Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions
Figure: Loanable Funds Contraction

-(Figure: Loanable Funds Contraction) Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S_LF to S¹_LF in the figure?

• A) The economy is expected to go into a recession.
• B) An existing investment tax credit is abolished.
• C) The government ceases taxing interest earnings.
• D) Consumers become less patient.

Understand the function and recording of petty cash transactions including the establishment and replenishment of petty cash funds.

Identify internal control procedures for managing cash receipts and disbursements.

Analyze the role of cash management in business operations, including bank reconciliations and the handling of cash overages and shortages.

Distinguish between the various types of adjustments needed for a proper bank reconciliation.

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Definitions:

Optimistic Estimate

A projection or forecast that assumes the most favorable conditions and outcomes.

Bid Shading

The strategy of making a bid lower than what a bidder is actually willing to pay, typically to save money in auctions or competitive tender processes.

Bid-rigging

An illegal agreement between parties to conspire and fix the bidding process, often in procurement auctions.

Sealed-bid

A bidding process where all the bids are kept confidential until a designated opening time, preventing bidders from seeing competitors' bids.