Devry JADM250 Midterm Exam – The idea that knowledge generates power, and conversely, power generates knowledge

Devry JADM250 Midterm Exam

Question 1.1. (TCO 1) The idea that knowledge generates power, and conversely, power generates knowledge, is called __________________. (Points : 4)

the power continuum
the corruption of power
the knowledge/power dynamic
circular reasoning
none of the above

Question 2.2. (TCO 1) What is the primary source of information on criminal victimization in the United States? (Points : 4)

The Federal Bureau of Investigation
The National Crime Victimization Survey
The American Victimization Association
The National Department of Victims of Crime
The Department of Victimization

Question 3.3. (TCO 1) Nonreactive research is _____________. (Points : 4)

a method that involves the collection and reanalysis of existing quantitative data
a nonreactive method used to examine the content, or information and symbols, contained in written documents or other communication media
the unobtrusive collection of data that have usually been left behind by others
a method that uses a written questionnaire or formal interview to gather quantitative data on the backgrounds, behaviors, beliefs, or attitudes of a large number of people or agencies
a method in which the researcher engages the natural environment of their subjects and strives for an up close, personal, and highly detailed understanding of the research subject’s culture

Question 4.4. (TCO 1) A method in which the researcher engages the natural environment of their subjects and strives for an up close, personal, and highly detailed understanding of the research subject’s culture is called _________________. (Points : 4)

survey research
experimentation
ethnographic field research
nonreactive research
content analysis

Question 5.5. (TCO 1) Authority knowledge is ______________. (Points : 4)

a basis of knowledge in which we rely on what someone in a position of authority says
a basis of knowledge in which we accept something as being true because of a long-running custom or belief
a basis of knowledge in which we rely on commonly accepted, ordinary reasoning
a basis of knowledge in which we rely on the media’s construction of the truth, which often relies on claims made by politicians and government officials
a basis of knowledge in which we rely on our own lived experiences

Question 6.6. (TCO 1) The premature closure effect is _______________. (Points : 4)

statements that go far beyond what can be justified based on the data or empirical observations that one has
making observations in a way that simply reinforces preexisting thinking, rather than attempting to observe in a balanced and critical manner
making a judgment or reaching a decision and ending in an investigation, before one has the amount or depth of evidence required by scientific standards
allowing the prior reputation of persons, places, or things to color one’s evaluations, rather than attempting to evaluate in a neutral, equal manner

Question 7.7. (TCO 1) Making observations in a way that simply reinforces preexisting thinking, rather than attempting to observe in a balanced and critical manner is called _________ . (Points : 4)

halo effect
premature closure
selective observation
overgeneralization

Question 8.8. (TCO 1) The word data means ________________. (Points : 4)

the empirical evidence or information that one gathers carefully according to rules or procedures.
a system of interconnected ideas that condenses and organizes knowledge for purposes of understanding and/or explanation
observations that people experience through the senses—touch, sight, hearing, smell, and taste
the scientific norm that says research should be judged only on the basis of scientific merit

Question 9.9. (TCO 1) A cohort study… (Points : 4)

examines the same people over time with check-up points
examines different people at multiple times
examines a group of people at once
examines a different group of people with similar characteristics over time
examines a group of people over time

Question 10.10. (TCO 1) Positivists’ social science is _____________________. (Points : 4)

a critical process of inquiry that generates liberating knowledge so as to reveal structural and cultural inhibiting forces in an attempt to help people change their living conditions and build a better world for themselves.
an approach to research that emphasizes the systematic analysis and detailed study of people and text in order to arrive at understandings and interpretations of how people construct and maintain meaning within their social worlds
a method for combining deductive logic with precise empirical observations in order to discover and confirm a set or probabilistic causal laws that can be used to predict general patterns of human activity
a philosophical position that views reality and causal processes as fairly straightforward and determinable through scientific observation

Question 11.11. (TCO 1) Interpretive social science (ISS) can be traced to German sociologist ______. (Points : 4)

Auguste Comte
Sigmund Freud
Sir Karl Popper
Karl Marx
Max Weber

Question 12.12. (TCO 1) Critical social science is ____________________. (Points : 4)

a critical process of inquiry that generates liberating knowledge so as to reveal structural and cultural inhibiting forces in an attempt to help people change their living conditions and build a better world for themselves
an approach to research that emphasizes the systematic analysis and detailed study of people and text in order to arrive at understandings and interpretations of how people construct and maintain meaning within their social worlds
a method for combining deductive logic with precise empirical observations in order to discover and confirm a set or probabilistic causal laws that can be used to predict general patterns of human activity
a philosophical position that views reality and causal processes as fairly straightforward and determinable through scientific observation

