Answer: Group think is increased.
Explanation:
Groupthink is a situation in a decision making process or team involvement where members agree on a single decision despite not fully being satisfied with the consensus decision.
A constructive conflict would enable members of a team to air their views therefore groupthink would be non existent.
The town of Fairness has a law that says that wages should be high enough to ensure that all people can afford to buy enough food to feed their families. The law that sets food prices low enough to meet these requirements would be an example of a:
A. minimum wage law.
B. black market price.
C. price ceiling.
D. price floor.
Answer: (C) Price ceiling
Explanation:
The price ceiling is mainly occur due to the increase in the price of the various types of products and the services.
The main purpose of the price ceiling is that it restrict or control the price that the merchant are charging very high charge for the goods and the services in an organization.
The price ceiling is manly use by the government for protecting the extra charge on the price of products to the customers.
According to the given situation, the law which sets the process of the foods or the products low this is the example of a price ceiling.
Therefore, Option (C) is correct.
Which of the following channels of communication is low in planning, is used for team meetings, and is a richer form of interacting than conference calls but typically requires more expensive equipment and careful scheduling?
a) video conferencesb) textingc) phone conversationd) emaile) blogging
Answer: Video Conference
Explanation:
A video conference is the best fit for the communication method described in the question.
A video conference also known as video-telephony is method of communication where individuals at different locations can communicate with theirselves in sound and audio at the same point in time.
Video conference is made possible with the use of modern technological gadgets connected to the internet by members of the conference.
Which of the following refers to the principal-agent problem in the market for health care?
a. Doctors pursuing their own interests rather than the interests of their patients.b. Doctors pursuing only the interests of their patients rather than the interest of society.c. A conflict of interest between doctors and health insurance companies.d. Doctors pursuing the interests of health insurance providers rather than the interests of their patients.
Answer:
a. Doctors pursuing their own interests rather than the interests of their patients
Explanation:
A principal is an individual or a group that entrusts a certain responsibilities to someone else (known as the agent) in an entity . The agent therefore has superior information than the principal and therefore the former makes decisions on behalf of the latter. A conflict of interest can occur when the agent pursues his own interests for personal gains and ignores the responsibility he was hired to do hence creating Principal-Agent problem. Among these choices, doctors pursuing their own interests rather than the interests of their patients will lead to principal agent problem.
HMR Inc. is a company that manufactures household chemicals and fertilizers used in farming. Its customers consist of farmers and other people who purchase its products. Its suppliers will be most affected by the business through the ________.
Answer:
B. Reputation of the company
Explanation:
Sometimes called goodwill of a company or reputation is simply what others think about a business based on their experience, and what they’ve heard about the business.
HRM Inc. Supplier's would benefit from the company's good reputation.
For example, when giving out credit transactions to companies, supplier's trust are often built on the reputation of the company.
Looking to increase its customer loyalty, management at Epic International has worked to create a personal dialogue with their customers. This dialogue will enable Epic to offer products that exactly meet their customers' needs and provide personalized service before and after the sale.
What strategy does Epic International illustrate?
A. a production orientation
B. niche marketing
C. relationship marketing
D. personalized promotion
Answer: (C) Relationship marketing
Explanation:
The relationship management is one of the business strategy where the organization basically maintaining the partnership with the clients and the customers.
The main aim of the relationship management is that it efficiently deals with the relationship between the business and the customers.
By using the relationship marketing strategy, it manage all the consumer data which is known as CRM (Customer relationship management) and also analysis the business.
Therefore, Option (C) is correct.
How do method variables such as depth of solution, data collection method, etc vary the rate of photosynthesis?
Answer:
The method variables such as depth of solution, data collection method etc. vary the rate of photosynthesis due to their influence on the variables of light intensity, temperature, carbon dioxide, light quality.
Explanation:
During photosynthesis, O2 gas is used and CO2 is produced simultaneously using a light as energy source whose intensity may vary, a solution with different depth varies to provide water and sodium bicarbonate varies to provide dissolved CO2 as the more sodium bicarbonate is added, there is a greater amount of carbon dioxide on it, this will resultin an increase in the speed of photosynthesis.
There is always the possibility of human error in experiment variables which may lead to different measures of the maximum rate on photosynthetic capacity (Amax) or the rate in which leaves are able to fix an amount of carbon dioxide per metre squared per second, for example as μmol m−2 sec−1.
