In California, What Is the General Purpose of Local Governments

question 4

Multiple Choice

In California, what is the general purpose of local governments, such as cities and counties?

• A) manage interstate highways, regulate foreign trade, and maintain weapons and training for security agencies such as Homeland Security
• B) fight fires, clean streets, and protect the health, safety, welfare, and overall quality of life of all who live within their jurisdiction
• C) regulate banks, alcohol and gun sales, print currency, and exchange intelligence information with various law enforcement agencies
• D) protect the border, regulate interstate commerce, negotiate with foreign countries, and monitor the sale of prescription drugs, alcohol, and guns

Compute the adjustments necessary for consolidating financial statements including the elimination of intercompany sales and unrealized profits.

Understand the treatment of common shares and retained earnings in a consolidation context.

Calculate bond payable adjustments in consolidation, including fair value adjustments and straight-line amortization.

Prepare consolidated income statement and retained earnings statement.

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Definitions:

Dumping

The practice of exporting goods at a price lower than the home-market price, often with the intent of undermining competition in the importing country.

Price Discrimination

The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.

Smoot-Hawley Act

A United States legislative act passed in 1930, which raised tariffs on thousands of imported goods, contributing to the severity of the Great Depression.

Import Restrictions

Government-imposed limits or duties on the quantity or value of goods that can be imported into a country.