Question 13.13. (TCO 1) Ways of thinking that are constructed by powerful forces in society that are false and act against our best interests are called ______. (Points : 4)

praxis
reification
false consciousness
dialectic relationship
bounded autonomy

Question 14.14. (TCO 1) An empirically testable version of a theoretical proposition that has not yet been tested or verified with empirical evidence. It is most often used in deductive theorizing. (Points : 4)

hypothesis
proposition
theory
typology
concept

Question 15.15. (TCO 1) A _____________________ is a type of theoretical explanation about why events occur and how things work expressed by outlining an overall structure and emphasizing locations,interdependences, distances, or relations among positions in that structure. (Points : 4)

positive social science explanation
causal-structural explanation
interpretive explanation
consensus explanation
conflict social science explanation

Question 16.16. (TCO 2) Fraud that occurs when a researcher steals the ideas or writings of another or uses them without citing the source is called ___________. (Points : 4)

loss of objectivity
scientific irresponsibility
research fraud
scientific misconduct
plagiarism

Question 17.17. (TCO 2) A famous research study in which the researcher observed men engaging in sexual acts in a public bathroom, and then tracked them down a year later to conduct covert interviews, is called _______________. (Points : 4)

Zimbardo Prison Experiment
The Attica Study
Humphrey’s “tearoom trade”
Stanley Milgram’s Experiment
Van Maanen Study

Question 18.18. (TCO 2) A statement, usually written, that explains aspects of a study to participants and asks for their voluntary agreement to participate before the study begins is called ________. (Points : 4)

freedom of choice
free will document
permission slip
voluntary consent
informed consent

Question 19.19. (TCO 2) The role that a field researcher adopts where he or she completely disguises his or her true identity and research purposes is called _________. (Points : 4)

shallow cover
sting operation
undercover operation
deep cover
secret research

Question 20.20. (TCO 2) Principles and guidelines developed by professional organizations to guide research practice and clarify the line between ethical and unethical behavior is called _______. (Points : 4)

professionalism
code of ethics
professional conduct
rules of engagement
rules of procedure

Question 21.21. (TCO 2) Academic periodicals that publish peer-reviewed research and essays usually found in college and university libraries are called ________. (Points : 4)

magazines
Newsweek and Time
research books
scholarly journals
all of the above

Question 22.22. (TCO 2) Triangulation of theory is ____________. (Points : 4)

mixing qualitative and quantitative styles of research and data
taking multiple measures of a phenomenon
multiple observers of a phenomenon
viewing phenomenon from multiple theoretical lenses

Question 23.23. (TCO 2) Triangulation of observers is ___________________. (Points : 4)

mixing qualitative and quantitative styles of research and data
observing a phenomenon at different time intervals
having multiple observers of a phenomenon
viewing phenomenon from multiple theoretical lenses

Question 24.24. (TCO 2) This expression is used with data that comes in the form of numbers. (Points : 4)

numeric-based data
verbal data
soft data
hard data

Question 25.25. (TCO 2) An intervening variable is ___________________. (Points : 4)

a concept that varies, or an empirical measure that can take on multiple values.
the categories or levels of a variable
a cause variable that produces an effect of results on a dependent variable in a causal hypothesis
the effect or result variable that is caused by an independent variable in a causal hypothesis
a variable that comes between the independent and dependent variables and shows the link or causal mechanism between them

Question 26.26. (TCO 2) An independent variable is __________________. (Points : 4)

a concept that varies, or an empirical measure that can take on multiple values.
the categories or levels of a variable
a cause variable that produces an effect of results on a dependent variable in a causal hypothesis
the effect or result variable that is caused by an independent variable in a causal hypothesis
a variable that comes between the independent and dependent variables and shows the link or causal mechanism between them

Question 27.27. (TCO 2) A double-barreled hypothesis is: (Points : 4)

A statement of a causal explanation or proposition that has at least one independent and one dependent variable, and has yet to be empirically tested.
A hypothesis that states there is no significant effect of an independent variable on a dependent variable.
A hypothesis paired with the null hypothesis with two independent variables in which it is unclear whether one or the other variable, or both in combination, produce an effect.
A confusing and poorly designed hypothesis with two independent variables making it unclear whether one or the other variable, or both in combination, produce an effect.