Artemisia Gentileschi, Self-Portrait as the Allegory of Painting is a break from the traditional approach to painting self-portraits in almost all Renaissance and Baroque self-portraits because she portrays herself from _________________ and not from ____________. a. her left side; a frontal view b. a frontal view; her left side c. a frontal view; her right side d. her left side: a back view
Answer:
She portrays herself from a frontal view and not from her right side.
Explanation:
Artemisia Gentileschi was a famous artist in the Baroque painting. She born in Rome, Italy. The Self-Portrait as the Allegory of Painting is also known as the La Pittura in which she has depicted herself. This painting is a break from the traditional approach to painting self-portraits in almost all Renaissance and Baroque self-portraits because she portrays herself from a frontal view and not from the her right.Her other famous work include "Madonna and Child, Susanna and the Elders and Judith Slaying Holofernes."Final answer:
Artemisia Gentileschi's self-portrait breaks from tradition by depicting herself from a frontal view, unlike the typical right-side view from Renaissance and Baroque eras.
Explanation:
Artemisia Gentileschi's Self-Portrait as the Allegory of Painting is a deviation from the norm of Renaissance and Baroque self-portraiture because she depicts herself from a frontal view; not from her right side. This choice of representation showcases her as a dynamic and influential female artist in a period when women seldom held paid jobs outside the home. In her portrait, Gentileschi emphasizes her dedication to her craft, holding a brush to symbolize her work as a painter. Her arm creates a dramatic diagonal composition, with the foreshortened arm adding a three-dimensional effect. The portrait also highlights her artistic skills with its realistic textures and the representation of divine frenzy in her unruly hair.
When a company lengthens a product line by adding more items within that lines current range, they are __________.
product line filling
product line stretching
product mixing
increasing product depth
building product equity
Answer:
The answer is product line filling.
Explanation:
As said, the strategy involves adding more products to the current range. This is mainly used to,
Reduce the competition and decrease the threat from new products of new and existing competitorsTo take advantage of the existing gaps in the market place and market spaceThis technique is an iterative process that identifies and defines the work to be completely accomplished in the near term, and plans the future work at a higher level.
a. Agile
b. Rolling wave planning.
c. Traceability
d. Decomposition.
Alex wrecked his car on the way to work. His basis in the car was $20,000. He received $22,000 from the insurance company to replace the car. He only spent $15,000 on a replacement vehicle. What is the amount of the recognized gain?
Answer:
$2,000
Explanation:
Based on the information provided within the question it can be said that Alex's amount of recognized gain was that of $2,000. This is because his car that he wrecked is valued at $20,000. Since he got $22,000 it means he made a gain of $2,000 regardless of how much he spends on a new car. Since he can decide to buy whatever car he wants, he can spend more or less than the money he received.
Where Is Monetary Policy Stronger? In an open economy, changes in monetary policy affect both interest rates and exchange rates. Comparing the United States and Switzerland, in which country would monetary policy have a more significant effect on GDP through changes in exchange rates?
Answer:
First of all, Switzerland has one of the most open and free market economies in the world, while the US government says that our economy is open but compared to other capitalistic countries, the American economy is a very closed one.
The effects of any change in monetary policy will be more significant in a small open economy like Switzerland since foreign trade is very important to them.
An increase in the money supply will depreciate the currency of a country, and any effect on the exchange rate will affect more an open economy.
an invesment adviser i slooking to offer advisory services to new clients. which statement is true regarding delivery of form adv parts 2a and 2b?
Answer:
B) They must be delivered regardless of whether the individual becomes a client of the investment adviser
Explanation:
The North American Securities Administrators Association (NASAA) requires investment advisers to deliver the Brochure (Form ADV Part 2A) and the Brochure Supplement (Form ADV Part 2B) to any prospective client they seek. Both the Brochure and the Brochure Supplement must be delivered within 48 hours of contacting the prospective client.
The correct answer is option (a) the delivery of Form ADV Parts 2A and 2B is that they must be delivered to new clients before or at the time of entering into an advisory contract with them.
Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. Part 2 of Form ADV is divided into two sections: Part 2A (the "brochure") and Part 2B (the "brochure supplement"). Part 2A contains information about the investment adviser's business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 2B, on the other hand, contains information about the specific qualifications and business practices of the supervised persons who actually provide the investment advice to the client.
