The machine metaphor treats employees as machines. machines are designed in such a way that the parts are replaceable. This is referred to as Option C. Standardization.
This term is used to describe when machines are designed to have parts that are interchangeable and replaceable. This means that any parts that need replacing or updating can be replaced with standard parts that are uniform across all machines.
The machine metaphor treats employees as machines, meaning that they can be standardized in order to optimize efficiency and performance. Standardization involves designing machines to have parts that are replaceable and interchangeable. This has several advantages, such as making it easier to repair machines and ensuring that all machines are of the same quality.
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after the petty cash fund is established, the petty cash account is not debited or credited again unless the amount of the fund is changed. true flase
False; after the petty cash fund is created, it is not necessary to debit or credit the account again unless the fund's size changes.
What occurs after a petty cash fund is created?The corporation has internal control over the money in the fund by designating one person as the fund's manager. to start a small cash fund. The petty cash custodian typically deposits the cash in a small, lockable box once the check is cashed. The fund is now prepared for distribution as required.
Is small change a debit or credit?The petty cash account is a current asset in financial accounting. As a result, the money is recorded as a typical debit balance.
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question 10 imagine that a business tailors its email marketing content to deliver an individualized experience for subscribers. what is this process called?
When a business tailors its email marketing content to deliver an individualized experience for subscribers, this process is called personalization.
WHAT'S PERSONALIZATIONPersonalization is a process of customizing content to provide an individualized experience for subscribers. Through personalization, marketers are able to tailor content in emails to deliver a more relevant message and create an experience tailored to the recipient's needs and interests.
Personalization can include using the recipient's name, geographical location, or other personal data in emails. It can also be used to highlight products and services that may be of interest to the recipient.
Additionally, personalization can include segmenting email campaigns, tailoring content for different customer types, or offering personalized promotions. By leveraging personalization in email marketing, businesses can create a more engaging and relevant experience for their subscribers.
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thirty percent of the total assets of shanahan corporation have been financed through borrowing. the total liabilities of the company are $870,000. what is the amount of owners' equity?
Thirty percent of the total assets of shanahan corporation have been financed through borrowing. the total liabilities of the company are $870,000. The amount of owners' equity is $1,245,000.
If 30% of the total assets have been financed through borrowing, then the remaining 70% must be financed through owners' equity. Use this information to find the total assets of the company:
100% - 30% = 70% (financed through owners' equity)
70% of Total assets = Owners' equity
We know that the total liabilities of the company are $870,000, so we can use this information to solve for owners' equity:
0.7(Total assets) = Owners' equity
Total liabilities + Owners' equity = Total assets
$870,000 + 0.7(Total assets) = Total assets
0.3(Total assets) = $870,000
Total assets = $2,900,000
Owners' equity = 0.7(Total assets) = $1,245,000
Therefore, the amount of owners' equity for Shanahan Corporation is $1,245,000.
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saturn company paid $10,000 on accounts payable. how does this transaction affect the accounting equation of saturn?
Saturn company paid $10,000 on accounts payable. This transaction affects the accounting equation of Saturn in a certain way. Let's see how it affects the accounting equation of Saturn.
The accounting equation of Saturn can be defined as:
Assets = Liabilities + Equity
We can write accounts payable as part of the liabilities of the Saturn company. The payment of $10,000 by the Saturn company would decrease its liabilities since the company has paid off a part of its liability. Therefore, the accounting equation of Saturn would be affected in the following way:
Assets = Liabilities + Equity
$10,000 = -$10,000 + Equity
Here, the value of liabilities has decreased by $10,000 due to the payment made by the company, but the value of the equity is yet unknown. The payment of $10,000 on accounts payable by Saturn company increases the amount of equity that the company has.
This means that the company is now better off than it was before the payment was made.
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in order to compare different investment opportunities with interest rates reported in different manners you should
In order to compare different investment opportunities with interest rates reported in different manners, you should convert all interest rates to a common basis.
What is the conversion of interest rates?
Interest rates can be reported in a variety of ways, including as simple interest, compound interest, and annual percentage yield (APY). It is important to compare different investments with interest rates expressed in different ways to determine which one will be the best fit for you and your financial goals.
The conversion of interest rates is the process of translating interest rates from one format to another so that they can be easily compared. The following are the conversion formulas:
Simple interest: I = P x r x t
Compound interest: A = P(1 + r/n)^(nt)
APY: APY = (1 + r/n)^(n) - 1
In summary, to compare different investment opportunities with interest rates reported in different ways, you must convert all interest rates to a common basis.