Question 28.28. (TCO 2) An experimental hypothesis is ______________. (Points : 4)

a statement of a causal explanation or proposition that has at least one independent and one dependent variable, and has yet to be empirically tested
a hypothesis that states there is no significant effect of an independent variable on a dependent variable
a hypothesis paired with the null hypothesis with two independent variables in which it is unclear whether one or the other variable, or both in combination, produce an effect
a confusing and poorly designed hypothesis with two independent variables making it unclear whether one or the other variable, or both in combination, produce an effect

Page 2

Question 1.1. (TCO 4) The process of developing clear, rigorous, systematic conceptual definitions for abstract ideas/concepts is called _____________. (Points : 4)

organization
logic
clarification
conceptualization
defining your terms

Question 2.2. (TCO 4) The definition of a variable in terms of the specific actions to measure or indicate it in the empirical world is called _____________. (Points : 4)

operational definition
operationalization
clarification
clear conceptualization
organization

Question 3.3. (TCO 4) Equivalence reliability is ________________. (Points : 4)

measurement reliability across time; a measure that yields consistent results at different time points, assuming that what is being measured does not change itself
measurement reliability across groups; a measure that yields consistent results for various social groups
measurement reliability across indicators; a measure that yields consistent results using different specific indicators, assuming that all measure the same construct
how well an empirical indicator and the conceptual definition of the construct that the indicator is suppose to measure fit together

Question 4.4. (TCO 4) When a researcher divides the indicators (questions) into two groups and determines whether both halves give the same results, it is called _________. (Points : 4)

equivalence
split-half method
grouping technique
dividing
cluster sampling

Question 5.5. (TCO 4) Concurrent validity is ______________. (Points : 4)

a type of measurement validity in which an indicator makes sense as a measure of a construct in the judgment of others, especially in the scientific community
measurement validity that requires that a measure represents all of the aspects of the conceptual definition of a construct
measurement validity that relies on some independent outside verification
a type of measurement validity that uses multiple indicators and has two indicators and two subtypes: how well indicators of one construct converge and how well indicators of different constructs diverge
a measure of validity that relies on a preexisting and already accepted measure to verify the indicator of a construct

Question 6.6. (TCO 4) Convergent validity is _________________. (Points : 4)

a type of measurement validity in which an indicator makes sense as a measure of a construct in the judgment of others, especially in the scientific community
a measurement validity that relies on the occurrence of a future event or behavior that is logically consistent to verify the indicator of a construct
measurement of validity that relies on some independent outside verification
a type of measurement validity for multiple indicators based on the idea that indicators of one construct will act alike or converge. (p. 191)
a measurement validity for multiple indicators based on the idea that indicators of different constructs diverge (p.191)

Question 7.7. (TCO 4) An interval-level of measurement is _________________. (Points : 4)

the lowest, least-precise level of measurements for which there is a difference in type only among the categories of variable
a level of measurement that identifies a difference among categories of a variable and allows the categories to be rank ordered as well
a level of measurement that identifies differences among variable attributes, rank categories, and measures distance between categories, but there is no true zero
the highest, most-precise level of measurement; variable attributes can be rank ordered, the distance between them precisely measured, and there is an absolute zero

Question 8.8. (TCO 4) A nominal-level of measurement is ________________. (Points : 4)

the lowest, least-precise level of measurements for which there is a difference in type only among the categories of variable
a level of measurement that identifies a difference among categories of a variable and allows the categories to be rank ordered as well
a level of measurement that identifies differences among variable attributes, rank categories, and measures distance between categories, but there is no true zero
the highest, most-precise level of measurement; variable attributes can be rank ordered, the distance between them precisely measured, and there is an absolute zero

Question 9.9. (TCO 4) Variables in which the attributes can be measured with only a limited number of distinct, separate categories are called ________________. (Points : 4)

independent variables
discrete variables
continuous variables
dependent variables
spurious variables

Question 10.10. (TCO 4) _______ is considered the principle that when using multiple indicators to measure a construct, all indicators should consistently fit together and indicate a single construct. (Points : 4)

Unidimensionality
Weighted index
Standardization
All of the above

Question 11.11. (TCO 4) A smaller set of cases that a researcher selects from a larger pool and generalizes to the population is called a ___________. (Points : 4)

group
small group
sampling
population
sampling case

Question 12.12. (TCO 4) The concretely specified large group of many cases from which a researcher draws a sample and to which results from a sample are generalized is called __________. (Points : 4)

sampling frame
target population
sample
population
sampling case

Question 13.13. (TCO 4) A sample in which the researcher uses a random number table or similar mathematical random process so that each sampling element in the population will have an equal probability of being selected is called ____________. (Points : 4)

a sampling probability
a sampling selection
a random sample
a population selection
random chance

Question 14.14. (TCO 6) ________________ is a type of random sample that uses multiple stages and is often used to cover wide geographic areas in which aggregated units are randomly selected and then samples are drawn from the sampled aggregated units, or clusters. (Points : 4)

