STRAYER BUS 520 FINAL EXAM (A+ Guaranteed)

STRAYER BUS 520 FINAL EXAM

Question 1

A potential advantage of electronic communication is __________.

people are interacting with machines so interactions are often impersonal
allowing broader and more immediate access to information
nonverbal communications is removed from interactions
recipients are typically accurate is identifying the tone or intent of email
people are interacting less with each other directly

Question 2
__________ cultures are very explicit in using the spoken and written word.

High and low-continuity
Low-content
High-content
Low-context
High-context

Question 3
In comparing two-way communication with one-way communication, research indicates that __________.

two-way communication is more accurate
one-way communication is more accurate
both types of communication are the same in terms of accuracy
two-way communication is more accurate in large firms, and one-way communication is more accurate in small firms
two-way communication is more accurate in small firms, and one-way communication is more accurate in large firms

Question 4
Software that allows users to view others’ real-time availability and readiness to communicate is known as __________.

the 24/7 environment
presence-aware tools
electronic eavesdropping
privacy tools
flaming

Question 5
Grapevines have the advantage of __________.

always including the leaders of the organization
separating “those with information” from “those who shouldn’t have information”
sharing information that is always correct
ensuring that everyone who needs to hear the information gets the information
being able to transmit information quickly and efficiently

Question 6
“Creative stalling” is an avoidance strategy in the politics of self-protection wherein the manager or employee __________.

treats customers, clients, or subordinates as numbers, things or objects
accepts blame for the negative consequences of his/her actions
pretends to not be aware of the rules, policies, or procedures or of events that have occurred
adheres strictly to all the rules, policies, and procedures, and does not allow deviations or exceptions
spends time delaying implementation of undesirable changes

Question 7
Political __________ links managers more formally to one another as representatives of their work units.

savvy
movement
eventfulness
response
action

Question 8
A __________ is the range of authoritative requests to which a subordinate is willing to respond without subjecting the directives to critical evaluation or judgment.

territory of unconcern
region of inattention
region of insensibility
section of apathy
zone of indifference

Question 9
Which one of the following strategies for exercising relational influence can be defined as “using a direct and forceful personal approach?”

Assertiveness
Reason
Coalition
Sanctions
Higher authority

Question 10
Milgram designed experiments to determine the extent to which people __________.

learn from personal failures
obey the commands of an authority figure
are willing to use coercive power to gain influence
are motivated by financial rewards
are willing to learn new things as a means of gaining expert power

Question 11
Hersey and Blanchard argue that situational leadership requires adjusting the leader’s emphasis on task behaviors and relationship behaviors according to the __________.

readiness of followers to perform their tasks
readiness of leaders to empower their followers
willingness of leaders to interact with their followers
willingness of followers to embrace a broad zone of indifference
leader’s position power

Question 12
The role of __________ is to promote adaptive or useful change.

directing
management
leadership
administration
supervision

Question 13
Leader traits and behaviors can act in conjunction with __________ to predict leader or organizational outcomes.

industry experience
educational background
leadership experience
age
situational contingencies

Question 14
Leadership studies conducted at Ohio State University derived which two basic forms of leader behavior?

Consideration and initiating structure
Implicit and explicit
Proactive and reactive
Employee centered and production centered
In-groups and out-groups

Question 15
According to __________ approaches, individual behavior is constructed in context, as people act and interact in situations.

supportive leadership
social construction
situational leadership
trait perspectives
leader match training

Question 16
“Know thyself” is the essential argument of __________ leadership.

ethical
authentic
servant
spiritual
transformational

Question 17
__________ represent(s) forces for change that deal with adapting the organization’s culture and structure as it grows toward maturity.

Organization-environment relationships
The organizational life cycle
The political nature of organizations
The technological nature of organizations
The structural nature of organizations

Question 18
Another name for incremental change is __________.

subtle change
original change
frame-bending change
basic change
temporal change

Question 19
__________ is often viewed as something that must be overcome in order for change to be successful.

Political maneuvering
Power sharing
Forced coercion
Resistance to change
Rational persuasion

Question 20
__________ represent(s) forces for change that deal with mergers, strategic alliances, and divestitures as ways of redefining organizational relationships with challenging social and political environments.

