ANATOMY 2 CH 24 FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month Beta oxidation is the initial phase of fatty acid oxidation and it occurs in the cytoplasm FALSE CLICK THE ARROWS BELOW TO ADVANCE 1 90 Terms in this set 90 Beta oxidation is the initial phase of fatty acid oxidation and it occurs in the cytoplasm FALSE The increased use of noncarbohydrate molecules for energy to conserve glucose is called glucose sparing TRUE Except for lactose and some glycogen the carbohydrates we ingest are mainly from animals FALSE The term essential nutrient refers to the chemicals that can be interconverted in the liver so that the body can maintain life and good health FALSE The most abundant dietary lipids in the diets of most Americans are triglycerides TRUE There are no complete proteins All animal products should be eaten with plant material to make a complete protein FALSE The body is considered to be in nitrogen balance when the amount of nitrogen ingested in lipids equals the amount excreted in urine FALSE The amount of protein needed by each person is determined by the age size and metabolic rate of the person TRUE Vitamins are inorganic compounds that are essential for growth and good health FALSE Cellular respiration is an anabolic process FALSE The preferred energy fuel for the brain is fat FALSE Glycogenesis begins when ATP levels are high and glucose entering cells is phosphorylated to glucose6phosphate and converted to its isomer glucose1phosphate TRUE All athletes require diets high in protein and calories in order to perform and to maintain their muscle mass FALSE In order for amino acids to be oxidized for energy the amine group NH2 must be removed TRUE When blood glucose levels are low the body begins to use more noncarbohydrate fuels for energy production This process is called glucose activation FALSE Processes that break down complex molecules into simpler ones are anabolic FALSE For use as fuel all food carbohydrates are eventually transformed to glucose TRUE Triglycerides and cholesterol do not circulate freely in the bloodstream TRUE The major role of HDLs is to store energy in the form of fat FALSE It would not be healthy to eliminate all fats from your diet because they serve a useful purpose in maintaining the body TRUE Carbohydrate and fat pools are oxidized directly to produce cellular energy but amino acid pools must first be converted to a carbohydrate intermediate before being sent through cellular respiration pathways TRUE High levels of HDLs are considered good TRUE Diets high in cholesterol and saturated fats tend to produce high HDL concentrations FALSE Ghrelin produced by the stomach is a powerful appetite stimulant TRUE Peptides called NPY and AgRP are powerful appetite enhancers TRUE The primary function of carbohydrates is energy production within cells TRUE The molecule that serves as the major source of readily available fuel for neurons and blood cells is ________ A fat B glucose C acetyl CoA D protein B Which of the choices below is not a fate of carbohydrate taken into the body A ATP production B lipogenesis C amino acid synthesis D direct conversion to a nucleic acid E glycogenesis D Which of the following is the major role of leptin in the body A promote weight loss with activity B protect against weight loss during nutritional deprivation C shrink fat stores D decrease appetite and food intake B Cholesterol though it is not an energy molecule has importance in the body because it ________ A is a stabilizing component of the plasma membranes and is the parent molecule of steroid hormones B helps provide essential nutrients to the brain and lungs C helps mobilize fats during periods of starvation D enters the glycolytic pathway without being altered A Which of the following statements best describes complete protein A derived from meat and fish only B meets all the minimum daily requirements for a healthy diet C derived only from legumes and other plant material D must contain all the bodys amino acid requirements for maintenance and growth D The term metabolism is best defined as ________ A the length of time it takes to digest and absorb fats B a measure of carbohydrate utilization typically involving measurement of calories C the number of calories it takes to keep from shivering on a cold day D the sum of biochemical reactions involved in building breaking down molecules D The term basal metabolic rate reflects the ________ A energy the body needs to perform only its most essential activities B loss of organic molecules in urine C energy needed to make all organic molecules D loss of energy to perspiration A When proteins undergo deamination the waste substance found in the urine is mostly ________ A urea B ammonia C acetyl CoA D ketone bodies A It is important to ensure that your diet is adequately rich in vitamins because ________ A vitamins provide protection against the common cold B very few foods contain vitamins C most vitamins are coenzymes needed to help the body utilize essential nutrients D all vitamins are water soluble and pass out of the body too quickly to ensure utilization C Minerals required by the body in moderate amounts include all but which of the following A calcium and phosphorus B sulfur and potassium C sodium and chlorine D iron and selenium D Which of the choices below describes the pathway of cellular respiration the complete oxidation of glucose A glycolysis Krebs cycle electron transport chain oxidative phosphorylation B gluconeogenesis Krebs cycle lipolysis C lipolysis glycogenolysis beta oxidation D glycogenesis lipogenesis electron transport chain A Anabolism includes reactions in which ________ A carbohydrate utilization increases B larger molecules or structures are built from smaller ones C structural proteins are used as a potential energy source D ketone bodies are formed B Catabolism would be best described as a process that ________ A causes a decline in circulating ketone bodies B builds up triglycerides during the postabsorptive state C breaks down complex structures to simpler ones D elevates glucagon levels C The primary function of cellular respiration is to ________ A determine the amount of heat needed by the human body B provide the body with adequate amounts of vitamins and minerals C efficiently monitor the energy needs of the body D break down food molecules and generate ATP D The process of breaking triglycerides down into glycerol and fatty acids is known as ________ A gluconeogenesis B fat utilization C lipogenesis D lipolysis D Which of the following mechanisms produces the most ATP during cellular respiration A oxidative phosphorylation B substratelevel phosphorylation C lactic acid production D oxidation reactions A Lipogenesis occurs when ________ A there is a shortage of fatty acids B glucose levels drop slightly C excess proteins are transported through the cell membrane D cellular ATP and glucose levels are high D Oxidative deamination takes place in the ________ A liver B muscles C brain D blood A Transamination is the process whereby the amine group of an amino acid is ________ A transferred to acetyl CoA B converted to urea C transferred to a keto acid D converted to ammonia C Glycogen is formed in the liver during the ________ A postabsorptive state B absorptive state C starvation period D period when the metabolic rate is lowest B Which of the following is a normal consequence of the activation of the heatpromoting center A release of epinephrine B sympathetic sweat gland activation C increase in ADH production D vasodilation of cutaneous blood vessels A Gluconeogenesis is the process in which ________ A glycogen is broken down to release glucose B glucose is formed from noncarbohydrate precursors C glycogen is formed D glucose is converted into carbon dioxide and water B Glycolysis is best defined as a catabolic reaction based upon the ________ A conversion of glucose into carbon dioxide and water B conversion of glucose into two molecules of pyruvic acid C conversion of pyruvic acid into carbon dioxide and water D formation of sugar B What is the outcome of ketosis A water retention and edema B metabolic acidosis C metabolic alkalosis D glycogen buildup E glucogenesis B Which of the choices below happens during the absorptive state A Anabolic processes exceed catabolic ones B Catabolic processes exceed anabolic ones C No metabolism occurs D Only glucose metabolism occurs A In the case of a person who consumes a normal balanced diet proteins are essential to the body for all of the following except ________ A production of energy B production of some hormones C production of enzymes clotting factors and antibodies D formation of functional molecules like hemoglobin and cytochromes A The most abundant dietary lipids are ________ A cholesterol B phospholipids C fatty acids D triglycerides D The ingestion of which nutrient type results in the greatest foodinduced thermogenesis A lipids B carbohydrates C proteins D vitamins C Which hormone directs essentially all the events of the absorptive state A growth hormone B thyroid hormone C epinephrine D insulin D Prostaglandins play a role in ________ A skeletal muscle contraction B control of blood volume C noninflammatory responses D control of blood pressure D Which of the following is not an important function of the liver A carbohydrate and lipid metabolism B synthesis of bile salts C synthesis of vitamin K D protein metabolism D As the body progresses from the absorptive to the postabsorptive state only the ________ continues to burn glucose while every other organ in the body mostly switches to fatty acids A liver B brain C pancreas D spleen B In gluconeogenesis during the postabsorptive state amino acids and ________ are converted to glucose A glycerol B glycogen C acetyl Co A D glucagon A In the liver the amine group of glutamic acid is removed as ________ in the oxidative state A glyceraldehyde B pyruvic acid C ammonia D oxaloacetic acid C Which of the choices below is not a mechanism of heat production A vasoconstriction of cutaneous blood vessels B shivering C sweating D enhanced thyroxine release C Heatloss mechanisms do not include ________ A reducing activity B the evaporation of sweat C behavior measures such as wearing light loose clothing D vasoconstriction of peripheral blood vessels D The amount of ________ produced is probably the most important hormonal factor in determining BMR A norepinephrine B thyroxine C prolactin D ADH B When ketone bodies are present in the blood and urine in large amounts it usually indicates increased metabolism of ________ A amino acids B fatty acids C glycogen D lactic acid B Many factors influence BMR What is the most critical factor A the way an individual metabolizes fat B the way skeletal muscles break down glycogen C the ratio of surface area to volume weight of the body D an individuals body weight C The primary reason elderly people should decrease their caloric intake is that ________ A muscle mass and metabolism decline with age B their appetite begins to diminish C they have a higher metabolic rate and do not need large amounts of food D they spend most of the day at rest and their food will quickly turn to fat A Which of the choices below is not a major route of heat exchange A radiation B conductionconvection C evaporation D shivering D Which of the following statements is a false or incorrect statement A The amino acid pool is the bodys total supply of amino acids in the bodys proteins B Fats and carbohydrates are oxidized directly to produce cellular energy C Amino acids can be used to supply energy only after being converted to a carbohydrate intermediate D Excess carbohydrate and fat can be stored as such whereas excess amino acids are oxidized for energy or converted to fat or glycogen for storage A Which food type is considered to be the most important for athletes to eat to improve performance A simple sugars B complex carbohydrates C plant proteins D animal proteins B Which of the following nutrients yield the highest amount of energy per gram when metabolized A fats B vitamins and minerals C foods and beverages high in caffeine D proteins A Which of the following does not occur in the mitochondria A electron transport B glycolysis C Krebs cycle D formation of malic acid from fumaric acid B Which of the following is not true of beta oxidation A It occurs in the mitochondrion B Every second carbon is reduced C It involves the anabolism of fats D Fatty acids are broken into acetic acid fragments C Select the correct statement about proteins A Strict vegetarians need not worry about adequate protein intake as most vegetables are almost perfect sources of amino acids B Proteins can be synthesized in the body if most of the amino acids are present C Proteins will be used by most cells for ATP synthesis if insufficient carbohydrates are ingested D Catabolic steroids hormones accelerate the rate of protein synthesis C Oxidation reduction reactions ________ A utilize hydrogenases B may involve the loss of hydrogen and electrons C are rarely coupled together D occur via the gain of hydrogen or the loss of oxygen B What process primes a molecule to change in a way that increases its activity produces motion or does work A phosphorylation B beta oxidation C cellular respiration D glycolysis A Which of the choices below is not a source of glucose during the postabsorptive state A glycogenolysis in the liver B lipolysis in adipose tissues and the liver C absorption of glucose from the GI tract D catabolism of cellular protein C Which of the following is correct A Most of the ATP are produced by substratelevel phosphorylation B Each FADH2 yields about 1 12 ATP via oxidative phosphorylation C Glycolysis relies on substratelevel oxidation for the four ATP produced in this pathway D Most ATP from cellular respiration are produced directly in the Krebs cycle B Which of the following food groups are considered good sources of complete proteins A corn cottonseed oil soy oil and wheat germ B lima beans kidney beans nuts and cereals C egg yolk fish roe and grains D eggs milk yogurt meat and fish D Conditions that promote the oxidative deamination and energy use of amino acids include ________ A adequate essential amino acids B adequate fat calories to provide adequate ATP formation C excessive amounts of protein in the diet D ammonia combining with oxygen to form urea C When a persons hypothalamic thermostat is set to a higher level and the actual body temperature is below that level the person may ________ A pant B exhibit vasodilation of skin vessels C perspire heavily D shiver D Glucose can be obtained from ________ A glycogenolysis B triglyceride anabolism C protein anabolism D lipogenesis A Which of the following is not a function of LDLs A transport cholesterol from the peripheral tissues to the liver B regulate cholesterol synthesis in tissue cells C make cholesterol available to tissue cells for membrane or hormone synthesis D assist in the storage of cholesterol when supply exceeds demand A Which of the following best defines negative nitrogen balance A Protein breakdown exceeds protein synthesis B It is a condition usually caused by having a diet low in fish and meat C A negative nitrogen balance is normal and is a way of maintaining homeostasis D It occurs when amino acids are broken down by liver enzymes and carried to the bloodstream A The Krebs cycle produces ________ ATP molecules per glucose molecule by substratelevel phosphorylation TWO Which nutritional state constitutes the period during and shortly after eating when nutrients are flushing into the bloodstream from the GI tract ABSORPTIVE Fat burning causes an accumulation of acetyl CoA which the liver converts to ________ KETONES Low body temperature due to excessive cold is called ________ HYPOTHERMIA The enzymes that catalyze oxidationreduction reactions by removing hydrogen are specifically called ________ DEHYDROGENASES The process of splitting glucose through a series of steps that produces two pyruvic acid molecules is called ________ GLYCOLYSIS In the Krebs cycle citric acid is followed by ________ acid ISOCITRIC YOU MIGHT ALSO LIKE AP Chapter 24 Multiple Choice 57 terms Chapter 24 Nutrition Metabolism and Body Temperature Regulation 96 terms Nutrition Ch23 Practice Test OTHER SETS BY THIS CREATOR 82 terms ANATOMY 2 CH23 91 terms anatomy 2 ch22 87 terms Anatomy 2 ch 21 58 terms ANATOMY 2 CH20 THIS SET IS OFTEN IN FOLDERS WITH 40 terms Cardiac Conduction System 88 terms chapter 20 The Lymphatic System and Lymphoid Organs and Tissues 91 terms APII Test 2 Fitzgerald 50 terms Ch 20 The Lymphatic System

B O O O O O O O O O O O O O O O O B O O O O O O O B O O O O O B O O O O O O O O O O O O O O O B O O O O O O O B O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O B O O O O B O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


Theatre Chapter 7 FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month Aesthetic Distance CLICK THE CARD TO FLIP IT Physical or psychological separation or detachment of audience from dramatic action usually considered necessary for artistic illusion CLICK THE ARROWS BELOW TO ADVANCE 1 16

B O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


