Archives: Quiz
978-0393123524 Test Bank Chapter 17
Chapter 17 : Agricultural Development: Technology, Policies, and Institutions MULTIPLE CHOICE 1. Before the 1950s, agriculture in nearly all developing countries relied on: a. hybrid crops and irrigation. b. traditional technologies and crop varieties. c. the new and emerging Green […]
978-0393123524 Test Bank Chapter 16
Chapter 16 : Agriculture and Development MULTIPLE CHOICE 1. Between 2006 and 2008, the world experienced its worst food crisis since the: a. swine flu epidemic. c. 1970s. b. 1930s. d. fall of the Soviet Union. 2. According to the […]
978-0393123524 Test Bank Chapter 15
Chapter 15 : Managing Short-Run Crises in an Open Economy MULTIPLE CHOICE 1. During the 1970s, 1980s, and 1990s, many economies became unbalanced because of: a. the expansion of the WTO. b. the emergence of NAFTA and the EU as […]
978-0393123524 Test Bank Chapter 14
Chapter 14 : Foreign Aid MULTIPLE CHOICE 1. When the U.S. government provides a grant to build an electricity generator: a. it counts as foreign aid. b. it does not count as foreign aid. c. it depends; sometimes it counts […]
978-0393123524 Test Bank Chapter 13
Chapter 13 : Foreign Debt and Financial Crises MULTIPLE CHOICE 1. The economic impact of debt flows is magnified by their effect on all of the following EXCEPT: a. macroeconomic stability. c. World Bank transparency. b. the exchange rate. d. […]
978-0393123524 Test Bank Chapter 12
Chapter 12 : Financial Development and Inflation MULTIPLE CHOICE 1. What, particularly in a developing country, is the most visible and vital component of the financial system (as acceptor of deposits and grantor of shorter-term credit)? a. investment banking c. […]
978-0393123524 Test Bank Chapter 11
Chapter 11 : Fiscal Policy MULTIPLE CHOICE 1. When governments raise expenditures or cut taxes on individuals and corporations so that they can raise their expenditures, such actions are referred to as: a. fiscal policy. c. indexing. b. monetary policy. […]
978-0393123524 Test Bank Chapter 10
Chapter 10 : Investment and Savings MULTIPLE CHOICE 1. In an economy with a 9 percent interest rate, the present value of $1,000 that you will receive three years from now is: a. $772. c. $917. b. $1,295. d. $1,090. […]
978-0393123524 Test Bank Chapter 1
Chapter 1 : Patterns of Development MULTIPLE CHOICE 1. While working in the Japanese electronics factory in Penang, Rachmina Abdullah: a. saved money to provide herself with a better future. b. became a wealthy urbanite who sought after the better […]
978-0324651140 Test Bank Chapter 9 Part 3
158. Describe several issues in the accounting for long-lived assets. Long-lived assets include both tangible assets, such as land, buildings, and equipment, and intangible assets, such as patents, brand names, trademarks, customer lists, airport landing rights, and franchise rights. Long-lived […]
978-0324651140 Test Bank Chapter 9 Part 2
102. U.S. GAAP provisions require a three-step procedure for measuring and recording impairments for long-lived assets other than nonamortized intangibles and goodwill. An asset impairment loss arises when the carrying values of the assets 103. Applying IFRS, the test for […]
978-0324651140 Test Bank Chapter 9 Part 1
Chapter 9 1. The amount of goodwill represents the excess of the total purchase price over the fair value of identifiable tangible and intangible net assets. 2. Long-lived financial assets include investments in securities. TRUE 3. U.S. GAAP requires firms […]
978-0324651140 Test Bank Chapter 8 Part 3
Good Stuff Manufacturing Income Statement For the Month Ending April 30, Year 1 Sales $10,000 Less: Operating expenses Cost of Goods Sold $6,500 Sales Salaries Expense 1,000 Rent Expense 2,000 Utilities Expense 200 9,700 Net Income $ 300 123. Inventory […]
978-0324651140 Test Bank Chapter 8 Part 2
91. Western Inc.’s beginning inventory is $20,000 and purchases for the year are $80,000. A physical inventory shows that $15,000 of the inventory remains at year end. How much is recorded as cost of goods sold for the year? 92. […]
978-0324651140 Test Bank Chapter 8 Part 1
Chapter 8 1. The current–noncurrent distinction refers to whether a firm will convert an asset to cash, or consume it, or sell it within one operating cycle and whether a firm will pay or otherwise settle a liability within one […]
978-0324651140 Test Bank Chapter 7 Part 3
A. $ 600,000 B. $ 500,000 C. $1,200,000 D. $1,000,000 E. $ 360,000 F. $ 300,000 G. $ 240,000 H. $ 200,000 I. $2,400,000 J. $2,000,000 K. $ 0 L. $ 0 M. $ 600,000 N. $ 500,000 O. $1,200,000 […]
978-0324651140 Test Bank Chapter 7 Part 2
74. In year 1, Southern Construction agrees to construct a school building for $12,000,000, receiving payments for the work of $6,000,000 in both year 1 and year 2. Southern estimates that the costs will be $4,000,000 in Year 1 and […]
