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Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.
7. Suppose Ms. Ellana has to owe you money for selling goods on May 12, 2021 and she
will be going to pay only on November 2, 2021, prove that your accounts receivable is
current in nature.
8. What is the normal balance of Bonds Payable?
9. Differentiate a service, merchandising, and manufacturing entity by providing 2 examples for each type of business.
Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.
4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the reporting period will jump to the date of December 31, 2023, when is the threshold of
proving that the asset or liability is current? (Pick between August 30, 2023, and
December 31, 2023, only) Explain your position.
5. Which of the following is the correct formula in finding COGS or COS?
a. The COS for manufacturing entities is zero because of its value in deflation.
b. The COS for merchandising entities is goods available for sale minus the ending amount of inventories.
c. The COS for service entities is service available for sale plus the beginning service inventories.
d. The COS for service entities is equal to the adjusted market selling price.
6. Explain why the three items you have not chosen above are incorrect.
On May 11, 1993, a note due on January 10, 1994 was discounted at 12.12% simple discount. Find the exact simple interest rate of 10.75% for one year and 3 months? What is the exact discount rate?
If 8,000 pesos is the present value of 11,000 pesos due at the end of seven months, what is the simple discount?
b) A certain region licensed only one firm to supply tap water within that region. Graphically illustrate why it is more economical to have a sole water supplier in a particular region.
A student has a job that leaves her with $300 per month in disposable
income. She decides that she will use the money to buy a car. Before
looking for a car, she arranges a 100% loan whose terms are $300 per
month for 48 months at 9% nominal annual interest. What is the
maximum car purchase price that she can afford with her loan?
a) If the required reserve ratio is 20%, what is the total money supply, assuming there is no cash being held? What is the money multiplier? What is the amount of loans outstanding in the banking system?
b) How much does the money supply increase when the central bank adds $5.55 in new reserve?
c) If the central bank wants to the make the money multiplier 10, what do they need to set the required reserve ratio to? If they make this change what happens to the money supply?
d) If a bank in this economy has $200 of reserves, $250 of loans and $450 of deposits, how much excess reserve are they holding (use the required reserve ratio of 10%)? How much could the bank make in additional loans?
#339914 on Dec 2023