Define each word:

1. Tax-exempt bond.

2. General obligation bond.

3. Revenue bond.

4. Industrial development bond.

5. Tax anticipation note.

6. Equivalent taxable yield.

1. The following partial information is available for company Z:

Sales $5000

Cost of goods sold $500

Salary expense $300

Unearned revenue (customer advance ) $200

Interest income $100

Gross profit would be:

The final stage in the accounting cycle may involve doing which of the following? (check all that apply)

crediting expense accounts

closing out temporary accounts

debiting revenue accounts

closing out permanent accounts

Calculation

On 1 August 2019 of the current year, Jamie Simmons received RM5,400 for legal services to be performed evenly throughout the next six months. Calculate the Unearned Revenue (Legal Fees) on 31 December 2019.

Sales Tax Payable is a(n):

Multiple Choice

• asset account with a normal debit balance.

• liability account with a normal debit balance.

• liability account with a normal credit balance.

• revenue account with a normal credit balance.

Explain why governments use fund accounting.

Analyze the importance of budget and control of government resources.

Explain how the GASB revenue and expense recognition model may improve the usefulness of the information governments report to the public.

Explain the purpose and nature (or characteristics) of the following accounts:

a) Appropriations
b) Encumbrances
c) Estimated Expenditures
d) Expenditures
e) Estimated Revenues
f) Revenue
g) Budgetary Fund Balance
h) Vouchers Payable

ELASICITY

What is meant by the terms price elasticity, cross-price elasticity and income elasticity? Explain why demand elasticity is the basis of airline pricing and revenue maximization, and why elasticity changes at different price points.

Assume that in a business meeting your colleague says that price should always be lowered in order to increase total revenue. How would you respond, knowing that this business sells products that have different price elasticities?