FAR Financial Statement Disclosure FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month The following should be disclosed in a summary of significant accounting policies CLICK THE CARD TO FLIP IT Basis of profit recognition on long term contracts Basis of consolidation Depreciation methods Amortization of intangibles Inventory pricing Recognition of revenue from leasing and franchising operations items that can be cash equivalents CLICK THE ARROWS BELOW TO ADVANCE 1 78 Terms in this set 78 The following should be disclosed in a summary of significant accounting policies Basis of profit recognition on long term contracts Basis of consolidation Depreciation methods Amortization of intangibles Inventory pricing Recognition of revenue from leasing and franchising operations items that can be cash equivalents Based on the revenue criterion only segments is are reportable An operating segment of a business is considered reportable if its reported revenue including sales to external customers and intersegment sales or transfers is at least 10 of the combined revenue of all operating segments Neely Co disclosed in the notes to its financial statements that a significant number of its unsecured trade account receivables are with companies that operate in the same industry This disclosure is required to inform financial statement users of the existence of the risk of accounting loss from a financial instrument Risk of accounting loss for AR is reflected in the recognition of an allowance for bad debts Market risk risk of loss from the change in the market value of the assets and liabilities Which of the following material events occurring after the December 31 Year 6 end of the reporting period does ordinarily result in adjustment of the financial statements before they are issued on February 28 Year 7 1 The bankruptcy of a customer is an example of an adjusting event after the reporting period It confirms the existence of an impairment loss at year end 2 The entity should adjust for stock splits occurring before the statements are authorized for issue 3 The litigation was pending at year end and its settlement before the statements are authorized for issue is an adjusting event after the reporting period A corporation issues quarterly interim financial statements and uses the lower of cost or market method to measure its LIFO inventory in its annual financial statements The corporation accounts for its inventory using the LIFO method Which of the following statements is correct regarding how the corporation should measure its inventory in its interim financial statements Inventory losses generally should be recognized in the interim statements an inventory loss due to the market decline can be deferred but An INVENTORY LOSS should be recog at INTERIM if the loss is recovered during the year is treated as a CHANGE in ESTIMATE A company that issues quarterly financial statements incurs a material unusual loss in one of the first three quarters In which of the following ways would the company report this loss In the quarter the loss happened Unusual or infrequently occurring items are recognized in net income in the interim period in which they occur Note disclosure alone is not sufficient Unusual or infrequently occurring items should be separately disclosed included in interimperiod net income and not prorated over the year An operating segment 1 engages in business activities from which it may earn revenues or incur expenses 2 has operating results that are regularly reviewed by the entitys chief operating decision maker and 3 has discrete financial information is available For an operating segment to be reportable it must meet one or more of the following quantitative thresholds revenue 10 of combined revenues profit 10 of combined profit absolute no loss reported assets 10 of combined assets 1 Reported revenue is at least 10 of the combined revenue of all operating segments 2 reported profit or loss is at least 10 of the greater in absolute amount of the combined reported profit of all operating segments that did not incur a loss or the combined reported loss of all operating segments that did report a loss or 3 its assets are at least 10 of the combined assets of all operating segments Farr Corp had the following transactions during the quarter ended March 31 Loss on disposal of equipment 70000 Payment of fire insurance premium for calendar year 100000 What amounts should be included in Farrs income statement for the quarter ended March 31 Gains and losses that arise in an interim period that are similar to gains and losses that would not be deferred at year end should not be deferred to later interim periods within the same fiscal year Costs other than product costs such as a fire insurance premium that will clearly benefit two or more interim periods should be allocated among the interim periods based on estimates of the time expired the benefit received or the activity associated with each period The summary of significant accounting policies should disclose the Criteria for determining which investments are treated as cash equivalents If it is not practicable for an entity to estimate the fair value of a financial instrument which of the following should be disclosed 1 Information pertinent to estimating the fair value of the financial instrument carrying amount effective interest rate maturity 2 The reasons that estimating fair value is not feasible Disclosure the fair value of financial instruments Certain entities must disclose the fair value of financial instruments whether or not they are recognized in the balance sheet if estimation is feasible If it is not descriptive information relevant to estimation of the fair values should be provided When disclosure of fair value for fin instruments is optional the entity is nonpublic has total assets of less than 100 million and has not held or issued any derivative financial instruments other than loan commitments during the reporting period Nancarrow Corp released its financial statements for the year ended December 31 Year 7 on March 15 Year 8 On February 1 Year 8 Nancarrow settled a longstanding lawsuit that resulted in a material loss No liability for this circumstance had been accrued in the financial statements How should this event be disclosed or recognized The event must be recognized in the financial statements An entity recognizes in the financial statements adjusting events occurring after the end of the reporting period but before the statements are authorized for issue These events provide evidence about conditions existing at the end of the reporting period Where in its financial statements should a company disclose information about its concentration of credit risks An entity must disclose significant concentrations of risk arising from most instruments These disclosures should be made in the basic financial statements either in the body of the statements or in the notes Information about a major customer Information about a major external customer must be disclosed if sales to that customer are 10 or more of total revenue However no percentage threshold is established for practicable disclosures of geographic information Instead an entity must disclose revenues attributable to all foreign countries in total Separate disclosure of revenues from external customers attributed to a single foreign country is also required if those revenues are material These disclosures are intended to provide information about reliance on particular markets or customers Vilo Corp has estimated that total depreciation expense for the year ending December 31 will amount to 60000 and that yearend bonuses to employees will total 120000 In Vilos interim income statement for the 6 months ended June 30 what is the total amount of expense relating to these two items that should be reported Costs and expenses other than product costs should be either charged to income in interim periods as incurred or allocated among interim periods based on the benefits received The depreciation and the bonuses to employees clearly provide benefits throughout the year and they should be allocated ratably to all interim periods In the interim income statement for the 6 months ended June 30 the total amount of expense that should be recorded is 90000 180000 12 months 6 months Subsequent events for reporting purposes are defined as events that occur subsequent to the Balance sheet date but before the issuance or availability for issuance of the financial statements Financial statements must disclose significant risks and uncertainties The required disclosures include Vulnerability due to a concentration if a nearterm severe impact is at least reasonably possible Which of the following information is not required to be disclosed in the notes to the financial statements The companys financial ratios in comparison with the industry average Which information is required to be disclosed in the notes to the financial statements nature of operations use of estimates and concentrations is required to be disclosed at the