At an inside sales counter an average of 20 customers enter the system for service each hour, it takes about five minutes to serve each customer. The manager has been staffing the counter with three sales associates. She wonders if she should reduce the staffing level to two. What is the probability that more than two people enter the system in a five-minute period? What about more than 4?

Suppose we would like to determine if the typical amount spent per customer for dinner at a new restaurant in town is more than $20.00. A sample of 49 customers over a three-week period was randomly selected and the average amount spent was $22.60. Assume that the standard deviation is known to be $2.50. Using a 0.02 level of significance, would we conclude the typical amount spent per customer is more than $20.00?

Hi Tech World in UAE provides advanced technological solutions to its clients. In order to satisfy and delight their customers, they believe in hiring the best talent from around the globe. Their workforce consist of more than sixty percent expatriates. The compensation manager needs information on the various suitable approaches for setting the expatriate employees’ base pay.

Discuss briefly the three approaches available for him to set the expatriate employees’ base pay.

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,800 per month for the next three years and then $800 per month for two years after that. If the bank is charging customers 9.25 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

A drug store was going to open on the corner of a busy street downtown in the next three months. Before it opened its doors it needed to secure merchandise to sell to customers. It determined that it would need to stock its shelves with toiletries on a regular basis. The store had the storage capacity to hold excess inventory. When the drug store approaches a company that supplies toiletries, which type of discount would be a fitting discount for the store to use?

2. If a company uses the direct write off method of accounting for bad debts
   1. It will record bad debt expense only when an account is determined to be uncollected
   2. It will establish an estimate for the allowance for doubtful debts
   3. It will reduce the accounts receivable account at the end of the accounting period for uncollected accounts
   4. When an account is written off, total assets will stay the same.
   5. None of the above

3. Cost behaviour refers to:
   1. Manufacturing overheads
   2. Costs in a business that remain fixed when production volume increases
   3. How costs react to changes in production volume or other levels of activity
   4. Costs that stay the same per unit.
   5. Only costs that fall into the relevant range for a business.

4. What should a company do to improve its accounts receivable turnover ratio
   1. Give customers credit terms of 2/10, n/30 rather then 1/10, n/30
   2. Reduce the number of employees working in the credit department
   3. Increase its sales force
   4. Lower its selling prices
   5. None of the above

5. Which of the following effects on the accounting equation is not correct as a result of a journal entry?
   1. Decrease shareholders' equity and decrease an asset.
   2. Increase an asset and decrease an asset.
   3. Increase shareholders' equity and increase an asset.
   4. Increase an asset and decrease a liability.
   5. All of the above are not possible

6. Assume that in one accounting period liabilities increased by $8,000, assets increased by $55,000, and net profit was $29,000. The owner must therefore have:
   1. Contributed $18,000
   2. Received dividend $18,000
   3. Contributed $12,000
   4. Received dividend $12,000
   5. Cannot be calculated from the above limited information.

7. The Allowance for Bad Debts represents:
   1. Bad debt losses incurred in the current period
   2. The amount of uncollected accounts written off to date
   3. The difference between total sales made on credit and the amount collected from those credit sales
   4. The difference between the recorded value of accounts receivable and the net realisable value of accounts receivable****
   5. Fees paid to debt collection agencies

8. Two basic accounting principles determine when revenues and expenses are to be recorded under accrual basis accounting. They are:
   1. Cost and matching principles.
   2. Prudence principle.
   3. Relevance and reliability principles.
   4. Revenue recognition and matching principles.
   5. Revenue recognition and measurement principles.

9. On the last day of its financial year, Nelson Pty Ltd paid $2,150 cash for a one-year insurance policy. What is the appropriate journal entry ignoring GST, assuming the insurance policy becomes effective (starts) on the first day of the next financial year (i.e. the next day)?
   1. Unearned Insurance Revenue                 2,150

Cash 2,150

1. 2. Cash                                                     2,150

Prepaid Insurance    2,150

1. 3. Prepaid Insurance                                  2,150

Cash                                                          2,150

1. 4. Prepaid Insurance                                  2,150

Insurance Expense                                      2,150

1. 5. Cash                                                     2,150

Unearned Insurance Revenue                      2,150

10. Carin’s Corporation purchased inventory for $4,000. Due to an error in recording the journal entry for this transaction, the inventory account was debited for only $400 while accounts payable was credited for $4,000. During which phase of the accounting cycle would this error be discovered?
    1. Recording the transaction in the journal.
    2. Preparation of the financial statements.
    3. Analysis of each transaction.
    4. Preparation of the trial balance.
    5. Preparation of the consolidated analysis.

A. Assume that a product has an elastic demand. Explain what will occur to the firm’s total revenue if the price of the product is increased.

B. List and explain three (3) factors that could impact price elasticity of demand for a product.

C. What is income elasticity? How is it used by economists?

D. What is cross elasticity of demand? How is it used by economists?

Payroll. Canada. Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization.

List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

A manufacturer of automotive gaskets has two plants, A and B. Plant A manufactures 65 % of the gaskets and plant B manufactures 35 %. Because of a batch of faulty material from a company supplying both plants, 3% of the gaskets are of sub-standard quality from plant A and 5% are sub-standard from plant B. Despite your internal quality control procedures, you still had a sub-standard gasket returned from one of your customers. What is the probability it came from plant B? i) Illustrate your answer with an event tree and ii) show how to calculate the value using Bayes Equation. b) Using Bayes Theorem, solve the following two problems: 1. A couple has three children, the eldest of which is a boy. What is the probability that they have three boys? 2. A couple has three children, one of which is a boy. What is the probability that they have three boys?