Cluster sampling
Systematic sampling
Confidence intervals
Sampling interval
Stratified sampling
Question 15.15. (TCO 6) A stratified sample is ________________. (Points : 4)

a random sample in which the researcher first identifies a set of mutually exclusive and exhaustive categories, divides the sampling frame by the categories, and then uses random selection to select cases from each category
a range of values, usually a little higher or lower than a specific value found in a sample, within which a researcher has a specified and high degree of confidence that the populations parameters lie
the inverse of the sampling ration that is used when selecting cases in systematic sampling.
a random sample in which a researcher selects every kth (e. g., 12th) case in the sample frame using a sampling interval
a type of random sample that uses multiple stages and is often used to cover wide geographic areas in which aggregated units are randomly selected and then samples are drawn from the sampled aggregated units, or clusters

Question 16.16. (TCO 6) Deviant case sampling is ________________. (Points : 4)

a nonrandom sample in which the researcher first identifies general categories into which cases or people will be selected, and then he or she selects cases to reach a predetermined number of cases in each category.
a nonrandom sample in which the researcher uses a wide range of methods to locate all possible cases of a highly specific and difficult-to-reach population
a nonrandom sample in which the researcher selects specific times, locations, or events to observe in order to develop a social theory or evaluate theoretical ideas
a nonrandom sample, especially used by qualitative researchers, in which a researcher selects unusual or nonconforming cases purposely as a way to provide greater insight into social processes or a setting
a nonrandom sample in which a researcher tries to find as many relevant cases as possible, until time, financial resources, or his or her energy is exhausted, or until there is no new information or diversity from the cases

Question 17.17. (TCO 6) The group that does not get the treatment in experimental research is called the ______. (Points : 4)

testable group
experimental group
research group
non-treatment group
control group

Question 18.18. (TCO 6) A one-group pretest-posttest design is/are _________________. (Points : 4)

an effect of two independent variables operating simultaneously and in combination on a dependent variable. It is a larger effect than occurs from the sum of each independent variable working separately.
experimental designs that lack random assignment or use shortcuts and are much weaker than the classical experimental design. They can be substituted in situations in
which an experimenter cannot use all of the features of a classical experimental design, but have weaker internal validity an experimental design with only an experimental group and a posttest, no pretest
a pre-experimental design that has one group, a pretest, treatment, and a posttest. It lacks a control group and random assignment.
an experimental design in which the dependent variable is measured periodically across many time points, and the treatment occurs in the midst of such measures, often only once

Question 19.19. (TCO 6) An equivalent time-series design is ___________________. (Points : 4)

an effect of two independent variables operating simultaneously and in combination on a dependent variable. It is a larger effect than occurs from the sum of each independent variable working separately
experimental designs that lack random assignment or use shortcuts and are much weaker than the classical experimental design. They can be substituted in situations in
which an experimenter cannot use all of the features of a classical experimental design, but have weaker internal validity
an experimental design in which there are several repeated pretests, posttests, and treatments for one group, often over a period of time
a pre-experimental design that has one group, a pretest, treatment, and a posttest. It lacks a control group and random assignment
an experimental design in which the dependent variable is measured periodically across many time points, and the treatment occurs in the midst of such measures, often only once

Question 20.20. (TCO 6) A ______________ is a threat to internal validity in experiments due to natural processes of growth, boredom, and so on that occur during the experiment and affect the dependent variable. (Points : 4)

history effects
natural effects
time series effects
experimental effects
maturation effect

Question 21.21. (TCO 6) A threat to internal validity that occurs when the very process of measuring in the pretest can have an impact on the dependent variable. (Points : 4)

history effects
testing effects
time series effects
experimental effects
maturation effect

Question 22.22. (TCO 6) A problem in survey research question writing that occurs when a highly respected group or individual is associated with an answer or choice is called _________. (Points : 4)

jargon
ambiguity
prestige bias
leading language
misleading assumption

Question 23.23. (TCO 6) A survey question that contains more than one issue and can create respondent confusion or ambiguous answers is called ________________. (Points : 4)

jargon
ambiguity
prestige bias
leading language
double-barreled questions

Question 24.24. (TCO 6) A survey technique that asks respondents to disclose information about their own criminal behaviors is called _____________. (Points : 4)

a police report
a hidden crime survey
self-report surveys
the Uniform Crime Reports
the National Crime Victimization Study

Question 25.25. (TCO 6) A quasi-filter question is _________________. (Points : 4)

a survey research question in which respondents are first asked whether they have an opinion or know about a topic; then only those with an opinion or knowledge are asked a specific question about the topic
a survey research question that includes the answer choice “No Opinion,” “Unsure,” or “Don’t Know”
a type of survey research question in which the answer categories do not include a “No Opinion” or “Don’t Know” option
all of the above