Organization-environment relationships
The organizational life cycle
The political nature of organizations
The technological nature of organizations
The structural nature of organizations

Question 21
A firm’s __________ is the system of shared actions, values, and beliefs that develops within the organization and guides the behavior of its members.

organizational structure
control philosophy
organizational persona
organizational climate
organizational culture

Question 22
Which step in the innovation process focuses on creating an idea through spontaneous creativity, ingenuity, and information processing?

Idea creation
Initial experimentation
Test and retest
Feasibility determination
Final application

Question 23
Resolving the issues of __________ helps individuals develop a shared identity and a collective commitment.

shared meanings
internal integration
external adaptation
cultural diversity
management philosophy

Question 24
Organizational __________ are unproven and often unstated beliefs that are accepted uncritically.

rites
routines
sagas
myths
rituals

Question 25
__________ involves reaching goals and dealing with outsiders.

Institutional adaptation
Internal integration
External adaptation
Systematic integration
Structural adaptation

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STRAYER BUS 430 QUIZ 1 (A+ Guaranteed)

STRAYER BUS 430 QUIZ 1

Question 1
Service organizations generally

are in close proximity to the customer
rely on physical inventory
take advantage of patents
can delegate human behavior and marketing skills

Question 2
Which one of the following has the highest goods content?

medicine prescription
computer repair
automobile loan
symphony performance

Question 3
The quality revolution is most related to

continuous improvement
mass production
time-based competition
service

Question 4
A golf simulator in a retail sports store is an example of

non- durable goods replacing services
primary good
goods content
biztainment

Question 5
Service management skills would include all of the following except

accounting and finance
knowledge and technical expertise about operations
marketing and cross-selling
human interaction

Question 6
The three issues that are at the core of operations management include all of the following except

cost
quality
utilization
efficiency

Question 7
Which of the following would be the lowest in goods content and highest in service content?

fast food restaurant
attending a theater production
getting an oil change for your car
filling a medical prescription

Question 8
Support processes would typically include all of the following except

inventory management
customer help desk operations
research and development
manufacturing and assembly

Question 9
A support process could be any of the following except

assembling automobiles
purchasing materials and supplies
managing inventory
installing a product

Question 10
Which of the following is not a key activity of an operations manager?

translating market knowledge into goods, services, and processes
continually learning and adapting to global and environmental changes
managing cash flows and strategic investments
exploiting technology to improve productivity

Question 11
A value creation process could be any of the following except

shipping a customer’s order
providing a home mortgage
assembling a dishwasher
purchasing production material
Moving to another question will save this response.

Question 12
Which of the following is not a current challenge to OM?

Globalization
Technology
Quality
mass production

Question 13
Which one of the following is not an example of biztainment?

iPhone applications
automobile leasing
product demonstrations
virtual factory tours

Question 14
Which of the following is the correct sequence describing the evolution of operations management?

efficiency, customization, quality, service, sustainability, time-based competition
quality, efficiency, time-based competition, sustainability, customization, service
efficiency, quality, customization, time-based competition, service, sustainability
quality, service, customization, time-based competition, efficiency, sustainability

Question 15
In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?

Operating system processes lead to customer needs and expectations, which lead to customer benefit package.
Customer benefit package leads to customer needs and expectations, which lead to operating system processes.
Customer needs and expectations lead to customer benefit package, which leads to operating system processes.
Customer needs and expectations lead to operating system processes, which lead to customer benefit package.

