When one party to a transaction knows more than another, the situation is one of

A. rational expectations.
B. imperfect credibility.
C. opportunity cost.
D. asymmetric information.


Answer: D

Business

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Based on the information in the following income statement and balance sheet for Monterey Corporation, determine the cash flows from operating activities using the direct method.Monterey CorporationIncome StatementFor Year Ended December 31, Year 2Sales?  $ 504,000Cost of goods sold  327,600 ?Depreciation  42,000 ?Other operating expenses  125,500   (495,100)Other gains (losses):??  Gain on sale of equipment?    7,200Income before taxes?  16,100Income tax expense?    (4,800)Net income?  $ 11,300Monterey CorporationBalance SheetsAt December 31?  Year 2Year 1Cash  $64,650    $55,800Accounts receivable  21,000  29,000Inventory  58,000  52,100  Equipment  240,000  222,000  Accumulated depreciation  (106,000) 

(96,000)Total assets $277,650 $262,900??? Liabilities:??  Accounts payable  $28,400  $23,700  Income taxes payable    1,050  1,200  Total liabilities  $29,450  $24,900Equity:??  Common stock $106,000 $106,000  Paid-in Capital in Excess of Par  18,000  18,000  Retained earnings  124,200  114,000  Total equity $248,200 $238,000Total liabilities and equity $277,650 $262,900 What will be an ideal response?

Business

What kind of problems does the global nature of e-commerce pose?

What will be an ideal response?

Business

Security concerns that result from the use of virtualized systems include ______

A. guest OS isolation B. guest OS monitoring by the hypervisor C. virtualized environment security D. all of the above

Business

What are statutory and voluntary deductions?

Business