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Test%20Questions%20Chapter%2023

Course Number: ACCT 4773, Spring 2011

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Chapter 2 Professional Standards True/False Questions 1. The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient competent evidential matter. Answer: True Difficulty: Easy 2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. Answer: False Difficulty: Easy 3. The auditors are primarily...

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2 Chapter Professional Standards True/False Questions 1. The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient competent evidential matter. Register to View AnswerDifficulty: Easy 2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. Register to View AnswerDifficulty: Easy 3. The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. Register to View AnswerDifficulty: Medium 4. Partners in CPA firms usually have the responsibility for signing the audit report. Register to View AnswerDifficulty: Medium 5. An audit is more likely to detect tax evasion than violations of antitrust laws. Register to View AnswerDifficulty: Hard 6. The attestation standards do not supersede any of the generally accepted auditing standards. Register to View AnswerDifficulty: Medium 7. A peer review is generally performed by employees of the AICPA. Register to View AnswerDifficulty: Medium 8. If the auditors discover illegal acts by a client, they ordinarily must immediately resign from the engagement. Register to View AnswerDifficulty: Medium 9. An audit should be designed to provide reasonable assurance of detecting all illegal acts. Register to View AnswerDifficulty: Medium 12 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 10. The pronouncements of the International Auditing Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company. Register to View AnswerDifficulty: Medium Multiple Choice Questions 11. Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: A) B) C) D) Fraudulent Financial Reporting Yes Yes No No Misappropriation of Assets Yes No Yes No Register to View AnswerDifficulty: Hard 12. Which of the following has the highest level of accounting authority within the GAAP Hierarchy? A) Authoritative body pronouncements. B) Pronouncements of bodies composed of expert accountants exposed for public comment. C) Pronouncements of bodies composed of expert accountants, not exposed for public comment. D) Pronouncements of the Federal Accounting Reserve Board. Register to View AnswerDifficulty: Easy 13. An attestation engagement: A) Has as its primary source of standards the assurance standards. B) Includes a report on subject matter, or on an assertion about subject matter. C) Includes search and verification procedures for all major accounts. D) Is ordinarily an examination, review or compilation engagement. Register to View AnswerDifficulty: Hard 13 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 14. An audit provides reasonable assurance of detecting which of the following types of important illegal acts? A) B) C) D) Direct Effect Yes Yes No No Indirect Effect Yes No Yes No Register to View AnswerDifficulty: Medium 15. Which of the following is not a type of auditors' opinion? A) Adverse. B) Ordinary . C) Qualified. D) Unqualified. Register to View AnswerDifficulty: Medium 16. Which of the following is one of the elements of quality control? A) Acceptance and continuance of clients and engagements. B) Assurance of proper levels of association. C) Due professional care. D) Supervision. Register to View AnswerDifficulty: Hard 17. A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element? A) Engagement performance. B) Independence, integrity and objectivity. C) Monitoring. D) Personnel management. Register to View AnswerDifficulty: Hard Whittington, Principles of Auditing, Fifteenth Edition 14 Chapter 2 Professional Standards 18. Requirements for training, independence and due professional care are included in which group of the generally accepted auditing standards? A) Fieldwork. B) General. C) Reporting. D) Quality control. Register to View Answer19. Which of the following is considered an interpretive publication in the GAAS Hierarchy? A) Appendices to Statements on Auditing Standards. B) Statements on Auditing Standards. C) Interpretations of FASB Standards. D) Auditing articles explaining Statements on Auditing Standards in the Journal of Accountancy. Register to View AnswerDifficulty: Hard 20. In which paragraph of an audit report are auditing standards generally accepted in the United States explicitly mentioned in an audit report of a nonpublic company? A) B) C) D) Scope Yes Yes No No Opinion Yes No Yes No Register to View AnswerDifficulty: Medium 21. In which paragraph of an audit report are auditing standards generally accepted in the United