Archives: Quiz

Which of the following would not be accounted for using the prospective approach? A. A change to LIFO from FIFO for inventory costing. B. A change in price indexes used under the LIFO method of inventory costing. C. A change […]

Discount-Mart issued ten thousand $1,000 bonds on January 1, 2013. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. What is the effective annual rate of interest on the […]

A small stock dividend is defined as one that is: A. Less than or equal to 40%. B. Less than 40%. C. Less than or equal to 10%. D. Less than 25%. Answer: The following information relates to Franklin Freightways […]

Refer to the following lease amortization schedule. The 10 payments are made annually starting with the inception of the lease. Title does not transfer to the lessee and there is no bargain purchase option or guaranteed residual value. The asset […]

Dyckman Dealers has an investment in Thomas Corporation that Dyckman accounts for as a trading security. Thomas Corporation shares are publicly traded on the New York Stock Exchange, and the prevailing price on that exchange indicates that Dyckman’s investment is […]

Nichols Corporation purchased $100,000 of Holly Inc. 6% bonds at par with the intent and ability to hold the bonds until they matured in 2017, so Nichols classifies its investment as held to maturity. Unfortunately, a combination of problems at […]

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2013, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. […]

A statement of comprehensive income does not include: A. Net income. B. Losses resulting from the return on pension assets exceeding expectations. C. Losses from changes in estimates regarding the PBO. D. Prior service cost. Answer: Amortization of capitalized computer […]

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): The applicable tax rate is 40%. There are no other temporary or permanent differences. Franklin’s taxable income ($ in millions) is: A. […]

A guaranteed residual value at the inception of a capital lease should be: A. Excluded from minimum lease payments. B. Included as part of minimum lease payments at present value. C. Included as part of minimum lease payments at future […]

Which of the following is reported as a financing activity in the statement of cash flows? A. The amortization of a patent. B. The exchange of common stock for a building. C. The acquisition of long-term investments. D. The repayment […]

The adjusted trial balance contains only permanent accounts. The tax benefit of a net operating loss carried back two years represents a current receivable for income tax to be refunded. Answer: TRUE According to International Financial Reporting Standards, the costs […]

Return on shareholders’ equity is increased if a firm can maintain its return on assets but increase its leverage. Material restructuring costs are reported as an element of income from continuing operations. Answer: TRUE A disclosure note is required for […]

If a pension plan is underfunded, the company has a net loss-OCI. In a bank reconciliation, adjustments to the bank balance could include adding deposits in transit and deducting bank service charges. Answer: FALSE In accounting for operating leases, the […]

Warranty expense is recorded along with the related liability in the reporting period in which the product under warranty is sold. When accounting for a capital lease, the lessee records the leased asset at the present value of the minimum […]

Conceptually, the service method provides a better matching of costs and benefits in amortizing prior service cost than does the straight-line method. Under IFRS, if it is probable that a contingent liability will result in a future payment but there […]

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes. Public safety employees of a state can be granted compensatory time off in lieu of overtime compensation. Answer: T ERISA provides for full vesting of […]

The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $12,500. NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime rates as follows: 1) Carry the hourly rate and the overtime […]

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees. A debit to the employees FIT payable account removes the liability for the amount of […]

Employers do not pay payroll taxes on payments made to independent contractors. For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages. Answer: F Since the credit against the FUTA […]

On August 3, Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed. Hunts employer must put the new withholding allowance certificate into effect before the next weekly payday on August 5. If an […]

Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bona fide occupational qualifications for a job. When employees spend time changing clothes on the employers premises, this time must be counted as […]

NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime rates as follows: 1) Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate […]

Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account. Under the Consumer Credit Protection Act, disposable earnings are the […]

In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund. If an employee works in more than one state, the employer must pay a separate SUTA tax to each of those states […]

Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds. A waiter receives cash tips amounting to $120 in a month. The waiter […]

NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime rates as follows: 1) Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate […]

Training sessions are counted as working time when the following condition is met: a. the employees attendance is voluntary. b. the employer requires the employees attendance. c. the training sessions are for the primary benefit of the employee. d. the […]

For which of the following payments is the employer required to withhold federal income taxes? a. Advances made to sales personnel for traveling expenses b. Tipped employees monthly tips of $120 c. Deceased persons wages paid to the estate d. […]

