Archives: Quiz
Accounting Chapter 7 4 Why don’t we depreciate land? What are land improvements? Why do we record land and land improvements separately
134. Why don’t we depreciate land? What are land improvements? Why do we record land and land improvements separately? Answer: We don’t depreciate land because its service life never ends. Land improvements are additional amounts spent to improve the land […]
Accounting Chapter 7 3 Advertising costs that increase the value of trademarks are recorded to the asset account entitled Trademarks.
87. Advertising costs that increase the value of trademarks are recorded to the asset account entitled Trademarks. XOAXOA: Reflective Thinking XOAXOA: Reporting XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 07-02 Identify and record the major types of intangible assets. 88. We expense […]
Accounting Chapter 7 1 Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building
1. Real Angus Steakhouse purchased land for $75,000 cash. They also incurred commissions of $4,500, property taxes of $5,000, and title insurance of $800. The $5,000 in property taxes includes $4,000 in back taxes paid by Real Angus on behalf […]
Accounting Chapter 7 2 International accounting standards allow firms to record development costs that benefit future periods as an intangible asset
43. A building was purchased for $50,000. The asset has an expected useful life of 6 years and depreciation expense each year is $8,000 using the straight-line method. What is the residual value of the building? XOAXOA: Analytic XOAXOA: Measurement […]
Accounting Chapter 6 6 What is a multiple-step income statement? What information does it provide beyond “bottom-line” net income
170. For each company, calculate the missing amount. Answer: a. Gross profit = Sales revenue – Cost of goods sold b. Net income = Gross profit – Operating expenses XOAXOA: Analytic XOAXOA: Reporting XOAXOA: Analysis XOAXOA: Medium XOAXOA: 06-06 Prepare […]
Accounting Chapter 6 5 Calculate ending inventory and cost of goods sold for 2012 assuming the company uses LIFO with a periodic inventory system
148. At the beginning of 2012, Calston Incorporated reports inventory of $9,000. During 2012, the company purchases additional inventory for $25,000. At the end of 2012, the cost of inventory remaining is $8,000. Calculate cost of goods sold for 2012. […]
Accounting Chapter 6 4 Accountants often call FIFO the balance sheet approach because the amount it reports for ending inventory better approximates the current cost of inventory
108. Accountants often call FIFO the balance sheet approach because the amount it reports for ending inventory better approximates the current cost of inventory. XOAXOA: Reflective Thinking XOAXOA: Reporting XOAXOA: Knowledge XOAXOA: Easy XOAXOA: 06-04 Explain the financial statement effects […]
Accounting Chapter 6 3 What effect would an adjustment to record inventory at the lower-of-cost-or-market have on the company’s financial statements
64. On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The […]
Economics Chapter 43 1 Suppose you are debating a proponent of casino gambling and they note that casinos themselves pay significant state and local taxes
Chapter 43 The Economic Impact of Casino Gambling Multiple Choice 1. The perception that casinos have a dramatic impact on a local economy is A) without any foundation whatsoever. B) reasonable, given their size but overstated given the degree of […]
Accounting Chapter 6 2 which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet
29. The following information relates to inventory for Shoeless Joe Inc. At what amount would Shoeless report cost of goods sold using the weighted-average cost flow assumption? (Round your answer to the nearest dollar) XOAXOA: Analytic XOAXOA: Reporting XOAXOA: Analysis […]
Economics Chapter 42 1 Theoretically, a firm can enter an industry with low prices, drive out their competition and take advantage of their newly achieved
Chapter 42 Walmart: Always Low Prices (and Low Wages) —Always Multiple Choice 1. Walmart accounts for ____ of US GDP. A) less than 1% B) 2% C) 10% D) 15% Answer: B 2. In very small towns where there is […]
Accounting Chapter 6 1 If a company overstates its ending balance of inventory in year 1 and it records inventory correctly in year 2, which one of the following is
1. Inventory does not include: XOAXOA: Reflective Thinking XOAXOA: Critical Thinking XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 06-01 Trace the flow of inventory costs from manufacturing companies to merchandising companies. 2. The largest expense on a retailer’s income statement is typically: […]
Economics Chapter 41 2 A labor system where by a limited number of workers can be certified to work in a particular field but are of higher ability
A) the kinked shape of the new supply curve. B) the shift in old supply curve. C) the slope of the old demand curve. D) the increase in the demand curve. Answer: D 31. A labor system whereby a limited […]
Accounting Chapter 5 4 The amount of the adjustment to the allowance for uncollectible accounts during the period
139. Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term placing the letter designating the term in the space provided. Terms: a. Accounts […]