balance sheet date concentration info about the market example co has only one supplier The concentration that will make the company vulnerable to a nearterm severe impact should be disclosed Disclosure of significant account policies 1 selection from existing acceptable alternatives 2 GAAP applied in an unusual way 3 Policies unique to the industry A company should use its prioryear actual annual tax rate to determine taxes for each interim period At the end of each interim period the company should make its best estimate of the effective tax rate expected to be applicable for the full fiscal year The rate so determined should be used in providing for income taxes on a current yeartodate basis Interim period reports for publicly traded companies are not required to include basic and diluted EPS or information about reportable operating segments Publicly traded companies may report summarized financial information at interim dates that is less detailed than information in annual financial statements Among the required minimum disclosures are sales or gross revenues provision for income taxes net income and comprehensive income and basic and diluted EPS for each period presented Information in segment financial statements is to be reported on the basis that is used internally for evaluating performance and making resource allocation decisions Ordinarily segment information is to be reported on the basis that is used internally for evaluating performance and making resource allocation decisions the management approach GAAP do not require disclosure of information that is not prepared for internal use if reporting it would not be feasible An operating segment has the following three characteristics It is a business component of the entity that may earn revenues and incur expenses Its operating results are regularly reviewed by the chief operating decision maker CODM for the purpose of resources allocation and performance assessment Its separate financial information is available Snap Staging Inc used the following information while preparing its quarterly income statements for the current year 1 25000 35 2 20000 35 3 15000 30 What is the journal entry to record income tax expense in Quarter 3 Income tax expense 2250 Income tax payable 2250 Income tax for the first and second quarters was 15750 25000 20000 35 Income tax for the first three quarters is 18000 25000 20000 15000 30 The difference of 2250 18000 15750 is the third quarter income tax expense Disclosures should be made at the balance sheet date about certain items that could significantly affect a reported amount within 1 year of the balance sheet True Disclosures should be made at the balance sheet date about certain items that could significantly affect a reported amount in the near term that is within 1 year of the balance sheet date Some types of disclosures that should be made at the balance sheet date include the risks and uncertainties relating to the nature of operations use of estimates in preparing the financial statements and current vulnerability due to concentrations Should be disclosed at the balance sheet date nature of operations current vulnerability due to concentrations use of estimates in FS SUBSEQUENT EVENTS happens after the balance sheet date and before the issuance or availability of FS Examples of nonrecognized subsequent events requiring disclosure only include sale of a bond capital stock issue loss of plantinventories due to a natural disaster or fire a business combination Settlement of litigation when the event resulting in the claim occurred after the balance sheet date Losses on receivables resulting from conditions eg a customers major casualty occurring after the balance sheet date Subsequent events providing evidence about conditions existing at the balance sheet date should be disclosed in the notes rather than recognized in the financial statements False should be recognized in FS Subsequent events providing evidence about conditions existing at the date of the auditors report but not at the balance sheet date require adjustment of the financial statements FALSE One type of subsequent event provides evidence about conditions that did not exist at the date of the balance sheet but that arose subsequent to that date These events do not require recognition but some of them do require disclosure Examples of subsequent events requiring only disclosure include Sale of a bond or capital stock issue Purchase of a business Settlement of litigation when the precipitating event occurred after the balance sheet date Loss of plant or inventories as a result of fire or flood Losses on receivables resulting from conditions eg a customers major casualty arising after the balance sheet date Financial instruments Historical cost is an appropriate measurement attribute for property plant and equipment which often remain in an entitys possession for years but not for financial instruments which are constantly turning over The FASB thus requires all entities to either report on the face of the balance sheet or disclose in the notes the fair values of all financial instruments Current GAAP are found in FASB ASC 825 Financial Instruments cash evidence of an ownership interestcontract in a company or both FI has contractual obligations and contractual rights contractual obligations second contractual rights first Disclosure of FI if estimating fair value is not feasible disclosure of carrying amount maturity dates effective interest rates certain co must disclosure the fair value of the FI no matter if they are recognized A publicly traded company must disclose in its summarized financial information for interim periods the fair value of all financial instruments for which estimation is practicable Credit risk disclosed in the body of the FS or in the notes risk of accounting loss from a FI due to a possible failure of another party Market Risk is not required to be disclosed is encouraged to disclose quantitative info about the market risks of FS With certain specified exceptions an entity must disclose all significant concentrations of credit risk arising from all financial instruments True Exceptions to disclosure credit risk for FI 1 instruments of pension plans 2 certain insurance contracts 3 warranty obligations and rights and 4 unconditional purchase obligations The bankruptcy liquidation of Pop Products a longtime customer of Crackle Co was approved on February 15 Year 2 According to the bankruptcy documents Crackle will receive only 10000 of the 50000 owed by Pop on an account receivable No payments or purchases on this account have been made since December 31 Year 1 Crackle correctly uses the allowance method of accounting for uncollectible receivables Prepare the journal entry to reflect this transaction on Crackle Cos books as of December 31 Year 1 Allowance for doubtful accounts 40000 Accounts receivable Pop Products 40000 This recognized subsequent event must be reflected in the financial statements The balance at December 31 Year 1 was 50000 However because Crackle will receive only 10000 it must write off 40000 Which of the following items would most likely require an adjustment to the financial statements for the year ended December 31 Year 1 there were conditions at the balance sheet date so adj to FS Loss on an uncollectible trade receivable recorded in Year 1 from a customer that declared bankruptcy in Year 2 Which of the following items would most likely does not require an adjustment to the financial statements for the year ended December 31 Year 1 Proceeds from a capital stock issuance in Year 2 which was being approved by the board of directors in Year 1 just disclosure Uninsured loss of inventories purchased in Year 1 as a result of a flood in Year 2 if material just disclosure Which of the following material events occurring subsequent to the December 31 Year 1 balancesheet date do not ordinarily result in recognition in the financial statements before they are issued on March 2 Year 2 Acquisition of a subsidiary on January 23 Year 2 Negotiations had begun in December of Year 1 A large account receivable from Taylor Industries was considered fully collectible at September 30 Year 5 the balance sheet date Taylor suffered a plant explosion on October 25 Year 5 Because Taylor was uninsured it is unlikely that the account will be paid How should this event be presented in the entitys financial statements Disclosure in a note to the financial statements On October 15 Year 5 a major investment advisor issued a pessimistic report on the entitys longterm prospects The market price for its common stock subsequently declined by 50 How should this event be presented in the financial statements No financial statement disclosure The market price for the