Archives: Quiz
Chapter 1 3 A car rental company charges $24 per day to rent a particular
Find the slope of the line. 126) 126) A) –1 B) –4 C) 1 D) 4 Solve the problem. 127) A car rental company charges $24 per day to rent a particular type of car and $0.15 per mile. Juan […]
Chapter 1 2 Use The Equation The Least Squares Line
Find the correlation coefficient. 63) Consider the data points with the following coordinates: x 57 53 59 61 53 56 60 y 156 164 163 177 159 175 151 63) A) –0.0783 B) –0.0537 C) 0.2145 D) 0.1085 64) The […]
Chapter 1 1 For The Following Table Data a Draw Scatterplot b
Exam Name___________________________________ SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. Provide an appropriate response. 1) If a company decides to make a new product, there are fixed costs and variable costs associated […]
Chapter 13 5 The Following Data Were Shown The
AACSB: Knowledge application AICPA: BB Resource management AICPA: FN Risk Analysis Blooms: Apply Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 13-04 Compute and interpret profitability ratios. Topic Area: Interpreting ratios and other considerations Topic Area: Profitability-ROE-ROA-Financial Leverage 114. The following […]
Chapter 13 4 Which The Following Transactions Does Not
94. Which of the following transactions does not affect earnings per share? AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-04 Compute and interpret profitability ratios. Topic Area: […]
Chapter 13 3 The Current Ratio What Will The
68. Baron Company reported the following data: Cash $80,000 Accounts receivable 120,000 Marketable securities 40,000 Inventory 100,000 Prepaid rent expense 10,000 Accounts payable 70,000 Current portion of long-term debt 140,000 Net credit sales 1,000,000 Cost of goods sold 600,000 The […]
Chapter 13 2 During 2016 Home Styles Cost Goods
43. During 2016, Home Style’s cost of goods sold percentage was 68.2%, and selling and store operating costs were 19.3% of sales. During 2015, Home Style’s cost of goods sold percentage was 70.1% while selling and store operating costs were […]
Chapter 13 1 The return on assets ratio is influenced significantly by a
Chapter 13 Analyzing Financial Statements Answer Key True / False Questions 1. A primary objective of financial statements is to provide information to current and potential investors and creditors. 2. FALSE ROE includes total asset turnover rather than return on […]
Chapter 12 6 During 2017 Tommys Toys Reported The
113. During 2017, Tommy’s Toys reported the following: short-term borrowings of $419 million; long-term borrowings of $147 million; long-term debt repayments of $45 million; interest paid, $128 million; treasury shares purchased $632 million; and exercise of stock options by employees, […]
Chapter 12 5 The Following Information Was Reported From
activities. 103. The cash flow statement classifications include operating, investing, and financing activities. The operating classification reports those cash flows related to an entity’s everyday profit seeking activities. The investing classification reports those cash flows related to acquisition and disposition […]
Chapter 12 4 Which The Following Would Not Reported
85. During 2016, Tommy’s Toys reported the following: long-term debt repayments, $503 million; interest paid, $143 million; proceeds from exercise of stock options, $27 million, and issue of common stock in exchange for land costing $10 million. What is the […]
Chapter 12 3 Which The Following Transactions Increases The
59. Which of the following transactions increases the quality of income ratio? AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Medium Learning Objective: 12-03 Analyze and interpret the quality of income […]
Chapter 12 2 Which The Following Would Subtracted From
40. Which of the following would be subtracted from net income when determining cash flows from operating activities under the indirect method? AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium […]
Chapter 12 1 Cash flows associated with property, plant, and equipment acquisition and disposition
Chapter 12 Statement of Cash Flows Answer Key True / False Questions 1. The statement of cash flows explains how the cash balance changed during a particular period of time. 2. FALSE Only highly liquid investments with original maturities of […]
Chapter 11 6 January 2016 The Accounts Mac Corporation
122. On January 1, 2016, the stockholders’ equity section of Gibbons Corporation’s balance sheet reported the following: Common stock, par $10, authorized 100,000 shares, issued 10,000 shares $100,000 Additional paid-in capital 50,000 Retained earnings 160,000 During 2016, the following selected […]
Chapter 11 5 The Following Information Available For Bradford
112. On December 31, 2016, Brave Corporation reported the following on its balance sheet: Cash $22,000 Treasury stock ($8 per share, at cost) (16,000) Retained earnings 130,000 Common stock, par $5; (authorized 100,000 shares) 400,000 Additional paid-in capital ? Total […]
Chapter 11 4 Davidson Company Has 10000000 Common Shares
