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$100,000
What is the net amount of property, plant, and equipment that will
appear on the balance sheet?
A. $950,000
B. $1,300,000
C. $1,600,000
D. $1,100,000
2) "Generally accepted" in the phrase generally accepted accounting
principles means that the principles __________.
A. have been approved for use by the managements of business firms
B. have been approved by the Internal Revenue Service
C. have substantial authoritative support
D. are proven theories of accounting
3) The income statement and balance sheet columns of Pine Company's
worksheet reflects the following totals:
Income Statement
Balance Sheet
Dr. Cr.
Dr. Cr.
Totals
$58,000 $48,000
$34,000 $44,000
The net income (or loss) for the period is __________.
A. not determinable
B. $10,000 loss
C. $10,000 income
D. $48,000 income
4) These are selected account balances on December 31, 2008.
Land (location of the corporation's office building)
$150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment
675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will
appear on the balance sheet?
A. $1,425,000
B. $1,950,000
C. $2,400,000
D. $1,650,000
5)
A.
B.
C.
of
D.
6) Hess, Inc. sells a single product with a contribution margin of $12 per
unit and fixed costs of $74,400 and sales for the current year of
$100,000. How much is Hesss break even point?
A. 2,133 units
B. 4,600 units
C. 6,200 units
D. $25,600
7) Sam's Used Cars uses the specific identification method of costing
inventory. During March, Sam purchased three cars for $6,000, $7,500,
and $9,750, respectively. During March, two cars are sold for $9,000
each. Sam determines that at March 31, the $9,750 car is still on hand.
What is Sams gross profit for March?
A. $8,250
B. $5,250
C. $750
D. $4,500
8) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a product
B. assigning manufacturing overhead costs for each activity cost pool to
products
C. computing the activity-based overhead rate
D. identifying the activity-cost pools
9) The income statement and balance sheet columns of Pine Company's
worksheet reflects the following totals:
Income Statement
Balance Sheet
Dr. Cr.
Dr. Cr.
Totals
$58,000 $48,000
$34,000 $44,000
Closing entries are necessary for __________.
A. permanent or real accounts only
B. permanent accounts only
16) Assume oligopoly firms are profit maximizers, they do not form a
cartel, and they take other firms' production levels as given. Then in
equilibrium the output effect __________.
A. can be larger or smaller than the price effect
B. must dominate the price effect
C. must be smaller than the price effect
D. must balance with the price effect
17) The price of a good that prevails in a world market is called the
A. world price.
B. absolute price.
C. relative price.
D. comparative price.
18) A country's consumption possibilities frontier can be outside its
production possibilities frontier if __________.
A. the country imports more than it exports
B. the countrys technology is superior to the technologies of other countries
C. the citizens of the country have a greater desire to consume goods and
services than do the citizens of other countries
D. the country engages in trade
19) When, in a particular market, the law of demand and the law of
supply both apply, the imposition of a binding price ceiling in that
market causes quantity demanded to be __________.
A. double the quantity supplied
B. less than quantity supplied
C. greater than quantity supplied
D. equal to quantity supplied
20) If a binding price ceiling were imposed in the computer market,
__________.
A. the quality of computers would increase
B. the supply of computers would decrease
C. the demand for computers would increase
D. a shortage of computers would develop
21) For a college student who wishes to calculate the true costs of going
to college, the costs of room and board __________.
A. plus the cost of tuition, equals the opportunity cost of going to
college
B. should be counted only to the extent that they are more expensive at college
than elsewhere
C. should be counted in full, regardless of the costs of eating and sleeping
elsewhere
D. usually exceed the opportunity cost of going to college
22) In the market for foreign-currency exchange in the open economy
macroeconomic model, the amount of net capital outflow represents the
quantity of dollars __________.
29) Sebastian Stabilio just joined a team of people from throughout his
organization whose primary task is to recommend valuable uses for the
scrap generated in the manufacturing process. The team meets twice
per week; otherwise members work within the usual organizational
structure. The team, not permanent, which Sebastian has joined, would
be considered a:
A. Parallel team
B. Project team
C. Working group
D. Work team
E. Project group
30) An invisible barrier that makes it difficult for certain groups, such as
minorities and women, to move beyond a certain level in the
organizational hierarchy is referred to as the:
A. Glass floor
B. Job enlargement concept
C. Glass ceiling
D. Black box theory
E. Job enrichment theory
31) The term used to refer to all kinds of differences including religious
affiliation, age, disability status, economic class and lifestyle in addition
to gender, race, ethnicity and nationality is:
A. Managerial ethics
B. Recruiting
C. Employment
D. Diversity
E. Selection
32) Which of the following has proven to be a particularly good predictor
for jobs that require cognitive complexity?
