Describe and Explain the Key Differences Between the Three Major

question 65

Essay

Describe and explain the key differences between the three major theories that explain how mass media are consumed by mass audiences (the magic bullet or hypodermic needle model, the uses and gratifications model, and the encoding/decoding model).

Determine and analyze the current ratio as a measure of liquidity.

Understand the fiscal policy regarding the beginning and end dates of a fiscal year for a business.

Recognize the procedure for adjusting trial balances and its purpose.

Understand how to prepare financial statements from adjusted trial balances and end-of-period spreadsheets.

---

Definitions:

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out, in order to ensure bank stability and liquidity.

Excess Reserves

The funds that banks hold over and above the legally mandated minimum to safeguard bank liquidity, which can also be lent out.

Actual Reserves

The funds that a bank has on hand or deposited with the central bank, available for immediate use.

Net Worth

Assets minus liabilities; also called owners’ equity.