Assess the economic situation today. Is the administration more concerned with reducing unemployment or inflation? Does the Fed have a similar opinion? If not, is the administration publicly criticizing the Fed? Is the Fed publicly criticizing the administration? Discuss.

Conduct the hypothesis test and provide the test​ statistic, critical value, and​ P-value, and state the conclusion. A person randomly selected 100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a 0.10 significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first​ category, but do the results support that​ expectation?

Cents portion of check: ​0-24, ​25-49, ​50-74, ​75-99

Number: 32, 24, 17, 27

Which of the following statements is true? [1 mark]

1. Closing entries are required at the end of each accounting period to close all ledger accounts

2. Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.  

3. Asset, liability, and revenue accounts are not closed while a company continues in business.

4. The income summary account is used during the adjusting process to hold revenue, expenses, and withdrawals, before the net difference is added to or subtracted from the owner’s capital.

5. The 4 steps in closing are, close; (1) credit balances in revenue accounts to Income Summary; (2) credit balances in expense accounts to Income Summary; (3) Income Summary to Owner's Capital; (4) Withdrawals to Owner's Capital.

Which of the following is true? [1 mark]

1. Matching principle requires expenses to be recorded in the same accounting period as they are incurred.
2. Closing entries are necessary so that owner's capital will begin each period with a zero balance.
3. When total debits equal the total credits in a trial balance it guarantees no errors were made.
4. The last 4 steps in the accounting cycle include analyzing, journalizing, posting, and preparing a trial balance.
5. Temporary accounts accumulate financial data related to one period. Temporary accounts include revenue, expenses, accumulated depreciation, and withdrawals.

. Which of the following statements is false? [1 mark]

1. The cash basis of accounting recognizes revenues when cash is received from customers.
2. The accrual basis of accounting recognizes expenses when they are incurred.
3. The cash basis of accounting recognizes expenses when cash is paid.
4. The accrual basis of accounting recognizes revenue when it is earned.
5. The cash basis of accounting requires adjustments to match expenses with revenues.

Question 5.
Use the following total-product schedule for a resource to answer the next three questions.
Assume that the quantities of other resources the firm employs remain constant.
Units of
resource
Total
product
1 12
2 21
3 27
4 32
5 36
a. If the firm’s product sells for a constant $2 per unit, what is the marginal revenue
product of the third unit of the resource?
b. If the firm’s product sells for a constant $2 per unit and the price of this resource is $8,
how many units of the resource will the firm employ?
c. If the firm can sell 12 units of output at a price of $1.00 per unit and 21 units of output
at a price of $0.80 per unit, what is the marginal revenue product of the second unit
of the resource?

AP2-5

Larry has been the chief financial officer (CFO) of Maxima Auto Service for the past 10 years. The company has reported profits each year it's been in business. However, this year has been a tough one. Increased competition and the rising costs of labor have reduced the company's profits. On December 30, Larry informs Robert, the company's president and Larry's closest friend for the past 10 years, that it looks like the company will report a net loss (total expenses will be greater than total revenues) of about $50,000 this year.

The next day, December 31, while Larry is preparing the year-end reports, Robert stops by Larry's office to tell him that an additional $75,000 of revenues needs to be reported and that the company can now report a profit. When Larry asks about the source of the $75,000, Robert tells lam, "Earlier in the month some customers paid for auto services with cash, and with this cash I bought additional assets for the company. That's why the $75,000 never showed up in the bank statement. I just forgot to tell you about this earlier." When Larry asks for more specifics about these transactions, Robert mumbles, "I can't recall where I placed the customer sales invoices or the purchase receipts for the assets, but don't worry; I know they're here somewhere. We've been friends for a lot of years and you can trust me. Now, let's hurry and finish those reports and I'll treat you to dinner tonight at the restaurant of your choice."

Required

1. Understand the reporting effect: What effect does reporting additional revenue have on reported profit?

2. Specify the options: If the additional revenue is not reported, do both Robert and Larry potentially lose benefits?

3. Identify the impact: Does reporting the additional revenue strengthen the company's financial appearance to those outside the company?

4. Make a decision: Should Larry report the additional revenue without source documents?

The merger of steel makers Arcelor and Mittal in 2006 produced the world's largest steel company, with 330,000 employees and forecast earnings of $15.6 billion. Arcelor had fought a long defensive battle against the hostile takeover, valued at around $35 billion. Arcelor was incorporated in Luxembourg and had adopted European governance architecture, with a supervisory board, including employee representatives, and a management board.   
Mittal was a family company with a tradition of growth through acquisition, in which the founding family still played the dominant role. Arcelor had criticised Mittal for its inadequate controls, because it had many Mittal family members and few independent directors on its board.
In the merged Arcelor Mittal company, the Mittal family retained 43.5% of the voting equity. The new board was 18 strong, with chairman Joseph Kinsch, who was previously chairman of Arcelor, president Lakshmi Mittal, nine independent directors, plus employee representative directors and nominee directors to reflect the interests of significant shareholders.
The General Management Board was chaired by the CEO Roland Junck, with the son of Lakshmi Mittal, Aditya Mittal as CFO.

Questions
1. Assess the post-merger board structure and discuss the pros and cons before reading the Financial Times article. 2

Bramble Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,540 per acre. At the time of purchase, the land without the timber was valued at $440 per acre. In 2007, Bramble built fire lanes and roads, with a life of 30 years, at a cost of $92,400. Every year, Bramble sprays to prevent disease at a cost of $3,300 per year and spends $7,700 to maintain the fire lanes and roads. During 2008, Bramble selectively logged and sold 770,000 board feet of timber, of the estimated 3,850,000 board feet. In 2009, Bramble planted new seedlings to replace the trees cut at a cost of $110,000.

A. Determine the depreciation expense and the cost of timber sold related to depletion for 2008. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)

B. Bramble has not logged since 2008. If Bramble logged and sold 990,000 board feet of timber in 2019, when the timber cruise (appraiser) estimated 5,500,000 board feet, determine the cost of timber sold related to depletion for 2019. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)

Smith Company started business on September 1. Smith had credit sales of $200,000 in September and $300,000 in October. The pattern for collection of cash from customers is expected to be 40% in the month of sale (subject to a 2% cash discount), 50% in the month following the month of sale, and 7% in the second month following the month of sale, with 3% uncollectible. How much cash did Smith Company receive from customers on account during October?.

Smith Company started business on September 1. Smith had credit sales of $200,000 in September

and $300,000 in October. The pattern for collection of cash from customers is expected to be 40%

in the month of sale (subject to a 2% cash discount), 50% in the month following the month of sale,

and 7% in the second month following the month of sale, with 3% uncollectible. How much cash

did Smith Company receive from customers on account during October?