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11) Budgetary slack occurs when managers intentionally overstate expected revenues or understate expected expenses. A. True B. False
Budgetary slack occurs when managers intentionally overstate expected revenues or understate expected expenses. This statement is True.
Budgetary slack is the deliberate overestimation or underestimation of the budget by the management to ensure that there is a buffer or slack in the budget to take care of unforeseen events or expenses that may arise.
However, this slack has some demerits that can be counter-productive in the long run. For instance, managers may create budgetary slack in order to ensure that they always perform better than expected by their superiors.
This could lead to wasted resources and inefficient allocation of resources. Apart from the two reasons given, some other reasons that managers may create budgetary slack include:
Protection: This is the case where managers create a cushion in the budget to protect their department from being cut in the future. They do this by making sure that they spend less than what is allocated to them.
Underperformance: Managers who are not sure of their ability to meet the target may create a budgetary slack to cover up for their underperformance.
They do this to make it look like they were not too far from their target if they are unable to meet their goals.
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explain the difference between gambling and investing? what critical difference(s) separates the two actions?
Gambling is different from investing in several ways. Investing is putting money into a financial instrument or a business with the expectation of making a profit or gaining returns in the future.
On the other hand, gambling involves wagering on an event with an uncertain outcome with the expectation of winning money or material goods.There are a few differences between gambling and investing.
What are the difference between gambling and investing?The following are the differences:
Risk level: Investing involves taking on risk to gain returns, but it is not as risky as gambling. Gambling, on the other hand, is a high-risk activity that can result in significant losses. The chances of losing money in gambling are higher than in investing.
Time period: Investing is a long-term strategy..
You invest money with the goal of increasing it over a long period of time. In contrast, gambling is a short-term strategy that is focused on making quick profits. The risk of losing money is higher in gambling because it is a short-term strateg.
Knowledge and expertise: Investing requires some level of knowledge and expertise. You must know what you are investing in and how it works. With gambling, you do not need any knowledge or expertise as it is based on chance and luck.
You cannot control the outcome of the event in gambling, but in investing, you can monitor your investment and make decisions that can improve its performance.
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fiona opened a retirement account that has an annual rate of 2.2%. she is planning on retiring in 20 years. how much must she deposit into that account each year so that she can have a total of $600,000 by the time she retires?
Fiona must deposit $23,905.05 into her retirement account each year in order to have $600,000 by the time she retires in 20 years.
This calculation is based on the following formula:
Future Value = Present Value (1 + Interest Rate)^Number of Years
In this case, the Future Value is $600,000, the Present Value is $0, the Interest Rate is 2.2% (0.022), and the Number of Years is 20. Plugging these values into the formula, we get:
$600,000 = $0 (1 + 0.022)^20
Solving for Present Value, we get:
$0 = $600,000 (1 + 0.022)^-20
Dividing both sides by (1 + 0.022)^-20, we get:
$23,905.05 = $600,000 (1 + 0.022)
Therefore, Fiona must deposit $23,905.05 into her retirement account each year in order to have $600,000 by the time she retires in 20 years.
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organizations carry out human resource planning to reduce hiring of inexperienced workers. increase hiring costs to match industry standards. avoid taking risks. gain an advantage over competitors.
Organizations carry out human resource planning to avoid taking risks. Human resource planning is a critical component of the recruitment process.
Human resource planning involves determining how many employees an organization requires and what kind of employees they require. It determines the right people at the right time, in the right jobs, with the right skills. Human resource planning helps businesses plan for the future by determining how many employees they will require and what kind of employees they will require.
It makes certain that businesses do not hire inexperienced staff, making it a good way to avoid taking risks. This type of planning aids in the decision-making process by helping businesses to be prepared for any changes that may occur. In conclusion, organizations carry out human resource planning to avoid taking risks.
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The first __________ steps of the strategic management process describe the planning that must take place.
The first two steps of the strategic management process describe the planning that must take place.
Strategic management is the comprehensive set of activities and procedures required to handle an organization's strategic direction. It is an ongoing process that assists firms in evaluating and modifying their objectives and plans in response to changes in their internal and external environments.
Strategic management is concerned with defining and achieving an organization's objectives in a continuously evolving environment. A structured and systematic approach is required to accomplish this objective.