The Investment Advisers Act of 1940 and the rules thereunder require that investment advisers provide their clients with a current brochure (Part 2A) and a brochure supplement (Part 2B) at certain times. Specifically, an adviser must deliver these documents to new clients before or at the time the advisory contract is entered into and the client is legally obligated to pay the advisory fee. This ensures that clients have the necessary information to make an informed decision about whether to engage the adviser's services.
Additionally, advisers are required to deliver an updated brochure and brochure supplement to existing clients within 120 days after the end of the adviser's fiscal year, or promptly after there is a material change to the information in the brochure or brochure supplement. This requirement ensures that clients are kept informed about the adviser's business and any changes that might affect their advisory relationship.
In summary, the delivery of Form ADV Parts 2A and 2B is a critical step in establishing a transparent and compliant advisory relationship between the investment adviser and their clients. It is not only a regulatory requirement but also a best practice for fostering trust and confidence with clients.
The complete question is:
An invesment adviser i slooking to offer advisory services to new clients. which statement is true regarding delivery of form adv parts 2a and 2b?
A. They must be delivered only if the individual becomes a client of the investment adviser
B. They must be delivered regardless of whether the individual becomes a client of the investment adviser
C. They must be delivered only upon written request of the individual that is considering becoming a client
D. They must be delivered only upon receiving a check for the initial investment amount from the client
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that Select one:_______
a. entirely conform to the contract description except in one or two details.
b. substantially conform to the contract description in most details.
c. approximately conform to the contract description.
d. conform to the contract description in every way.
Answer:
D) conform to the contract description in every way.
Explanation:
The perfect tender rule refers to article 2 of the Uniform Comemrcial Code (UCC). This rule applies to the selling or leasing of goods, where a buyer or lessee can reject goods delivered to them if they do not comply with the contract's terms in a perfect way. In other words, if the goods delivered are not exactly as those specified in the contract, then the buyer or lessee can reject them.
The Highway Transportation System (HTS) is a complex integrated system consisting of ______, vehicles, and people.
Answer:
Roadways
Explanation:
The Highway Transportation System (HTS) by definition "is a complex integrated system consisting of roadways, vehicles, and people"
The basic purpose of the HTS is to "move people and cargo from one place to another in a safe and efficient manner".
And is important to remember that users and drivers who use the HTS are the most important elements in order to be sure the HTS is safe and efficient.
Usually the system stops when we have Collisions and traffic jams.
The Highway Transportation System (HTS) is a complex integrated system consisting of infrastructure, vehicles, and people.
The term "Highway Transportation System" (HTS) refers to the system of public highways, transportation hubs, vehicles, and people involved in the movement of people and commodities on those roads. It is a complete system that consists of a number of components that work together to provide safe and effective transportation. The physical components of the HTS, such as roads, highways, bridges, tunnels, traffic signals, signage, and other supporting structures, are referred to as the infrastructure component.
Vehicles are a crucial component of the HTS and refer to the many travel modes, such as cars, trucks, motorbikes, buses, bicycles, and other motorized or non-motorized modes of transportation.
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Suppose that Jay-Z and Beyonce are duopolists in the music industry. In January, they agree to work 47. ether as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By February, each singer is considering breaking the agreement. What would you expect to happen next?
A. Jay-Z and Beyonce will determine that it is in each singer's best self interest to maintain the agreement
B.Jay-Z and Beyonce will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price will decrease.
C. Jay-Z and Beyonce will each break the agreement. The new equilibrium quantity of songs will decrease, and the new equilibrium price will increase.
D. Jay-Z and Beyonce will cach break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price also will increase.
Answer:
B) Jay-Z and Beyonce will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price will decrease.
Explanation:
A duopoly (two suppliers have dominant control over a market) is not the best possible scenario, it is actually he second worst possible scenario after a monopoly. Whenever a monopoly breaks, customers will end up winning because competition will increase (at least a little bit) therefore increasing and diversifying supply and decreasing the price of the goods or services.
Economically, it would be expected for Jay-Z and Beyonce to each break the duopolist agreement, increasing the supply of music, thereby decreasing the price and increasing the equilibrium quantity of songs.
Explanation:This question pertains to economics, more specifically, the theory of duopolists.
One can picture a duopoly as a model of strategic decision making where two entities control a market. In this scenario, Jay-Z and Beyonce have formed a combined monopoly; however, each may then find it advantageous to break the agreement.
