annual interest rate of 5 percent. e. What conclusions can you draw when you compare the answers in parts ​(c​) and ​(d​) with the answers in parts ​(a​) and ​(b​)?

The ____ of a limited liability company establishes the company's method of management, allocation of profits and losses among members, restrictions on the transfer of membership interests, and the process to be followed in dissolving the company.

A schedule of cost of goods manufactured is also known as a: Multiple Choice Raw materials processed schedule. Factory supplies used schedule. Manufacturing statement. Total finished goods statement. Cost of goods sold schedule.

Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be invoiced that are not shipped. The inadequate control activities could cause an Group of answer choices Understatement of revenues, receivables, and inventory. Overstatement of revenues and receivables and an understatement of inventory. Understatement of revenues and receivables and an overstatement of inventory. Overstatement of revenues, receivables, and inventory.

Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345.
May 3. Purchased cleaning supplies on account from Brite N’ Shine Products Inc., $200.
May 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,860.
May 12. Purchased cleaning supplies on account from Porter Products Inc., $360.
May 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $145.
May 18. Purchased supplies on account from Bio Safe Supplies Inc., $240.
May 20. Purchased electrical repair services from Bowman Electrical Service on account, $110.
May 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
May 31. Issued Check No. 61 in payment of salaries, $5,600.
Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Wisk Away Cleaning Services Inc. uses the following accounts:
Cash 11
Cleaning Supplies 14
Equipment 18
Accounts Payable 21
Salary Expense 51
Electrical Service Expense 53

Below are the year-end balance sheets for Wolken Enterprises:
Assets 2015 2014
Cash $ 200,000 $ 170,000
Accounts receivable 864,000
700,000
Inventories 2,000,000 1,400,000
Total current assets $3,064,000 $2,270,000
Net fixed assets 6,000,000 5,600,000
Total assets $9,064,000 $7,870,000
Liabilities and equity:
Accounts payable $1,400,000 $1,090,000
Notes payable 1,600,000 1,800,000
Total current liabilities $3,000,000 $2,890,000
Long-term debt 2,400,000 2,400,000
Common stock 3,000,000 2,000,000
Retained earnings 664,000 580,000
Total common equity $3,664,000 $2,580,000
Total liabilities and equity$9,064,000 $7,870,000
Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2014. As of the end of 2015, none of the principal on this debt had been repaid. Assume that the company's sales in 2014 and 2015 were the same. Which of the following statements must be CORRECT?
a. Wolken had negative net income in 2015.
b. Wolken repurchased some common stock in 2015.
c. Wolken issued new common stock in 2015.
d. Wolken issued long-term debt in 2015.
e. Wolken increased its short-term bank debt in 2015.

Widget Makers LLC started business January, 01, 2010. They paid a $6,000 premium for insurance coverage on their inventory. The coverage expires June 01, 2010. At this time they renew for the remainder of the year by paying an additional premium of $7,700. What is the quarterly insurance expense that Widget Makers should report for the period ending June 30,2010.

Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John’s grandfather owns 100 shares, John’s father owns 100 shares, John’s ex-wife owns 700 shares, and Redbird Partnership owns 400 shares. John is a 50% partner in Redbird Partnership. How many shares is John deemed to own in Coffee Corporation under the § 318 attribution rules?


a. 700

b. 1,000

c. 1,100

d. 1,700

e. None of the above

34. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

On March 5, Oak Corp. provided services on account to Pine. Oak initially recorded this as an account receivable but it later became apparent Pine could not pay quickly so Oak required Pine to sign a $100,000, 12%, 2-month interest-bearing note. The journal entry required by Oak when Pine signs the note includes

Debit Notes Receivable $100,000; credit Accounts Receivable $100,000.

Debit Notes Receivable $100,000; credit Service Revenue $100,000.

Debit Notes Receivable $102,000; credit Service Revenue $102,000.

Debit Notes Receivable $102,000; credit Accounts Receivable $102,000.

Evaluating strategies LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.

The Soft Company has provided the following information after year-end adjustments:

• Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year.
• Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year.
• Accounts written off as uncollectible totaled $21,000.
• Net sales totaled $2,720,000.
• Sales discounts were $102,000.

How much was Soft's bad debt expense for the year?

a. $1,200
b. $19,800.
c. $21,000.
d. $40,800

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.

Cash Receipts Cash Payments
January $525,000 $475,000
February 400,000 350,000
March 450,000 $25,000

According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.

Required:
Prepare monthly cash budgets for January, February, and March.

Parallel sentences are balanced and easy for readers to understand.
Choose which sentence has the better parallel structure.
1. Although the presentation is extremely long, it outlines the research, analyzes the data, and provides clear recommendations that are useful in the future.
2. Although the presentation was extremely long, it outlined the research, analyzed the data, and provided clear recommendations that will be useful in the future.

You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20 %, how much will your deposit increase the total value of checkable bank deposits

Problems and Applications
The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment:
Quantity Willingness to Pay (Dollars)
First bottle 5
Second bottle 4
Third bottle 3
Fourth bottle 2
Fifth bottle 1
Further bottles 0
The cost of producing a bottle of Zlurp is $1.50, and the competitive suppliers sell it at this price. (The supply curve is horizontal.)
Each Whovillian will consume ______ bottles and receive a consumer surplus of _______$ . Producing Zlurp creates pollution. Each bottle has an external cost of $1.
Taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to _______$ .
Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by 1 bottle.
Cindy's consumer surplus (ignoring the cost of pollution she experiences) is now ______$ . Her decision_____ total surplus in Whoville by _______$ .
Mayor Grinch imposes a $1 tax on each bottle of Zlurp.
Consumption per person is now _______bottles. This yields a per-person consumer surplus of ______$ not including the cost of pollution, a per-person external cost of _____$ , and government revenue of_______ $ per person. Total surplus per person is now ______$ as a result of this policy. (Hint: Total surplus is equal to consumer surplus minus the external cost of pollution plus government revenue.)
Based on your calculations, you_____ support the mayor's policy because it ______welfare compared to before the tax.