In strategic management, planning is an essential aspect. Planning is the first step in the strategic management process, as it lays the groundwork for the remainder of the process. Planning aids in the identification of an organization's objectives, strengths, and limitations, as well as the identification of opportunities and threats that could affect its performance.
As a result, it is necessary to engage in a detailed analysis of an organization's internal and external environments during planning. As a result, the initial two steps of the strategic management process describe the planning that must take place. The subsequent stages include strategy formulation, strategy implementation, and strategy evaluation.
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a detergent reformulated to target bop markets, helping people wash clothes in rivers in india and the philippines?
Detergent reformulated to target bop markets helps people wash clothes in rivers in India and the Philippines. In the market, there are a wide range of detergents. To achieve the target market of the Bottom of the Pyramid (BOP), businesses are re-formulating products that are more appropriate for these customers.
The people in India and the Philippines wash their clothing in the rivers so that they can't afford a washing machine.
Hence, the reformulated detergent is used to wash clothes in rivers. In order to cater to the needs of the consumers, the new detergent is made up of a formulation that is more suited to the environment.
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assume that when the expected inflation rate was 2%, the nominal interest rate was 5%. suppose that the expected inflation rate increased to 4%, all other things equal, predict the new nominal interest rate. explain your reasoning.
The increase in the expected inflation rate would result in an increase in the nominal interest rate, all other things equal, according to the Fisher effect.
What is Fisher Effect?
According to the Fisher effect, the nominal interest rate is equal to the sum of the real interest rate and the expected inflation rate. Mathematically, it can be expressed as:
Nominal interest rate = Real interest rate + Expected inflation rate
Given that the expected inflation rate has increased from 2% to 4%, all other things equal, we can expect the nominal interest rate to increase as well. This is because lenders will demand compensation for the increased inflation risk.
To predict the new nominal interest rate, we can use the same formula and plug in the new expected inflation rate:
Nominal interest rate = Real interest rate + Expected inflation rate
New nominal interest rate = Real interest rate + 4%
However, we don't know the real interest rate, so we cannot determine the exact new nominal interest rate. We can only say that it will be higher than the previous nominal interest rate of 5%.
In summary, the increase in the expected inflation rate would result in an increase in the nominal interest rate, all other things equal, according to the Fisher effect.
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suppose there is an increase in the excise tax imposed on cigarettes, a good for which the demand is relatively inelastic. the short-run burden of the tax increase will be borne primarily by
Suppose there is an increase in the excise tax imposed on cigarettes, a good for which the demand is relatively inelastic. The short-run burden of the tax increase will be borne primarily by the consumer.
An excise tax is a form of indirect tax levied on the sale or use of specific commodities, goods, or services. The most common excise taxes are levied on cigarettes, alcohol, fuel, and gambling.The imposition of an excise tax on a commodity implies an increase in its price.
When the excise tax is imposed on cigarettes, the price of cigarettes rises, and its demand falls. The short-run burden of the tax increase is borne primarily by the consumers because they have to pay more than the equilibrium price for a particular good. If the demand for cigarettes is inelastic, the percentage change in quantity demanded is less than the percentage change in price.
Therefore, the consumers have to pay a higher price to consume cigarettes, and the tax incidence falls mostly on them, not the suppliers. Hence, the answer is the consumer.
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tall structures provide employees with a. increased role ambiguity b. closer supervision c. greater self actualization d. less opportunities for advancement
Tall structures refer to organizational structures that have several levels of hierarchy, with many managers and supervisors. The correct option is c. greater self actualization.
Such structures provide employees with greater opportunities for self-actualization, which is the highest level of Maslow's hierarchy of needs. Employees in tall structures have the potential to be promoted to higher positions, receive recognition for their work, and gain more responsibility, which can lead to a greater sense of accomplishment and personal fulfillment.
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suppose that the price elasticity of supply of wool is 0.25. if the price of wool increases by 20%, the quantity supplied will:
The quantity supplied will increase by 5%.
The formula for price elasticity of supply is:Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)
We know that the % change in price is +20% (an increase of 20%). Therefore, we can find the % change in quantity supplied as follows:
Price Elasticity of Supply = (% change in quantity supplied) / (20%)
0.25 = (% change in quantity supplied) / (20%)
Solving for % change in quantity supplied, we get:
% change in quantity supplied = 0.25 x 20%
% change in quantity supplied = 5%
What is elasticity of supply -The degree to which the amount supplied is responsive to a change in the price of a specific commodity is measured by the price elasticity of supply. It is a crucial factor in figuring out how changes in a product's market price affect the supply of that product.
