Questions by yweimann - Page 41
Oceanview Marine Company December 31.2018 2/2/3 Determination of Performance Materiatity 20Unadjusted Perfornance Trial Balance Materiality 1,320,0996 20,000 1,762,682 8344.20 116,636CR 6500.18 13,524,349 30,000 17,720 2,000 7,916 1,000 100,000 42,772 134,919 3,000 49,028 1,000 525,840 10,000 256,042CR 5,000 1,750,831CR 807S.60 Accosint Nams Cash Accounts reccivable Allowance-for douhtful.accounts tnventory Prepaid expesses Deposits Land Automobiles Office equipment Building Accumulated depreciation Accounts payable Accrucd liabitties Federal income tates payable Notes payable-bank Current portion of long-term debe Long-term debe Common stock Additionial paid-in capital 35.284CR 5,100,000CR 5.642CR 409.824 CR 10,000CR 2.500,000CR 5,000 1,000 10,000 1,000 10,000 Combioed performance materaliy (tod of cohumn 3 Preliminary judgmene abot materiity frm wp 5-3-a Maltiply preliminary judgment by 3 Total combined performance materiality must be less than this total 3.0 Current worirpopers-
A change in the interest rate will generally affect the A) level of investment. B) level of consumption. C) the amount of money people want to hold. D) All of these. An increase in real GDP causes the demand for real money balances to A) rise. B) fall. C) remain unaffected. D) rise, fall, or remain unaffected depending on the interest rate at the time. On a money demand diagram with the interest rate on the vertical axis, the real money balance demand schedule would be a vertical line under the assumption that A) a lower interest rate raises the demand for real money. B) a lower interest rate lowers the demand for real money balances. C) the interest rate has no effect on the demand for real money balances. D) a higher real GDP raises the demand for real money balances. "Crowding-out" occurs in the IS-LM model as rising government spending requires a in the interest rate in order to the demand for money at the new equilibrium, thus planned private investment. A) rise, keep constant, lowering B) rise, raise, lowering C) rise, lower, raising D) fall, keep constant, raising E) fall, raise, lowering