Putting it into typical economic perspective, the most logical answer would be B. If Jay-Z and Beyonce were each to break the agreement, this would result in an increased supply of music. According to basic economic principles, an increase in supply, under constant demand, will cause a decrease in the equilibrium price, hence, leading to an increase in the equilibrium quantity of songs, which supports the argument for option B.
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A major objective of written representations is to
a. Shift responsibility for financial statements from the management to auditors.
b. Provide a substitute source of audit evidence for substantive procedures that auditors would otherwise perform.
c. Provide management an opportunity to make assertions about the quantity and valuation of the physical inventory.
d. Impress on management its ultimate responsibility for the financial statements and disclosures.
Answer:
option D - Impress on management its ultimate responsibility for the financial statements and disclosures.
Explanation:
Correct answer is option D:
The written representations are written statements made by management team explaining about the distinct topics and also used as audit evidence.
This document taken as supporting document which is used to confirm other audit. The auditor managed the list of representation to be signed by client.
You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fixed rate for exactly one year. The lender (correctly) assumes that inflation will be 2 percent this year. Based on the above information and assuming you adhere to the terms of the loan, you will pay back the lender exactly ________, which will represent ________ of purchasing power.
Answer:
You will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.
Explanation:
you will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.
$20,000 for this purchase at a 5 percent fixed rate
=$20,000*5/100
=$20,000*0.05 = $1,000
=$20,000 + $1,000 = $21,000
Inflation will be 2 percent this year
=$20,000*2/100
=$20,000*0.02 = $400
=$20,000 + ($1,000 - $400)
=$20,000 + $600 = $20,600
During the short run, the demand curves for most products tend to be: a. more volatile. b. more elastic. c. more inelastic. d. more erratic.
Answer:
C- more inelastic
Explanation:
The tend to be more inelastic( low = less than 1) because people tend to buy even if the price go up because they are use to buying it out of habit
Which of the following is a Theory X assumption?
A) The average human being inherently dis-likes work
B) The average human being does not inherently dis-like work
C) The average human being learns, under proper conditions, not only to accept but also to seek responsibility
D) External control and the threat of punishment are not the only means of motivating people to achieve organizational objectives
Answer: The average human being inherently dis-likes work
Explanation:
Theory X assumes that workers dislikes work and that for workers to effectively deliver on their work they need to be seriously supervised by their superiors or employers. The employer or managers in the theory X makes use of either rewards or punishments to control workers behavior.
Theory X assumes that the average human being inherently dislikes work and needs to be motivated through external control and punishments.
Explanation:A Theory X assumption is that the average human being inherently dislikes work. This theory suggests that people are lazy and need to be motivated through external control and punishments. In contrast, Theory Y assumes that the average human being does not inherently dislike work and can be self-motivated.
Therefore, the correct answer is option A) The average human being inherently dislikes work.
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Slider processes rebate requests for a large building supply firm. Slider processed 420,000 rebates in March. All rebates are processed the same day they are received. March costs were labor of $28,000 and overhead of $14,000. What is the cost to process 1,000 rebates?
Answer:
process cost for 1000 rebate = $100
Explanation:
given data
rebates = 420,000
costs labor = $28,000
overhead = $14,000
to find out
cost to process 1,000 rebates
solution
first we get here total cost process that is express as
total cost process = costs labor + overhead .............1
total cost process = $28000 + 14000
total cost process = $42000
and process cost per rebate will be here as
process cost per rebate = [tex]\frac{42000}{420000}[/tex]
process cost per rebate = 0.10
so process cost for 1000 rebate will be as
process cost for 1000 rebate = 0.10 × 1000
process cost for 1000 rebate = $100
1. a subtraction net pay
2. pay that includes overtime, commissions, and bonuses before any deductions exempt
3. the portion the employee takes home withholding allowance
4. free from deduction deduction
5. an amount entered on the W-4 form that tells the employer the amount of income tax to subtract from an employee's paycheck gross pay
Subtraction net pay is the amount that is entered in the W-4 form and that tell the employer the amount of income tax that must be subtracted from an employee's paycheck gross pay
Explanation:
The amount that one receives after the taxes and the amount from the deductions and the final amount that is received on hand is called as the net pay. The subtracted net pay is the pay after the subtraction from the employers pay check and the gross pay
The gross pay is usually calculated by subtracting the federal tax and the social tax and the security taxes and the net pay amount ill be always lesser than the gross pay amount because it is the final amount that will be received
Answer:
1 - commission -- a fee paid to an employee for their sale or services usually based on a percentage of the sale price
2 - gross pay -- an employee’s total pay, including overtime pay, commissions, and bonuses before any deductions were made
3 - net pay -- the amount that appears on the paycheck
4 - exempt -- free from deducting federal income tax from paychecks
5 - withholding allowance -- an amount an individual enters on the W-4 form that helps an employer calculate the amount of income tax to subtract from an employee’s paycheck
6 - deduction -- an amount that is taken out of your paycheck to be sent to the federal government or Social Security
7 - revenue -- the income that a business earns through sales
This is my best attempt from googling for 20 minutes for the ones i didn't already know from having a job. Pretty sure they're all right but if not don't hate me.