States explicitly mentioned in an audit report of a nonpublic company? A) B) C) D) Scope Yes Yes No No Opinion Yes No Yes No Register to View AnswerDifficulty: Hard 15 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 22. An audit should be designed to achieve reasonable assurance of detecting material misstatements due to: A) Errors. B) Errors and fraud. C) Errors, fraud, and those illegal acts with a direct effect on financial statement amounts. D) Errors, fraud and illegal acts. Register to View AnswerDifficulty: Hard 23. The expression "accounting principles generally accepted in the United States of America": A) Appears in both the scope paragraph and the opinion paragraph of the auditors' report. B) Appears in the introductory paragraph of the auditors' report. C) Appears in the opinion paragraph of the auditors' report. D) Does not appear in the auditors' report. Register to View AnswerDifficulty: Medium 24. To qualify as "generally accepted," an accounting principle must: A) Have substantial authoritative support. B) Be covered in one or more of the SASs issued by the AICPA. C) Be set forth in a Financial Reporting Release issued by the SEC. D) Have received the approval of the FASB. Register to View AnswerDifficulty: Medium 25. The generally accepted auditing standards adopted by the AICPA include a requirement that the CPAs: A) Assume responsibility for any losses to the client from fraud which existed during the audit but was not detected by the auditors. B) Follow accounting principles adopted by the SEC. C) Not accept as audit clients companies which compete directly with one another. D) Exercise due professional care in the performance of the examination and the preparation of the report. Register to View AnswerDifficulty: Easy Whittington, Principles of Auditing, Fifteenth Edition 16 Chapter 2 Professional Standards 26. Which of the following best describes a portion of the auditors' responsibility regarding illegal acts by clients? A) The auditors have a responsibility to discover all material illegal acts. B) If audit procedures reveal illegal acts, the auditors should take appropriate actions. C) If the auditors suspect illegal acts have been performed, they should conduct a legal audit of the company. D) The auditors' responsibility for the detection of all illegal acts is the same as their responsibility regarding material misstatements due to errors and fraud. Register to View AnswerDifficulty: Medium 27. The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the: A) Management fails to take appropriate corrective action. B) Illegal act has material financial statement implications. C) Illegal act has received widespread publicity. D) Auditors cannot reasonably estimate the effect of the illegal act on the financial statements. Register to View AnswerDifficulty: Medium 28. The first paragraph of the standard unqualified audit report is referred to as the: A) Introductory paragraph. B) Opening paragraph. C) Opinion paragraph. D) Scope paragraph. Register to View AnswerDifficulty: Easy 29. Primary responsibility for the financial statements lies with: A) B) C) D) Auditors Yes Yes No No Management Yes No Yes No Register to View AnswerDifficulty: Medium 17 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 30. When a conflict exists between an accounting principle supported by a pronouncement of an authoritative body and an accounting principle supported by widely recognized practice, which standard prevails? A) The authoritative body pronouncement. B) The widely recognized pronouncement. C) Both are of equal authority and the form of the transaction prevails over its substance. D) Neither, other accounting literature must be consulted to determine the appropriate accounting treatment. Register to View AnswerDifficulty: Medium 31. The auditors' report should indicate: A) That the examination was made in accordance with auditing standards generally accepted in the United States of America. B) Any weakness in internal control observed by the auditors. C) That accounting principles have been consistently applied. D) That no illegal acts have been identified. Register to View AnswerDifficulty: Medium 32. Which of the following is not one of the five elements of quality control? A) Engagement performance. B) Personnel management. C) Review. D) Monitoring. Register to View AnswerDifficulty: Medium 33. A requirement that working papers be reviewed by the supervisor, and any deficiencies be discussed with the preparer is an example of a quality control procedure in the area of: A) Acceptance and continuance of clients and engagements. B) Engagement performance. C) Personnel management. D) Independence, integrity and objectivity. Register to View AnswerDifficulty: Hard Whittington, Principles of Auditing, Fifteenth Edition 18 Chapter 2 Professional Standards 