entitys common stock is not a financial event that affects the fairness of the presentation of the financial statements Accordingly no disclosure is necessary for changes in the market price of the securities On June 30 Year 4 Mill Corp incurred a 100000 net loss from disposal of a component Also on June 30 Year 4 Mill paid 40000 for property taxes assessed for the Year 4 calendar year What amount of the foregoing items should be included in the determination of Mills net income or loss for the 6month interim period ended June 30 Year 4 we recog the entire 100k loss also 40k2 period20k 120k A planned volume variance in the first quarter which is expected to be absorbed by the end of the fiscal period ordinarily should be deferred at the end of the first quarter if it is fav or not fav A loss from a market price decline on inventory accounted for under the LIFO method occurred in the first quarter The loss was not expected to be restored in the fiscal year However in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter For interim financial reporting the dollar amount of net inventory should Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of decrease in the first quarter market price decline if is not expected to be restore is recog in interim FS Whether recognized or unrecognized in an entitys financial statements disclosure of the fair values of the entitys financial instruments is required when 1 its practicable to estimate the FV 2 aggregated FV are material Opto Co is a publicly traded consolidated entity reporting segment information Which of the following items is a required entitywide disclosure regarding external customers The fact that transactions with a particular external customer constitute more than 10 of the total entity revenues 10 of total entity revenues Must be disclosed If 10 or more of revenues is derived from one external customer 1 that fact 2 the amount from each such customer and 3 the segments reporting the revenues must be disclosed Not a must but can be disclosed Information about products and services and geographical areas is reported if it is feasible to do so Disclosure of accounting policies is an integral part of the financial statements Businesses and notforprofit entities should disclose all significant accounting policies as an integral part of the financial statements A summary of accounting policies preferably should be included in a separate section preceding the notes or in the initial note The Tax Court ruled in favor of the entity on October 25 Year 5 Litigation involved deductions claimed on the Year 1 and Year 2 tax returns The entity had provided in accrued taxes payable for the full amount of the potential disallowances The Internal Revenue Service will not appeal the Tax Courts ruling How should this event be presented in the financial statements Adjustment of the financial statements for the year ended September 30 Year 5 A doubt about newly formed Nev Companys ability to continue as a going concern was disclosed in its annual financial statements for December 31 20X6 In March 20X7 management solved the problem that caused the going concern disclosure Which of the following must the management of Nev disclose in the first quarter financial statements of 20X7 When substantial doubt about an entitys ability to continue as a going concern was alleviated as a result of managements plans the entity must disclose the following 1 Principal conditions or events that raised the substantial doubt 2 Managements evaluation of the significance of those conditions or events 3 Managements plans that alleviated the substantial doubt On December 1 Year 5 Luge was awarded damages of 75000 in a patent infringement suit it brought against a competitor The defendant did not appeal the verdict and payment was received in January Year 6 Accrual only The payment received subsequent to the balance sheet date should be accrued in Year 5 because it applies to a lawsuit won in Year 5 The amount is not a contingent gain given that the defendant did not appeal If the defendant had appealed disclosure but not accrual would be necessary Luge has been sued by a former employee for wrongful dismissal Luges lawyers believe the suit to be without merit not accrual not disclosure If the suit is without merit no loss contingency should be accrued or disclosed because the loss is only remotely possible A government contract completed during Year 5 is subject to renegotiation Although Luge estimates that it is reasonably possible that a refund of approximately 200000 to 300000 may be required by the government it does not wish to publicize this possibility disclosure as it is reasonable possible Luge has been notified by a governmental agency that it will be held responsible for the cleanup of toxic materials at a site where it formerly conducted operations Luge estimates that it is probable that its share of remedial action will be approximately 500000 accrual and disclosure we need to disclose it too On January 5 Year 6 Luge redeemed its outstanding bonds and issued new bonds with a lower rate of interest The reacquisition price was in excess of the carrying amount of the bonds Disclosure only No accrual is necessary because the refunding did not affect balance sheet amounts at 1231Year 5 However disclosure is most likely necessary to prevent the financial statements from being misleading The statements for Year 5 must present the extinguishment loss with full disclosure On September 30 Year 3 the company determined that inventory with a cost of 80000 has a net realizable value of 74000 The company estimates that the inventorys net realizable value at the end of Year 3 will be at least 82000 The company accounts for its inventory using the movingaverage cost method Loss recog is zero No loss is reasonably anticipated for the year no write off is recog at Interim On March 31 Year 3 the company recognized a 40000 writedown due to market decline in inventory During the third quarter the inventorys market value unexpectedly increased by 46000 The company accounts for its inventory using the LIFO method 40k gain as we had an initial 40k loss the company recognized in the third quarter a gain of 40000 as a result of the reversal of the previous inventory writedown list of examples of significant accounting policies that they should include in the disclosures Which section of the authoritative guidance lists examples of these items FASB ASC 23510504 On April 1 Year 2 the company paid 90000 in property taxes on its headquarters building for the current calendar year 22500 Zero Corp suffered a loss that would have a material effect on its financial statements on an uncollectible trade account receivable due to a customers bankruptcy This occurred suddenly due to a natural disaster 10 days after Zeros balance sheet date but 1 month before the issuance of the financial statements Under these circumstances At the date of the FS the conditions did not existed thus we just need to disclosure them and not change the FS For interim financial reporting the computation of a companys second quarter provision for income taxes uses an effective tax rate expected to be applicable for the full fiscal year The effective tax rate should reflect anticipated Foreign Tax Rate yes Available Tax Planning Alternatives yes The estimated annual effective tax rate should be based upon the statutory rate adjusted for the current years expected conditions These conditions include anticipated investment tax credits foreign tax rates percentage depletion capital gains rates and other tax planning alternatives The rate should also include the effect of any valuation allowance expected to be necessary at year end for deferred tax assets related to originating deductible temporary differences and carryforwards during the year The entitys manufacturing division whose assets constituted 75 of its total assets at September 30 Year 5 end of year was sold on November 1 Year 5 The new owner assumed the bonded indebtedness associated with this property How should this event be presented in the financial statements sale Disclosure by means of supplemental pro forma financial data On January 16 Tree Co paid 60000 in property taxes on its factory for the current calendar year On April 2 Tree paid 240000 for unanticipated major repairs to its factory equipment The repairs will benefit operations for the remainder of the calendar year What amount of these expenses should Tree include in its third quarter interim financial statements for the 3 months ended September 30 60k is for the entire year so 60k4 15k 240k is in quarter 2 and the repairs are for the remainder year thus 240k3 80k On March 15 Year 4 Krol Company paid property taxes of 180000 on its factory building