Question 16
Which of the following generally does not result from vertical integration?

less control over cost
more control over quality
more complexity in managing
higher levels of risk

Question 17
When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost
the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs
the product of the variable costs times the fixed costs
the product of the variable costs times the production quantity

Question 18
The control of Wal-Mart’s value chain is ______, while the control of General Electric’s is ________.

post-production focused, preproduction focused
horizontal, vertical
centralized, decentralized
backward integrated, forward integrated

Question 19
From the pre- and post-service view of a value chain, goods and services design, contract negotiation and consulting services would be considered

pre-production services
production processes
post-production services
value creation

Question 20
Outsourcing is

the same as offshoring
the opposite of vertical integration
the opposite of backward integration
the same as diversifying

Question 21
Operational structure of the value chain deals with

management hierarchy
vertical integration
configuration of resources
culture

Question 22
Computer software would be an example of

an intangible good
a nondurable good
a service
a value creation process

Question 23
Which of the following is not normally considered a variable cost?

labor
transportation
equipment lease
material

Question 24
For a restaurant, order-taking, bill payment and home delivery would be considered

services
inputs
processes
outputs

Question 25
The first, second, and third waves of outsourcing experienced by the U.S. are

goods-producing jobs, simple service work, skilled knowledge work
simple service work, goods-producing jobs, skilled knowledge work
simple service work, skilled knowledge work, goods-producing jobs
skilled knowledge work, simple service work, goods-producing jobs

Question 26
“The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them” is the definition of

proportionality
competitiveness
value
equity

Question 27
____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality.

Preproduction service
Value proposition
Operational structure
Value chain integration

Question 28
In the value chain model for a hospital, patients, drugs and staff would be considered

suppliers
inputs
processes
outputs

Question 29
A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the breakeven point and determine if they should make the item in-house or outsource it.

breakeven point = 7,000 units; outsource
breakeven point = 7,000 units; make in-house
breakeven point = 11,667 units; outsource
breakeven point = 11,667 units; make in-house

Question 30
The United States has experienced three waves of outsourcing. Which of the following isnotone of the waves?

skilled knowledge work
mass customization
simple service work
goods-producing jobs

Here’s the SOLUTION

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FIN 550 MIDTERM EXAM – The uncertainty of investment returns associated with how a firm

FIN 550 MIDTERM EXAM

Question 1
The uncertainty of investment returns associated with how a firm finances its investments is known as

Business risk.
Liquidity risk.
Exchange rate risk.
Financial risk.
Market risk.

Question 2
Measures of risk for an investment include

Variance of returns and business risk
Coefficient of variation of returns and financial risk
Business risk and financial risk
Variance of returns and coefficient of variation of returns

Question 3
In the phrase “nominal risk free rate,” nominal means

Computed.
Historical.
Market.
Average.
Risk adverse.

Question 4
All of the following are major sources of uncertainty EXCEPT

Business risk
Financial risk
Default risk
Country risk
Liquidity risk

Question 5
For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate asset allocation strategy would be

100% stocks
30% cash, 50% bonds, and 20% stocks
10% cash, 30% bonds, and 60% stocks
50% bonds and 50% stocks
100% bonds

Question 6
Which of the following is not a step in the portfolio management process?

Develop a policy statement.
Study current financial and economic conditions.
Construct the portfolio.
Monitor investor’s needs and market conditions.
Sell all assets and reinvestment proceeds at least once a year.

Question 7
____ phase is the stage when investors in their early-to-middle earning years attempt to accumulate assets to satisfy near-term needs, e.g., children’s education or down payment on a home.

Accumulation
Spending
Gifting
Consolidation
Divestiture

Question 8
____ refer(s) to the ability to convert assets to cash quickly and at a fair market price and often increase(s) as one approaches the later stages of the investment life cycle.

Liquidity needs
Time horizons
Liquidation values
Liquidation essentials
Capital liquidations

Question 9
An agreement that provides for the future delivery or receipt of an asset at a specified date for a specified price is a

Eurobonds contract.
Futures contract.
Put option contract.
Call option contract.
Warrant contract.

Question 10
The original maturity of a United States Treasury bond is

Zero years to five years.
Six months to ten years.
One year or less.
One year to ten years.
Over ten years.

Question 11
The purchase and sale of commodities for current delivery and consumption is known as dealing in the ____ market.

Futures
Spot
Money
Capital
Options

Question 12
Which of the following is not a characteristic of a warrant?

The right to buy common stock in a corporation.
Issued by the corporation or an individual.
Typically valid for longer time periods than options.
Similar to a call option with respect to a striking price.

Question 13
An order that specifies the highest buy or lowest sell price is a

Limit order.
Short sale.
Market order.
Margin call.
Stop loss.