34. A requirement that all professional staff obtain a minimum number of hours of continuing professional education each year is an example of a quality control procedure in the area of: A) Acceptance and continuance of clients and engagements. B) Engagement performance. C) Personnel management. D) Independence, integrity and objectivity. Register to View AnswerDifficulty: Hard 35. The body that issues international pronouncements providing auditing procedural and reporting guidance is the: A) International Federation of Auditors. B) Multinational Reporting Commission. C) International Auditing and Assurance Standards Board. D) Auditing Standards Board. Register to View AnswerDifficulty: Medium 36. To present fairly in conformity with generally accepted accounting principles the financial statements must: A) Be consistently applied. B) Inform users of all matters that could materially affect a decision. C) Reflect transactions and events within a range of reasonable limits. D) Be considered preferable to the users of those financial statements. Register to View AnswerDifficulty: Medium 37. What is the general character of the three generally accepted auditing standards classified as general standards? A) Criteria for competence, independence, and professional care of individuals performing the audit. B) Criteria for the content of the financial statements and related footnote disclosures. C) Criteria for the content of the auditors' report on financial statements and related footnote disclosures. D) The requirements for the planning of the audit and supervision of assistants, if any. Register to View AnswerDifficulty: Medium Source: AICPA 19 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 38. The auditors' examination performed in accordance with generally accepted auditing standards generally A) should: Be expected to provide absolute assurance that illegal acts will be detected where internal control is effective. B) Be relied upon to disclose violations of truth in lending laws. C) Encompass a plan to actively search for all illegalities which relate to operating aspects. D) Not be relied upon to provide absolute assurance that all illegal acts will be detected. Register to View AnswerDifficulty: Medium Source: AICPA 39. When the auditors express an opinion on financial statements their responsibilities extend to: A) The underlying wisdom of their client's management decisions. B) Whether the results of their client's operating decisions are fairly presented in the financial statements. C) Active participation in the implementation of the advice given to their client. D) An ongoing responsibility for their client's solvency. Register to View AnswerDifficulty: Medium Source: AICPA 40. The standard short-form auditors' report generally includes an introductory paragraph, a scope paragraph, and an opinion paragraph. In the report the auditors refer to both accounting principles generally accepted in the U.S. and auditing standards generally accepted in the U.S. In which of the paragraphs are these terms used? A) GAAP in the scope paragraph and GAAS in the opinion paragraph. B) GAAS in the scope paragraph and GAAP in the opinion paragraph. C) GAAS in all paragraphs and GAAP in the scope paragraph. D) GAAP in all paragraphs and GAAS in the opinion paragraph. Register to View AnswerDifficulty: Medium Source: AICPA Whittington, Principles of Auditing, Fifteenth Edition 20 Chapter 2 Professional Standards 41. An investor reading the financial statements of The Sundby Corporation observes that the statements are accompanied by an unqualified auditors' report. From this the investor may conclude that: A) Any disputes over significant accounting issues have been settled to the auditors' satisfaction. B) The auditors are satisfied that Sundby is operationally efficient. C) The auditors have ascertained that Sundby's financial statements have been prepared accurately. D) Informative disclosures in the financial statements but not necessarily in the footnotes are to be regarded as reasonably adequate. Register to View AnswerDifficulty: Hard Source: AICPA 42. The auditors' report may be addressed to the company whose financial statements are being examined or to that company's: A) Chief operating officer. B) President. C) Board of Directors. D) Chief financial officer. Register to View AnswerDifficulty: Medium Source: AICPA 43. Which of the following best describes what is meant by generally accepted auditing standards? A) Acts to be performed by the auditors. B) Measures of the quality of the auditors' performance. C) Procedures to be used to gather evidence to support financial statements. D) Audit objectives generally determined on audit engagements. Register to View AnswerDifficulty: Medium Source: AICPA 44. If an illegal act is discovered during the audit of a publicly held