Q&A Hero

Q: Cartels have the ability to maintain control of markets for indefinite periods.

Q: For an information product, why a profit-maximizing firm unable to practice marginal cost pricing? How is its price determined in the long run?

Q: Flash reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets. By the end of the year, assets had increased to $300,000. Calculate the return on assets.

Q: Paul's oil delivery company was struggling to make ends meet, so it conspired with the other oil delivery companies in the area to set prices, allocate market territories, and redistribute profits. By controlling the market in this way, the companies created a cartel.

Q: Which of the following products would most likely be produced in a monopolistically competitive market?A) corn B) oil C) electricity D) pizza

Q: Opportunities in accounting include auditing, consulting, market research, and tax planning.

Q: Administered pricing is an attempt to establish prices for an entire market.

Q: Suppose a monopolist sells 10,000 units of output at $22 per unit. The firmʹs total revenue isA) $2,200. B) $22,000. C) $220,000. D) $2,200,000.

Q: The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded. During September, the first month of operation, the following balance sheets were prepared:Required: Describe the nature of each of these five transactions for the month of September.

Q: Barter houses help countries negotiate prices for imports and exports and also provide facilities for cash payments and receipts.

Q: If the long-run supply curve is horizontal, we know that this isA) a decreasing-cost industry. B) a constant-cost industry.C) an increasing-cost industry.D) a situations in which some input prices change as firms enter and exit the industry.

Q: Internal users include lenders, shareholders, brokers and managers.

Q: Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.

Q: A company paid its landlord $15,000 cash for this month's rent. Enter the appropriate amounts that reflect this transaction into the accounting equation format shown below.

Q: Under perfect competition, the firm must decideA) the best price to charge for its product.B) the best rate of output it should produce.C) the optimal level of advertising to engage in.D) the optimal level of quality and the packaging that will maximize profits.

Q: Gerard was concerned that he would not be able to get maintenance and servicing on equipment used in his overseas operation. Leasing the equipment would be the best option for Gerard.

Q: Regulators often have legal authority over certain activities of organizations.

Q: For countervailing duties to be invoked, it must be shown that prices are higher in the importing country than in the exporting country.

Q: Marginal costs are defined asA) the change in total costs due to a one -unit change in production.B) costs that are viewed as marginal; of little or small importance.C) costs that represent a change, but one that cannot be measured correctly.D) the change in the decisions that are made by households and firms.

Q: The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company:Provide descriptions for each transaction.

Q: In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.

Q: The idea that any public information you will be able to find will prove of little value to you when buying and selling stocks, because that information is so quickly incorporated into the trading prices of stocks, is known as theA) theory of efficient markets. B) theory of fundamental analysis.C) principle of context. D) over-the-counter hypothesis.

Q: External users include lenders, shareholders, customers, and regulators.

Q: Involving fewer middlemen in distribution means higher overall taxes.

Q: If the entrepreneur is also the manager of the firm, we would expectA) the manager to work hard because he or she is also the residual claimant.B) the manager to not work hard since there is no possibility of further advancement. C) the firm to operate poorly because the specialization of labor is not adequate.D) the firm to operate poorly because the entrepreneur is not as good at managing workers as a professional manager would be.

Q: Longer channels of distribution are more useful for keeping prices under control than shorter channels of distribution.

Q: Sara Bloom has prepared the following analysis of September transactions for her business, Blooming Florist. Unfortunately, she has lost some information. Determine the missing amounts (a) through (c) below.

Q: Why canʹt an indifference curve be a straight line?

Q: Eliminating costly functional features of a product or lowering overall product quality can reduce price escalation.

Q: External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Q: Given the above figure, when Joey eats a third piece of pizza his marginal utility is ________ and his total utility is ________.A) falling; falling B) falling; rising C) rising; falling D) rising; rising

Q: The international marketer must rely on experience and marketing research to determine middleman costs because no convenient source of data on middleman costs is available.

Q: For each of the following transactions, identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L", and "E" to indicate assets, liabilities, and equity, respectively. Part A has been completed as an example.

Q: Which has a more elastic demand: hamburger or beef?

Q: Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

Q: The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Q: If the absolute price elasticity of demand is 4.0, a 5 percent decrease in price will increase quantity demanded byA) 10 percent. B) 20 percent. C) 25 percent. D) 8 percent.

Q: When the U.S. dollar strengthens, U.S. exports will decrease.

Q: Halley Burton began a Web Consulting practice and completed these transactions during September of the current year:Show the effects of the above transactions on the accounting equation of Halley Burton, Consultant. Use the following format for your answers. The first item is shown as an example.Increase = I Decrease = D No effect = N

Q: Refer to the above figure. The marginal cost of pollution abatement is curveA) (1). B) (2). C) (3). D) (4).

Q: With deflation, consumers face ever-rising prices that eventually exclude many of them from the market.