Question 14
Which of the following is not a function of the specialist?

Assists the Federal Reserve in controlling the money supply
Acts as a broker who handles the limit orders or special orders placed with member brokers
Buys and sells securities in order to stabilize the market
Acts as a dealer in assigned stocks to maintain a fair and orderly market

Question 15
All of the following are characteristics of a dealer market except:

Also referred to as a quote-driven market
NASDAQ market is a dealer market
Individual dealers buy and sell shares for themselves
Centralized trading location

Question 16
A block trade is one which involves a minimum of

1,000 shares.
5,000 shares.
10,000 shares.
100,000 shares.
1,000,000 shares.

Question 17
The implication of efficient capital markets and a lack of superior analysts have led to the introduction of

Balanced funds.
Naive funds.
January funds.
Index funds.
Futures options.

Question 18
Fama and French examined the relationship between the Book Value to Market Value ratio and average stock returns and found

No evidence of a relationship for U.S. stocks.
Evidence of a negative relationship in U.S. stocks only.
Evidence of a positive relationship for Japanese stocks only.
Evidence of a negative relationship for U.S. and Japanese stocks.
Evidence of a positive relationship for U.S. and Japanese stocks.

Question 19
The results of studies that have looked at the relationship between PEG ratios and subsequent stock returns

Find an inverse relationship, with annual rebalancing.
Find no relationship, with monthly or quarterly rebalancing.
Find an inverse relationship, with monthly or quarterly rebalancing.
Find a direct relationship, with monthly or quarterly rebalancing.
Find a direct relationship with annual rebalancing

Question 20
A “runs test” on successive stock price changes which supports the efficient market hypothesis would show the actual number of runs

Falls into the range expected of a random series.
Falls into the range expected of a dependent series.
Is small.
Is large.
Would approximate N/2.

Question 21
A portfolio manager is considering adding another security to his portfolio. The correlations of the 5 alternatives available are listed below. Which security would enable the highest level of risk diversification?

0.0
0.25
−0.25
−0.75
1.0

Question 22
Between 1980 and 2000, the standard deviation of the returns for the NIKKEI and the DJIA indexes were 0.08 and 0.10, respectively, and the covariance of these index returns was 0.0007. What was the correlation coefficient between the two market indicators?

.0906
.0985
.0796
.0875
.0654

Question 23
Between 1994 and 2004, the standard deviation of the returns for the S&P 500 and the NYSE indexes were 0.27 and 0.14, respectively, and the covariance of these index returns was 0.03. What was the correlation coefficient between the two market indicators?

1.26
0.7937
0.2142
0.1111
0.44

Question 24
All of the following are common risk measurements except

Standard deviation
Variance
Semivariance
Covariance
Range of returns

Question 25
If an individual owns only one security the most appropriate measure of risk is:

Standard deviation
Correlation
Beta
Covariance

Question 26
The line of best fit for a scatter diagram showing the rates of return of an individual risky asset and the market portfolio of risky assets over time is called the

Security market line.
Capital asset pricing model.
Characteristic line.
Line of least resistance.
Market line.

Question 27
The fact that tests have shown the CAPM intercept to be greater than the RFR is consistent with a(n)

Zero beta model.
unstable beta or a higher borrowing rate.
Zero beta model or a higher borrowing rate.
higher borrowing rate.
unstable beta.

Question 28
Utilizing the security market line an investor owning a stock with a beta of −2 would expect the stock’s return to ____ in a market that was expected to decline 15 percent.

Rise or fall an indeterminate amount
Fall by 3%
Fall by 30%
Rise by 13%
Rise by 30%

Question 29
Assume that you are embarking on a test of the small-firm effect using APT. You form 10 size-based portfolios. The following finding would suggest there is evidence supporting APT:

The top five size based portfolios should have excess returns that exceed the bottom five size based portfolios.
The bottom five size based portfolios should have excess returns that exceed the top five size based portfolios.
The ten portfolios must have excess returns not significantly different from zero.
The ten portfolios must have excess returns significantly different from zero.