for the Year 4 calendar year On April 1 Year 4 Krol made 300000 in unanticipated repairs to its plant equipment The repairs will benefit operations for the remainder of the calendar year What total amount of these expenses should be included in Krols quarterly income statement for the 3 months ended June 30 Year 4 150k445k 300k3100k In financial reporting for operating segments of a public business entity which of the following must be included in the reported amount of a reportable operating segments assets Accumulated depreciation NO Marketable Securities Valuation Allowance NO The amount of a reported segment item such as assets is the measure reported to the chief operating decision maker for purposes of making resource allocation and performance evaluation decisions regarding the segment Thus if accumulated depreciation and a marketable securities valuation allowance are not included in that measure they need not be included in the reported amount of the operating segments assets Disclosure of significant accounting policies is required when 1 a selection has been made from existing acceptable alternatives 2 a policy is unique to the industry in which the entity operates even if the policy is predominantly followed in that industry and 3 GAAP have been applied in an unusual or innovative way During the third quarter Antrim paid 6000 in property taxes for the entire fiscal year property taxes evenly over year 2k On December 31 Year 2 the company paid interest of 9000 on a 12 construction note with a face amount of 100000 The note was issued on January 1 Year 2 to finance the internal construction of the companys new headquarters The construction of the headquarters was started during Year 1 and completed during Year 4 Not a expense no action at interim YOU MIGHT ALSO LIKE 402 test 1 44 terms F1 Problems Practice Exam 1 36 terms 430 2 OTHER SETS BY THIS CREATOR 87 terms FAR Cash and Investments 4 terms FAR Income items THIS SET IS OFTEN IN FOLDERS WITH FAR Chapter 9 10 Intangibles Receivables 89 terms FAR SU 19 Governmental Accounting Accrual 11 terms SU15 business combinations and consolidated financial reporting 64 terms FAR SU 20 NFP Accounting Reporting

O B I I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B I I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


Econ 1101 midterm 2 terms FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month Absolute advantage CLICK THE CARD TO FLIP IT the ability to produce a good using fewer inputs than another producer CLICK THE ARROWS BELOW TO ADVANCE Terms in this set 50 Absolute advantage the ability to produce a good using fewer inputs than another producer Comparative advantage the ability to produce a good at a lower opportunity cost than another producer Externality the uncompensated impact of one persons actions on the wellbeing of a bystander Internalizing the externality altering incentives so that people take account of the external effects of their actions Corrective tax a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality Coase theorem the proposition that if private parties can bargain without cost over the allocation of resources they can solve the problem of externalities on their own Transaction costs the costs that parties incur in the process of agreeing to and following through on a bargain Excludability the property of a good whereby a person can be prevented from using it Rivalry in consumption the property of a good whereby one persons use diminishes other peoples use Private goods goods that are both excludable and rival in consumption Public goods goods that are neither excludable nor rival in consumption Common resources goods that are rival in consumption but not excludable Club goods goods that are excludable but not rival in consumption Free rider a person who receives the benefit of a good but avoids paying for it Costbenefit analysis a study that compares the costs and benefits to society of providing a public good Tragedy of the Commons a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole Total revenue the amount a firm receives for the sale of its output Total cost the market value of the inputs a firm uses in production Profit total revenue minus total cost Explicit costs input costs that require an outlay of money by the firm Implicit costs input costs that do not require an outlay of money by the firm Economic profit total revenue minus total cost including both explicit and implicit costs Accounting profit total revenue minus total explicit cost Production function the relationship between quantity of inputs used to make a good and the quantity of output of that good the increase in output that arises from an additional unit of input Diminishing marginal product the property whereby the marginal product of an input declines as the quantity of the input increases Fixed costs costs that do not vary with the quantity of output produced Variable costs costs that vary with the quantity of output produced Average total cost total cost divided by the quantity of output Average fixed cost fixed cost divided by the quantity of output Average variable cost variable cost divided by the quantity of output Marginal cost the increase in total cost that arises from an extra unit of production Efficient scale the quantity of output that minimizes average total cost Economies of scale the property whereby longrun average total cost falls as the quantity of output increases Diseconomies of scale the property whereby longrun average total cost rises as the quantity of output increases Constant returns to scale the property whereby longrun average total cost stays the same as the quantity of output changes Competitive market a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker Average revenue total revenue divided by the quantity sold Marginal revenue the change in total revenue from an additional unit sold Sunk cost a cost that has already been committed and can not be recovered Budget constraint the limit on the consumption bundles that a consumer can afford Indifference curve a curve that shows consumption bundles that give the consumer the same level of satisfaction Marginal rate of substitution the rate at which a consumer is willing to trade one good for another Perfect substitutes two goods with straightline indifference curves Perfect complements two goods with rightangle indifference curves Normal good a good for which an increase in income raises the quantity demanded Inferior good a good for which an increase in income reduces the quantity demanded Income effect the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve Substitution effect the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution Giffen good a good for which an increase in the price raises the quantity demanded

B O O O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


Chapter 13 FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month What are the three basic reasons to evaluate a program CLICK THE CARD TO FLIP IT A Making sure you did what you proposed to do Bdetermining whether your program had an impact based on what you were trying to do C assessing whether the program model and the theory or theories you or others employed in the design of the program CLICK THE ARROWS BELOW TO ADVANCE 1 5 Terms in this set 5 What are the three basic reasons to evaluate a program A Making sure you did what you proposed to do Bdetermining whether your program had an impact based on what you were trying to do C assessing whether the program model and the theory or theories you or others employed in the design of the program How does evaluation help you understand whether a theory is applicable or useful Evaluation data is evidence Through learning and improvements the program is conducted and is being evaluated data that can be determined what is working or what is not working What in the current public health program environment makes evaluation an imperative on top of the other important reasons for doing it In the current and future environment of program funding there is a very strong emphasis on evidence and accountability To maintain funding for a particular program there needs to be some evidence that it is actually doing something to address the problem it is intended to address This imperative is relatively recent 4 What are the three basic types of evaluation and what is the purpose of each Process evaluation impact evaluation and outcome evaluation Process evaluation means evaluating how the process of implementing a project fared Impact is collecting pre and post data Outcome evaluation is focusing on how the program affected the health problem that was the ultimate target 5 What is the logic model and how does a logic model help you connect theory impact or outcome A logic model is a diagram or structure that links what you plan to do with its expected impacts and outcomes The health problem to be addressed from the epidemiological assessment is the problem such as HIVAIDS More specifically you might want to include the factors contributing to the problem that you want to address relevant behavioral or environmental risks or predisposing enabling or reinforcing factors or community policy factors YOU MIGHT ALSO LIKE 26 terms Evaluation MidTerm PH490c Program Evaluation Program Evaluation Research methods 25 terms Chapter 12 Evaluation Research OTHER SETS BY THIS CREATOR chapter 12 chapter 11 chapter 10 chapter 9