Q: Internal operating activities include research and development, distribution, and human resources.

Q: The purpose of the Earned Income Tax Credit Program (EITC) is toA) provide rebates of Social Security taxes to low-income workers.B) encourage low- and moderate-income workers to take second jobs to increase their income.C) provide in-kind services such as food stamps and public housing to those individuals who have poor credit.D) give tax credits to low-income individuals who do volunteer work in their communities.

Q: Deflation results in ever-decreasing prices, creating a positive result for consumers, but putting pressure on everyone in the supply chain to lower costs.

Q: If Madiera Company paid $42,000 of its accounts payable in cash, what would be the effect of this transaction on assets, liabilities, and equity?

Q: A profit-maximizing monopsonist will hire workers up to the point at whichA) W = MRP. B) MRP = MFC.C) W = MFC. D) W = MRP = MFC.

Q: In countries where large shares of the population are moving into middle-income classes, penetration pricing will depress market growth.

Q: Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Q: Companies should use the full-cost pricing approach when it has high fixed costs relative to its variable costs.

Q: The type of labor agreement that requires workers to be union members prior to being considered for employment is aA) right-to-work agreement. B) closed-shop agreement. C) union shop agreement. D) open-shop agreement.

Q: If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Q: To restrict the gray market, companies must establish and monitor controls that effectively police sales channels.

Q: Quantity of WorkersTotal ProductMarginal Marginal Physical Product Revenue Product00- -17 218 330 440 548 In the above table, if this is a perfectly competitive firm and the market price of the product is $10, what is the marginal revenue product of worker 4?A) $210 B) $100 C) $411 D) $120

Q: An accounting information system communicates data to help businesses make better decisions.

Q: The possibility of a parallel market occurs when price differences are less than the cost of transportation between two markets.

Q: One undesirable effect of social regulation is that itA) affects smaller firms disproportionately, creating anticompetitive effects.B) destroys incentives for firms to engage in marginal cost pricing.C) raises prices of goods to consumers, while lowering prices to business and special interest groups.D) reduces the effectiveness of economic regulation.

Q: If the liabilities of a business increased $86,000 during a period of time and equity in the business decreased $23,000 during the same period, would the assets of the business have increased or decreased? By what amount?

Q: A product sold in one country may be exported to another and undercut the prices charged in that country.

Q: A Battle of the Sexes outcome occurs whenA) firms earn highest profits by adopting different product formats.B) firms earn highest profits by trying to coordinate but cannot agree on how to do so. C) firms earn highest profits by adopting either male or female product formats.D) firms cooperate as long as other firms cooperate, but if anyone cheats, they cut the price until the cheater reverts to cooperation.

Q: Companies that use pricing to achieve marketing objectives use pricing as a static element.

Q: Bookkeeping is the recording of transactions and events and is only part of accounting.

Q: How does an information product differ from a product such as a desk?

Q: Setting the right price for a product can be the key to success or failure in international markets.

Q: A company paid its employees $90,000 in cash for two weeks' wages. Enter the appropriate amounts that reflect this transaction into the accounting equation format shown below.

Q: Which of the following is NOT a characteristic of firms in a monopolistically competitive market? A) advertising B) differentiated products C) ease of entry and exit D) existence of significant economies of scale

Q: What is the difference between forfaiting and factoring?

Q: Bookkeeping is the same as accounting.

Q: In the above figure, the monopolistʹs profit-maximizing price isA) A. B) B. C) C. D) D.

Q: Discuss the meaning and nature of cartels. Are these groups beneficial? State an example.

Q: A company performed testing services for a client. The client paid the company $3,000 in cash. Enter the appropriate amounts that reflect this transaction into the company's accounting equation format shown below.

Q: A perfectly elastic long-run supply curve indicates A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) that some input prices change as firms enter and exit the industry.

Q: What is administered pricing, and how does it differ from price fixing? How is it arranged in international markets?

Q: Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable formation about an organization's business activities.

Q: In a perfectly competitive market, the average revenue curve of a firm isA) the same as its total revenue curve. B) the same as its demand curve.C) the same its economic profits.D) the difference between its total revenue curve and its marginal revenue curve.

Q: Making price quotations for international sales requires including a number of elements that may not be relevant in domestic pricing. Explain the process and what must be considered.

Q: A company acquired $7,000 of supplies and testing equipment on credit. Enter the appropriate amounts that reflect this transaction into the accounting equation format shown below.

Q: Notice the costs as given in the table below. What is the total fixed cost in the table below ?Total OutputTotal Costs0$101$152$183$204$215$23A) $5 B) $0 C) $10 D) $9

Q: What is a countertrade? What are the advantages and disadvantages of countertrading?

Q: A company spent $52,000 in cash for this period's advertising activities. Enter the appropriate amounts that reflect this transaction into the accounting equation format shown below.

Q: What is a tariff? What are the three basic ways in which tariffs may be levied?