Firms in Competitive Markets
1. For a firm in a perfectly competitive market, the price of the good is always
a. equal to marginal revenue.
b. equal to total revenue.
c. greater than average revenue.
d. equal to the firms effici
Consumers, Producers, and the Efficiency of Markets
1. Welfare economics is the study of
a. the well-being of less fortunate people.
b. welfare programs in the United States.
c. the effect of income redistribution on work effort.
Five Debates Over Macroeconomic Policy
Many studies indicate changes in monetary policy have most of their effect on aggregate demand about six
months after the change is made.
LOC: Monetary a
A Macroeconomic Theory of the Open Economy
Over the past two decades, the United States has persistently exported more goods and services than it has
LOC: International trade and fin
The Basic Tools of Finance
If the interest rate is 8 percent, then the present value of $1,000 to be received in 4 years is $735.03.
LOC: The Study of economics, and definitions of economics
The Monetary System
In an economy that relies on barter, trade requires a double-coincidence of wants.
LOC: The role of money
Joe wants to trade eggs for sausa
Most people rely on income other than their labor earnings to maintain their standard of living.
LOC: The study of economics and definitions of economics
TOP: Income | Standard of
Production and Growth
If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.
LOC: Productivity and growth TOP:
Open-Economy Macroeconomics: Basic Concepts
A country with negative net exports has a trade surplus.
LOC: International trade and finance
If a countrys imports exceed its
Aggregate Demand and Aggregate Supply
According to classical macroeconomic theory, changes in the money supply change nominal but not real
LOC: Aggregate demand and aggregate supply
Measuring the Cost of Living
The consumer price index is used to monitor changes in an economys production of goods and services over
LOC: The study of economics and definitions of economic
The Influence of Monetary and Fiscal Policy On Aggregate Demand
Both monetary policy and fiscal policy affect aggregate demand.
LOC: Monetary and fiscal policy
TOP: Monetary policy | Fiscal po
1. In addition to assessing the fairness of the entity's financial statements, a governmental financial
statement audit is concerned with evaluating
a. Internal control.
1. When an auditor selects a sample of items from the vouchers payable register for the last month
of the period audited and traces the items to underlying documents, the auditor is gathering
evidence primarily in
1. To strengthen control procedures over the custody of heavy mobile equipment, the client would
most likely institute a policy requiring a periodic
a. Increase in insurance coverage.
b. Inspection of equipment and reconciliat
1. A client erroneously recorded a large purchase twice. Which of the following control procedures
would be most likely to detect this error in a timely and efficient manner?
a. Footing the purchases journal.
b. Reconciling ve
c 1. A sales cutoff test of billings complements tests of
a. Sales returns.
c. Accounts receivable.
d. Sales allowances.
2. An auditor should perform alternative procedures to s
1. In assessing sampling risk, the risk of incorrect rejection and the risk of assessing control risk too
high relate to the
a. Efficiency of the audit.
b. Effectiveness of the audit.
c. Selection of the sample.
d. Audit qualit
Chapter 2Introduction to Transaction Processing
1. Processing more transactions at a lower unit cost makes batch processing more efficient than real-time
2. The process of acquiring raw materials is part of the conversion cycle.
Chapter 1The Information System: An Accountants Perspective
1. Information is a business resource.
2. An information system is an example of a natural system.
3. Transaction processing systems convert non-financial transactions in
Chapter 3Ethics, Fraud, and Internal Control
1. The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to
those who share the risks.
2. The ethical principle of informed consent suggests t
Chapter 12 Accounting for Partnerships
Admission of a New Partner
Withdrawal and Death
Other cases in formation
1. Contribute services
2. Not liable to losses
TO: All students who have been on the Deans List for any two or more
consecutive terms, and all First Year students with an exceptional
FROM; James D. Clarkson, Director, Enderun Colleges Honors Program
SUBJECT; The Honors Program Challen
ETHNOGRAPHY PROJECT GUIDELINES:
1. Get your research subjects consent before beginning
2. Remember that your task is to gather data by conducting
interviews and participant observation. Which means that
your data should be sourced by talking wit
What is Accounting?
Purpose of accounting is to:
1. identify, record, and communicate the economic
events of an
2. organization to
3. interested users.
SO 1 Explain what accounting is.
Generally Accepted Accounting Principles
Monetary Unit inc
1. Technical Report- Technical writing
is a specialized, structured way of
writing, where information is
presented in a format and manner
that best suits the psychological
needs of the readers, so that they can
respond to a document as its author
The Short-Run Trade-Off Between Inflation and Unemployment
In the long run, the natural rate of unemployment depends primarily on the growth rate of the money supply.
LOC: Unemployment and inf
1. A client company has not paid its 2004 audit fees. According to the AICPA Code of Professional
Conduct, for the auditor to be considered independent with respect to the 2005 audit, the 2004
audit fees must be paid before th
Which of the following is generally more important in a review than in a compilation?
Determining the accounting basis on which the financial statements are to be presented.
Gaining familiarity with industry acc
OVERVIEW OF AUDITING
Dependable financial information is essential to our
society. We often rely upon information provided by
others in making economic decisions. The need of
various users for more reliable financial information
has created a demand for a
Chapter 6- In Sunny Spain (1882-1885)
Rizal Secret Mission
To observe keenly the life and culture, languages and customs, industries, commerce and government and laws of the Europian Nations in order to
prepare himself in the mighty task of liberating of
Ronnel T. Cruz
Production and Operation Management
Jollibee and McDonalds
When we are talking about fast-foods, arguing with friends on where to eat or
when we are on a travel and then suddenly our stomach starts to shout
letting us know that its ti
Ronnel T. Cruz
Cyrille Anne O. Fernando
What objectives their
organization wants to
What their roles are in
achieving the o
Adopted from Shahnameh
(The Book of Kings)
Thousands of years ago, Rostam Dastan, passed the famous seven heroic adventures, but once he was also captured by the
hand of the fate.
Once , he was drawn to Samangan. He set his horse, Raksh, free a
The Objectives of a Financial
1. To evaluate whether financial statement assertions
are in accordance with GAAP
2. To evaluate the possibility of fraud occurring within
3. To evaluate