Economics Chapter 41 1 If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets
Chapter 41 Unions Multiple Choice 1. The percentage of workers represented by unions reached its peak in the A) 1940’s. B) 1970’s. C) 1980’s. D) 1990’s. Answer: B 2. The peak of union representation in the workforce was A) 50% […]
Accounting Chapter 5 5 Discuss the differences between the allowance method and the direct write-off method for recording uncollectible accounts
162. Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term placing the letter designating the term in the space provided. Terms: a. Accounts […]
Economics Chapter 40 1 The stock index that includes the stock prices of a disproportionate number of technology companies
Chapter 40 The Stock Market and Crashes 1. From 1982 until 2000, stock prices rose dramatically. As measured by the Dow Jones Industrial Average, stocks went from under _____ to above _______ during this period. A) 1000, 11000 B) 200, […]
Accounting Chapter 5 3 Sales returns and allowances occur when the buyer returns the goods or the seller reduces the customer’s balance owed
87. Sales returns and allowances occur when the buyer returns the goods or the seller reduces the customer’s balance owed. XOAXOA: Reflective Thinking XOAXOA: Critical Thinking XOAXOA: Knowledge XOAXOA: Easy XOAXOA: 05-02 Calculate net revenues using discounts; returns; and allowances. […]
Economics Chapter 39 1 The largest metropolitan area in the United States that has no major league baseball, basketball, football, or hockey franchise is
Chapter 39 If We Build It, Will They Come? And Other Sports Questions Multiple Choice 1. Tampa-St. Petersburg built new facilities to attract a sports franchise, but got a team only after waiting A) two years. B) four years. C) […]
Accounting Chapter 5 2 If the direct write-off method is used to account for uncollectible accounts, which of the following statements is false
43. When $2,500 of accounts receivable are determined to be uncollectible, which of the following should the company record to write off the accounts using the allowance method? XOAXOA: Reflective Thinking XOAXOA: Measurement XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 05-04 Apply […]
Economics Chapter 38 1 At the current pace of oil consumption and given what oil is known to exist and what oil is expected to be discovered, oil reserves are likely to
Chapter 38 Energy Prices Multiple Choice 1. Proven oil reserves in the world amount to A) 1470 barrels. B) 1470 million barrels. C) 1470 billion barrels. D) 1470 trillion barrels. Answer: C 2. World oil consumption runs approximately A) 89 […]
Accounting Chapter 5 1 Under the direct write-off method, what adjustment is made at the end of the year to account for possible future bad debts
1. Which of the following best describes credit sales? XOAXOA: Reflective Thinking XOAXOA: Critical Thinking XOAXOA: Knowledge XOAXOA: Easy XOAXOA: 05-01 Recognize accounts receivable. 2. Credits sales are recorded as: A. Debit Cash; credit Unearned Revenue. B. Debit Service Revenue, […]
Economics Chapter 37 1 Simply indexing the alternative minimum tax for inflation and making no other adjustments would
Chapter 37 Personal Income Taxes Multiple Choice 1. In 2013, personal income taxes made up _____ of federal government revenues. A) much more than a quarter B) much less than a quarter C) just more than half D) just less […]
Accounting Chapter 4 4 A company provides services on account. Indicate how this transaction would affect the following five financial statement items
149. Madison Company’s cash ledger reports the following for the month ending March 31, 2012. Information from March’s bank statement and company records reveals the following additional information: a. The ending cash balance recorded in the bank statement is $6,790. […]
Marketing Chapter 20 2 A manufacturer is most likely to be held liable for injuries caused by a “perfect” product if the injury was the result of
31. Under the concept of strict liability, the: A. buyer is unjustified to depend on the seller being right. B. seller of an item is required to make an implied warranty rather than an express warranty. C. seller of an […]
Accounting Chapter 4 3 Investing activities include cash transactions involving revenue and expense events during the period
113. Investing activities include cash transactions involving revenue and expense events during the period. XOAXOA: Reflective Thinking XOAXOA: Reporting XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 04-07 Identify the major inflows and outflows of cash. 114. Investing activities include cash investments in […]
Economics Chapter 35 1 The percentage of people in households with income under that which is sufficient to provide a family with a minimally adequate standard of living is the
Chapter 35 Poverty and Welfare Multiple Choice 1. The poverty line is A) that level of income just sufficient to provide a family with a minimally adequate standard of living. B) the percentage of households with income insufficient to provide […]
Accounting Chapter 4 2 Common types of financial statement fraud include creating fictitious revenues from a fake customer, improperly valuing assets
