At the time the transaction occurred, which of the following would result in an increase in net income under the accrual basis of accounting, but would not result in an increase in net income under cash basis accounting?
A) purchase of supplies for cash
B) performance of services on account
C) use of supplies purchased earlier
D) receipt of cash for services that were performed earlier on account
B
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Consider Figure 5.1. Suppose the rest of the world voluntarily agrees to reduce steel shipments to Mexico vis-a-vis an export quota equal to 2 tons. Assuming Mexican importers behave as monopoly buyers while foreign exporters behave as competitive sellers, the overall welfare loss of the quota to Mexico is
a. $200. b. $400. c. $600. d. $800.
Internal reference prices are formed from advertising, past purchasing experience, and so on, and are often called ________ because the customer considers them the actual prices of the products in a category
A) competitive prices B) perceived prices C) price points D) ceiling prices
Answer the following statements true (T) or false (F)
1. As early as the 1940's, unionists argued that because workers perform their job tasks over and over they often have good ideas for improving productivity, increasing quality, and lowering costs. They predicted that management's failure to capitalize on this would ultimately restrict flexibility and have a negative impact on efficiency. 2. Like the U.S., other industrialized countries such as Germany and Japan have recently begun to recognize the importance of worker involvement in business decision-making. 3. Quality circles, gainsharing programs, and other types of joint labor-management committees focus largely on changing the way work has been organized under scientific management principles. 4. Lean production emphasizes just-in-time deliveries, smooth flow of materials, teamwork and continuous process improvement. 5. Whether high performance work practices result in improvements in company profitability is in part a function of how extensively they are incorporated into the organization: the greater their use, the greater the profits.
Newot Texin, a pharmaceutical company, introduces a new pain relieving drug in the market. It borrows $1 million from Esterotia, a private bank, to market the drug. In return, Esterotia allows Newot Texin to return the full amount with interest in fixed amounts of $200,000 every six months. Which of the following sources of long-term funds is being used by Newot Texin in the given scenario?
A. A term loan B. A revolving credit agreement C. Commercial paper D. Trade credit