Question 26.26. (TCO 6) A classical experimental design is _______________. (Points : 4)

a type of experimental design that considers the impact of several independent variables simultaneously
an experimental design that has random assignment, a control group, and a pretest and posttest for each group
an experimental design used to examine whether the order of sequence in which subjects receive multiple versions of the treatment has an effect
an experimental design in which subjects are randomly assigned to two control groups and two experimental groups
an experimental design that has all of the parts of the classical design except a pretest

Question 27.27. (TCO 6) A two-group posttest-only design is ________________. (Points : 4)

a type of experimental design that considers the impact of several independent variables simultaneously
an experimental design that has random assignment, a control group, and a pretest and posttest for each group
an experimental design used to examine whether the order of sequence in which subjects receive multiple versions of the treatment has an effect
an experimental design in which subjects are randomly assigned to two control groups and two experimental groups
an experimental design that has all of the parts of the classical design except a pretest.

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ACCT 304 Week 7 Quiz (A+ Guaranteed)

ACCT 304 – Week 7: Additional Issues – Quiz

1. (TCO 8) In applying LCM, market cannot be (Points : 4)
less than net realizable value minus a normal profit margin.
net realizable value less reasonable completion and disposal costs.
greater than net realizable value reduced by an allowance for normal profit margin.
less than cost.

2. (TCO 8) Data related to the inventories of Costco Medical Supply is presented below:

In applying the LCM rule, the inventory of surgical equipment would be valued at
(Points : 4)
$230.
$240.
$170.
$152.

3. (TCO 8) Howard’s Supply Co. suffered a fire loss on April 20, 2011. The company’s last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000, and purchases during that time were $450,000. Howard’s consistently reports a 30% gross profit. The estimated inventory loss is (Points : 4)
$490,000.
$238,000.
$250,000.
None of the above

4. (TCO 8) In calculating the cost-to-retail percentage for the retail method, the retail column will not include (Points : 4)
purchases.
purchase returns.
abnormal shortages.
freight-in.

5. (TCO 8) When applying the lower-of-cost-or-market rule to inventory valuation according to International Financial Reporting Standards, market is always (Points : 4)
replacement cost.
net realizable value.
net realizable value reduced by a normal profit margin.
None of the above

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ACCT 304 Week 8 Final Exam (A+ Guaranteed)

1. (TCO 1) The FASB’s standard-setting process includes, in the correct order, (Points : 6)
exposure draft, research, discussion paper, and accounting standards update.
research, exposure draft, discussion paper, and accounting standards update.
research, discussion paper, exposure draft, and accounting standards update.
discussion paper, research, exposure draft, and accounting standards update.

2. (TCO 1) Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002? (Points : 6)
Corporate executive accountability
Auditor rotation
Retention of workpapers
All of the above are provisions of the Act.

3. (TCO 2)  SFAC No. 5 focuses on (Points : 6)
objectives of financial reporting.
qualitative characteristics of accounting information.
recognition and measurement concepts in accounting.
elements of financial statements.

4. (TCO 2) Enhancing qualitative characteristics of accounting information include (Points : 6)
relevance and comparability.
comparability and timeliness.
understandability and relevance.
neutrality and consistency.

5. (TCO 3) Incurring an expense for advertising on an account would be recorded by (Points : 6)
debiting liabilities.
crediting assets.
debiting an expense.
debiting assets.

6. (TCO 3) Adjusting entries are primarily needed for (Points : 6)
cash basis accounting.
accrual accounting.
current value accounting.
manual accounting systems.

7. (TCO 4) Current assets include cash and all other assets expected to become cash or be consumed (Points : 6)
within 1 year.
within 1 operating cycle.
within 1 year or 1 operating cycle, whichever is shorter.
within 1 year or 1 operating cycle, whichever is longer.

8. (TCO 4) Which of the following is never a current liability account? (Points : 6)
Accrued payroll
Dividends payable
Prepaid rent
Subscriptions collected in advance

9. (TCO 5) Popson Inc. incurred a material loss that was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as (Points : 6)
an extraordinary loss.
a separate line item between income from continuing operations and income from discontinued operations.
a separate line item within income from continuing operations.
a separate line item in the retained earnings statement.

10. (TCO 5) On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2012. The following additional facts pertain to the transaction:
The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations.

The book value of Footwear’s assets totaled $48 million on the date of the sale.

Footwear’s operating income was a pre-tax loss of $10 million in 2012.

Foxtrot’s income tax rate is 40%.
In the 2012 income statement for Foxtrot Co., which of the following would it would report?
(Points : 6)
All income taxes would be combined into one line item.
Income taxes would be separated for continuing and discontinued operations.
Income taxes would be reported for income and gains only.
None of the above

11. (TCO 5) In comparing the direct method with the indirect method of preparing the statement of cash flows, (Points : 6)
only operating activities are presented differently.
only investing activities are presented differently.
only financing activities are presented differently.
all activities are presented differently.

