In 2010 MacFee Inc Discovered That Its Ending Inventory in 2007

question 11

Multiple Choice

In 2010 MacFee Inc discovered that its ending inventory in 2007 was too big by $45,000.How much will MacFee's beginning retained earnings (Jan.1,2010) need to be adjusted to correct this error given a tax rate of 30%.

• A)Increase retained earnings $31,500
• B)Do not adjust retained earnings
• C)Decrease retained earnings by $45,000
• D)Decrease retained earnings $31,500.

Discuss the challenges and obstacles to successful collusion among oligopolistic firms.

Examine the strategies employed by oligopolistic firms to maximize profits and minimize competition.

Understand the dual role of advertising in impacting economic efficiency and firm profits.

Grasp the concepts of allocative and productive efficiency within various market structures.

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Definitions:

Collection Policy

Collection Policy is a set of procedures that a company uses to manage and collect payments from its customers, ensuring timely collection of receivables.

Aging Schedule

A tabulation of accounts receivable broken down by age, typically in 30-day increments, to assess the collectibility of the receivables.

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for prompt payment.

Credit Cost Curve

Illustrates the relationship between the cost of credit (interest rates) and the amount of credit available in the market.