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Question;1. Which of the following is the most important;factor that affects a firm's financing mix?;a) The predictability of cash flows;b) the number of shares that are outstanding;c) The amount of EPS;d) the amount of operating income;2. When an accountant makes an adjusting entry for accrued expenses, which;statement best reflects what the accounts look like before the adjustment?;a) Assets overstated, expenses understated;b) Assets understated, revenues understated;c) Expenses understated, liabilities understated;d) Liabilities overstated, revenues understated;3. Which account will have a zero balance after a company has journalized and;posted closing entries?;a) Accumulated Depreciation;b) Prepaid Insurance;c) Service Revenue;d) Supplies;4. A __________ is an articulation of a simple criterion or characterization of;what the leader sees the company must become to establish and sustain global;leadership.;a) Mission;b) leader's principle;c) leader's vision;d) strategic intent;5. The market opportunities most relevant to a particular company are those;that;a) Offer the best growth and profitability.;b) Provide avenues for taking market share away from close rivals.;c) Hold the most potential for product innovation.;d) Provide a strong defense against threats to the company's profitability..;6. Internal control is used in a business to enhance the accuracy and;reliability of its accounting records and to;a) Analyze financial statements.;b) Create a system of audit review.;c) Safeguard its assets.;d) Protect investments by the public.;7. What principle dictates that efforts (expenses) be recorded with results;(revenues)?;a) Periodicity principle;b) Expense recognition principle;c) Cost principle;d) Revenue recognition principle;8. The Oviedo Thespians are planning to present performances of their Florida;Revue on two consecutive nights in January. It will cost them $5,000 per night;for theater rental, event insurance, and professional musicians. The theater;will also take 10% of gross ticket sales. How many tickets must they sell at;$10.00 per ticket to break even?;a) 1,223 tickets;b) 1,112 tickets;c) 1000 tickets;d) There is not enough information.;9. Which of the four basic financial statements adds net income and subtracts;dividends to arrive at its key data element at the end of each period?;a) Balance Statement;b) Retained Earnings Statement;c) Income Statement;d) Statement of Cash Flows;10. H&R Block wants to analyze its clients? tax returns over the past 10;years for each of the client?s tax filings. The type of data generated will be;a) time series data;b) observation data;c) meta data;d) cross-sectional data;11. A distribution center for a chain of electronics supply stores fills and;ships orders to retail outlets. A random sample of orders is selected as they;are received and the dollar amount of the order (in thousands of dollars) is;recorded, and then the time (in hours) required to fill the order and have it;ready for shipping is determined. A scatterplot showing the times as the;response variable and the dollar amounts (in thousands of dollars) as the;predictor shows a linear trend. The least squares regression line is determined;to be: y?= 0.76 +1.8x. A plot of the residuals versus the dollar amounts showed;no pattern, and the following values were reported: Correlation r + 0.90, R 2 =;0.81, standard deviation of the residuals is 0.48. What percentage of the;variation in the times required to prepare an order for shipping is accounted;for by the fitted line?;a) 48%;b) 81%;c) 90%;d) 76%;12. National Printing Equipment (NPE) produces equipment that helps to print;newspapers and magazines. The company sells directly to printers and through;wholesalers. Its salespeople negotiate prices with individual customers and;often have to match competitors' prices. NPE has a new product, the Gutenberg;NP201, with some competitive advantages now, but competitors are expected to;follow quickly with similar products. The new product is being introduced into;a market with elastic demand. In regard to freight charges for its equipment;NPE's invoice reads, "Seller pays the cost of loading equipment onto a;common carrier. At the point of loading, title to such products passes to the;buyer, who assumes responsibility for damage in transit, except as covered by;the transportation agency.;National Printing Equipment's new Gutenberg NP201 should probably use;a) introductory pricing;b) price fixing;c) penetration pricing;d) skimming pricing;13. __________ is the intentional coordination of every communication from a;firm to a target customer to convey a consistent and complete message.;a) Integrated marketing communications;b) Online marketing;c) Product positioning;d) Digital marketing;14. Identifying and assessing a company's resource strengths and weaknesses and;its external opportunities and threats is called a __________________.;a) strategic resource assessment;b) competitive asset/liability analysis;c) SWOT analysis;d) competitive positioning analysis;15. Suppose Stock A has had a mean price of $6.58 per share with a standard;deviation of $1.88, while Stock B has had a mean price of $10.57 per share with;a standard deviation of $3.02. Which stock shows a higher coefficient of;variation or volatility?;a) Stock B;b) Stock A;c) Both stocks have the same coefficient of variation.;d) The coefficients are incomparable.;16. Which of the following will decrease the nominal deficit?;a) An increase in the debt;b) An increase in interest rates;c) An increase in government expenditures;d) An increase in taxes;17. When predicting grade point average from the number of hours spent studying;per week, the equation for the best fit line was found to be y? = 0.0855x +;0.944. What is the predicted grade point average of a student that studies 26;hours per week?;a) 25;b) 2.99;c) 3.17;d) 24.63;18. The main reason that vertical marketing systems are becoming more common is;that;a) Firms increasingly understand that competition among channel members is;profitable.;b) It is easy for multiple firms to coordinate a single marketing mix for a;common target market.;c) Firms realize that working independently has advantages for channel members.;d) Firms recognize that coordination among channel members can increase sales;for each channel member.;19. The appropriate alternative hypothesis for a two-tail test to determine if;mean body weight of all the men who have joined a health club is the same as;185 pounds would be;a) Ho: ? = 185 lbs.;b) Ho: ?? 