O O O O O O O O O O O O O O O O O O O O O B I I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B I I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


Physical Science Chapter 6 Suppose that we replace the aluminum with a mystery metal and repeat the experiment in the video As in the video the mass of the metal is the same as that of the water Room temperature is about 20C before the start of the experiment The water heats up to 40C and the mystery metal heats up to 80C Compared to that of water the heat capacity of our mystery metal is onethird as great Which of the following changes would make the water balloon more likely to pop Ignore effects of convection within the fluid 1 Use a thicker balloon 2 Use a liquid that has a lower heat capacity than water Which of the following would best describe the conductive properties of wood It is a good insulator What happens to the conductive properties of wood when it gets very hot It will continue to remain a good insulator If you are able to grab a hot pan and pull it out by the handle without burning yourself what kind of handle must the pan have and why a wooden handle because it is the better insulator Why is one able to walk on redhot coals without getting ones feet burned The coals are not good conductors of heat How would you walk on redhot coals without getting your feet burned Walk fast What is the temperature for freezing water on the Fahrenheit scale 32 F What is the temperature for freezing water on the Celsius scale 0 C What is the temperature for boiling water on the Fahrenheit scale 212 F What is the temperature for boiling water on the Celsius scale 100 C How much energy can be taken from a system at a temperature of 0 K 0 J When you touch a cold surface does cold travel from the surface to your hand or does energy travel from your hand to the cold surface The energy travels from the hand to the surface What happens to the thermal energy of a system when mechanical work is done on the system Thermal energy increases What happens to the temperature of the system The temperature increases Does a substance that heats up quickly have a high or low specific heat capacity The substance that heats up quickly has a low specific heat capacity Distinguish between a heat conductor and a heat insulator Electrons are free to migrate in conductors therefore they conduct heat easily Electrons are firmly attached in insulators therefore they dont conduct heat well Describe how convection transfers heat The heat is transferred by means of currents in the heated fluid or gas What exactly is radiant energy Energy of electromagnetic waves What is heat radiation Electromagnetic radiation in the infrared part of the spectrum Find the amount of heat that is required to warm 105 kg of water for you bath by 30 C 105 30 4184 132 J Pounding a nail into wood makes the nail warmer Consider a 7g steel nail 6 cm long and a hammer that exerts an average force of 540 N on the nail when it is being driven into a piece of wood Find the change in the nails temperature after it was pounded into the piece of wood completely Assume that the specific heat capacity of steel is 450 JkgC 54006 324 450007 315 324 315 103C Rank from greatest to least the volume of water at these temperatures a 0C b 4C and c 10C C10 A0 B4 From best to worst rank these materials as heat conductors a copper wire b snow and a c glass rod A copper wire best C glass rod B snow worst From greatest to least rank the frequency of radiation of these emitters of radiant energy a redhot star b bluehot star and c the Sun B bluehot star C the Sun A redhot star Rank the magnitudes of these units of thermal energy from greatest to least a 1 calorie b 1 Calorie c 1 joule B Calorie A calorie C joule Why does the direction of coastal winds change from day to night During the day the shore is warmed more than the water so winds blow from water toward shore At night the shore cools more than the water and winds blow in the opposite direction What kinds of particle motion account for thermal energy translational rotational vibrational What is the definition of temperature Measure of the average translational kinetic energy per particle of an object What is the definition of heat Thermal energy transferred from one object to another due to a temperature difference What determines the direction of heat flow Temperature difference determines the direction of heat flow The heat flows from the object with high temperature to the object with low temperature Thermal energy the energy internal to a substance is composed mainly of rotational vibrational and translational motions of particles When you touch a cold piece of ice with your finger energy flows from your finger to the ice Heat energy travels from an object with a high temperature to an object with a lower temperature The fact that a thermometer takes its own temperature illustrates thermal equilibrium Compared to a giant iceberg a hot cup of coffee has higher temperature but less thermal energy Suppose you rapidly stir some raw eggs with an eggbeater The temperature of the eggs will increase The lowest temperature possible in nature is 273C OR 0 K A volume of air has a temperature of 0C An equal volume of air that is twice as hot has a temperature of 273C On a chilly 10C day your friend who likes cold weather wishes it were twice as cold Taken literally this temperature would be 1315C Consider a piece of metal that is at 5C If it is heated until it has twice the thermal energy its temperature will be 283C Consider a piece of metal that is at 10C If it is heated until it has twice the thermal energy its temperature will be 293C Heat energy is measured in units of joules and calories The reason that the whitehot sparks that strike your skin from a 4thofJulytype sparkler dont harm you is because the energy per molecule is high but the total energy transferred is small It is possible to wholly convert a given amount of heat energy into mechanical energy FALSE Why does a penny become warmer when it is struck by a hammer Striking makes atoms in the metal move faster Is the temperature of an object a measure of the total translational kinetic energy of the molecules in the object or a measure of the average translational kinetic energy per molecule in the object Temperature is a measure of the average translational kinetic energy per molecule in the object What is the definition of a calorie Amount of heat needed to change the temperature of 1 gram of water by 1 degree Celsius What is the definition of a Calorie Amount of heat needed to change the temperature of 1 kilogram of water by 1 degree Celsius What is the definition of a joule Work done in applying a force of one newton through a distance of one meter What is the relationship between calories and joules 1 cal 419 J How does the second law of thermodynamics relate to the direction of heat flow The second law of thermodynamics defines the direction of the spontaneous heat flow from a highertemperature substance to a lowertemperature substance Which warms up faster when heat is applied iron silver or water silver How does the specific heat capacity of water compare with the specific heat capacities of other common materials The specific heat capacity of water is very high in comparison with other common materials Which generally expands more for an equal increase in temperature solid or liquid liquid What happens to the temperature of air when it expands The temperature decreases How does the frequency of radiant energy relate to the absolute temperature of the radiating source The frequency of radiant energy is directly proportional to the absolute temperature of the source When work is done by a system and no heat added to it the temperature of the system decreases Entropy is closely related to the second law of thermodynamics A substance that heats up relatively quickly has a low specific heat capacity Some molecules are able to absorb large amounts of energy in the form of internal vibrations and rotations Materials composed of such molecules have high specific heat capacities Place