Archives: Quiz
Chapter 21 2 what is the break-even point if fixed costs
119. If fixed costs are $600,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $90,000? 120. If fixed costs are $561,000 and the unit contribution margin is $8.00, what is […]
Appendix 12A Answer Medium Which The Following Statement Completions
Appendix 12A: Tax Depreciation Conceptual M/C Page 473 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. […]
Chapter 21 1 Cost Behavior Refers The Manner Which
Chapter 21—Cost Behavior and Cost-Volume-Profit Analysis Key 1. Cost behavior refers to the methods used to estimate costs for use in managerial decision making. 2. Cost behavior refers to the manner in which a cost changes as the related activity […]
Appendix 9A Answer Easy Markets Are Equilibrium Which The
Appendix 9A: Stock Market Equilibrium True/False Page 349 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. […]
Chapter 20 4 The Brass Works The Process Determining
(3) Finished Goods—Chairs 37,800 Finished Goods—Tables 123,030 Work in Process—Chairs 37,800 Work in Process—Tables 123,030 171. Tough Hardware purchases raw materials and processes those purchases through a receiving/inspection process prior to stocking for production. Tough places 3 purchase orders for […]
Chapter 17 1 Purchasing Power Parity Answer Medium Suppose Hockey
Chapter 17: Multinational M/C Problems Page 1 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See […]
Chapter 20 3 Kramer Company Started Its Production Operations
158. Amos Company’s molding department opened on October 1, 2012. During October, 35,000 units were completed and transferred out to the next department. On October 31, 2012, the 9,000 units which remained in inventory were 40% complete with respect to […]
Chapter 16 1 Afn Higher Sales Usually Require Higher Asset
Chapter 16: Forecasting True/False Page 587 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See the […]
Chapter 15 3 The Effective Discount Earned Times Per Year
Page 34 Answers Chapter 15: Working Capital 78. (15-7) Inventory management C S Answer: b MEDIUM 79. (15-8) Receivables management C S Answer: b MEDIUM 80. (15–8) Days sales outstanding (DSO) C S Answer: c MEDIUM 81. (Comp.) Current asset […]
Chapter 20 2 Which The Following Not Included Conversion
107. The portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period is the definition of 108. Which of the following is not included in conversion costs? A. Direct labor. […]
Chapter 15 2 Your consulting firm was recently hired to improve
Chapter 15: Working Capital M/C Problems Page 21 e. 16.7 days 97. Data on Shin Inc for 2011 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm’s new CFO believes […]
Chapter 20 1 Process Cost Systems Use Job Order Cost
Chapter 20—Process Cost Systems Key 1. Process cost systems use job order cost cards to accumulate cost data. 2. Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers. TRUE 3. If the principal products of […]
Chapter 15 1 The three alternative current asset investment policies
Chapter 15: Working Capital M/C Problems Page 1 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. […]
Chapter 14 2 Note That The Money Will Reinvested The
Page 526 M/C Problems Chapter 14: Dividends c. $22,563 d. $23,750 e. $25,000 63. Chicago Brewing has the following data, dollars in thousands. If it follows the residual dividend model, what will its dividend payout ratio be? Capital budget $5,000 […]
Chapter 14 1 Modigliani Argued That Investors Prefer Dividends Capital
Chapter 14: Dividends True/False Page 511 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See the […]
Chapter 13 2 You work for the CEO of a new company that plans to
Chapter 13: Capital Structure M/C Problems Page 493 71. You work for the CEO of a new company that plans to manufacture and sell a new type of laptop computer. The issue now is how to finance the company, with […]
Chapter 18 2 Williams Company Reports Production Costs For
136. Williams Company reports production costs for 2015 as follows: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Williams Company’s product costs for 2015 amount to: 137. Costs which are reported on the […]
Chapter 13 1 The Debt Ratio That Maximizes Expected Eps
Chapter 13: Capital Structure True/False Page 475 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See […]
Chapter 12 2 Fool Proof Software is considering a new project whose data
Chapter 12: Cash Flow and Risk M/C Problems Page 457 61. Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates […]
Chapter 12 1 Therefore Should Not Reflected The Cash Flows
Chapter 12: Cash Flow and Risk True/False Page 439 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC […]
Chapter 11 3 which is the reinvestment rate assumption of the NPV method
Chapter 11: Capital Budgeting Answers Page 427 32. (11-2) NPV C I Answer: c EASY 33. (11-3) IRR C I Answer: e EASY The IRR assumes reinvestment at the IRR, and that is generally not as valid as assuming reinvestment […]
Chapter 11 2 A company is choosing between two projects
Chapter 11: Capital Budgeting M/C Problems Page 411 b. If Project S has a positive NPV, Project L must also have a positive NPV. c. If the WACC falls, each project’s IRR will increase. d. If the WACC increases, each […]
Chapter 11 1 Correct For Project Have More Than One
Chapter 11: Capital Budgeting True/False Page 391 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) We point out to our students that some of the questions can best be analyzed by sketching out a NPV profile graph and then thinking […]
Chapter 10 2 Answer Medium 30 109 Risk adjusted Capital Costs
Page 372 M/C Problems Chapter 10: Cost of Capital 73. To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, […]
Chapter 10 1 Its Cost Retained Earnings The Rate Return
Chapter 10: Cost of Capital True/False Page 353 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. […]
Chapter 15 2 Journalize The Entries Record The Following
