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Ordinal
Interval
Ratio
amount spent in November was $250 with a standard deviation of $25. Assuming
that the population standard deviation is unknown, what is a 95% confidence
interval for the population mean amount spent on Amazon.com in November?
($245.88, $254.12)
($247.47, $260.09)
($250.64, $256.92)
($251.34, $256.22)
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and Part 2
.081
.268
.089
.716
4. An insurance agent has selected a sample of drivers that she insures whose
ages are in the range from 1642 years old. For each driver, she records the age
of the driver and the dollar amount of claims that the driver filed in the previous
12 months. A scatterplot showing the dollar amount of claims as the response
variable and the age as the predictor shows a linear regression line with:
y^=3710 55.4x. If the age of a driver increases by 1 year, by how much and in
what direction would the dollar amount of claims be predicted to change for the
driver?
5. A researcher claims that the proportion of employees who play video games
in the workplace is higher than it was 10 years ago. You might be willing to
reject the null hypothesis of no change with a = 0.10 or larger. The p-value for
this test is 0.15. In this case the researcher should
6. The general plan of major actions through which a firm intends to achieve is
long-term objectives is called its
corporate plan
long-term goal
grand strategy
mission
whether it is easy or inexpensive for rivals to copy the low-cost leader's methods
or otherwise match its low costs
how easy it is for the low-cost leader to gain the biggest market share
the aggressiveness with which the low-cost leader pursues converting the cost
advantage into the absolute lowest possible costs
the leader's ability to combine the cost advantage with a reputation for good
quality
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Ability to establish brand recognition, find niche, reduce price, solidity strong
distribution relations and develop new channels
Cost effective means of efficient access to selected channels and markets and
strong customer loyalty or dependence
A global company
A modular organization
An ambidextrous organization
A learning organization
10. Which of the following types of strategic control has a low degree of
formalization?
Implementation control
Strategic surveillance
Premise control
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Knowledge Check
11. Investors and creditors are particularly interested in this financial statement
because it tells them what is happening to the companys most important
resource?
Income statement
Balance sheet
12. The cash basis of accounting is prohibited under GAAP for the following
reason:
It records revenues only in the time period in which they are received.
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13. Use the following data to determine the total dollar amount of assets to be
classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet
December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts
receivable $80,000 Salaries and wages payable $20,000 Inventory $140,000
Mortgage payable $180,000 Prepaid insurance $60,000 Total liabilities $310,000
Stock investments $170,000 Land $190,000 Buildings $226,000 Common stock
$240,000 Less: Accumulated Retained earnings $500,000 depreciation ($40,000)
$186,000 Total stockholders equity $740,000 Trademarks $140,000 Total
liabilities and Total assets $1,050,000 Stockholders equity $1,050,000
$686,000
$516,000
$556,000
$376,000
14. The manager of Weiser is given a bonus based on net income before taxes.
The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate
is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO
is adopted instead of LIFO?
$9,000
$12,600
$1,800
$6,300
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15. The SarbanesOxley Act of 2002 requires publicly traded U.S. companies to
take the following actions to defect and prevent fraud:
Ensure internal controls are reliable and effective, corporate executives must
independently review internal controls, and submit all financial statements to the
Public
$28,000
$13,125
$25,900
$14,000
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Knowledge Check
$54,000
$31,500
$4,500
$36,000
18. Logan Corporation issues 50,000 shares of $50 par value preferred stock for
cash at $60 per share. The entry to record the transaction will consist of a debit
to cash for $3,000,000 and a credit or credits to
preferred stock for $2,500,000 and paid-in capital in excess of par value
preferred stock for $500,000
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19. Which of the following tools of analysis is used to evaluate financial
statement information by expressing financial statement data as a percentage
over a base amount?
Vertical analysis
Horizontal analysis
Ratio analysis
Industry averages
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20.The SarbanesOxley Act of 2002 requires publically-traded U.S. companies to
provide great internal controls. The five primary components of an internal
control system include: a control environment, risk assessment, information and
communication, monitoring, and
Establishment of responsibility
Segregation of duties
Control activities
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