12. (TCO 5) Cash flows from investing activities do not include (Points : 6)
proceeds from issuing bonds.
payment for the purchase of equipment.
proceeds from the sale of marketable securities.
cash outflows from acquiring land.

13. (TCO 5) Merchandise sold FOB shipping point indicates that (Points : 6)
the seller pays the freight.
the buyer holds title after the merchandise leaves the seller’s location.
the common carrier holds title until the merchandise is delivered.
the sale is not consummated until the merchandise reaches the point to which it is being shipped.

14. (TCO 5) Todd Sweeney is an artist who sells his work under consignment. (He displays his work in local barbershops, and customers buy the work there.) Sweeney recently transferred a painting to a local barbershop. Sweeney most likely should recognize revenue when (Points : 6)
he paints the painting, as the painting is accreting.
when he transfers a painting to a barbershop.
when the barbershop sells the painting.
when the barbershop’s right of return expires.

15. (TCO 6) LeAnn wishes to know how much money she should set aside now at 7% interest in order to accumulate a sum of $5,000 in 4 years. She should use a table for the (Points : 6)
present value of 1.
future value of 1.
present value of an ordinary annuity of 1.
future value of an annuity due of 1.

16. (TCO 6) Zulu Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting 5 years after she joins the company. The liability for this bonus when the CEO is hired (Points : 6)
is the present value of a deferred annuity.
is the present value of an annuity due.
is $20 million.
is zero because no cash is owed for 5 years.

17. (TCO 7) Cash may not include (Points : 6)
foreign currency.
money orders.
restricted cash.
undeposited customer checks.

18. (TCO 7) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for cash discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?

(Points : 6)
Option a
Option b
Option c
Option d

19. (TCO 8) In a periodic inventory system, the cost of purchases is debited to (Points : 6)
purchases.
cost of goods sold.
inventory.
accounts payable.

20. (TCO 8) During periods when costs are rising and inventory quantities are stable, cost of goods sold will be (Points : 6)
higher under FIFO than LIFO.
higher under FIFO than average cost.
lower under average cost than LIFO.
lower under LIFO than FIFO.

21. (TCO 8) In applying LCM, market cannot be (Points : 6)
less than net realizable value.
greater than the normal profit.
less than the normal profit margin.
greater than net realizable value.

22. (TCO 8) Included in the computation of the cost-to-retail percentage for the LIFO retail method are (Points : 6)
net markups and net markdowns.
neither net markups nor net markdowns.
net markups, but not net markdowns.
net markdowns, but not net markups.

Page 2

1. (TCO 8) Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition):

• 40 units at $100
• 70 units at $80
• 170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the FIFO method? (Points : 15)

2. (TCO 5) What is an accrued liability? Please provide two examples. (Points : 28)

3. (TCO 7) A company’s investment in receivables is affected by several related variables. Give an example of this interrelationship. (Points : 25)

Page 3

1. (TCO 8) It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company’s balance sheet. Explain which physical quantities of inventory you will include, and which you will exclude. (Points : 25)

2. (TCO 4) You are reviewing the December 31, 2012 financial statements of Ellie’s Antiques that is considering an initial public offering of its shares. The following items come to your attention:

a. Included in long-term investments are 10-year U.S. Treasury bonds that mature March 31, 2013. The bonds were purchased November 20, 2012.

b. The property, plant, and equipment account is stated at cost, except that it includes a parcel of land purchased for investment purposes at a cost of $40,000. Because of rising land prices, the value of the land has been written up to $60,000. The company has an independent appraisal that attests to this amount.

c. The accounts receivable account includes $20,000 due in 3 years from officers and employees and a 2-year, 8% note for $25,000 due from a customer. The loan enabled the customer to buy equipment needed to process materials purchased from Ellie’s Antiques.

Please discuss how the above items should be classified and accounted for.
(Points : 25)

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Before making its year-end adjustments, the net income for Gannet Company was $80,000

Before making its year-end adjustments, the net income for Gannet Company was $80,000. Year-end adjusting entries are necessary for the following items:

1. Office supplies used up during the year totaled $3,200

2. Interest accrued to December 31 on note payable to the bank totaled $900

3. Services performed for clients but not yet collected totaled $2,600.

Calculate Gannet Company’s net income for the year after the necessary adjustments are made.