978-0324651140 Test Bank Chapter 7 Part 1
Chapter 7 1. If an event or transaction leads to the recognition of revenue, firms match the consumption of any assets (the expense), in time, with the revenue recognized. 2. Notes receivable is the amount owed to a seller by […]
978-0324651140 Test Bank Chapter 6 Part 5
168. Describe the disaggregation of the rate of return on common shareholders’ equity. DISAGGREGATING THE RATE OF RETURN ON COMMON SHAREHOLDERS’ EQUITY ROCE disaggregates into several components (in a manner similar to the disaggregation of ROA): Thus, The profit margin […]
978-0324651140 Test Bank Chapter 6 Part 4
a. Three ratios that address how profitable a company might be include the total assets turnover, net profit margin, and inventory turnover. The total assets turnover ratio measures the efficiency of resource use, i.e., the ability to generate sales through […]
978-0324651140 Test Bank Chapter 6 Part 3
128. Devlin Company Devlin Company Statement of Financial Position as of May 31 (in thousands) Assets Year 7 Year 6 Current assets Cash $ 45 $ 38 Trading securities 30 20 Accounts receivable (net) 68 48 Inventories 90 80 Prepaid […]
978-0324651140 Test Bank Chapter 6 Part 2
99. The rate at which accounts receivable turnover 100. The fixed asset turnover ratio A. measures the relation between sales and the investment in fixed assets such as property, plant, and equipment B. measures the amount of sales generated from […]
978-0324651140 Test Bank Chapter 6 Part 1
Chapter 6 1. The return from investing in the shares of common stock has two components: cash dividends and the change in the market price of the common stock. 2. Theoretical and empirical research has shown that the expected return […]
978-0324651140 Test Bank Chapter 5 Part 3
Morrissey Corporation Statement of Cash Flows For the Year Ended December 31, Year 8 Operations Net Income $1,204 Depreciation 370 Gain on Sale of Equipment (60) Increase in Accounts Receivable (160) Increase in Prepayments (70) Decrease in Income Tax Payable […]
978-0324651140 Test Bank Chapter 5 Part 2
97. Increased earnings 98. A mature, stable firm might show what type of cash flow pattern from operating, investing, and financing activities? A. operating outflow, investing outflow, and financing inflow B. operating inflow, investing outflow, and financing inflow C. operating […]
978-0324651140 Test Bank Chapter 5 Part 1
Chapter 5 1. A profitable firm can never run out of cash. 2. Using the accrual basis of accounting to measure net income creates the need for a separate financial statement that reports the impact of operations on cash flows. […]
978-0324651140 Test Bank Chapter 4 Part 3
Below is the income statement for Year 8 that was prepared after making appropriate adjusting entries for Year 8. Spiller Services Corporation Income Statement For the Year Ended December 31, Year 8 Fee Revenues $199,400 Interest Revenue on Notes Receivable […]
978-0324651140 Test Bank Chapter 4 Part 2
Required: Prepare appropriate accrual basis journal entries. 100. Assume that a firm uses the accrual basis of accounting. For each of the following independent cases, indicate the amount of revenue the firm recognizes for the month of August. a. Collects […]
978-0324651140 Test Bank Chapter 4 Part 1
Chapter 4 1. Revenues measure the inflow of net assets from operating activities. 2. Expenses measure the outflow of net assets consumed in the process of generating revenues. TRUE 3. Cost is the economic sacrifice made to acquire goods or […]
978-0324651140 Test Bank Chapter 3 Part 2
109. The shareholders’ equity section of the balance sheet for a corporation generally does not include 110. Before preparing the balance sheet and income statement, an accountant would use what accounting record to first record the firm’s transactions? A. the […]
978-0324651140 Test Bank Chapter 3 Part 1
Chapter 3 1. A balance sheet prepared according to U.S. GAAP lists assets from most liquid to least liquid, where liquid refers to the ease of converting the asset into cash. 2. A balance sheet prepared according to U.S. GAAP […]
978-0324651140 Test Bank Chapter 2 Part 3
102. Complete the shareholders’ equity section for each of the following independent situations. CASE A CASE B CASE C Common stock, 10,000 shares A C E Additional paid-in capital 25,000 D 30,000 Retained earnings 45,000 25,000 20,000 Total shareholders’ equity […]
978-0324651140 Test Bank Chapter 2 Part 2
91. Monmath Corp. started operations in March of Year 3. The following transactions occur during March. a. On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock. b. On March 1, Year 3, Monmath […]
978-0324651140 Test Bank Chapter 2 Part 1
