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3 years ago

Implications of game theory

Business

1 answer:

MrRa [10]3 years ago

4 0

Answer:

Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .

Limitations of Game Theory :

The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.

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Accounts receivable $1,050,000Allowance (90,000)Cash realizable value $960,000During 2007 sales on account were $290,000 and col

Flauer [41]

Answer:

a. $ 34,000

Explanation:

The entry when the company wrote off uncollectible accounts:

Debit Allowance for Doubtful Accounts $16,000

Credit Uncollectible accounts $16,000

At the end of 2007, Allowance for Doubtful Accounts before adjusting trial balance: $90,000-$16,000 = $74,000

The company estimates bad debts based on outstanding receivable accounts. So, the amount of Bad debts expense for 2007 should be:

$108,000 - $74,000 = $34,000

The entry will be record:

Debit Bad debts expense $34,000

Credit Allowance for Doubtful Accounts $34,000

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2 years ago

After a bank reconciliation has been completed these transactions are listed as ____ to the cash balance? ? need help taking A p

Taya2010 [7]

Answer:

Explanation:

After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.

Once the balances are equal,<em> businesses need to prepare journal entries </em>for the adjustments to the balance per books.

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3 years ago

What are the three main categories of a tax return?

Gennadij [26K]

Answer:

1040, 1040A and 1040EZ

Explanation:

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3 years ago

Consider the following hypothetical transactions of the Balance of Payments of Country A: 1. Country A's firms export to Country

serious [3.7K]

Answer:

The net contribution to the Current Account Balance of Country A is $50

Explanation:

The credit entries include those entries which bring the money into the economy whereas the debit entries are those entries in which the expenses are more incurred or we can say more outflow of cash is there.

The debit and credit entries are shown below:

Debit entries:

1. Country A's firms import from Country C $500 worth of steel

2. Country A's residents buy Country C's government bonds for $1000

3. Country A's residents pay $100 in dividends on Country C's investments in Country A

Credit entries:

1. Country A's firms export to Country B $100 worth of grain

2. Country A's workers resident in Country B receive $500 in wages

3. Country A's residents receive $50 in interest from Country C's bonds they owned

4. Country A's central bank acquires $1000 worth of Country C's currency

Now the net contribution of the current account balance would be

= Total credit balance - total debit balance

= $100 + $500 + 50 + $1,000 - $500 - $1,000 - $100

= $50

The negative amount represents debit balance whereas the positive amount reflect a credit balance

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3 years ago

Woods Company made an ordinary repair to a delivery truck at a cost of $500. Woods' accountant debited the asset account, Equipm

Nutka1998 [239]

Answer:

Yes this statement was an error and its effect on financial statements of Woods will be that asset ( equipment in this case) would be overstated and obviously the net income of the company would also increase.

Explanation:

Here Woods accountant has made the error of debiting the cost of $500 on the asset account ( equipment) , which shouldn't have happened as the asset accounts have natural debit balance which means that when an amount is debited to the asset account it will increase the value of the asset.

So therefore here we can say that the asset here is overstated and if the assets are shown overstated it is natural that the income reflected would also be overstated.

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3 years ago