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House of Organs, Inc., purchases organs from a well-known manufacturer and sells

House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,000 each. The average cost of an organ from the manufacturer is $1,508. The costs that the company incurs in a typical month are presented below:

Costs       Cost Formula
Selling:
Advertising       $962 per month
Delivery of organs       $57 per organ sold
Sales salaries and commissions       $4,783 per month, plus 5% of sales
Utilities       $639 per month
Depreciation of sales facilities       $5,098 per month
Administrative:
Executive salaries       $13,481 per month
Depreciation of office equipment       $890 per month
Clerical       $2,550 per month, plus $41 per organ sold
Insurance       $718 per month

During November, the company sold and delivered 60 organs.

Prepare a traditional income statement for November.

Prepare a contribution format income statement for November.

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Tom just received his bank statement and wanted to make sure that the balance

Bank Reconciliation

Tom just received his bank statement and wanted to make sure that the balance in his check book was correct. Tom determined the following information:

  1. At the end of the month Tom’s check book showed a balance of $183
  2. The bank indicated that the balance in Tom’s account was $475
  3. Check number 104 for $60, check number 107 for $205 and check number 108 for $100 had not cleared the bank.
  4. A deposit of $140 did not show up in the bank statement.
  5. Since Tom wanted a paper statement the bank charged him $5
  6. A check of $70 which was previously deposited was returned by the bank plus a $10 service charge.
  7. Tom discovered that a check she had written for $236 had been incorrectly recorded in his check ledger at $263.
  8. A friend had wired directly to Tom’s account $125.

A.Determine the true cash balance for Tom’s checking account.

B.Determine the amount of change in cash as a result of this statement.

C.Determine the amount of change in expense as a result of this statement.

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Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore (A+ Guaranteed)

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 135,000 kilometers during a year, the average operating cost is 14.5 cents per kilometer. If a truck is driven only 90,000 kilometers during a year, the average operating cost increases to 18.1 cents per kilometer.
1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places and Fixed cost answer to nearest whole dollar amount.)

High Level of Activity ___

Low Level of Activity ___

Change ___

Varaible cost pe kilometer ___

Fixed cost per year___

 

2.  Express the variable and fixed costs in the form Y = a + bX. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.)

3.  If a truck were driven 112,000 kilometers during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.)

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Wallowa Company is considering a long-term investment project called ZIP

Wallowa Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,080. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,460, and annual expenses (excluding depreciation) would increase by $40,590. Wallowa uses the straight-line method to compute depreciation expense. The company’s required rate of return is 11%.

Compute the annual rate of return. (Round answer to 0 decimal places, e.g. 15%.)

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ACC 400 FINAL EXAM – Zelma Company’s last financial statements provided

ACC 400 Final Exam

1.  Zelma Company’s last financial statements provided the following ratios:
Current ratio  3:2
Quick ratio  1:2
Accounts receivable turnover 9.0 times
Inventory turnover   8.0 times
Net income percentage  12.5%
Return on equity    22.6%
Return on assets     9.8%
To the nearest day, what is the operating cycle for Zelma?
a)      80 days
b)      86 days
c)      172 days
d)      129 days

 2.  The following events have been projected:
A. Cash sales and collections from customers totaling $980,000
B. Cash payments for operating expenses of $560,000
C. Cash payments for income taxes and interest expense of $45,000
D. Cash payments of prior period accruals of $80,000
E. Borrowed $50,000 cash by issuing a note payable
F. Cash dividends of $20,000
The beginning balance of cash is $45,000. What is the budgeted ending balance of cash?
a.      $325,000
b.     $370,000
c.      $275,000
d.     $245,000

3. On January 1, a business exchanged a plant asset with a cost of $18,000 and accumulated depreciation of $16,500 for a similar asset that had a list price of $23,000. The business received a trade-in allowance of $2,100 on the old plant asset. What was the result of the exchange?
a. A $600 gain on the disposal of a plant asset.
b. A $1,000 unrecognized gain on the exchange of a plant asset.
c. A cost basis of $22,400 for the new plant asset
d. A cost basis of $23,600 for the new plant asset

4. Which one of the following is not an objective of a system of internal controls?
a.   Safeguard company assets
b.   Overstate liabilities in order to be conservative
c.   Enhance the accuracy and reliability of accounting records
d.   Reduce the risks of errors

 5.    A company’s past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5 % in the second month after the sale; the remainder is never collected.  Budgeted credit sales were:
July                             $120,000
August                             72,000
September                    180,000
The cash inflow in the month of September is expected to be
a.   $135,600
b.   $102,600
c.   $108,000
d.   $129,600

6. A check for $275 is incorrectly recorded by a company as $257.  On the bank reconciliation, the $18 error should be
a.      Added to the balance per books.
b.      Deducted from the balance per book.
c.      Added to the balance per bank.
d.      Deducted from the balance per bank.