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why, without some government intervention, might we expect the public goods to be less than what is socially optimal?
Without government intervention, we might expect public goods to be less than socially optimal due to the free-rider problem.
In this scenario, individuals can benefit from the good without having to pay for it, leading to a lack of incentive to pay for the good. This results in under-provision of public goods as individuals will not be willing to contribute to the cost of producing the good.
This is inefficient as the collective benefit of producing the good outweighs the cost of producing it, but the free-rider problem prevents the socially optimal amount of public goods from being provided.
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as a network administrator for your company, you want to set up a network device that manages traffic leaving and entering your network from the outside. which of the following would best meet your requirements?
The best device to manage traffic entering and leaving your network from the outside is a firewall. A firewall helps control, filter, and secure the network traffic, protecting your company's network from external threats.
To set up a firewall as a network administrator, follow these steps:
1. Determine the network requirements: Analyze the security needs and types of traffic that your network will handle to choose the appropriate firewall type.
2. Select a suitable firewall: Based on your requirements, choose either a hardware or software firewall. Hardware firewalls are standalone devices, while software firewalls can be installed on existing servers or computers.
3. Configure the firewall: Define the rules and policies to control the traffic entering and leaving your network. This includes setting up filters, blocking specific IP addresses or ports, and creating exceptions for trusted sources.
4. Install and deploy the firewall: If it's a hardware firewall, connect it between your company's network and the external network (internet). For software firewalls, install it on the designated server or computer.
5. Test and monitor the firewall: Regularly test the firewall's effectiveness and monitor its logs to ensure it's functioning as intended and providing the necessary protection for your network. Update the firewall's rules and policies as needed.
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rachel johnson has net monthly income of $2,500. she has a monthly auto loan payment of $275, a student loan payment of $150, and a credit card minimum payment of $50. what is her debt-payments-to-income ratio?
Rachel Johnson's debt-payments-to-income ratio is 19%. The total amount of debt payments is $475.
Rachel Johnson's debt-payments-to-income ratio can be calculated as follows: Firstly, calculate the total amount of debt payments that Rachel Johnson makes each month. This includes her monthly auto loan payment of $275, student loan payment of $150, and a credit card minimum payment of $50.The total amount of debt payments is $275 + $150 + $50 = $475.
Secondly, divide the total amount of debt payments by Rachel Johnson's net monthly income. The result of this division will give her debt-payments-to-income ratio. The debt-payments-to-income ratio for Rachel Johnson can be calculated as: Debt-payments-to-income ratio = Total amount of debt payments / Net monthly income= $475 / $2,500= 0.19 or 19%. Therefore, Rachel Johnson's debt-payments-to-income ratio is 19%.
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imagine the future where inclusivity and diversity in the workplace are truly valued, promoted, and accepted. explain what that looks like?
In an inclusive and diverse workplace, everyone is accepted regardless of their race, gender, sexual orientation, religion, or ability.
This kind of workplace allows for different perspectives and ideas to be shared and fostered. Everyone is respected and appreciated for their individual differences.
A workplace that values inclusivity and diversity promotes collaboration, creativity, innovation, and mutual respect.
It also provides a safe and supportive environment where employees feel comfortable being their authentic selves.
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you've been working at a retail pharmacy for 5 years. after receiving proper training, which duty do some states allow you to perform?
In addition to learning how to fill prescriptions, pharmacy technician trainees assist pharmacists with administrative duties.
Which inventory duty is under a pharmacy technician's typical purview?The management of the pharmacy's inventory is yet another important duty of pharmacy technicians. Analyzing the availability of pharmaceuticals in the pharmacy, ordering more of those that are running short, and placing orders for speciality medications when patients require them are all part of maintaining the pharmacy's inventory.
Most pharmacy technicians work in which two types of clinical settings?Providing patients with safe and effective pharmaceutical therapy requires the support of pharmacy technicians, who are important members of the healthcare team.
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as specified in title i of the sarbanes-oxley act of 2002, which organization has oversight and enforcement authority over the public company accounting board (pcaob) and its decisions?
The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the Public Company Accounting Board (PCAOB) and its decisions, as specified in Title I of the Sarbanes-Oxley Act of 2002.
The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the Public Company Accounting Board (PCAOB) and its decisions, as specified in Title I of the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act, commonly referred to as "SOX" was passed in 2002 and requires public companies to adhere to various financial regulations to ensure accuracy and transparency in their financial statements. The PCAOB is a non-profit organization created by the Act to oversee the auditing of public companies, and is overseen by the SEC.
