B. Evaluation
Evaluating means to systematically determine somethings merits and significance, including the seriousness or gravity of a problem.
Answer:
A.Incorrect
B. Incorrect
Explanation:
a) A manager might reject a proposal using ROI that the manager would accept using residual income
The statement is incorrect. The reverse is true. Using ROI entails the manager comparing the ROI after a project to the ROI before, where implementing a project makes the ROI after to be less than what it before the project, the Manager would most likely not implement the project. This would happen notwithstanding that the project produces positive residual income.
b) Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income.
This statement is incorrect. ROI makes the manager to pursue his own interest and that of its division at the expense of the group objectives. It leads to sub-optimal decision
Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".
Explanation: If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.
As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.
Answer:
The correct answers are the options B and D: Pays cash before the expense has been incurred. And receives cash before the revenue has been generated.
Explanation:
To begin with, in the accounting field the term of "Deferral Adjustments" refers to those that the accountant does when they postpone the report of it in the income statement until a later period, so that means that when an event happens they might decide to postpone the report of that particular transaction doing what it is called "defer". Moreover, the two most common cases when the accountants use this technique are the ones choosen from the options, the cases B and D.
Answer: Option (a) is correct.
Explanation:
Correct option: Aggregate demand shifts right.
Aggregate demand = consumption + government spending + Investment + Net Exports
Other things remains constant, if there is an increase in the government spending, as a result aggregate demand curve shifts rightwards. This will lead to increase the price level and level of output.
