Answer:
b. Total debits and total credits on the trial balance will still be equal.
d. The balance sheet equation will be in balance.
f. The account balances for cash and service revenue will be incorrect.
Explanation:
In accounting, this kind of mistake is called subsidiary entries under Types of Errors in Accounting. Therefore, all the transactions that recorded incorrectly are regarded as subsidiary entry.
Although, as regards this particular question, the account balances for cash and service revenue will not be correct, but this does not prevent the total debits and total credits on the trial balance from being equal nor prevent the balance sheet equation to balance.
The implication is that this error will not show in the trial balance. The solution to this error in order to detect this kind of error is to carry out a bank reconciliation frequently by comparing figures on the bank statement to the figures in the company's books.
Answer: 1. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers.
2. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system.
3. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure.
Explanation:
1. In 1930 when the Great Depression was at it's early stages, the Central Bank could have done some things that would have reduced it's impact on the world but they remained passive and did little. One of the reasons was that there was a lack of cohesion between the Fed Districts and some of the directors subscribed to the "liquidationist" which meant that companies that engaged in adverse financial decisions be allowed to fail to as to prune the financial system and make it better. This contributed to the failure to help the Bank of the United States.
2. The Fed did not want to be seen as aiding Moral Hazard when they refused to bail out the Lehman Brothers in 2008. The Lehman Brothers had engaged in very risky transactions that brought it to ruin in 2008 and the Central Bank did not want to encourage the precedent of saving Banks that did so. Moral Hazard is when a risky action is engaged in by a company or person because they will not pay for the risk if things go awry. For example, a person with car insurance might drive more recklessly because they know that if the car crashes, the insurance will cover it. This is what the Fed did not want to encourage. A situation where Banks would engage in risky actions knowing that the Fed would back them up.
3. In the 1930s during the Great Depression, the Fed did not do enough to stem the depression because there was not coordination amongst the districts. They could not agree on a way forward and so did little. They even admitted their failure when in 2002, a member of the Board of Governors called Ben Bernanke said they could have done more.
In 2008 though, the Fed stepped in to help the economy get back on track. They reduced Interest rates and poured money into the economy through various ventures that helped the American public amongst others. Their actions ensured that the 2008 financial crises did not last as long as the Great Depression.
Answer:
$87,000
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow of cash while an increase in liabilities is an inflow of cash.
Hence the net cash from financing activities
= -$72,000 + $159,000
= $87,000
Other activities are either operating or investing activities.
<h2>
Answer:</h2><h2>
The motor lodges average daily rate for the particular evening = $1000 per room</h2>
Explanation:
The total number of rooms in fantastic Florida motor lodge = 100
On Saturday evening, the number of rooms occupied = 90
Total cash receipts for the evening = $90000
The daily rate for the evening = ?
To calculate the average daily rate for that particular evening,
Average daily rate = 
= $1000 per room
The motor lodges average daily rate for the particular evening = $1000 per room
Answer:
The correct answer is letter "B": is a frontier between all combinations of two goods that can be produced and those combinations that cannot be produced.
Explanation:
A variety of answers to the question: <em>"What is our optimum production capacity?"</em> solves the Production Possibility Frontier (PPF). Increased output requires job creation and the best efficient use of resources. This maximizes the labor force available and reduces the services that are not used.
<em>Plotted in a graph, PPF reflects the possible combinations an organization has and how to optimize output as well as what combinations are not to be produced.</em>