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0 / 1 point a buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. the buyer later finds out that the seller is only a co-owner. has a covenant in the warranty deed been violated?
A buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. the buyer later finds out that the seller is only a co-owner. "Yes," the covenant in the warranty deed has been violated.
A warranty deed is a type of deed where the grantor provides a guarantee to the grantee that the title is free and clear of any liens or encumbrances at the time of conveyance.
The buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. The buyer later finds out that the seller is only a co-owner.In this case, a covenant in the warranty deed has been violated. A covenant is a guarantee or promise that the grantor makes to the grantee in a deed.
In a warranty deed, the grantor promises to defend the grantee against any claims made by others to the property. By accepting the warranty deed, the buyer had the right to rely on the seller's guarantee that they were the sole owner of the property.
Therefore, the seller breached the warranty deed's covenant by not being the sole owner of the property.
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poole corporation is a u.s. company with a branch in china. income earned by the chinese branch is taxed in both china, at the corporate income tax rate of 25 percent, and the united states, at the rate of 21 percent. what is this an example of?
This is an example of double taxation, where the same income is taxed twice by two different jurisdictions.
The Poole Corporation, a US-based company, has a branch in China that generates income that is taxed in both China and the US. The Chinese branch is taxed at a rate of 25 percent under the Corporate Income Tax (CIT) law, while the US branch is taxed at a rate of 21 percent under the Tax Cuts and Jobs Act (TCJA) of 2017. This is because the US follows a worldwide system of taxation that taxes the worldwide income of its citizens and residents, regardless of where it is earned. As a result, the income earned by the Chinese branch is taxed in both China and the US, leading to double taxation. There are several ways to avoid double taxation, such as a tax treaty between the two jurisdictions or foreign tax credit.
However, the details of such treaties and credits vary depending on the countries involved and the nature of the income earned. In conclusion, this is an example of double taxation, where the same income is taxed twice by two different jurisdictions, namely China and the US.
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which of the terms are included in the equation for the solow model's aggregate production function?
The Solow model's aggregate production function includes capital, labor, and total factor productivity as terms.
What is the Solow model?The Solow model, also known as the neoclassical growth model, is an economic model that analyzes long-term economic growth in terms of capital accumulation, labor force growth, and technical progress. The Solow model's aggregate production function incorporates capital, labor, and total factor productivity as variables.
The aggregate production function in the Solow model can be represented as follows: Y = F(K, L, A)Where Y represents the output, K represents the capital stock, L represents the labor force, and A represents total factor productivity.
What is the aggregate production function?The aggregate production function is a concept in economics that examines the relationship between the output of an economy and the inputs used in its production. The relationship between the output of an economy and the inputs used in its production is examined in this concept.
The aggregate production function can be used to evaluate the production efficiency of an economy. The aggregate production function is based on the assumption that inputs such as capital and labor are used to create an output that can be used to satisfy the needs and wants of a society.
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if germany, an advanced economy, has an average real gdp growth rate of 2.5%, how long will it take for germany to double its real gdp?
To estimate the time it takes for Germany's real GDP to double with a growth rate of 2.5%, we can use the Rule of 70. The formula is 70 / growth rate = time (in years).
In this case, 70 / 2.5 = 28 years. So, it will take approximately 28 years for Germany to double its real GDP at a 2.5% growth rate
If Germany, an advanced economy, has an average real GDP growth rate of 2.5%, it will take approximately 28 years to double its real GDP.
What is GDP?
Gross Domestic Product (GDP) is the total amount of goods and services created in a country in a specified time period. GDP is a measure of a country's economic activity, as well as its general well-being. GDP is often used as a metric for comparing economic performance across different countries or over time in a given country. Germany's real GDP growth rate is 2.5%, which means that its GDP will grow by 2.5% per year. The formula for calculating the time it takes for a quantity to double when growing at a constant rate is known as the doubling time. The doubling time formula is as follows: Doubling Time = 70/growth rate Using the above formula, we can calculate that Germany will double its real GDP in approximately 28 years. This is because:70/2.5 = 28Therefore, it will take Germany around 28 years to double its real GDP.
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a deferred revenue liability appears on the balance sheet for: multiple choice question. revenue earned before cash is collected cash received at the same time revenue is earned cash received before revenue is earned
A deferred revenue liability appears on the balance sheet for cash received before revenue is earned.