185 lbs.;c) Ho: ? > 185 lbs.;d) Ho: ? = 185 lbs.;20. Segmenting, in contrast to combining;a) Usually means settling for a smaller sales potential.;b) Tends to focus more on customer similarities than on differences.;c) Relies more on promotion appeals and minor product differences to create;general customer appeal among several submarkets.;d) Tries to identify homogeneous submarkets and develop different marketing;mixes for each submarket.;21. Which of the following statements about ethical behavior in business is;true?;a) The legal environment sets the minimum standards of ethical behavior.;b) The legal environment sets the highest standards of ethical behavior.;c) The legal environment sets the maximum standards of ethical behavior.;d) The legal environment sets the normative standards of ethical behavior.;22. What is the present value of $12,500 to be received 10 years from today?;Assume a discount rate of 8% compounded annually and round to the nearest;$10.;a) $5,790;b) $17,010;c) $9,210;d) $11,574;23. The following is an example of an unethical action committed by ABC, Inc.?s;accountant, Fred Anderson.;a) Anderson records income using the cash basis of accounting, contrary to;GAAP.;b) Anderson causes $200 in ABC, Inc. merchandise to be shipped to him for free.;c) Anderson?s recording of amortization is audited by an independent auditor.;d) Anderson?s supervisor asks him to inflate income for the current period to;make the company appear more profitable.;24. A survey of 134 cell phone users yielded the data found in the table below.;The table compares gender and type of phone.;iPhone Non-iPhone Total;Male 57 23 80;Female 36 18 54;Total 93 41 134;If a customer is randomly selected based on this survey data, what is the;probability that the customer is a female with an iPhone? (Round your answer to;3 decimal places).;a) 0.269;b) 0.481;c) 0.333;d) 0.387;25. The overriding goal of a control system is to enable the __________ and;of the business.;a) process, development;b) survival, long-term success;c) invention, entrepreneurship;d) improvement, diversification;26. One reason for international investment is that;a) Raw materials are typically cheaper in other countries than in the U.S.;b) The economies of many countries are growing faster than that of the U.S.;c) Doing business in foreign countries is simpler than in the U.S.;d) price-earnings (P/E) ratios are higher in foreign countries;27. If XYZ Co. had 100 units of beginning inventory valued at $15 per unit in;January, purchased an additional 100 units of inventory in February at $16 per;unit, and additional 100 units of inventory in May at $19 per unit, what would;the unit cost of ending inventory be under each of the three inventory methods;(assuming that XYZ only sold 79 units during this time frame)?;a) $15 under FIFO, $19 under LIFO, $16.6 under average cost;b) $19 under FIFO, $15 under LIFO, $17 under average cost;c) $19 under FIFO, $15 under LIFO, $16.6 under average cost;d) $15 under FIFO, $19 under LIFO, $17 under average cost;28. P. Noel's Inc.'s current ratio is 2. Current liabilities are $500,000. P.;Noel's current assets equal __________ and net working capital is __________.;a) $500,000 and $1,000,000;b) $1,000,000 and $500,000;c) $500,000 and $250,000;d) $500,000 and $500,000;29. The DMAIC (define, measure, analyze, improve, control) process is relevant;to;a) CCC21.;b) Six Sigma.;c) Balanced scorecard.;d) Strategic matrix analysis.;30. A correlation value of r = 0.5 between the x-variable and y-variable means;a) There is no linear relationship between x and y.;b) There is a moderate positive linear relationship between x and y.;c) There is a strong positive linear relationship between x and y.;d) There is no relationship between x and y.;31. Cargill, Inc. is finally earning a profit on the unique product it;introduced 6 months ago. Cargill's advertising is both informative and;persuasive. Much money is being spent on place development. There is little;price competition, although several competitors have come out with reasonable;imitations. Total industry sales and profits are both rising. In which stage of;the product life cycle is Cargill operating?;a) Market introduction;b) Market maturity;c) Sales decline;d) Market growth;32. Under the percentage of receivables method, the allowance for a doubtful;accounts balance will occasionally have a debit balance due to write-offs that;occur during the year, which exceed the previous provisions for bad debts. In;such cases, what must a company do to this account?;a) Make an adjusting entry by subtracting the debit balance from the required;balance.;b) Allow the debit balance to carry over to future periods.;c) Create a second allowance for doubtful accounts balance with a credit;balance.;d) Make an adjusting entry by adding the debit balance to the required balance.;33. If a country's trade deficit increases, then;a) It must be buying more assets from foreigners.;b) Its consumption must be falling relative to its production.;c) It must be selling fewer assets to foreigners.;d) Its consumption must be rising relative to its production.;34. In horizontal analysis, each item is expressed as a