7.     The Allowance for Doubtful Accounts is necessary because
a.      when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay.
b.        uncollectible accounts that are written off must be accumulated in a separate account.
c.      a liability results when a credit sale is made.
d.      management  needs to accumulate all the credit losses over the years.

8.     Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited
a.   when a credit sale is past due.
b.   at the end of each accounting period.
c.   whenever a pre-determined amount of credit sales have been made.
d.   when an account is determined to be uncollectible

9. Manning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,000 and credit sales are $1,000,000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
a.   Bad Debts Expense ………………………………………………..          10,000
Allowance for Doubtful Accounts ……………………..         10,000
b.   Bad Debts Expense ………………………………………………..            8,000
Allowance for Doubtful Accounts ……………………..           8,000
c.   Bad Debts Expense ………………………………………………..            8,000
Accounts Receivable ………………………………………            8,000
d.   Bad Debts Expense ………………………………………………..          10,000
Accounts Receivable …………………………………                                10,000

10.       The receivables turnover ratio
a.      Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.
b.      Can be used to compute the average collection period.
c.      Is a method of evaluating the solvency of net accounts receivable.
d.      Is only important to internal users of accounting information.

11.       A measure of a company’s solvency is the
a.   acid-test ratio.
b.   current ratio.
c.   times interest earned ratio.
d.   asset turnover ratio.

12.       The times interest earned ratio is computed by dividing
a.   net income by interest expense.
b.   income before income taxes by interest expense.
c.   income before interest expense by interest expense.
d.   income before interest expense and income taxes by interest expense.

13.       The 2007 financial statements of Shadow Co. contain the following selected data (in millions).
Current Assets                      $  75
Total Assets                            120
Current Liabilities                     40
Total Liabilities                         85
Cash                                            8
Interest Expense                         5
Income Taxes                            10
Net Income                               16
The debt to total assets ratio is
a.   70.8%
b.   53.3%
c.   1.41%
d.   6.2 times

14. The statement “Bond prices vary inversely with changes in the market rate of interest” means that if the
a.   market rate of interest increases, the contractual interest rate will decrease.
b.   contractual interest rate increases, then bond prices will go down.
c.   market rate of interest decreases, then bond prices will go up.
d.   contractual interest rate increases, the market rate of interest will decrease.

15.  A company would not acquire treasury stock
a.   in order to reissue shares to officers.
b.   as an asset investment.
c.   in order to increase trading of the company’s stock.
d.   to have additional shares available to use in acquisitions of other companies.

16.       Which of the following is the appropriate general journal entry to record the declaration of cash dividends?
a.   Retained Earnings
Cash
b.   Dividends Payable
Cash
c.   Paid-in Capital
Dividends Payable
d.   Retained Earnings
Dividends Payable

17.       Allstate, Inc., has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2007. If the board of directors declares a $50,000 dividend, the
a.   preferred stockholders will receive 1/10th of what the common stockholders will receive.
b.   preferred stockholders will receive the entire $50,000.
c.   $50,000 will be held as restricted retained earnings and paid out at some future date.
d.   preferred stockholders will receive $25,000 and the common stockholders will receive $25,000.

18.    When a change in accounting principle occurs
a.   prior years’ financial statements should not be changed to reflect the newly adopted principle.
b.   the new principle should be used in reporting the results of operations of the current year.
c.   the cumulative effect of the change in principle should be reflected on the income statement as of the beginning of the next year.
d.   the cumulative effect of the change in accounting principle should be classified as an extraordinary item on the income statement.

19.     Which of the following is not an irregular item on the income statement?
a.   Discontinued operations
b.   Extraordinary items
c.   Other revenues and expenses

20.     Vertical analysis is a technique that expresses each item in a financial statement
a.   in dollars and cents.
b.   as a percent of the item in the previous year.
c.   as a percent of a base amount.
d.   starting with the highest value down to the lowest value.

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Vrable Corporation has a defined benefit pension plan. Two alternative possibilities

Vrable Corporation has a defined benefit pension plan. Two alternative possibilities for pension- related data for the current calendar year are shown below:

Case 1 Case 2

Net loss (gain), Jan. 1 $240,000 $(230,000)

Loss (gain) on plan assets (8,000) (6,000)

Loss (gain) on PBO (17,000) 12,000

ABO, Jan 1 (1,900,000) (1,500,000)

PBO, Jan 1 (2,500,000) (1,700,000)

Plan assets, Jan 1 2,100,000 2,000,000

Average remaining service period

of active employees (years) 10 12

 

REQUIRED:

For each independent case, calculate amortization of the net loss or gain that should be included as a component of pension expense for the current year.

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