This type of liability arises when a company receives cash before it has earned revenue. In such cases, the cash received is not recognized as revenue until services are delivered or goods are delivered. This deferred revenue liability is recorded to ensure the revenue is recognized in the appropriate period when services or goods are delivered.
To further explain, when a company receives cash before delivering goods or services, it must recognize the liability in its balance sheet as deferred revenue. This is because the cash has been received, but the goods or services have not yet been delivered.
The cash is recorded as a deferred revenue liability until the company has fulfilled its contractual obligation of delivering the goods or services. At this point, the deferred revenue liability is reversed, and the revenue is recorded in the income statement.
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why does the required rate of return for a particular bond change over time? the required rate of return on a bond changes because of a change in interest rates, or a change in the risk of the bond. the change in the required rate of return on a bond is mainly affected by speculations on exchange rate movements. the volatility of the bond market is a key determinant of the change in the required rate of return on a bond.
The required rate of return for a particular bond changes over time due to various reasons, such as changes in interest rates, the risk of the bond, and speculation on exchange rate movements. The volatility of the bond market is another determinant of the change in the required rate of return on a bond.
What is the required rate of return? The required rate of return is the minimum rate of return that investors expect to receive from an investment. It is determined by a variety of factors, including the investor's risk tolerance, the riskiness of the investment, and the expected return on similar investments in the market.
Why does the required rate of return change for a particular bond?The required rate of return on a bond changes over time due to various factors, including the following:Interest rates: The required rate of return on a bond is inversely proportional to interest rates. As interest rates rise, the required rate of return on a bond increases, making the bond less attractive to investors.
Risk of the bond: The required rate of return on a bond increases as the risk of the bond increases. A bond with a higher risk of default will require a higher rate of return to compensate investors for the additional risk. Exchange rate movements: Speculation on exchange rate movements can cause the required rate of return on a bond to change.
If investors expect a currency to weaken, they may require a higher rate of return to compensate for the potential loss. Volatility of the bond market: The volatility of the bond market is another determinant of the change in the required rate of return on a bond. If bond prices are fluctuating widely, investors may demand a higher rate of return to compensate for the increased risk.
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which of the following is not a flow typically found in a supply chain? group of answer choices physical information monetary risk
Monetary risk is not a typical flow in a supply chain. The three main flows in a supply chain are physical, information, and financial.
The three main flows typically found in a supply chain are:
Physical flow: the movement of goods and materials from suppliers to manufacturers to distributors and finally to customers.
Information flow: the sharing of information among the various parties in the supply chain to ensure that everyone has the information they need to make informed decisions.
Financial flow: the transfer of payments from customers to suppliers, and from suppliers to manufacturers and distributors, to ensure that everyone is paid for their goods and services.
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each of the two models of short-run aggregate supply is based on some market imperfection. in the sticky-price model, the imperfection is that:
Each of the two models of short-run aggregate supply is based on some market imperfection. In the sticky-price model,, the imperfection is that prices do not adjust instantly to changes in demand, supply, or other factors.
Sticky price model : The sticky-price model is a model of macroeconomic theory that assumes that prices do not adjust instantly to changes in demand, supply, or other factors. This makes it a particular type of Keynesian model since Keynesian economics is based on the idea that prices do not adjust quickly to changes in the macroeconomic environment.
Therefore, the imperfection in the sticky-price model is that prices do not adjust instantly to changes in demand, supply, or other factors. In other words, the model assumes that the economy is characterized by price stickiness or the inability of prices to respond immediately to changes in economic conditions. This leads to a situation where the economy is not always at full employment and output and there are fluctuations in economic activity due to shifts in demand and supply.
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a change in depreciation method is accounted for by multiple choice question. a. retrospectively restating the prior year financial statement b. prospectively applying the new method c. adjusting the beginning balance of retained earnings and future balances
A change in the depreciation method is accounted for by prospectively applying the new method. So, the correct option is B.
This multiple-choice question is asking how a change in depreciation method is accounted for.
The options are:
a. Retrospectively restating the prior year's financial statement
b. Prospectively applying the new method
c. Adjusting the beginning balance of retained earnings and future balances
When a company changes its depreciation method, the accounting standard requires that it should prospectively apply the new method, i.e., from the date of the change onwards. It doesn't require the restatement of prior year financial statements. As a result of the change, future depreciation will be computed based on the new method, but the asset's book value won't be changed. Hence, option b is the correct answer.
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