Crane Company is planning to sell 870000 units for $1.50 per unit. The contribution margin ratio is 20%. If Crane will break even at this level of sales, what are the fixed costs?
Answer:
Crane Company is planning to sell 870000 units for $1.50 per unit. The contribution margin ratio is 20%. If Crane will break even at this level of sales, what are the fixed costs?
$261,000 would be the fixed cost
Explanation:
870000 X $1.50= $1,305,000
20/100= 0.2
0.2 X 1,305,000= $261, 000
Dan is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Dan's service can be best described as a form of _________.
A. expatriationB. validationC. accreditationD. cross-cultural preparationE. adjustment
Answer: validation
Explanation: Validation is the method of creating documentary evidence that demonstrates that a research, procedure, or operation conducted and then processed retains at all times the desired level of conformity.
In the given case, the firm has to evaluate the experience that Dan has and have to decide if his knowledge get the firm its desired results. Thus, we can conclude that the given case depicts validation.
Farmland Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $388,000, the company redeemed the bonds at 99. Prepare the entry to record the redemption of the bonds
Answer:
Please see journal entries below
Explanation:
The entries below are made in the books of Farmland Corporation, the issuer of the bond.
Upon redemption, journal entries would be as follows.
Debit: Bond Account $396,000 (cash paid to bond investors)
Credit: Cash/Bank Account $396,000 (cash paid to bond investors)
Debit: Profit/Loss Account $8,000 (premium paid over carrying value of bond, calculated below: )
Credit: Bond Account $8,000 (premium paid over carrying value)
Premium over carrying value is calculated as follows:
Redemption value - carrying value
= [tex](\frac{redemption price}{carrying price} *face value) - carrying value[/tex]
=[tex](\frac{99}{100} *$400,000) - $388,000[/tex]
= $396,000 - $388,000
= $8,000
Based on the value of the bonds and the carrying value, the entry to record the redemption of the bonds is:
Date Account Title Debit Credit
Bonds Payable $400,000
Loss on bond retirement $ 8,000
Discount on bond payable $12,000
Cash $396,000
What is the entry for the redemption?The bond payable account will be debited by the face value of $400,000.
The cash account will be credited by the redemption value of:
= 400,000 x 0.99
= $396,000
The discount on bond payable is:
= 400,000 - 388,000
= $12,000
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Harvey Corporation shows the following in the stockholders' equity section of its balance sheet: The par value of its common stock is $0.25 and the total balance in the Common Stock account is $50,000. Also noted is that 15,000 shares are currently designated as treasury stock. The number of shares outstanding is:
Answer:
185,000 shares outstanding
Explanation:
First we get the value of the treasury stock
= 15,000 x $0.25 = $3,750
We know that treasury stock is the difference between shares issued and shares outstanding.
So, to obtain the total value of shares outsanding, we simply substract the value of treasury stock from common stock:
=$50,000 - $3,750
=$46,250
Now, we simply write the following equation to obtain the number of shares outstanding:
46,250 = 0.25 * X
X = 46,250 / 0.25
X = 185,000
Which of the following sequences correctly represents the flow of electrons during photosynthesis?A. NADPH -> O2 -> CO2B. H2O -> NADPH -> Calvin cycleC. NADPH -> chlorophyll -> Calvin cycleD. H2O -> photosystem I -> photosystem IIE. NADPH -> electron transport chain -> O2
Answer and Explanation:
B. H2O -> NADPH -> Calvin cycle
Passerine runs a tapestry shop in Rome, weaving historical images for the tourism industry. Lately, her arthritis has gotten worse, so she brings in several young workers and begins to teach them how to weave her images. Which factor of production did Passerine enhance?1. Capital2. Entrepreneurship3. Labor4. Land
Answer:
Labor
Explanation:
There are four factors of production that include land capital entrepreneurship and labor. They are the inputs in production. Labor involves the contribution of human beings by providing skills, time, and energy in output generation.