Question 30
Under the following conditions, what are the expected returns for stocks A and C?

l0 = 0.07 ba,1 = 0.95
k1 = 0.04 ba,2 = 1.10
k2 = 0.03 bc,1 = 1.10
bc,2 = 2.35

14.1% and 17.65%
14.1% and 18.45%
17.65% and 18.45%
18.45% and 17.52%

Question 31
Under the following conditions, what are the expected returns for stocks X and Y?

l0 = 0.05 bx,1 = 0.90
k1 = 0.03 bx,2 = 1.60
k2 = 0.04 by,1 = 1.50
by,2 = 0.85

14.1% and 12.9%
12.5% and 19.5%
19.5% and 18.5%
21.2% and 18.5%

Question 32
The equation for the single-index market model is

RFRit = ai + bRmt + et
Rit = ai + bRmt + et
Rit = ai + bRFRt + et
Rmt = ai + bRit + et
Rit = ai + b(Rmt − RFRt) + et

Here’s the SOLUTION

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MKT 421 Final Exam – A producer might use a “pulling policy” rather than a “pushing policy” if

MKT 421 Final Exam

1. A producer might use a “pulling policy” rather than a “pushing policy” if: 

Intermediaries are reluctant to handle a new product.
Its sales force has been very successful getting wholesalers and retailers to handle its product.
It has a very limited promotion budget.
It is offering a very “high-tech” product to a small product-market.

2. When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

Creative resourcing
Idea engineering
Reaction engineering
Crowdsourcing

3. The primary purpose of branding is:

To prevent competitors from stealing product ideas.
To boost customer satisfaction.
To identify a product.
To enhance package design.

4.  The company tries to follow an organized new-product development process—rather than using a faster and more spontaneous, “race-to-market” approach.

The managers worry too much about the competition.
The product fails to offer the customer a unique benefit.
The company delays putting the product on the market until it develops a complete marketing plan.

5. Genetech Corp. has invested heavily to develop a patented new product. Genetech wants to achieve a rapid return on its investment. It probably should set a ______________ pricing objective.

Status quo
Target return
Profit maximization
Sales-oriented

6. In the American Marketing Association’s Statement of Ethics, which ethical value stresses a firm’s attempts to balance the needs of its buyers with the interests of sellers?

Responsibility
Citizenship
Fairness
Honesty

7. David Oreck advertises Oreck vacuum cleaners via commercials that run on national radio programs. He encourages consumers to “…try my 8-pound Oreck vacuum for free for 30 days,” and to return it if they aren’t satisfied. He then provides an easy-to-remember toll-free telephone number that consumers can use to place orders. Regarding the AIDA model, the free-trial period and availability of a toll-free number are devices used mainly to:

Get attention.
Arouse desire.
Obtain action.
Hold interest.

8. Most firms in the business world set their prices using:

Supply and demand analysis.
Federal price guidelines.
Cost-oriented price setting.
Demand-oriented price setting.

9. Compared with other approaches to business, the marketing concept is distinct in that it:

Focuses on sales.
Focuses on satisfying customers’ needs.
Produces new products and services.
Creates a broad assortment of products.

10. More than 600,000 loyal customers signed up in advance to purchase the iPhone4 in an Apple store the first day it was available for sale in the U.S. What type of response behavior were these Apple followers demonstrating?

Dissonance response
Low-involvement buying
Routinized response
Limited problem solving

11. In which quadrant of the SWOT analysis tool does the following fit? A firm is in a fast-growing industry.

Weaknesses
Strengths
Opportunities
Threats

12. A useful tool for organizing the competitor analysis is:

Rivals chart.
The competitive summary.
The oligopoly chart.
A competitor matrix.

13. From the perspective of macro-marketing, e-commerce specialists CarFax (which provides vehicle history reports) and Cars.com (a website offering auto comparison shopping) have emerged within the auto industry because:

The role of the automotive sales person is becoming obsolete.
The market needs competitive rivals to auto dealerships.
The information they provide makes the exchange process between producers and consumers more efficient and effective.
Auto manufacturers need to sell direct to consumers.

