31.A suit for breach of contract seeking damages of $3,000,000 was filed against Clark Corporation on March 1, 2015. Clark’s legal counsel believes that anegative outcome is highly probable. A reasonable estimate of the court’s award to the plaintiff is $600,000. Settlement is expected to occur during the latter part of 2015. What accounting is necessary for the year ending June 30, 2015? […]

  41._____ refers to a system under which a country’s currency is nominally allowed to float freely against other currencies, but in which the government will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value.   A. Fixed float B. Clean float C. Pegged float D. Dirty float E. Capital float 42.Which of the following statements is true about the various […]

        26) The above table has data from the nation of Atlantica. Based on these data, autonomous consumption is A) $1.8 trillion. B) $2.6 trillion. C) $3.2 trillion. D) $4.0 trillion. E) $5.8 trillion.   27) The above table has data from the nation of Atlantica. Based on these data, when disposal income equals $3.0 trillion, A) savings equals $4.0 trillion. B) […]

    61. Hardister Corp. has the following information available from its financial statements for 2008:  Balance sheet information:     Income statement information:   Assets           Current assets $   400,000   Sales (all on account) $3,000,000   Long-term assets   600,000   Cost of goods sold 1,500,000   Total assets $1,000,000   Salary expense 200,000       Miscellaneous expenses 400,000 […]

    51) Once a union gains the right to hold an election, management and the union are restricted in the actions they can take. However, management is permitted to: A) warn employees of dire consequences if the union wins. B) offer employees incentives for not voting for the union. C) secretly watch organizing meetings. D) send employees personal letters.   52) Which term refers […]

  Multiple Choice – Section 03: The Aggregate-Demand Curve 1.Theaggregatedemandandaggregatesupplygraphhasthe a.quantityofoutputonthehorizontalaxis.OutputisbestmeasuredbyrealGDP. b.quantityofoutputonthehorizontalaxis.OutputisbestmeasuredbynominalGDP. c.quantityofoutputontheverticalaxis.OutputisbestmeasuredbyrealGDP. d.quantityofoutputontheverticalaxis.OutputisbestmeasuredbynominalGDP. 2.Theaggregate-demandcurveshowsthatadecreaseinthepricelevel a.decreasesthedollarvalueofgoodsandservicesdemandedintheeconomy. b.decreasestherealvalueofgoodsandservicesdemandedintheeconomy. c.increasesthedollarvalueofgoodsandservicesdemandedintheeconomy. d.increasestherealvalueofgoodsandservicesdemandedintheeconomy. 3.Theaggregate-demandcurve a.hasaslopethatisexplainedinthesamewayastheslopeofthedemandcurveforaparticularproduct. b.is verticalinthelongrun. c.showsaninverserelationbetweenthepricelevelandthequantityofallgoodsandservicesdemanded. d.Alloftheabovearecorrect. 4.Whichofthefollowingisincludedintheaggregatedemandforgoodsandservices? a.consumptiondemand b.investmentdemand c.netexports d.Alloftheabovearecorrect. 5.Whichofthefollowingisnotincludedinaggregatedemand? a.purchasesofstockandbonds b.purchasesofservicessuchasvisitstothedoctor c.purchasesofcapitalgoodssuchasequipmentinafactory d.purchasesbyforeignersofconsumergoodsproducedintheUnitedStates 6.Whenthepricelevelfallsthequantityof a.consumptiongoodsdemandedrises,whilethequantityofnetexportsdemandedfalls. b.consumptiongoodsdemandedandthequantityofnetexportsdemandedbothrise. c.consumptiongoodsdemandedandthequantityofnetexportsdemandedbothfall. d.consumptiongoodsdemandedfalls,whilethequantityofnetexportsdemandrises. 7.Otherthingsthesame,asthepriceleveldecreasesitinducesgreaterspendingon a.bothnetexportsandinvestment. b.netexportsbutnotinvestment. c.investmentbutnotnetexports. d.neithernetexportsnorinvestment. 8.Otherthingsthesame,afallinaneconomy’soveralllevelofpricestendsto a.raiseboththequantitydemandedandsuppliedofgoodsandservices. b.raisethequantitydemandedofgoodsandservices,butlowerthequantitysupplied. c.lowerthequantitydemandedofgoodsandservices,butraisethequantitysupplied. d.lowerboththequantitydemandedandthequantitysuppliedofgoodsandservices. 9.Theeffectofanincreaseinthepricelevelontheaggregate-demandcurveisrepresentedbya a.shifttotherightoftheaggregate-demandcurve. b.shifttotheleftoftheaggregate-demandcurve. c.movementtotheleftalongagivenaggregate-demandcurve. d.movementtotherightalongagivenaggregate-demandcurve. 10.Whichofthefollowingwouldhelpexplainwhytheaggregatedemandcurveslopesdownward? a.Anunexpectedlylowpricelevelraisestherealwage,whichcausesfirmstohirefewerworkersandproduceasmallerquantityofgoodsandservices. b.Alowerpricelevelcausesdomesticinterestratestoriseandtherealexchangeratetoappreciate,whichstimulatesspendingonnetexports. c.Ahigherpricelevelincreasesrealwealth,whichstimulatesspendingonconsumption. d.Alowerpricelevelreducestheinterestrate,whichencouragesgreaterspendingoninvestmentgoods.    

  61) From the table above, which gives data about the U.S. labor market in 1933, the labor force participation rate is A) 12 percent. B) 48 percent. C) 60 percent. D) 95 percent. E) 65 percent. 62) From the table above, which gives data about the U.S. labor market in 1933, the unemployment rate is A) 2 percent. B) 18 percent. C) 20 percent. […]

    8.3   Real GDP versus Nominal GDP   1) Nominal GDP is GDP in a given year A) adjusted for inflation. B) adjusted for anticipated inflation. C) valued in the prices of that year. D) valued in the prices of the base year.     2) Real GDP is GDP in a given year A) adjusted only for anticipated inflation. B) adjusted only for […]

    Table 7-3     Saddles Spurs (pairs) Mateo 75 225 Celeste 100 225   Mateo and Celeste produce custom saddles and spurs. Table 7-3 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.   11) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table. A) Mateo has an […]

  11) Which of the following scenarios describes an action that is not rational from an economic point of view? A) After drinking one martini (shaken, not stirred), James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first. B) Eric buys a replacement ticket to the basketball game after he […]