By employing young workers, Passerine is adding labor into the business. The young workers will acquire skills useful in the production process. They will spend their time and energy working for Passerine, who will compensate them by paying them wages.
Passerine enhances the labor factor of production by teaching new workers how to weave, thereby investing in human capital and increasing her shop’s labor resources.
Explanation:Passerine, by bringing in young workers and teaching them the process of weaving historical images for the tourism industry, is enhancing the labor factor of production. Labor refers to the human effort that is used in the creation of goods and services. In this case, Passerine is teaching new workers her craft, thereby increasing her shop's labor resources and potentially its labor productivity as well. This training can improve the skills and efficiency of her workers, which is critical as her ability to weave is impeded by arthritis.
________ issues participation certificates, and ________ provides federal insurance for participation certificates
1. Freddie Mac; no one2. Ginnie Mae; Ginnie Mae3. Freddie Mac; Ginnie Mae4. Freddie Mac; Freddie Mac5. Ginnie Mae; Freddie Mac
Answer:
4
Explanation:
Freddie Mac issues and guarantees Mortgage Participation Certificates.
Ginnie Mae is responsible for both issuing and providing federal insurance for participation certificates in the secondary mortgage market. Freddie Mac, while similarly involved in purchasing mortgages, does not offer federal insurance for the certificates it issues.
Federal Insurance for Participation Certificates
The correct answer to the question is: Ginnie Mae issues participation certificates, and Ginnie Mae provides federal insurance for participation certificates. Both the issuance and the federal insurance of these financial instruments are within the scope of Ginnie Mae's operations. In contrast, while Freddie Mac plays a significant role in the secondary mortgage market by buying mortgages from banks, it is not responsible for providing federal insurance to the participation certificates it issues, which is a distinctive feature of Ginnie Mae.
Understanding the functions of these government-sponsored enterprises (GSEs) is essential to comprehending their impact on the mortgage market. Freddie Mac, alongside Fannie Mae, purchases mortgages, packages them into mortgage-backed securities, and ensures that lenders have a continuous supply of mortgage funds. Ginnie Mae, meanwhile, guarantees investors the timely payment of principal and interest on mortgage-backed securities that bear its guarantee, providing a level of security attractive to investors and contributing to low interest rates on the mortgages it guarantees.
If the inflation rate increases faster than their income. True or False
Answer:
The correct answer is True.
Explanation:
In this case people will most likely use a higher proportion of their incomes on basic needs.
It decreases the purchasing power of money: Inflation affects money as an accumulator of value and thus reduces purchasing power to people's income. In inflationary periods this fundamentally affects those people who have fixed incomes. In reality, there is a change in the distribution of income, since as income grows at a faster rate than prices, it can thus benefit from an inflationary process, but otherwise it causes damage.
Hamilton Company reported an increase of $370,000 in its accounts receivable during the year 2018. The company's statement of cash flows for 2018 reported $1 million of cash received from customers. What amount of net sales must Hamilton have recorded in 2018?a. $630,000b. $1,370,000c. $1,000,000d. $370,000
Final answer:
Hamilton Company's net sales in 2018 are calculated by adding the increase in accounts receivable ($370,000) to the cash received from customers ($1,000,000). Therefore, the correct net sales amount is $1,370,000.
Explanation:
The question relates to the calculation of net sales for Hamilton Company given the increase in accounts receivable and the cash received from customers reported in the statement of cash flows. To determine net sales, one should consider both the cash received from customers and the change in accounts receivable during the period.
The increase in accounts receivable suggests that there were additional sales made on credit that have not yet been received in cash. Therefore, to calculate the net sales, we add the increase in accounts receivable to the cash received from customers:
Cash received from customers: $1,000,000
Increase in accounts receivable: $370,000
Net sales = Cash received from customers + Increase in accounts receivable
Net sales = $1,000,000 + $370,000 = $1,370,000
Therefore, the correct amount of net sales that Hamilton Company must have recorded in 2018 is $1,370,000, which corresponds to option (b).