company, the auditors should first: A) Notify the regulatory authorities. B) Determine who was responsible for the illegal act. C) Intensify the examination to identify all illegal acts. D) Report the act to high level personnel within the client's organization and to the audit committee. Register to View AnswerDifficulty: Hard Source: AICPA 21 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 45. Which of the following is not required by the generally accepted auditing standard that states that due professional care is to be exercised in the performance of the audit? A) Observance of the standards of field work and reporting. B) Critical review of the audit work performed at every level of supervision. C) Degree of skill commonly possessed by others in the profession. D) Responsibility for losses because of errors of judgment. Register to View AnswerDifficulty: Easy Source: AICPA 46. Which of the following statements best describes the primary purpose of Statements on Auditing Standards? A) They are guides intended to set forth auditing procedures which are applicable to a variety of situations. B) They are procedural outlines which are intended to narrow the areas of inconsistency and divergence of auditor opinion. C) They are authoritative statements, enforced through the Code of Professional Conduct. D) They are interpretations which are intended which may be useful guidance to auditors. Register to View AnswerDifficulty: Medium Source: AICPA 47. The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the: A) Partner assigned to the audit engagement. B) Management of the company. C) Auditor in charge of the fieldwork. D) Securities and Exchange Commission. Register to View AnswerDifficulty: Easy Source: AICPA 48. Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide personnel within the firm with: A) Technical training that assures proficiency as an auditor. B) Professional education that is required in order to perform with due professional care. C) Knowledge required to fulfill assigned responsibilities and to progress within the firm. D) Knowledge required in order to perform a peer review. Register to View AnswerDifficulty: Hard Source: AICPA Whittington, Principles of Auditing, Fifteenth Edition 22 Chapter 2 Professional Standards 49. In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which quality control objective would this be most likely to satisfy? A) Acceptance and continuance of clients and engagements. B) Engagement performance. C) Personnel management. D) Independence, integrity and objectivity. Register to View AnswerDifficulty: Hard Source: AICPA 50. A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose for establishing such policies and procedures is: A) To enable the auditor to attest to the integrity or reliability of a client. B) To comply with the quality control standards established by regulatory bodies. C) To minimize the likelihood of association with clients whose managements lack integrity. D) To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements. Register to View AnswerDifficulty: Medium Source: AICPA 51. Which of the following is not an element of quality control? A) Documentation. B) Personnel management. C) Monitoring. D) Engagement performance. Register to View AnswerDifficulty: Medium Source: AICPA 52. The generally accepted auditing standards established by the AICPA: A) Have been accepted as interim standards by the Public Company Accounting Oversight Board. B) Provide accounting guidance for nonpublic companies. C) Have been superseded by Public Company Accounting Oversight Board standards for all audits. D) Are now developed by the Securities and Exchange Commission. Register to View AnswerDifficulty: Medium 23 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 53. The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? A) B) C) D) Attestation Standards Yes Yes No No Ethics Standards Yes No Yes No Register to View AnswerDifficulty: Hard 54. Which of the following is least likely to be directly examined in an inspection performed by the PCAOB? A) Audit engagements. B) Review engagements. C) Compilation engagements. D) CPA firm quality control system. Register to View AnswerDifficulty: Medium 55. As compared with the US nonpublic company audit report, the international audit report: A) Is briefer. B) Includes enhanced explanation of the audit process. C) Includes the name of the partner and managers on the audit, while the US report includes only the CPA firm name. D) Is dated as of year-end, whereas the US report is dated as of the last date of significant field work. Register to View AnswerDifficulty: Hard Whittington, Principles of Auditing, Fifteenth Edition 24 Chapter 2 Professional Standards Essay Questions 56. Auditors must be concerned with both generally accepted auditing standards and generally accepted