87. Davidson Company has 10,000,000 common shares issued and 500,000 shares of treasury stock. The stock’s par value is $2 per share and its current market price is $25 per share. Which of the following is correct when a 15% […]
Chapter 11 3 Company Reported The Following Asset And
64. A company reported the following asset and liability balances at the end of 2015 and 2016: 2015 2016 Assets $150,000 $180,000 Liabilities $70,000 $80,000 If the company paid dividends totaling $5,000, what is the amount of net income for […]
Chapter 11 2 Employees Who Receive Stock Options Compensation
40. Employees who receive stock options as compensation: AACSB: Reflective Thinking AICPA: BB Legal AICPA: FN Risk Analysis Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Describe the characteristics of common stock and report common stock transactions. […]
Chapter 11 1 Explain the role of stock in the capital structure of a corporation
Chapter 11 Reporting and Interpreting Stockholders’ Equity Answer Key True / False Questions 1. Shares which a corporation has the ability to issue, as documented in its charter in the state where incorporated, are outstanding shares of stock. 2. TRUE […]
Economics Chapter 17 1 Swiss Francs How many Swiss Francs Are Needed
ANSWER: True ANSWER: True ANSWER: False ANSWER: True ANSWER: True CHAPTER 17: MULTINATIONAL FINANCIAL MANAGEMENT 1. Multinational financial management requires that financial analysts consider the effects of changing currency values. a. True b. False 2. Legal and economic differences among […]
Chapter 10 6 January 2016 Maralie Company Issued 500000
AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 10-Supp Accounting for Bonds without a Discount Account or Premium Account. Topic Area: Record without discount account-Chapter supp Book value December 31, 2016 […]
Economics Chapter 16 1 The Afn Equation For Forecasting Funds Requirements
ANSWER: False ANSWER: True ANSWER: True ANSWER: True CHAPTER 16: FINANCIAL PLANNING AND FORECASTING 1. The first, and most critical, step in constructing a set of forecasted financial statements is the sales forecast. a. True b. False ANSWER: True 2. […]
Chapter 10 5 Ridgetop Company Issued The Following Tenyear
AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 10-02 Report bonds payable and interest expense for bond securities issued at par. Learning Objective: 10-04 Report bonds payable and interest expense for bond securities issued […]
Economics Chapter 15 3 On average, what is the dollar amount of total trade
Chapter 15: Working Capital Management 111. A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? […]
Chapter 10 4 Company Prepared The Following Journal Entry
86. A company prepared the following journal entry: Interest expense xxx Discount on bonds payable xxx Cash xxx Which of the following statements correctly describes the effect of this journal entry on the financial statements? A. The bonds payable book […]
Economics Chapter 15 2 If this were done, by how much would inventories decline?
Chapter 15: Working Capital Management c Sales $400,000 Debt ratio 50% Interest rate 10% Fixed assets $100,000 EBIT $35,000 Tax rate 40% CA/Sales, restricted 15% CA/Sales, relaxed 25% ANSWER: RATIONALE: CA Restricted $ 60,000 Relaxed $100,000 FA 100,000 100,000 Total […]
Chapter 10 3 January 2016 Broker Corp Issued 3000000
64. On January 1, 2016, Broker Corp. issued $3,000,000 par value 12%, 10-year bonds which pay interest each December 31. If the market rate of interest was 14%, what was the issue price of the bonds? (The present value factor […]
Economics Chapter 15 1 True False Answer True 14 The Four
CHAPTER 15: WORKING CAPITAL MANAGEMENT 1. Net operating working capital, defined as current assets minus the difference between current liabilities and notes payable, is equal to the current ratio minus the quick ratio. a. True b. False ANSWER: False 2. […]
Chapter 10 2 Which The Following Statements Correct Secured
Topic Area: Characteristics of bonds-Terminology 41. Which of the following statements is correct? AACSB: Reflective Thinking AICPA: BB Legal AICPA: FN Risk Analysis Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 10-01 Describe the characteristics of bond securities. […]
Economics Chapter 14 2 If it follows the residual dividend model, how much total dividends
Chapter 14: Distributions to Shareholders: Dividends and Share Repurchases 58. Banerjee Inc. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and its board of directors has decreed that no […]
Chapter 10 1 A bond will sell at a premium when the market
Chapter 10 Reporting and Interpreting Bond Securities Answer Key True / False Questions 1. An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible. 2. FALSE Bondholders do not have voting rights. […]
Economics Chapter 14 1 Back Before The Sec Was Created The
CHAPTER 14: DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND SHARE REPURCHASES 1. The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm’s stock price. a. True b. False ANSWER: True 2. Other things held constant, […]