Chapter 2 1. The balance sheet groups individual accounts by type (asset, liability, or shareholders’ equity) and lists these accounts with their balances as of the balance sheet date. 2. The date of the balance sheet appears at the bottom […]
978-0324651140 Test Bank Chapter 16 Part 4
192. Discuss the definition, recognition, and measurement of liabilities. The criteria for recognition of a liability are as follows: 1. The obligation represents a present obligation, not a potential future commitment or intent. 2. The obligation exists as a result […]
978-0324651140 Test Bank Chapter 16 Part 3
164. Which of the following is/are true? 165. Which of the following is/are true regarding the classification of redeemable preferred shares on the balance sheet? A. The classification of redeemable preferred shares on the balance sheet depends on the conditions […]
978-0324651140 Test Bank Chapter 16 Part 2
94. Which of the following is true? 95. Which of the following is not true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a […]
978-0324651140 Test Bank Chapter 16 Part 1
Chapter 16 1. The current FASB’s financial reporting objectives identify current and potential investors and creditors as the principal users of financial reports. 2. The current FASB’s financial reporting objectives states that the principal purpose of financial reports is to […]
978-0324651140 Test Bank Chapter 15 Part 3
110. (CMA adapted, Jun 94 #4) Marathon Corporation, a public company, has prepared all of its year-end financial statements with the exception of the statement of cash flows. Presented below is condensed financial information for the years ended May 31, […]
978-0324651140 Test Bank Chapter 15 Part 2
81. Eight Corporation declared and paid $90,000 of dividends to its shareholders during Year 3. The statement of cash flows classifies the transaction as a(n) 82. During Year 7, Seven Corporation wrote down marketable equity securities to their market value. […]
978-0324651140 Test Bank Chapter 15 Part 1
Chapter 15 1. Net income for a particular period will likely differ from cash flow from operations for the same period. 2. Firms typically report cash flows from operations using the direct method. FALSE 3. The proper interpretation of information […]
978-0324651140 Test Bank Chapter 14 Part 5
239. Describe the accounting for stock splits and reverse stock splits. STOCK SPLITS Stock splits (or, more technically, split-ups) resemble stock dividends. The corporation issues additional shares of stock to shareholders in proportion to their existing holdings. The firm receives […]
978-0324651140 Test Bank Chapter 14 Part 4
225. Discuss the reasons that investors buy preferred stock and the dividend rights of preferred stockholders. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders. Preferred shares […]
978-0324651140 Test Bank Chapter 14 Part 3
182. Which of the following is/are true concerning accumulated other comprehensive income? 183. Which of the following is/are not true concerning accumulated other comprehensive income? A. Firms measure marketable equity securities classified as available for sale at fair value and […]
978-0324651140 Test Bank Chapter 14 Part 2
101. Firms occasionally issue stock options in order to 102. The Prime Corporation is a new company about to issue stock. The corporation sells 2,000 shares of common stock (par value $2) at $10 per share. The journal entry to […]
978-0324651140 Test Bank Chapter 14 Part 1
Chapter 14 1. Shareholders’ equity is a residual interest. It represents the shareholders’ claim on the assets of a firm after the firm satisfies all higher-priority claims. 2. All corporations must issue preferred stock. FALSE 3. Common and preferred stock […]
978-0324651140 Test Bank Chapter 13 Part 2
a. 25% b. $110 c. $138 71. The Seagram Company owns 25 percent of the shares of DuPont, and accounts for its investment using the equity method. During the year DuPont earned income of $1,500 million and declared dividends. Seagram’s […]
978-0324651140 Test Bank Chapter 13 Part 1
Chapter 13 1. The accounting for investments in common stock depends on (1) the expected holding period, and (2) the purpose of the investment, as determined by both the percentage held and management intent. 2. Securities that firms expect to […]
978-0324651140 Test Bank Chapter 12 Part 3
127. Mo Company acquired $500,000 face value of the outstanding bonds of Shemp Company on January 1, 2008. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 7% and mature on December 31, […]
978-0324651140 Test Bank Chapter 12 Part 2
78. Which of the following is/are elements of a derivative? 79. Which of the following is/are elements of a derivative? A. Many derivatives require no initial investment, that is, no initial cash payment to the counterparty. B. A derivative may […]