a 1kg block of iron at 40C into a kilogram of water at 20C and the final temperature of the two becomes less than 30C Ice has a lower density than water because ice is made of openstructured hexagonal crystals Ice tends to form at the surface of bodies of water When ice floats in water a small part of it extends above the surface Interestingly enough the volume of ice that extends above the surface is equal to the volume of the vast number of open spaces in the hexagonal ice crystals When an iron ring is heated the hole becomes larger When a bimetallic bar made of copper and iron strips is heated the bar bends toward the iron strip The reason for this is copper expands more than iron Which of the following expands most when the temperature is increased Equal volumes of helium Consider a closed sealed can of air placed on a hot stove The contained air undergoes an increase in pressure and temperature Which of the following contracts most when the temperature is increased Equal volumes of ice water When water at 4C is heated it expands When water at 4C is cooled it expands Consider a metal ring with a gap cut in it When the ring is heated the gap becomes wider If you stake out a plot of land with a steel tape on a very hot day the amount of land you will have will be larger Your feet feel warmer on a rug than on a tile floor because the rug is a better insulator than tile One of the main reasons people can walk barefoot on redhot coals of wood without burning their feet has to do with low thermal conductivity of the coals Warm air rises because faster moving molecules tend to move to regions of less pressure and density If a volume of air is warmed it expands If a volume of air expands it cools Thermal convection applies mainly to fluids The higher the temperature of an object the shorter the wavelengths it radiates If an object radiates more energy than it absorbs its temperature decreases thermal energy decreases Hot water will cool to room temperature faster in a black pot An object will normally be a net radiator of energy when its temperature is higher than it surroundings If air were a better conductor than it is at nighttime the earth would be considerably colder An object will normally be a net radiator of energy when its thermal energy is Cant say because thermal energy is not temperature If a poor absorber of radiation were a good emitter its temperature would be less than its surroundings A good reflector of radiation is a poor absorber of radiation The planet Earth loses heat mainly by radiation YOU MIGHT ALSO LIKE 87 terms Physics chapter 15 Physics Chapter 15 16 Chapter 10 Temperature and Heat 36 terms Chapter 9 Vocabulary

B I O O O O O O O B O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O


Chapter 9 Global FLASHCARDS WRITE SPELL TEST MATCH GRAVITY Upgrade to remove ads Only 1month Foreign Exchange Market CLICK THE CARD TO FLIP IT market for converting the currency of one country into that of another country CLICK THE ARROWS BELOW TO ADVANCE 1 51 Terms in this set 51 Foreign Exchange Market market for converting the currency of one country into that of another country Exchange Rate rate at which one currency is converted to another Functions of the FX Market 1 convert Currency of one country into another currency 2 provide some insurance FX first use to convert currencies companies use this to covert the foreign exchange payments they receive for export receipts income received from foreign investments income from licensing agreements FX 2nd use to convert currencies Use this when companies need to pay foreign companies in their local currencies FX 3rd use to convert currencies Used for short term money market investments FX 4th use to convert currencies Firms that engaged in currency speculation use this Currency Speculation short term movement of funds from one currency to another in the hopes of making a profit Foreign Exchange Market insure company to insure against risk Risk occurs when unpredicted changes in future exchanges rates have adverse consequences for the firm Hedging firm protects itself against foreign exchange risk Hedging Market protects itself by using spot exchange rates forward exchange currency swaps Spot Exchange Rates rate at which a foreign exchange dealer converts one currency into another currency on a particular day Spot Exchange Rates rates continually changing based on supply and demand Forward Exchange Rates two parties agree to exchange currency and execute the deal at some specific date in the future using forward exchange rate Currency Swaps simultaneous purchase and sale of a given amount of foreign exchange for two different value dates Currency Swaps exchange that takes place between international companies their banks and governments Currency Swap move out of one currency into another for a limited period without incurring foreign exchange risk FX Markets London New York Tokyo Singapore Arbitrage buy the currency at a low price and sell at a high price in another market Arbitrage Opportunities what opportunity arises when there are significant differences between markets FX Market dollar is used as a vehicle currency to facilitate the exchange of other currencies 3 Factors that influence future exchange rates 1 countries price inflation 2 countries interest rate 3 market psychology Law of one price idea of purchasing power parity Law of one price in free markets identical products sold in different countries must sell for the same price when their price is expressed in terms of same currency Theory of Purchasing Power Parity given relatively efficient markets with few restrictions goods should be roughly equivalent in each country PPP accuracy studies show this isnt completely accurate at estimating exchange ratesesp in short run PPP inaccuracy 1 assumes away trasport and trade barrier costs 2 doesnt consider power of MNEs 3 doesnt consider government intervention Fischer Effect suggest when inflation is expected to be highinterest rates will be high International Fischer Effect any two countriesspot exchange rate should change at an equal amount but in the opposite direction to the difference in nominal interest rates between the 2 countries Investor Psychology what are the PPP and international fischer effect missing Bandwagon Effect when expectations by traders turn into self fulfilling prophecies and traders join in and exchange rates move on group expectations Efficient Market School Forward exchange rates are the best predictors for future exchange rates Inefficient Market School Forecasting service can be valuablebut services could be better at predicting rates Methods to predict exchange rates Fundamental analysis Technical analysis Fundamental Analysis uses economic factors like interest rates monetary policy and balance of payment info to predict exchange rates Technical Analysis typically charts trends and past trends and waves are reasonable predictors of future trends and waves Freely convertible government of a country allows both residents and nonresidents to purchase unlimited amounts of foreign currency with it Externally convertible only nonresidents can convert it to a foreign currency without limitations Nonconvertible neither residents or nonresidents are allowed to convert it into a foreign currency Countertrade used when nonconvertible variety of barter like agreements by which goods and services are traded for other goods Capital flight when residents and nonresidents rush to convert their holding of a domestic currency into a foreign currency because domestic currency is rapidly losing value Transaction Exposure extent to which the income from individual transactions is affected by fluctuations in FX values Translation Exposure impact of currency exchange rate changes on the reported financial statements of company Economic Exposure extent to which a firms future international earning power is affected by changes in exchange ratesconcerned with long term effect of changes Leading and Lagging Payables where companies pay suppliers or collect payments early or late depending on anticipated exchanged rate movements Lead Strategy attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate and paying foreign currency payables before theyre due when a currency is expected to appreciate Lag Strategy delaying collection of foreign currency receivables if that currency is expected to appreciate and delaying payables if the currency is expected to depreciate exchange rate rate at which one currency is converted into another spot rate rate of FX dealer on particular day transaction exposure the extent to which income from individual transactions is affected by fluctuations in foreign exchange value

O O B O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O