14. Which of the following is true of direct distribution?

Direct distribution always serves customer needs better and at a lower cost.
It requires a significant investment in facilities.
Most firms selling consumer products rely on direct distribution.
It reduces a producer’s need for working capital.

15. Behavioral targeting:

Tries to reach target customers who are actually interested in what the firm has to communicate.
Allows advertisers to pay only when a customer clicks on the ad and links to the advertiser’s website.
Tries to place ads on websites that are designed to appeal to the firm’s target market.
Delivers ads to consumers based on previous websites the customer has visited.

16. The main difference between a “marketing strategy” and a “marketing plan” is that:

A marketing strategy omits pricing plans.
A marketing strategy provides more detail.
A marketing plan includes several marketing strategies.
Time-related details are included in a marketing plan.

17. When a company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products, what type of statement is this?

Determining
Qualifying
Clustering
Positioning

18. Blending the firm’s promotion efforts to convey a complete and consistent message is the goal of:

Sales management communications.
Integrated marketing communications.
Sales promotion communications.
Integrated promotional marketing

19. In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today?

Market introduction
Sales decline
Market extinction
Market immaturity

20. According to the concept of social responsibility, a firm has a duty to:

Place customer satisfaction above all other considerations.
Place profit above all other considerations.
Communicate regularly with the public.
Conduct business in a way that is good for society as a whole, both now and for the future.

21. The advantages of working with an intermediary usually increase when there is:

A smaller number of competing products.
Little distance between customers.
Excellent communication with customers.
A greater number of customers.

22. Clearwater Office Supply sells frequently purchased office supplies to businesses in a metropolitan area. It is a well-established company with a large share of the market. Its promotion should probably focus on:

Stimulating primary demand.
Rminding.
Innovators.
Informing.

23. The phrase “big data” refers to:

the use of marketing research in big marketing decisions.
the massive amount of data being collected and processed by today’s organizations.
the top five firms in the marketing research industry.
marketing research data taken from Internet sources.

24. When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser’s ad and links to the advertiser’s website, this process is called a(n):

pay-per-click.
pay-per-view.
pioneering ad.
copy thrust.

25. The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market.
This is an example of a(n) _____.

Penetration price policy
Skimming price policy
Introductory price dealing
Temporary price cut policy

26. Tammi Soloft has itchy eyes and a stuffy nose, and suddenly becomes aware of many TV ads for allergy products that she never noticed before. This illustrates:

reinforced cognition.
selective perception.
selective retention.
selective exposure.

27. The main difference between the “marketing department era” and the “marketing company era” is:

More emphasis on selling and advertising in the marketing department era.
More emphasis on short-run planning in the marketing company era.
Whether the whole company is customer-oriented.
Whether the president of the firm has a background in marketing.

28. The three basic sales tasks are:

Order-taking, order-managing, and order-getting.
Order-taking, supporting, and order-getting.
Order-closing, order-opening, and sales-promoting.
Order-taking, missionary selling, and order-getting.

29. Marketers cannot assume that a product that meets consumer needs in one country will do so in another. This is because:

The purchase situations may be different.
Economic wants do not influence purchases in many regions of the world.
Family life cycles may be different.
Many wants are culturally learned.

30. Because she frequently buys books at Amazon.com, Sophie Soleil set up an account and password at the website. Now, when she logs on and searches for a specific book, a note pops up at the center of her laptop screen saying: “Hello, Sophie, we have recommendations for you,” and proceeds to list other titles that Sophie might enjoy based on her previous purchases. Amazon can remember Sophie (and her previous purchases) because the online retailer uses:

Encoding.
Banners.
Cookies.
Decoding.

Here’s the SOLUTION

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At the end of 2010, Sherwood Company had retained earnings of $18,240 (A+ Guaranteed)

At the end of 2010, Sherwood Company had retained earnings of $18,240. During 2011, Sherwood had revenues of $837,400 and expenses of $792,100, and paid cash dividends in the amount of $38,650.

Required:

1. Determine the amount of Sherwood’s retained earnings at December 31, 2011.

2. Comment on Sherwood’s dividend policy.

Here’s the SOLUTION

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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.

Here’s the SOLUTION

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