51. At the time a $400 petty cash fund is being replenished, the company’s accountant finds vouchers totaling $350 and petty cash of $50. The vouchers include: postage, $100; business lunches, $150; delivery fees, $75; and office supplies, $25. Which […]
Marketing Chapter 20 1 New regulatory legislation is often precise and made exclusively to prevent a period of jockeying among adversaries
1. New regulatory legislation is often precise and made exclusively to prevent a period of jockeying among adversaries. FALSE New regulatory legislation is rarely precise, and this imprecision leads to a period of jockeying by the adversaries over its interpretation. […]
Economics Chapter 34 1 Commercialization of the internet has helped to increase the price of new textbooks by facilitating
Chapter 34 College and University Education: Why Is It So Expensive? Multiple Choice 1. In 2012, more than ________ was spent to educate _________ college students. A) $223 million, 152 million B) $315 billion, 52 million C) $471 billion, 21 […]
Accounting Chapter 4 1 What key piece of legislation was passed in response to corporate accounting scandals by Enron, WorldCom, and others
1. What key piece of legislation was passed in response to corporate accounting scandals by Enron, WorldCom, and others? XOAXOA: Ethics XOAXOA: Critical Thinking XOAXOA: Knowledge XOAXOA: Easy XOAXOA: 04-01 Discuss the impact of accounting scandals and the passage of […]
Marketing Chapter 19 2 Which of the following problems in launch management is most likely to be untrack able and requires a firm’s management to inquire among suppliers and media
31. The final step in the launch management system is: A. selecting potential problems to control. B. selecting the trigger points. C. developing contingency plans. D. ranking and controlling potential problems. In launch management, once firms have found useful tracking […]
Economics Chapter 33 1 Though there is no tuition to public elementary and secondary schools, economists do not say that it is free because
Chapter 33 The Economics of K-12 Education Multiple Choice 1. The form of capital through which education increases productivity is A) physical capital. B) human capital. C) human principal. D) brain capital. Answer: B 2. In determining whether a further […]
Accounting Chapter 3 5 What is the difference between permanent accounts and temporary accounts and why does an accounting system have both types of accounts
162. For each of the following accounts, indicate whether the account is shown in the income statement or the balance sheet: Answer: XOAXOA: Reflective Thinking XOAXOA: Reporting XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 03-05 Prepare financial statements using the adjusted trial […]
Marketing Chapter 19 1 A launch management system must have an effective tracking system with trigger points to activate contingency plans
1. If a product’s market window of profitability is shorter than expected, this may indicate a turning point in the life cycle and may require strategic thinking for the next product put into development. TRUE If a product’s market window […]
Economics Chapter 32 1 Although it is illegal in some locations to re-sell a $100 ticket to an event for $200, it is seldom illegal
Chapter 32 Ticket Brokers and Ticket Scalping Multiple Choice 1. The substantive economic difference between ticket scalping and ticket brokering is that A) scalping is more efficient. B) brokering is more efficient. C) scalping is immoral and brokering is not. […]
Accounting Chapter 3 4 The post-closing trial balance is a list of all accounts and their balances at a particular date after the account balances have been updated for closing entries
134. If the beginning balance of Retained Earnings equals $10,000, net income for the year equals $6,000, and dividends for the year equal $2,000, then the ending balance of Retained Earnings equals $18,000. XOAXOA: Analytic XOAXOA: Measurement XOAXOA: Analysis XOAXOA: […]
Marketing Chapter 18 2 As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing
31. Why is informal selling highly suitable for industrial selling? A. Because informal selling involves retailers or distributors in the process of testing a new product B. Because informal selling involves no risk for industrial customers, as sales takes place […]
Economics Chapter 31 1 The “elasticity” rebuttal to the traditional analysis of the minimum wage, stating that employers’ demand for workers is unresponsive to wage changes
Chapter 31 Minimum Wage Multiple Choice 1. The lowest wage that may be legally paid for an hour’s work is called the A) just wage. B) minimum wage. C) maximum wage. D) living wage. Answer: B 2. A wage sufficient […]
Accounting Chapter 3 3 Accrual-basis accounting involves recording revenues when earned and recording expenses with their related revenues
71. Of the following six accounts, which ones have temporary balances? (1) Service Revenue (2) Dividends (3) Salaries Expense (4) Common Stock (5) Retained Earnings (6) Cash XOAXOA: Reflective Thinking XOAXOA: Measurement XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 03-06 Demonstrate the […]
Marketing Chapter 18 1 Market testing for a new product should begin as soon as a technique can be found that will tell us what we need to know.