percentage of the;following;a) Net income amount;b) Total assets amount;c) Stockholders? equity amount;d) Base year amount;35. Which of the following financial instruments entails the most risk and;potentially the highest returns for investors?;a) Preferred stock;b) Bonds;c) Debt with a maturity of less than 1 year;d) Common stock;36. Strategic management involves the _________, directing, _________ and;controlling of a company's strategy-related decisions and actions.;a) marketing, planning;b) financing, marketing;c) planning, organizing;d) planning, financing;37. Mitch Company?s ending inventory is understated by $4,000. The effects of;this error on the current year?s cost of goods sold and net income;respectively, are;a) Overstated and overstated.;b) Understated and understated.;c) Understated and overstated.;d) Overstated and understated.;38. In the stockholders equity section of the balance sheet, the cost of;treasure stock is deducted from the following;a) Total stockholders? equity;b) Common stock in paid-in capital;c) Retained earnings;d) Total paid-in capital and retained earnings;39. Which of the following statements best describes the modern view of;marketing?;a) Marketing anticipates customer needs.;b) Marketing begins as soon as products are produced.;c) Marketing consists mainly of advertising and personal selling.;d) Marketing is only necessary for profit-oriented firms.;40. Penn Corp. acquired a truck to haul widgets between its manufacturing;facility and its sales offices. Penn acquired the truck for $55,000. Penn sold;the truck years later for $15,000. Before the year of the sale, Penn had;depreciated the asset by $32,000. Penn depreciated the truck by another $2,000;during the year it was sold. Does Penn record gain or loss on the sale and how;much?;a) Loss of $19,000;b) Loss of $17,000;c) Gain of $8,000;d) Gain of $6,000;41. Organizational requirements to support and sustain differentiation;activities include which of the following;a) frequent, detailed control reports;b) tradition of closeness to key customers;c) incentives based on meeting strict, quantitative targets;d) structured organization and responsibilities;42. In what situations are notes payable used in lieu of accounts payable?;a) To provide short-term financing, for collection of debt purposes, and to pay;off the debt quicker;b) To create better credit, incur liability over a shorter time frame, and;acquire additional financing for different lines of business;c) To give the lender formal proof of the obligation, for collection of debt;purposes, and to require the borrower to pay interest;d) Because other financing is not available, to facilitate business;relationship with other companies, and to improve goodwill;43. Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and;$18,125,000 of common equity. Metals Corp.'s after-tax cost of debt is 5.25%;preferred stock has a cost of 6.35%, and newly issued common stock has a cost;of 14.05%. What is Metals Corp.'s weighted average cost of capital?;a) 8.32%;b) 12.78%;c) 10.84%;d) 6.56%;44. Ethnic markets are becoming more important to marketers because;a) The median age of Asian, African, and Hispanic Americans is much higher than;that of White Americans.;b) The buying power of ethnic submarkets is decreasing.;c) The number of ethnic consumers is growing at a much faster rate than the;overall society;d) They make a clear segment with similar backgrounds and common language;religion, and culture.;45. Woodstock Inc. expects to own a building for 5 years, and then sell it for;$1,500,000 net of taxes, sales commissions, and other selling costs.;Woodstock's cost of capital is 11%. How much will the sale of the building;contribute to the NPV of the project?;a) $890,177;b) $1,500,000;c) $2,527,587;d) $1,351,351;46. To decrease the nation's money supply, the Fed can;a) Decrease reserve requirements.;b) Increase reserve requirement.;c) Buy government securities in the open market.;d) Decrease the discount rate.;47. To arrive at net cash provided by operating activities, the statement of;cash flows prepared by the indirect method starts with net income and then adds;or deducts various items. In making this calculation, the following items are;added to net income under the indirect method;a) Depreciation expense, gain on the sale of plant assets, and increase in;current liability account;b) Patent amortization expense, increase in current asset account, and decease;in current asset account;c) Gain on the sale of plant asset, increate in current asset account, and;decrease in current liability account;d) Depletion expense, loss on the sale of plant assets, and patent amortization;expense;48. Organizational requirements to support and sustain cost leadership are;a) Tradition of closeness to key customers.;b) Some personnel skilled in sales and operations.;c) Frequent, detained control reports.;d) Subjective measurements and incentives.;49. A random sample of 81 team leaders and supervisors from Fortune 500;companies revealed that on average a person spent 6.5 years on the job before;being promoted. The standard deviation of the sample was 1.7 years. Assuming;that the population standard deviation is unknown, the 99% confidence interval;within which the population mean lies is approximately between ___________ and;years.;a) 6 and 7;b) 5.5 and 6.5;c) 5.5 and 7.5;d) 5.5 and 6.5;50. in the long-run framework, budget surpluses;a) Should never be run since they crowd out investment in the short run.;b) Should be run on a permanent basis since they boost saving and investment;and stimulate economic growth.;c) Should be run whenever output dips below potential output.;d) Are better than budget deficits over the long run because unlike budget;deficits, they increase saving and investment.


Paper#51696 | Written in 18-Jul-2015

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