Appendix A 5 Record Any Adjustment Market Price Stock Yearend
102. On March 1, 2017, Young Company paid cash to purchase the following stocks as long-term investments in available-for-sale securities: Old Corporation common stock (par $5), 2,000 shares at $5 per share (10% of outstanding shares) ABC Corporation common stock […]
Economics Chapter 13 2 At what unit output level would the two methods provide the same
Chapter 13: Capital Structure and Leverage 70. You work for the CEO of a new company that plans to manufacture and sell a new product, a watch that has an embedded TV set and a magnifying glass crystal. The issue […]
Appendix A 4 During 2016 Manning Corporation Purchased 100
85. The balance sheet of Mini Company was as follows immediately before it was acquired by Maxi Company: Mini Company Balance Sheet January 1, 2016 Cash $90,000 Accounts receivable (net) 50,000 Inventory 150,000 Plant and equipment (net) 100,000 Total Assets […]
Economics Chapter 13 1 Modigliani and Miller’s second article, which assumed the existence
CHAPTER 13: CAPITAL STRUCTURE AND LEVERAGE 1. A firm’s business risk is largely determined by the financial characteristics of its industry, especially by the amount of debt the average firm in the industry uses. a. True b. False ANSWER: False […]
Appendix A 3 When The Equity Method Used Account
61. Sandor Company owns an investment portfolio of available–for-sale securities. During 2016, Sandor received $3,000 of dividends and $1,000 of interest from the securities in the portfolio. The fair value of the portfolio on January 1, 2016 was $86,000 and […]
Economics Chapter 12 2 Year 1annual Depreciation Rate expected Inflation Rate Per
Chapter 12: Cash Flow Estimation and Risk Analysis d Equipment life, years 3 Equipment cost $65,000 Depreciation: Rate = 33.333% $21,667 Sales revenues $60,000 − Basis × rate = depreciation 21,667 − Operating costs (excl. deprec.) 25,000 Operating income (EBIT) […]
Appendix A 2 Lyrical Company Purchased Equity Securities For
39. Lyrical Company purchased equity securities for $500,000 and classified them as trading securities on September 15, 2016. On December 31, 2016, the current fair value of the securities was $481,000. How should the investment be reported within the 2016 […]
Economics Chapter 12 1 This Example Externality Because The Very Existence
CHAPTER 12: CASH FLOW ESTIMATION AND RISK ANALYSIS 1. Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process. a. True b. False ANSWER: False 2. […]
Appendix A 1 Held-to-maturity bond investments must be reported on the balance
Appendix A Reporting and Interpreting Investments in Other Corporations Answer Key True / False Questions 1. The extent of influence and control over another company is a critical factor in determining the proper method of accounting for an investment in […]
Economics Chapter 11 3 Note that a project’s projected MIRR can be
Chapter 11: The Basics of Capital Budgeting c Year 0 1 2 3 4 5 Cash flows IRR = 2.57% −$9,500 $2,000 $2,025 $2,050 $2,075 $2,100 ANSWER: RATIONALE: 91. Maxwell Feed & Seed is considering a project that has the […]
Chapter 9 6 Border Company Purchased Truck That Cost
121. In a recent year, The Walt Disney Company reported the following increases and decreases in current assets and current liabilities. Required: Identify whether each of these increases or decreases caused cash to increase or decrease. Enter an “I” if […]
Economics Chapter 11 2 Assuming The Two Projects Have The Same
Chapter 11: The Basics of Capital Budgeting 67. You are on the staff of Camden Inc. The CFO believes project acceptance should be based on the NPV, but Steve Camden, the president, insists that no project should be accepted unless […]
Chapter 9 5 Average Age Accounts Payable Assume That Cash
113. 1. Total assets $150,000 = Current liabilities ($X) + Noncurrent liabilities + Stockholders’ equity = X + $65,000 + $60,000. Current liabilities = $25,000. 2. Working Capital $35,000 = Current assets – Current liabilities = $60,000 – $25,000. Halbur […]
Economics Chapter 11 1 Irrsc Project Independent Then Cannot Have Multiple
Chapter 11: The Basics of Capital Budgeting 1. A firm should never accept a project if its acceptance would lead to an increase in the firm’s cost of capital (its WACC). a. True b. False ANSWER: False 2. Because “present […]
Chapter 9 4 Husky Corporation Looking Purchase Building Costing
89. Husky Corporation is looking to purchase a building costing $500,000 by agreeing to make payments every three months for the next five years. The first payment is due three months after the purchase date. Husky’s incremental borrowing rate is […]
Economics Chapter 10 2 The yield on the firm’s bonds is 8.75%,
Chapter 10: The Cost of Capital 65. Bosio Inc.’s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost […]
Chapter 9 3 With Regard Reporting Contingent Liabilities Us
68. With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term “probable”. Which of the following is correct with regard to defining “probable”? A. Under U.S. GAAP, “probable” means an […]