Please answer the following questions.

1. q1: What event started WW1 in what year?
2. q2: What were the two groups of alliances formed during the war?
3. q3: Which country spent the most money on the war?
4. q4: In what year did the war end and with which treaty?
5. q5: What was the war guilt clause?
6. Which group of alliances won the war?
7. Which group of alliances won the war?

Fed Officials Step Up Calls for More Government Spending to Speed Economic Recovery

Summary: Federal Reserve officials stepped up calls for additional government spending to avoid an uneven and protracted economic recovery from the coronavirus pandemic. The recovery would move along faster “if there is support coming both from Congress and from the Fed,” Chairman Jerome Powell said during the second of three days of congressional testimony Wednesday. The Fed committed last week to a much longer interval of low rates than it did initially after the 2008 financial crisis. Officials said they would hold short-term rates near zero until inflation reaches 2% and is likely to stay somewhat above that level, something most officials don’t see happening in the next three years. But Mr. Powell and his colleagues said Congress and the White House, more than the Fed, had the power to hasten a faster recovery.

Questions:

1. What steps has the Federal Reserve taken during the past several months to counter the impact of Covid-19?
2. Why are Fed officials concerned that discussions in Congress to pass additional relief efforts have stalled?
3. Why are Democrats and Republicans in Congress at a stalemate?     
4. What criticisms have been directed at the Fed's efforts and, given what you know from the article and the current macroeconomic environment, do you agree?
5. What has been the Fed's response to such criticism? Given what you know from the article and the current macroeconomic environment, do you agree with their perspective?

During the last meeting of your management team, the planning officer presented a proposal for diversifying. It was to acquire a rental car agency at the smallest city you are currently serving. While there is a car rental agency located downtown at a service station and a locally owned taxi service serves the airport, there is no car rental agency serving the airport. Although the total passengers boarded daily there is modest, quite a few people do inquire about the availability of rental cars. Your local station manager is very excited about the prospects of building up a reasonable rental business there and wants the opportunity to try it.

A firm that has been very successful at franchising such operations is interested in supporting your efforts. This firm would sublease autos to you as needed and provide insurance coverage. (Insurance is difficult to obtain for small operations such as this.) The firm would guarantee the availability of enough autos to handle 90% of the business 90% of the time; in other words, it is not profitable to keep an expensive inventory for the few times of high demand.

The start-up costs would be $200,000 allocated over eight quarters. This would pay for the cost of the initial franchise fee, advertising, paving of a small storage lot, and rebuilding your ticket counter to include space for the retail business. Extensive cost and revenue studies have been made. They indicate a high probability of success but conflicting data on how successful. Starting losses of from $3,000 to $10,000 per quarter could be expected the first one or two quarters. After that, there is a 10% probability of just breaking even, a 60% probability of making $60,000 per quarter, and 30% probability of making between $60,000 and $100,000 per quarter.

The director of marketing focused on the crux of the matter as she noted, “After making a cost-benefit analysis of both propositions, it will boil down to the question, ‘What business are we in, or what businesses should we be in?’ It is an important strategic question. Personally, I think we should be in the transportation business and this acquisition would fit that mission.”

The financial vice president responded with a worried look, “Yes, but it will take financial resources away from our passenger airline business. Are we strong enough to take on something new?”

Another staff member responded, “A competitor may choose to pick up the franchise if we don't. Perhaps we should consider it as a defensive strategy and not necessarily one in which we plan to make a profit.”

The president added, “Does this fit with our strategic plans?”

option:

1. Begin the auto rental business.

2. Do not begin the auto rental business.

Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 25,000 computer desks at a cost of $82 each and sold 10,000 of them to Schedule for $94 each. Schedule sold 7,000 of the desks to unaffiliated companies for $130 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $140 each. Both companies use perpetual inventory systems.

Required:
a. What amounts of cost of goods sold did Planner and Schedule record in 20X3?

b. What amount of cost of goods sold must be reported in the consolidated income statement for 20X3? (Do not round intermediate calculations.)

c. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X3, relating to the intercorporate sale of inventory. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

d. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X4, relating to the intercorporate sale of inventory. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

e. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X4, relating to the intercorporate sale of inventory if the sales were upstream. Assume that Schedule produced the computer desks at a cost of $82 each and sold 10,000 desks to Planner for $94 each in 20X3, with Planner selling 7,000 desks to unaffiliated companies in 20X3 and the remaining 3,000 in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

1. Because of the small size of the company and the limited number of accounting personnel, Dry Goods Wholesale Company Ltd. initially records all acquisitions of goods and services at the time that cash disbursements are made. At the end of each quarter when financial statements for internal purposes are prepared, accounts payable are recorded by adjusting journal entries. The entries are reversed at the beginning of the subsequent period. Except for the lack of a purchasing system, the controls over acquisitions are excellent for a small company. (There are adequate prenumbered documents for all receipt of goods, proper approvals, and adequate internal verification wherever possible.)

   Before the auditor arrives for the year-end audit, the bookkeeper prepares adjusting entries to record the accounts payable as of the balance sheet date. The aged trial balance is listed as of the year-end, and a manual schedule is prepared adding the amounts that were entered in the following month. Thus, the accounts payable balance equals the aged trial balance plus the following month’s journal entry for invoices received after the year-end. All vendors’ invoices supporting the journal entry are retained in a separate file for the auditor’s use.

   In the current year, the accounts payable balance has increased dramatically because of a severe cash shortage. (The cash shortage apparently arose from expansion of inventory and facilities rather than lack of sales.) Many accounts have remained unpaid for several months, and the client is getting pressure from several vendors to pay the bills. Since the company had a relatively profitable year, management is anxious to complete the audit as early as possible so that the audited statements can be used to obtain a larger bank loan.

Required

1. Explain how the lack of a complete aged accounts payable trial balance will affect the auditor’s tests of controls for acquisitions and cash disbursements.

2. What should the auditor use as a sampling unit in performing tests of acquisitions?

3. Assume that no misstatements are discovered in the auditor’s tests of controls for acquisitions and cash disbursements. How will that assumption affect the verification of accounts payable?

4. Discuss the reasonableness of the client’s request for an early completion of the audit and the implications of the request from the auditor’s point of view.

5. List the audit procedures that should be performed in the year-end audit of accounts payable to meet the cutoff objective.

6. State your opinion as to whether it is possible to conduct an adequate audit in these circumstances.

Using the Aggregate Demand-Aggregate Supply graphical analysis, show what happens in the short and long-run if the fiscal policy authorities increase government spending. Start your analysis in long-run equilibrium and label this point A. Does crowding out happen here? Explain.

Which one of the factors is not likely to be associated with the large US trade deficit:

a. Low savings rate in the US

b. High spending rate, relative to income levels in the US

c. Low investment opportunity in the US

d. High value of the US dollar

please explain!

Answer the following questions assuming known IS and LM curves.

Derive the associated aggregate demand (AD) curve.

Why does it have a negative slope?

What is the effect of an increase in government spending on the AD curve?
  

What is the effect of an increase in real money balances on the AD curve?

Visit the Fed's Summary of Commentary on Current Economic Conditions (Links to an external site.)Links to an external site., also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices. 2019

Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did the government spending increases and large budget deficit of 2008-2011 strengthen aggregate demand? Discuss.