A. behavioral assessment
B. aptitude tests
C. integrity evaluations
D. intelligence tests
E. work sampling
33) To be competitive in a global economy, Europeans must increase
their level of:
A. Financial subsidy
B. Philanthropic contributions
C. Productivity
D. Population density
E. Espionage activity
34) Teams that operate separately from the regular work structure and
exist temporarily are known as:
A. Transnational teams
B. Management teams
C. Self-managed teams
D. Self-designing teams
E. Parallel teams
35) A manager's ability to stimulate people to be high performers is
referred to as:
A. Supervising
B. Planning
C. Controlling
D. Leading
E. Organizing
36) The best way for an employer to find out if a potential employee can
do a job is by __________.
A. using a performance simulation test
B. using the interview process
C. administering an IQ test
D. having them spend a day in the office
E. using a written test
37) Your roommate is interested in starting a business and everybody
has been giving him different information about being an entrepreneur.
Since you have been studying about entrepreneurship and new
ventures, which of these would you tell him is true?
A. All entrepreneurs need venture capital in order to get started
B. Anyone can start a business
C. Successful entrepreneurs take very careful, calculated risks
D. Money should not be considered a start-up ingredient
E. Entrepreneurs are their own bosses and completely independent
38) One study found that manufacturing labor costs about _____ an hour
in China, compared to _____ dollars in the United States.
A. Less than $1; about 40
B. Less than $1; about 15
C. $2; about 25
D. Less than $1; about 25
E. About $2; about 15
39) One of the most important contributors to total quality management
has been the introduction of statistical tools to analyze the causes of
product defects in an approach called:
A. Organic
B. Six Sigma Quality
C. Mechanistic
D. ISO 9000
E. Total quality integration
40) __________ is the process of working with people and resources to
accomplish organizational goals.
A. Supervising
B. Planning
C. Decision making
D. Controlling
E. Management
41) The Aquatic Center, Inc. periodically reviews the goals of the
company. During the process, The Aquatic Center managers analyze
their current strategies as compared to their competitors, determine
goals that they will pursue and decide upon specific actions for each
area of the company to take in pursuit of these goals. The Aquatic
Center managers have been engaged in the management function of:
A. Staffing
B. Planning
C. Organizing
D. Controlling
E. Goal Coordination
42) William used a sample of 68 U.S. cities to estimate the relationship
between Crime (annual property crimes per 100,000 persons) and
Income (median income per capita). His estimated regression equation
was Crime = 428 + .050 Income.
Assuming b1 is significant, if Income decreases by 1000 we would
predict that Crime will __________.
A. increase by 428
B. decrease by 50
C. increase by 500
D. increase by 50
43) Sampling error can be reduced by __________.
A. none of the these affect sampling error
B. increasing the sample size
C. decreasing the sample size
D. utilizing simple random samples
44) Use the following table to answer question:
P(M A) is approximately _____.
A. .25
B. .125
C. .625
D. .50
45) Use the following table to answer question:
Are Service provider and county independent events?
A. Insufficient information to determine
B. Yes
C. No
46) Twelve randomly-chosen students were asked how many times they
had missed class during a certain semester, with this result: 2, 1, 5, 1, 1,
3, 4, 3, 1, 1, 5, 18.
52) While glancing over the sensitivity report, you note that the
stitching labor has a shadow price of $10 and a lower limit of 24 hours
with an upper limit of 36 hours. If your original right hand value for
stitching labor was 30 hours, you know that:
A. you would lose $80 if one of your workers missed an entire 8 hour shift.
B. you can send someone home 6 hours early and still pay them the $60 they
would have earned while on the clock.
C. the next worker that offers to work an extra 8 hours should receive at least
$80.
D. you would be willing pay up to $60 for someone to work another 6
hours.
53) The force behind globalization in _____ was the amount of muscle,
horsepower, wind power, or steam power that a country could deploy.
