For each of the following cases use linear demand curves and graph and explain how total revenue changes. Label (q1, p1) and (q2, p2). Label, note and explain the opposing effects on revenue due to the changes in price and quantity.
A. Elasticity >1, price increases
B. Elasticity >1, price decreases
C. Elasticity <1, price increases
D. Elasticity <1, price decreases
In: Economics
Application Questions: 2. The elasticity for a Big Mac =-2, while the elasticity for all hamburgers =-.7 A) Why is the demand for Big Macs more elastic than demand for hamburgers? B) McDonalds decides to increase the price, does their total revenue increase or decrease? C) What if all hamburger chains got together and collectively decided to increase their prices, would they increase or decrease total revenue?
In: Economics
Money matters -- and it really matters in the nonprofit sector. Yet a proper system of accessing capital does not exist in the nonprofit sector the way it does in the private sector. Through a combination of philanthropy, government support and/or contracts, and if applicable, earned revenue, nonprofits cobble together revenue to survive and deliver services.
In: Economics
3. What is the relationship between cash flows from operations and Income for the year of the statement?
4. Explain the difference between the direct method and the indirect method of disclosing cash flows from operations.
5. Do you believe that cash inflows and outflows associated with nonoperating items such as interest expense, interest revenue, and dividend revenue, should be separated from operating cash flows? Explain.
In: Accounting
Many global companies have evolved to or are evolving to, a ‘stateless corporation’. The US and most OECD countries have legal authority to tax a domiciled corporation on its worldwide revenue. However, as of 2019, most countries tax these corporations based on territorial tax (revenue within that country's borders). However, the US continues to tax these corporations based on global revenues. Is this a good choice for the US? Why or why not?.
In: Economics
Many global companies have evolved to or are evolving to, a ‘stateless corporation’. The US and most OECD countries have legal authority to tax a domiciled corporation on its worldwide revenue. However, as of 2019, most countries tax these corporations based on territorial tax (revenue within that country's borders). However, the US continues to tax these corporations based on global revenues. Is this a good choice for the US? Why or why not?.
In: Economics
SQL
Consider the following business question and determine which of the following should be included in a fact/dimension table of the star schema
What was the revenue of the McDonald’s in Russia and France in 2017?
A. Russia
B. France
C. Revenue
D. Countries
Answer for both Fact and Dimension tables.
Please determine from the question which is part of the fact, and which is part of the dimension. There should be two answers.
In: Computer Science
Google with its 20,164 employees generates annual revenue per employee of $1,093,892 and annual profit per employee of $214,768. Convergys Corp. (CVG) 75,000 employees, on the other hand, is only able to generate annual revenue per employee of $38,855 and an annual profit per employee of -$1,344. Discuss the implications of the difference in RPE of Google and CVG. What can be the possible reasons for this difference?
In: Operations Management
INSTRUCTIONS: Enter the following transactions for Global Bike Inc. (GBI) using the General Ledger module.
NOTE: Use the Chart of Accounts to look up account codes and any required Cost Center Codes.
Exercise 1
Purchase Invoice ###-A1GL: Purchased inventory – operating supplies from MKM Inc. for $10,567.99 on credit.
Document No.
Exercise 2
Bank Loan ###-A2GL: Received an additional $30,000 loan from the bank. Use the 300### account set up for Bank Loan Payable.
Document No.
Exercise 3
Sales Invoice ###-A3GL: Issued an invoice to customer Extreme Bikes for $3,200 for services provided. Note: Revenue for services (repairs and rentals) is recorded to account 650000 – Customer Service Revenue.
Document No.
Exercise 4
Sales Invoice ###-A4GL: Issued an invoice to Jimmy Limited for $21,000 for bicycle accessories. Note: Revenue for the sale of physical items (accessories, parts, whole bikes) is recorded to account 600000 – Sales Revenue.
Document No.
Exercise 5
Memo ###-A5GL: The purchase invoice from Exercise 1 was entered incorrectly. It should have been entered for $10,567. (Requires 2 steps 1. reverse exercise 1 and then 2. properly record the transaction. Use ###-A5GL as the reference for the correction.
Document No. for reversal :
Document No. for correcting entry :
Exercise 6
Sales Invoice ###-A6GL: Issued an invoice to Jimmy Limited for $7,500 for bike parts. Note: Parts are physical items (products) so revenue is recorded to account 600000 – Sales Revenue.
Document No.
Exercise 7
Purchase Invoice ###-A7GL: Received an invoice from MKM Inc. for Inventory – operating supplies for $5,300
Document No.
Exercise 8
Cash Sales Invoice ### A8GL: Received $1,500 cash from a customer for bike rentals. Note: Revenue for services (repairs and rentals) is recorded to account 650000 – Customer Service Revenue.
Document No.
Exercise 9
Cheque Copy ###-A9GL: Issued a cheque for $10,567 to pay the MKM Inc invoice from exercise 5.
Document No.
Exercise 10
Cash Receipt ###-A10GL: Received $21,000 from customer Jimmy Limited for the Sales Invoice in exercise 4.
Document No.
Exercise 11
Bank Debit Memo ###-A11GL: Received a memo from the Bank that $2,000 was automatically deducted from the bank account for rent.
Document No.
Exercise 12
Memo ###-A12GL: $8,000 was transferred from the Bank Account to the Alternate Bank Account.
Document No.
Exercise 13
Download the Audit Journal (i.e., General Journal) to Excel for these transactions.
In: Accounting
1. Which item is not correct with respect to the treatment of sustainable and transitory items and a company's income statement?
Financial reporting assists statement users in forecasting future cash flows by providing an income statement format that segregates components of net income.
Income statements prepared in accordance with GAAP differentiate between income components that are believed to be sustainable and those that are transitory.
The income statement isolates a key figure called “income from sustainable operations.”
Transitory items are disclosed separately on the income statement so that statement users can place less weight on these earnings components when forecasting future profitability.
2. Which of the following statements is correct regarding revenue and expense accounts?
Multiple Choice
These are really owners’ equity accounts.
These are really contributed capital accounts.
They have no impact on the balance sheet.
These are balance sheet accounts.
3. T-account analysis can be used to gain insights into why accrual basis earnings and cash basis earnings differ and to:
Multiple Choice
journalize future transactions.
reconstruct transactions that have occurred during a given reporting period.
post transactions that have occurred during a given reporting period.
determine the current market price of common stock.
4. Income statements are classified into sections to:
Multiple Choice
separate revenue recognized from deferred revenue.
distinguish between sustainable and transitory income.
separate real income from book income.
distinguish between book income and taxable income.
5.Revenue is recognized when:
Multiple Choice
a contract is signed by both parties.
the seller completes performance required by an agreement.
the buyer completes payment required under an agreement.
the buyer accepts delivery and completes required payments.
7.
Earnings management can occur through a variety of manipulations including:
Multiple Choice
Manipulating accrual estimates to impact expenses.
Misapplications of GAAP deemed immaterial on an account by account basis.
Big bath restructuring charges.
All of these answer choices are correct.
8.
Adjusting entries are used in all but which of the following situations?
Multiple Choice
Prepayments.
Deferred Revenue and Expenses.
Accrued Revenue and Expenses.
Prepayments, Deferred Revenue, Accrued Expenses, Accrued Revenue.
9.
Which one of the following is part of other comprehensive income (OCI)?
Multiple Choice
Unrealized gains resulting from remeasuring foreign currency financial statements of majority-owned subsidiaries to U.S. dollar amounts.
Gains on sales of treasury stock.
Receipt of land donated by a governmental unit.
Sale of common stock above par.
In: Accounting