113. Journalize the entries to record the following selected bond investment transactions for Southwest Bank: (1) Purchased $400,000 of Daytona Beach 5% bonds at 100 plus accrued interest of $4,500. (2) Received the first semiannual interest. (3) Sold $250,000 of […]
Chapter 9 2 Its dividend growth rate is expected to be constant
Chapter 9: Stocks M/C Problems Page 19 c. 8.45% d. 8.67% e. 8.89% 74. Rebello’s preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. What is its effective annual (not nominal) rate of […]
Chapter 9 1 Free Cash Flows Are Assumed Grow Constant
Chapter 9: Stocks Conceptual M/C Page 1 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See […]
Chapter 8 3 Now Dana acquires some risky assets that cause its beta
Page 300 M/C Problems Chapter 8: Risk and Return c. 10.62% d. 11.18% e. 11.77% 138. Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 30%. In addition, expected […]
Chapter 8 2 Which of the following would occur if the market risk premium
Chapter 8: Risk and Return Conceptual M/C Page 283 86. Assume that in recent years both expected inflation and the market risk premium (rM − rRF) have declined. Assume also that all stocks have positive betas. Which of the following […]
Chapter 8 1 The tighter the probability distribution of its expected future
Chapter 8: Risk and Return True/False Page 263 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. […]
Chapter 7 2 would tend to reduce the yield to maturity that investors
Chapter 7: Bonds Conceptual M/C Page 19 70. Which of the following statements is CORRECT? a. A zero coupon bond of any maturity will have more price risk than any coupon bond, even a perpetuity. b. If their maturities and […]
Chapter 7 1 Price Vs Reinvest Risk 43 Answer Medium
Chapter 7: Bonds Conceptual M/C Page 1 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC questions. See […]
Chapter 6 2 Mc Problems Interest Rates Answers
Page 212 M/C Problems Chapter 6: Interest Rates 56. Suppose the real risk-free rate is 3.50% and the future rate of inflation is expected to be constant at 2.20%. What rate of return would you expect on a 1-year Treasury […]
Chapter 6 1 One of the four most fundamental factors that affect
Chapter 6: Interest Rates True/False Page 197 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) The difficulty of these questions as seen by students will depend on (1) what was discussed in class and (2) how long students have to […]
Chapter 12 3 The Capital Accounts Hope And Indiana
171. The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope’s interest for $30,000 and one-fourth of Indiana’s interest for $20,000. […]
Chapter 5 4 Answer Medium Monthly Annuity Interest Must Calculated
Page 186 Answers Chapter 5: Time Value of Money I/YR 6.5% PMT $81.25 Multiply Cost by I/YR. 124. (5-12) PV of uneven cash flows C J Answer: e MEDIUM I/YR = 6.25% 0 1 2 3 4 CFs: $0 $75 […]
Chapter 12 2 Benson And Orton Are Partners Who
123. Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000 respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is […]
Chapter 5 3 One could also set up an amortization schedule
Chapter 5: Time Value of Money Answers Page 175 b is the correct answer. Thinking through the question, the other answers can all be eliminated. One could also set up an amortization schedule to prove that only statement b is […]
Chapter 12 1 Which The Following Characteristic General Partnership
Chapter 12—Accounting for Partnerships and Limited Liability Companies Key 1. There are only four legal structures to form and operate a business. 2. In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, […]
Chapter 5 2 What The Effective Annual Rate 142 Medium
Chapter 5: Time Value of Money M/C Problems Page 155 d. $17,754 e. $18,642 93. You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to […]
Chapter 11 3 Vacation Pay Expense 6500 Vacation
162. An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax […]
Chapter 5 1 Correct The Monthly Payments Will Increase Over
Chapter 5: Time Value of Money True/False Page 135 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is some overlap between the T/F and the multiple choice questions, as some T/F statements are used in the MC […]
Chapter 4 3 Similar financing policies will lead to similar Equity multiplier
Chapter 4: Statement Analysis Answers Page 123 32. (4-5) ROE C F K Answer: b MEDIUM Stockholders should—and generally do—consider the ROE as being probably the single most important ratio based strictly on the financial statements. 33. (4-6) Market value […]
Chapter 4 2 A good bit of relatively simple algebra is involved
Chapter 4: Statement Analysis M/C Problems Page 109 Multiple Choice: Problems A good bit of relatively simple algebra is involved in these problems, and although the calculations are simple, it will take students some time to set up the problems […]
Chapter 10 2 Computer Equipment Was Acquired The Beginning
132. What is the cost of the land, based upon the following data? Land purchase price $178,000 Broker’s commission 15,000 Payment for the demolition and removal of existing building 5,000 Cash received from the sale of materials salvaged from the […]
Chapter 3 3 Rapidly growing firms often require additions to inventory
Page 72 Answers Chapter 3: Financial Statements 22. (3-4) Statement of cash flows F K Answer: a MEDIUM 23. (3-4) Statement of cash flows C K M Answer: a MEDIUM 24. (3-4) Statement of cash flows C K M Answer: […]
Chapter 3 2 After tax Returns Answer Medium Bond Issued The
Chapter 3: Financial Statements M/C Problems Page 53 76. Which of the following statements is CORRECT? a. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its […]
Chapter 2 Foreign Currencies Consumer Automobile Loans Common Stocks
Chapter 2: Financial Markets True/False Page 23 (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in multiple-choice questions. See the […]
Chapter 1 2 Stockholders Should Generally Happier Than Bondholders Have
Page 12 M/C Problems Chapter 1: Overview 48. Which of the following statements is CORRECT? a. If a lower level person in a firm does something illegal, like “cooking the books” to understate costs and thereby artificially increase profits because […]