If the growth rate of velocity is -2 percent, the growth rate of money supply is 7 percent, and the inflation rate is 3 percent, what is the growth rate of real output?

A. ?1 percent
B. ?2 percent
C. ?3 percent
D. ?4 percent


Answer: B

Business

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Which of the following would an auditor most likely use in determining the auditor's overall materiality?

A. The results of the internal control questionnaire. B. The entity's annualized interim (i.e., quarterly) financial statements. C. The contents of the management representation letter. D. The anticipated sample size for planned substantive procedures.

Business

Sam Jones, controller of Mitnikco, spends three days researching the accounting statements to find loopholes in the "rules" and to make a case for recognizing revenue earlier, rather than in later years. In the end, Sam and the other members of management determine that they will reduce the company's deferred revenue accounts and begin accounting for all revenues as agreements are signed. What

are the motivations of Mitnikco management based solely on the information above? a. Pressures. b. Opportunity. c. Rationalization. d. Skepticism.

Business

In general, companies are placing less emphasis on internal marketing than they have in the past

Indicate whether the statement is true or false

Business

On January 2, Froxel Company purchased 10,000 shares of Sandia Corp. common stock at $19 per share plus a $3,000 commission. This represents 30% of Sandia Corp.'s outstanding stock. On August 6, Sandia Corp. declared and paid cash dividends of $1.75 per share, and on December 31 it reported net income of $150,000. Prepare the necessary entries for Froxel to account for these transactions and events.

What will be an ideal response?

Business