A personal allowance: a. amounted to $2,000 in 2016. b. may be claimed to exempt a portion of the employee’s earnings from withholding. c. is indexed for inflation every calendar quarter. d. may be claimed at the same time with […]

NOTE: In the following problems, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.a. Complete Part 2 of Form 940 based on the following information: b. If the employer is located in North Carolina […]

When a company sets out to plan, implement, and control the personal selling function, the company is undertaking ________. A. sales design B. sales management C. group sales efforts D. co-op selling E. sales promotion Which of the following most […]

Relationship marketing requires a company to make both a ________ and a ________. A. short-term plan; transactional plan B. short-term plan; data mining plan C. long-term plan; proper investment of company resources D. long-term plan; formal CRM commitment E. formal […]

The division of buyers into groups based on what they prefer and what motivates them to respond to marketing activities is ________ segmentation. A. behavioral B. psychographic C. values D. demographic E. needs The national economy and design trends are […]

In business markets, ________ are finished products that organizations use to complete their own products. A. components B. equipment products C. processed materials D. MRO products E. raw materials A successful business is most likely to view its marketing department […]

Examples of ________ segmentation variables include integrity, respect, and honesty. A. behavioral B. psychographic C. values D. loyalty E. needs The Consumer Bill of Rights includes the right to receive a fair settlement of just claims, including compensation for misrepresentation, […]

Employees are part of a company’s ________. A. external environment B. internal environment C. political environment D. macroenvironment E. competitive environment ________ is the coordination of all internal and external activities that affect a company’s distribution process. A. Third-party logistics […]

The ________ environment includes factors that relate to the nature, quantity, and potential actions of a company’s competitors. A. cultural B. economic C. legal D. political E. competitive Which of the following is NOT a benefit a company would be […]

________ is a measure of how attentively audiences read, watch, or listen to a particular medium. A. Media reach B. Media impact C. Media engagement D. Media efficiency E. Impression ________ refers to the storage of goods awaiting transport or […]

The marketing-mix classifications of the 7 Ps and the 4 Cs both take ________ marketing perspectives. A. technological B. partnership C. transactional D. relational E. traditional Based on the sample marketing plan in your text, contingency planning is most likely […]

Learning occurs through the interplay of all of the following EXCEPT ________. A. drives B. responses C. cues D. norms E. reinforcement It is most accurate to say that a business plan is used to communicate the performance and direction […]

If a brand creates a perception of greater value through effective marketing, which of the following will be the most likely result? A) increased sales revenue B) decreased customer lifetime value C) decreased utility D) increased need E) decreased demand […]

Avon is successful at giving customers alternatives to traditional store outlets. Avon uses ________, which does not require a customer to visit a store. A. locational merchandising B. social shopping C. mass retailing D. nonstore retailing E. broad geographic exchange […]

The power or right of a legal or political entity to exercise its authority over a specific geographic area is referred to as ________. A. jurisdiction B. extraterritoriality C. power parity D. exchange control E. nationalization Which of the following […]

________ refers to the sale of two or more goods or services as a single package for one price. A. Two-part pricing B. Captive pricing C. Price bundling D. List pricing E. Promotional pricing Which type of store carries several […]

An assessment of which of the following would be MOST likely to appear in the marketing situation of a marketing plan? A. the marketing mix B. the break-even point C. the cultural environment D. an implementation schedule E. the company’s […]

A company’s business mission serves as a statement of ________. A. fact B. achievement C. purpose D. financial goals E. employee commitment Cybele is a part of the sales force at Lenses for Less, a company that sells contact lenses, […]

Brand ________ answers the question “What should my brand stand for?” A. personality B. positioning C. alliance D. knowledge E. architecture When a customer lets a producer know something about its products or advertising, the customer is providing ________. A. […]

Which of the following is the practice of marketing two or more products and/or services in a single package? A. multibranding B. co-branding C. line extending D. brand stretching E. bundling For a marketer repositioning an established brand for a […]

Multichannel conflict refers to conflicts between ________. A. multiple channel types B. channel members at different levels C. independent channel members at the same level D. consumer and business channels E. outbound and inbound channels Advertising, promotion, customer service, and […]