1. Market testing and test marketing are synonymous. FALSE Market testing can be used as a way to check out if the new product will be successful, before spending a lot of money on a product launch. Test marketing refers […]
Accounting Chapter 3 2 When a company makes an end-of-period adjusting entry which includes a credit to Prepaid Rent, the debit is usually made to
31. Which of the following is a possible adjusting journal entry? XOAXOA: Reflective Thinking XOAXOA: Measurement XOAXOA: Comprehension XOAXOA: Medium XOAXOA: 03-03 Demonstrate the purposes and recording of adjusting entries. 32. Adjusting entries are primarily needed for: A. Cash-basis accounting. […]
Marketing Chapter 17 1 Indirect network externalities exist if product sales are dependent on the number of people that have adopted it
1. Indirect network externalities exist if product sales are dependent on the number of people that have adopted it. FALSE Direct network externalities exist if product sales are dependent on the number of people that have adopted it. Indirect network […]
Economics Chapter 28 1 Doing something that is not necessarily discriminatory on its face, but impacts some groups more negatively than others is called
Chapter 28 The Economics of Race and Sex Discrimination Multiple Choice 1. The labor force participation rate for women 16 and over has A) increased from 38% in the 1960s to 57% today. B) increased from 8% in the 1960s […]
Accounting Chapter 3 1 Which of the following accounting principles states that expenses are recognized in the same period as the revenues they help to generate
1. The revenue recognition principle states that: XOAXOA: Reflective Thinking XOAXOA: Critical Thinking XOAXOA: Comprehension XOAXOA: Easy XOAXOA: 03-01 Record revenues using the revenue recognition principle and expenses using the matching principle. 2. The matching principle is the principle that […]
Marketing Chapter 17 2 Which of the following new product characteristics probably has the greatest influence on trial rates
29. Which of the following statements is true of salespeople? A. In customer-based sales organizations, salespeople are required to aggressively use hard–sell pushing. B. For services, is apt to isolate the new product developer from the salespeople. C. For consumer […]
Economics Chapter 27 1 Under the rational criminal model, a decrease in the legal income producing opportunities available to a population will
Chapter 27 The Economics of Crime Multiple Choice 1. Crime victims in the U.S. are disproportionately A) whites. B) minorities. C) Asian-Americans. D) legal immigrants. Answer: B 2. Crime in the U.S. is committed disproportionately by A) legal immigrants. B) […]
Accounting Chapter 2 4 Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms
151. Suppose a company has the following balance sheet accounts: Calculate the missing amounts assuming the company has total assets of $40,000. Answer: Building = $18,000; Common stock = $22,100. Feedback: $40,000 = Land ($9,000) + Building (?) + Cash […]
Marketing Chapter 16 2 Planters sell the same peanuts to all final customers, but modify the packaging depending on the size of the distributor
32. BlueBeak Corp. deliberately seeks out very small targets markets with unique purchase patterns. The firm targets _____. A. macromarkets B. capital markets C. micromarkets D. commodity markets In this example, the firm targets micromarkets. They are very small targets […]
Economics Chapter 26 1 Written and recorded works, ideas, formulas and other creative intangible property that are owned by an individual that are owned by an individual
Chapter 26 So You Want to Be a Lawyer: Economics and the Law Multiple Choice 1. Land owned by an individual or a group of individuals is an example of the economic concept of A) physical capital. B) human capital. […]