accounting principles in performing an audit. (a) Compare generally accepted auditing standards with generally accepted accounting principles. (b) Summarize two of the three generally accepted auditing standards known as the general standards. Difficulty: Easy Answer: (a) Generally accepted auditing standards are authoritative rules for measuring the quality of audits. The ten generally accepted auditing standards were adopted by the membership of the AICPA. Generally accepted accounting principles are principles of measurement and presentation for financial statements that have "substantial authoritative support." (b) The general standards include (only two required): Technical training and proficiency Independence Exercise due professional care 57. The standard unqualified auditors' report consists of three paragraphs. (a) Identify the three paragraphs and describe the purpose of each. (b) Describe the manner in which the report should be titled and the significance of its date. Difficulty: Medium Answer: (a) Introductory paragraph--describes the financial statements being auditing and the responsibilities of management and the auditors. Scope paragraph--describes the nature of an audit and indicates whether the audit was performed in accordance with generally accepted auditing standards. Opinion paragraph--expresses the auditors' opinion on the financial statements. (b) The report should be entitled "Independent Auditors' Report." The date is the "last day of significant field work." 25 Whittington, Principles of Auditing, Fifteenth Edition Chapter 2 Professional Standards 58. Auditors must consider the possibility of fraud by employees or management on every audit engagement. They must also consider the possibility that the client has engaged in illegal acts. (a) Distinguish between employee and management fraud. (b) Describe the auditors' responsibility for the detection of fraud in an audit. (c) Describe the auditors' responsibility regarding illegal acts by a client. Difficulty: Hard Answer: (a) Employee fraud is dishonest actions by lower level employees that occur within a company despite management's efforts to prevent such actions. Management fraud occurs when the top executives of a company deliberately deceive stockholders, creditors, and the auditors by misstating the financial statements. (b) The auditors have a responsibility to design the audit to provide reasonable assurance of detecting material errors and fraud and to conduct the audit with due care and skepticism. (c) An audit cannot be relied upon to detect all illegal acts by the client. For illegal acts which have a direct and material effect on the financial statement amounts, the responsibility for detection is the same as that for errors and fraud--that is to design the audit to provide reasonable assurance of detection. For illegal acts having an indirect effect on the financial statement amounts, an audit provides no assurance of detection. Whittington, Principles of Auditing, Fifteenth Edition 26

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Dallas - ACCT - 4773
Chapter 3 Professional EthicsTrue/False Questions 1. The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice. Answer: False Difficulty: Medium 2. The AICPA Code of Professional Conduct derive
Dallas - ACCT - 4773
Chapter 5 Audit Evidence and DocumentationTrue/False Questions 1. Appropriateness is the measure of the quantity of evidence that must be obtained. Answer: False Difficulty: Easy 2. The most reliable form of documentary evidence generally is considered t
Dallas - ACCT - 4773
Chapter 7 Internal ControlTrue/False Questions 1. Internal control is concerned with the reliability of financial information. Answer: True Difficulty: Easy 2. The Foreign Corrupt Practices Act prohibits bribes to foreign corporate officials to obtain bu
Dallas - ACCT - 4773
Chapter 8 Consideration of InternalTrue/False Questions 1. Magnetic tape drives have the advantage of direct access to stored data. Answer: False Difficulty: Medium 2. The operating system is an example of system software. Answer: True Difficulty: Medium
Dallas - ACCT - 4773
Chapter 9 Audit SamplingTrue/False Questions 1. Stratification of the population generally results in a more efficient sampling plan. Answer: True Difficulty: Medium 2. Discovery sampling is equivalent to an attributes sampling plan with a specified expe
Dallas - ACCT - 4773
Chapter 10 Cash and Financial InvestmentsTrue/False Questions 1. The auditors should count small petty cash funds at year-end to make sure that balance is not understated on the financial statements. Answer: False Difficulty: Easy 2. Control over the rec
Dallas - ACCT - 4773
Chapter 1 The Role of the Public AccountantTrue/False Questions 1. Independent audits of today place more emphasis on sampling for compliance with laws and regulations than the audits of the 19th century. Answer: True Difficulty: Medium 2. The American I
