Learning Outcomes By the end of this section, you will be able to: In this section, we will explore the basic elements of cash and accrual accounting and the businesses that are most likely to use each one. Some private…
Figure 4.1 Accrual accounting reports revenue when goods are delivered or services are performed but are not necessarily paid for. (credit: modification of work “Reviewing Financial Statements” by Instructional Institutions) Chapter Outline 4.1 Cash versus Accrual Accounting 4.2 Economic Basis for Accrual Accounting 4.3 How…
Microeconomics Microeconomics is the study of individual economic decision makers. In the marketplace, buyers and sellers come together. The buyers are represented by a downward-sloping demand curve; lower prices are associated with a larger quantity demanded. The sellers are represented…
By the end of this section, you will be able to: FRED: Federal Reserve Economic Data One of the largest sources of economic data is the Federal Reserve Economic Data (FRED) database.12 This database is maintained by the Federal Reserve Bank of St.…
Learning Outcomes By the end of this section, you will be able to: Spot Exchange Rate An exchange rate is simply the price of a currency. If you live in the United States and are going on a trip to…
Learning Outcomes By the end of this section, you will be able to: Market for Loanable Funds An interest rate is the rental price of money. The concepts of supply, demand, and equilibrium apply in this market just as they…
Learning Outcomes By the end of this section, you will be able to: What Is the Business Cycle? Although the US economy has grown significantly over time, as seen in Figure 3.12, the growth has not occurred at a constant, consistent…
Learning Outcomes By the end of this section, you will be able to: Inflation Macroeconomics looks at the economy as a whole. It focuses on broad issues such as inflation, unemployment, and growth of production. When the managers of an automotive…
Learning Outcomes By the end of this section, you will be able to: Demand Microeconomics focuses on the decisions and actions of individual agents, such as businesses or customers, within the economy. The interactions of the decisions that businesses and…
Figure 3.1 Every company is impacted by the global economy. (credit: “World Currency” by Kari/flickr, CC BY 2.0) Chapter Outline 3.1 Microeconomics 3.2 Macroeconomics 3.3 Business Cycles and Economic Activity 3.4 Interest Rates 3.5 Foreign Exchange Rates 3.6 Sources and Characteristics of Economic Data American Airlines is one of…