A. None of these
B. Globalization 2.0
C. Globalization 1.0
D. Globalization 3.0
54) In the _____ phase of the decision making process, managers test
potential solutions on paper.
A. consideration
B. design
C. choice
D. intelligence
E. implementation
55) A set of programs that enable the hardware to process data is _____.
A. procedures
B. database
C. software
D. network
E. hardware
56) What is _____ is not necessarily _____.
A. Ethical, legal
B. Unethical, illegal
C. Ethical, illegal
D. Unethical, legal
E. Illegal, unethical
57) The Global, Web-Based Platform enables individuals to do which of
the following?
A. all of these are true
B. produce and sell goods and services
C. exchange knowledge
D. access information, services, and entertainment
E. connect, compute, communicate, collaborate, and compete everywhere and
all the time
current after-tax cost of the firms capital (required rate of return) for
each source of financing is as follows:
Cost of debt
8%
Cost of preferred stock
12%
Cost of common stock
16%
Long-term debt currently makes up 20% of the capital structure,
preferred stock 10%, and common stock 70%. What is the net present
value of this project?
A. $1,568
B. $463
C. $1,241
D. $871
65) Disadvantages of using current liabilities as opposed to long-term
debt include:
A. certainty of interest costs
B. greater risk of illiquidity, and uncertainty of interest costs
C. decreased risk of liquidity
D. uncertainty of future liabilities
E. higher cash flow exposure
66) Bell Weather, Inc. has a beta of 1.25. The return on the market
portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what
is the required return on this stock?
A. 15.62%
B. 20.62%
C. 14.37%
D. 9.37%
67) Dublin International Corporations marginal tax rate is 40%. It can
issue three-year bonds with a coupon rate of 8.5% and par value of
$1,000. The bonds can be sold now at a price of $938.90 each. The
underwriters will charge $23 per bond in flotation costs. Determine the
approximate after-tax cost of debt for Dublin International to use in a
capital budgeting analysis.
A. 9.2%
B. 5.1%
C. 8.5%
D. 6.0%
68) Forward rates are quoted:
A. on financial statements
B. in direct form and at a premium or discount
C. by the FDIC
D. in an indirect form
E. daily
69) Tri State Pickle Company preferred stock pays a perpetual annual
dividend of 2 1/2% of its par value. Par value of TSP preferred stock is
$100 per share. If investors required rate of return on this stock is 15%,
what is the value of per share?
A. $6.00
B. $37.50
C. $16.67
D. $15.00
70) Suppose you determine that the NPV of a project is $1,525,855.
What does that mean?
A. The projects IRR would have to be less that the firms discount rate.
B. In all cases, investing in this project would be better than investing in a
project that has an NPV of $850,000.
C. Under all conditions, the projects payback would be less than the profitability
index.
D. The project would add value to the firm.
71) According to the hedging principle, permanent assets should be
financed with _____ liabilities.
A. fixed
B. permanent
C. current
D. spontaneous
72) Exchange rate risk:
A. doesnt affect trades made in US Dollars.
B. arises from the fact that the spot exchange rate on a future date is a
random variable.
C. applies only to certain types of domestic businesses.
D. has been phased out due to recent international legislation.
73) The common stockholders are most concerned with:
A. the spread between the return generated on new investments and the
investors required rate of return.
B. the percentage of profits retained.
C. the size of the firms beginning earnings per share.
D. the risk of the investment.
74) Which of the following is most consistent with the hedging principle
in working capital management?
A. Fixed assets should be financed with short-term notes payable.
B. Inventory should be financed with preferred stock.
C. Accounts receivable should be financed with short-term lines of
credit.
D. Borrow on a floating rate basis to finance investments in permanent assets.
75) You hold a
Security
X Corporation
Y Corporation
Z Corporation
A.
B.
C.
D.
E.
99) Which country does the text describe as becoming the largest
producer and consumer of many of the world's goods?
A. Ecuador
B. Japan
C. Canada
D. Mexico
E. China
100) Which of the following statements is true regarding the
relationship of law and ethics?
A. Depending on the circumstances, the law can require a higher, lower,
or the same standard of conduct as ethics demands.
B. The legal requirements will almost always be the same as the ethical
requirement because the law is based on the ethical standards.
C. In some cases ethics will require a higher standard of conduct than the law,
but never vice versa.
D. In some cases the law will require a higher standard of conduct than ethics,
but never vice versa.