Dallas - ACCT - 4773
Chapter 12 Inventories and Cost of GoodsTrue/False Questions 1. Observation of inventories is a generally accepted auditing standard. Answer: False Difficulty: Easy 2. The receiving department should accept only goods for which there is an approved purch
Dallas - ACCT - 4773
Chapter 13 Property, Plant, and EquipmentTrue/False Questions 1. The auditors' approach to the audit of property, plant and equipment largely results from the fact that relatively few transactions occur. Answer: True Difficulty: Easy 2. A major control p
Dallas - ACCT - 4773
Chapter 14 Accounts PayableTrue/False Questions 1. Overstatement of financial results can involve failure to record a transaction. Answer: True Difficulty: Medium 2. Confirmation of accounts payable is a required generally accepted auditing procedure. An
Dallas - ACCT - 4773
Chapter 15 Debt and Equity CapitalTrue/False Questions 1. The formal documentation creating bond indebtedness is called the indenture. Answer: True Difficulty: Easy 2. Registered bondholders receive periodic interest payments without any action on their
Dallas - ACCT - 4773
Chapter 16 Auditing OperationsTrue/False Questions 1. Analytical procedures are often used for verification of income statement accounts. Answer: True Difficulty: Easy 2. The Miscellaneous Revenue account should only be analyzed if it is material in amou
Dallas - ACCT - 4773
Chapter 17 Auditors' ReportsTrue/False Questions 1. Audit reports should be dated the date on which the financial statements are issued. Answer: False Difficulty: Easy 2. When the auditors are unable to comply with generally accepted auditing standards,
Dallas - ACCT - 4773
Chapter 18 Integrated Audits of Public CompaniesTrue/False Questions 1. Section 404 of the Sarbanes-Oxley Act of 2002 includes internal control reporting requirements for both management and auditors. Answer: True Difficulty: Easy 2. The Sarbanes-Oxley A
Dallas - ACCT - 4773
Chapter 19 Additional Assurance Services: Historical Financial InformationTrue/False Questions 1. An audit opinion on cash basis financial statements is an example of a special report. Answer: True Difficulty: Easy 2. The balance sheet for an individual
Dallas - ACCT - 4773
Chapter 20 Additional Assurance Services: Other InformationTrue/False Questions 1. Assurance services improve the quality of information or its context for decision makers. Answer: True Difficulty: Easy 2. Attestation services are similar, but go beyond
Dallas - ACCT - 4773
Chapter 21 Internal, Operational, and Compliance AuditingTrue/False Questions 1. The work of internal auditors is primarily for the benefit of management and the board of directors. Answer: True Difficulty: Easy 2. The first internal auditors were primar
Dallas - ACCT - 4773
Chapter 11 Accounts Receivable, NotesTrue/False Questions 1. The department approving a sales transaction should be the shipping department. Answer: False Difficulty: Easy 2. Accounts receivable that are written-off should not be turned over to a collect
Dallas - ACCT - 4773
CHAPTER 8PRODUCT AND SERVICES STRATEGY MULTIPLE CHOICE QUESTIONS 1. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a(n): a. idea. b. demand. c. product. d. service. Ans
Drexel - ECON - 201
Area Under Curve = Area Rectangle = (Width x Height) at point D Total Revenue = (6 x $0.35) = $2.10 Total Revenue at Point DArea Under Curve = Area Rectangle = (Width x Height) at point E Total Revenue = (9 x $0.30) = $2.70Total Revenue at Point EArea
Drexel - ECON - 201
QTY 1 2 3 4 5 6 7 8 9 10 11 12 13 14Pizza (Given) Total Utility 47 92 132 166 196 224 251 271 288 303 313 315 312 300Pizza MU = TU/Q Marginal Utility 47 45 40 34 30 28 27 20 17 15 10 2 -3 -12 Notes: Pizza costs $1 per slice Pepsi costs $2 per cupPizza
Drexel - ECON - 201
Rate of Output (Q) 0 1 2 3 4 5Total Cost (TC) 1000 1200 1450 1750 2100 2500Marginal Cost (MC) 200 250 300 350 400Average Fixed Cost (AFC) 1000 / 0 = 1000 / 1 = 1000 1000 / 2 = 500 1000 / 3 = 333.33 1000 / 4 = 250 1000 / 5 = 200Variable Cost (VC) 0 200
Drexel - ECON - 201
Here are examples to calculate the various types of cost 1. How to calculate VC from TC? You need to derive FC. Look where the output is zero. Then FC = TC because VC is zero when out put is zero.2. How to calculate Marginal (dollar) cost Marginal dollar
Drexel - ECON - 201
Chapter 5 #9Quantity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14Total Utility (pizza) 0 47 92 132 166 196 224 251 271 288 303 313 315 312 300Marginal Utility (pizza) 47 45 40 34 30 28 27 20 17 15 10 2 -3 -12Utility Maximizing (pizza $1) 47 45 40 34 30 28 27 20
Drexel - ECON - 201
Chapter 9, Problem # 2 2.a P Q TR=P*Q MR MC 2.b. $15 1 $15 13 2 26 11 7 11 3 33 7 7 9 4 36 3 7 7 5 35 -1 7 5 6 30 -5 7 3 7 21 -9 7 1 8 8 -13 7Since the price is not constant, then the market strutufre is imperfect comptition. The equilibtium condition is
Drexel - ECON - 201
Class Discussion on Chapter 7: The Competitive firm for November 8th Wal-Mart: Competitive Wonder or Community Nightmare?Wal-Mart is the most successful firm in the US retailing industry during the last few years. 1. Has Wal-Mart fulfilled the virtues of
Drexel - ECON - 201
Chapter 5 #9Quantity 0 1 2 3 4 5 Pepsi = 6 7 Pizza=TU z = Total MUz=Marginal Utility (pizza) Utility (pizza) 0 47 47 92 45 132 40 166 34 196 30 224 251 271 288 303 313 315 312 300 28 27 20 17 15 10 2 -3 -12MUz/Pz 47 45 40 34 30 28 27Total Utility (pep
Drexel - ECON - 201
Econ 201: Principles of Microeconomics (Micro) Text: Bradley R. Schiller, The Micro Economy Today, 12th Edition, McGraw-Hill Irwin, 2010. ISBN: 978-0-07-724700-3 Instructor: Dr. Shawkat Hammoudeh Office: Matheson-Room 503M Telephone: (215) 895-6673 Fax: (
Drexel - ECON - 201
Econ 211: Principles of Economics (Micro) Summer 2010Text: Bradley R. Schiller, The Micro Economy Today, twelfth Edition, McGraw-Hill Irwin, 2010. ISBN: 978-0-07-724741-6 Instructor: Dr. Shawkat Hammoudeh Office: Matheson-Room 503 M Telephone: (215) 895-
Drexel - ECON - 201
Chapter 8, P. 195 exercise # 3.QS=8xqq (firm) TC (firm) 0 1 2 3 4 5 6 7 8MC (firm) QS (market) QD(market) -1 0 $1 8 70 $2 16 24 56 32 48 40 40 48 32 7 56 24 8 64derived from graph of D Here there is a market that determines P*. Then the firm sets P* =
Drexel - ECON - 201
Hints for Home Works (Econ 201)Notes: Not all assigned homework have hints in here. There are extra hints for exercises that are not assigned for this quarter. HW#1 Chapter 1 Hint for solving the problem 6 in chapter 1 student problem set. Example: First
Drexel - ECON - 201
Heyne Quiz 1On-Line QuizNote: There are 10 multiple choice questions below. Answer each question by clicking the appropriate button. When you have answered all of the questions, click the "Check Answers" button at the bottom of the page. Your score will
Drexel - ECON - 201
Homework 1 Answer key 15: DBBCA 610: BDCCC 1115: EBDCC 1620: EACDE 2125: DEDBB 2630: ECCDE 3135: EEDCC Question 1 5 : 2 points each Question 635: 3 points each Total: 100 points
Drexel - ECON - 201
Homework 2 Answer key 15: ACDEE 610: CEBBB 1115: ECDDD 1620: BBADC 2125: AADBA 2630: BBDBB 3135: CBCDB 3640: CCDBB 41. a. b. c. d. e. f. g. 42. The key to this problem is to find the four components of expenditure: a. Consumption expenditures are 1000.
Drexel - ECON - 201
Homework 3 Answer key 15: BECEC 610: CDEAA 1115: BCEBC 1620: CEBED 2123: AAD 24. a) Number of workers 1 2 3 4 5 b) Number of workers 1 2 3 4 5 Output (number of bikes) 10 18 24 28 30Marginal product (number of bikes) 10 8 6 4 2Value of marginal pr
Drexel - ECON - 201
15 EDDBD 610 BCCAA 1115 DAEAB 1620 AEEEE 2125 BAEDB 2530 DEBDC 3135 DDABB 3640 CABAB Short answer questions 1. Average labor productivity times the share of the population that is employed equals real GDP per person. Thus, average labor productivity equal
Drexel - ECON - 201
Econ 102 Section 1 Homework #5 Due July 7, Tuesday in classMultiple Choice Questions (1-10: 10x1=10 points; 11-55: 45 x 2=90 points) 1.The principal amount of a bond is the amount: A) originally lent. B) of interest agreed upon when the bond was original
Drexel - ECON - 201
1.The aggregate demand curve shows the relationship between inflation and: A) the nominal interest rate. D) the exchange rate. B) the real interest rate. E) short-run equilibrium output. C) the unemployment rate. Answer: E Learning Objective: Aggregate de
Drexel - ECON - 201
Econ 102 Section 1 Homework #1 Due: May 29,20091. The cost-benefit principle indicates that an action should be taken A. if the total benefits exceed the total costs. B. if the average benefits exceed the average costs. C. if the net benefit (benefit min
Drexel - ECON - 201
Econ 102 Section 1 Homework #2 Due: June 3, 20091."Holding all other relevant factors constant, consumers will purchase more of a good as its price falls." This statement reflects the behavior underlying A) the demand curve. D) a decrease in the demand c
Drexel - ECON - 201
Econ 102 Section 1 Homework #3 Due June,15 Monday in class Multiple choice questions (23 x 3= 69 points )1. In the market for labor, the price of labor is the: A) same as price of the product produced by the labor. B) real wage. C) marginal product of la
Drexel - ECON - 201
Econ 102 Section 1 Homework #5 Due July 7, Tuesday in classMultiple Choice Questions (1-10: 10x1=10 points; 11-55: 45 x 2=90 points) 1.The principal amount of a bond is the amount: A) originally lent. B) of interest agreed upon when the bond was original
Drexel - ECON - 201
Econ 102 Section 1 Homework #1 Due: May 29,20091. The cost-benefit principle indicates that an action should be taken A. if the total benefits exceed the total costs. B. if the average benefits exceed the average costs. C. if the net benefit (benefit min
Southern State Community College - MBA - 1
By Murat Mustapaev. My life: yesterday, today and tomorrow. I came into the world on a warm, sunny day of May in 1985 in the Nukus city of the former Soviet Socialist Republic of Karakalpakstan, which is located in the Central Asia among the desert Kyzyl-
Cornell - BIOAP - 4580
BIOAP 458, 2011 Name: Raw Score:_/81 PROBLEM SET 7Prof. BeyenbachEpithelial Transport (and Fluid Compartments)Percentile Score: (7.5% of final grade)1) (12 pts.) A 50 kg individual with a plasma Na+ of 145 mM is infused with 5 g/kg of mannitol (mannit
Cornell - BIOAP - 4580
COPYRIGHTMammalian Physiology BIOAP 4580 , 2011Prof. BeyenbachTHE EVOLUTION OF MULTICELLULAR SYSTEMS (from single cell to invertebrate) 1) Fundamental mathematical equations in physiology a) Automotive and heteromotive transport. Automotive transport d
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 Spring 2011Prof. BeyenbachTHE EVOLUTION OF MULTICELLULAR SYSTEMS (from invertebrate to vertebrate) 1) Design of multicellular animal: the vertebrate plan. The evolution of "bigger and better" multicellular anima
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 Spring 2011Prof. BeyenbachMAMMALIAN FLUID COMPARTMENTS: SIZE AND COMPOSITION 1) The size of mammalian fluid compartments as % body weight. Total body water ranges from 45% to 75% of body weight in respectively o
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachTHE NERNST EQUATION CONCENTRATION DIFFERENCES TO VOLTAGES 1) How a concentration difference can generate a voltage. Under certain conditions, a concentration difference can give rise to a volt
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011 DIFFUSIONProf. Beyenbach1) Fundamental equations in physiology. There are two basic concepts that describe physiological processes suitable for quantitative treatment. One concept relates one force to anoth
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachTHE NERNST EQUATION FROM VOLTAGE TO CONCENTRATION DIFFERENCE 1) Concentration differences and voltages. Under Nernst conditions, a concentration difference can give rise to a voltage differenc
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011 VOLTAGES ACROSS CELL MEMBRANES: The Goldman EquationProf. Beyenbach1) Diffusion potentials as a voltage source across cell membranes. There are two major mechanisms for generating a voltage across a cell me
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachGIBBS-DONNAN EQUILIBRIUM AND ONCOTIC PRESSURE 1) Oncotic pressure. Oncotic pressure is the osmotic pressure that develops when a nondiffusible molecule with charge gives rise to 1) a membrane
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011 OSMOSISProf. Beyenbach1) Osmotic pressure. Osmotic pressure is the pressure produced by or associated with osmosis. It is the pressure that develops when two solutions of different solvent concentration* (a
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011 MEMBRANE TRANSPORT: CHANNELSProf. Beyenbach1) Diffusion. Diffusion is the most fundamental transport mechanism in non-living as well as living things. The proximal cause of diffusion is the concentration di
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachMEMBRANE TRANSPORT: PUMPS AND CARRIERS 1) Carrier-mediated transport: pumps, primary active transport. Like channels, pumps are membrane proteins. However, unlike channels, membrane pumps are
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachMECHANISMS OF CELL VOLUME REGULATION1. A cell volume constant with time. a) Diffusion distance. Single cells do not grow into giant cells because of the limits of diffusion. Once solute and w
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 Spring 2011Prof. BeyenbachEPITHELIA: POLARITY AND VECTORIAL TRANSPORT 1) Excitable and epithelial cells. In general, one can distinguish between two broad classes of eukaryotic cells: excitable cells and epithel
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology, BIOAP 4580 Spring 2011 THE PARACELLULAR PATHWAYProf. Beyenbach1) Points of cell contact. As cells come together and form tissues, they seal their unity by way of three major structures: desmosomes, gap junctions, and tigh
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 Spring 2011Prof. BeyenbachThe Short-Circuit Current and the Ussing Flux Ratio Equation1) Definition and usefulness of the short-circuit current. The short-circuit current derives its name from the current that
Cornell - BIOAP - 4580
COPYRIGHT Mammalian Physiology BIOAP 4580 2011Prof. BeyenbachThe Cardiovascular System1. Functional role: serving homeostasis a) Bulk transport of respiratory gases, nutrients, vitamins, and metabolic wastes, b) Selective distribution of fuels to activ