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Accounting


Manufacturing Income Statement, Statement of Cost of Goods Manufactured
Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December 2012:

Grant
Company McClellan
Company

Materials inventory, December 1 $79,980 $105,570
Materials inventory, December 31 (a) 119,290
Materials purchased 203,150 237,530
Cost of direct materials used in production 214,350 (a)
Direct labor 301,520 (b)
Factory overhead 93,580 118,240
Total manufacturing costs incurred during December (b) 683,040
Total manufacturing costs 763,010 937,460
Work in process inventory, December 1 153,560 254,420
Work in process inventory, December 31 129,570 (c)
Cost of goods manufactured (c) 676,700
Finished goods inventory, December 1 135,170 118,240
Finished goods inventory, December 31 141,560 (d)
Sales 1,178,910 1,055,700
Cost of goods sold (d) 683,040
Gross profit (e) (e)
Operating expenses 153,560 (f)
Net income (f) 234,370

Note: Enter all amounts as positive numbers.


1. Determine the amounts of the missing items, identifying them by letter

Accounting


Prepare any journal entries based on the following data regarding the bank reconciliation prepared by Washington & Leigh Company for the month of July 20XX.

Part A. A customer's check for $260 was returned with the bank statement and stamped NSF.

Part B. Outstanding checks amount to $850.

Part C. Service charges for July per bank statement are $25.

Part D. Check #5207 for $8,450 for office equipment was erroneously recorded by the bookkeeper as $4,850.

Part E. The bank collected a $2,500 note receivable on behalf of Washington & Leigh. Interest on the note amounted to $50.

Part F. A deposit ticket correctly prepared for $695 appeared on the bank statement as a deposit for $965.

Part G. Check #930 for $900 for rent expense was erroneously recorded by the bookkeeper as $90.

REQUIRED: Prepare the necessary reconciliation entries for each part. Be sure to note which account is debited and credited

Network Design Paper


Network Design Paper

UMUC has recently acquired a building in Frederick, Maryland. This new building will house some administrative offices, lecture rooms, library, and computer labs.

Building dimensions:
Length: 240 Feet
Width: 95 Feet
Height: 30 Feet

The 40-year-old two-story building has the following existing layout:

There will be six computer labs that will be used for instruction. Each of these labs will have 21 computers (20 student computers and 1 instructor computer). Each of these labs will also have a server in the closet located inside the lab.

In addition to the six computer labs, there will also be a Student Computer Lab that will provide computer access to students to do their homework. There will be 30 computers in this lab and a server in the closet.

The library will also have some computers to allow students access to the library resources. There will be 10 computers for student’s use in the library, and 5 computers for Library staff.

There are five lecture classrooms in the building. Each of this room will have a computer for instructor’s use.

Finally, there are various offices in the building. Each of these offices will have one computer for the staff use, with the exception of the Admission office that will have 5 computers for staff use.

Equipment Inventory

Workstation
Placement Number of
Workstations Users Total WS
6 Instructional
Computer labs 21 WS Student and
Instructor 132 WS
(based on 20 WS for students and 1 WS for instructor on each lab)
Student Computer Lab 30 WS Student 30 WS
5 various offices 5 WS Staff 5 WS
Admission office 5 WS Staff 5 WS
Library 10 WS Student 10 WS
Library 5 WS Staff 5 WS
Server Staff To be determined by students
Network Connecting
Devices IT Staff To be determined by students
Printers To be determined by student

Two server rooms have been allocated, one on the first floor and one on the second floor.

Your task is to design the network for this new building with the following criteria:
• Student-accessed computers should be on separate network from the staff-accessed computers.
• The whole building will share one Internet access connection (T-1 link from Verizon). This connection will come into the Server Room on the first floor.
• Security is very important for UMUC as we have to protect students and employees data as well as any intellectual property that UMUC has on the servers and computers.
• The network has been assigned the 10.15.0.0 network address for all computers and devices. For Internet routing use 191.1.1 network address.
• The network should use physical cable (not wireless), but do provide wireless access in the Student Lobby area.

Submission should include (in no more than three pages, excluding diagrams and references):

Network Addressing:
1. Define the subnet (based on: rooms, floor, department, or other criteria).
2. For each subnet, define the network address, subnet mask, and available IP addresses to be used by computers or devices.

Physical Network Design:
1. Define the topology that will be used.
2. Select the appropriate network media to use.
3. Select the appropriate network connecting devices to use.
4. Physical layout of the computers on the floor plan.
5. List of additional servers or network devices needed to implement the network.
6. Justifications for your network design (number 1 – 5 above)

You will be evaluated on your ability to

o Implement appropriate IP addressing scheme
o select and justify appropriate cable media that includes the length of each cable segment and number of nodes on each segment
o select and justify appropriate topology such as star, bus, or ring for your network
o select and justify of your selected network equipments
o select and justify appropriate network services to meet network requirements
o select and justify security implementation for the network
o use proper grammar, formatting, network terminology, and reference citations

Construction


1) A construction company entered into a fixed-price contract to build an office building for $38 million. Construction costs incurred during the first year were $12 million and estimated costs to complete at the end of the year were $18 million.

How much gross profit will the company recognize in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)

How much revenue will appear in the company’s income statement in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)


2) A construction company entered into a fixed-price contract to build an office building for $50 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. During the first year the company billed its customer $19 million, of which $13 million was collected before year-end.

What would appear in the year-end balance sheet related to this contract using Percentage-of-completion method? (Enter your answers in whole dollars.)

Multiple Choice


This course is designed to: 
introduce you to college life.
teach you to be an online learner.
provide you with academic skills and strategies to succeed.
be a prerequisite for another course.

Intelligence is measured by: 
an IQ test.
an EIQ test.
multiple intelligence tests.
multiple ways.

Which do you think is the most proven way people, in general, learn? 
What we read
What we see
What we hear
What we do and experience

To become a successful online learner is to: 
be technically and computer savvy.
be a good communicator and writer.
be committed.
learn and apply what it takes to be one.

To focus on your most important goal is to: 
be SMART.
be committed.
prioritize your goals.
set the goal.

According to experts, reading comprehension is greatly aided by: 
reading dense materials.
using a reading system that works for you.
taking lots of notes.
reading all the time.

To write well is to: 
use impressive vocabulary.
express thoughts and ideas completely and concisely.
use a particular style of writing.
research your material.

Critical thinking involves: 
knowing the art of critique.
understanding knowledge.
a thought process that is logical, rational, and systematic.
coming up with the best solutions

Excelling at taking tests depends on: 
knowing the “what” and “how” of test taking.
the amount of hours spent studying.
reviewing all the materials covered in the course.
how well rested you are before the test.

Research is: 
only an academic skill.
self-intuitive.
something anybody can do with Internet.
a systematic inquiry of knowledge.

Plan


Which key stakeholders should be involved in the development of the Configuration Management Plan?

Penn Foster 40632700


Penn Foster 40632700

Penn Foster Final Exam 40632700

Here is the preview of first two answers:

1. A. jurisdiction
2. C. slave patrols

Penn Foster Exam 40630200


Penn Foster Exam 40630200

Here is the preview of first two answers:

1. C. Israel
2. A. ideological

Multiple Choice


1 Adjusting entries can be classified as
A Postponements and advances
B Accruals and deferrals
C Deferrals and postponements
D Accruals and advances

2 Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
A $0 because Prepaid Insurance is reported on the Income Statement
B $1,400
C $2,200
D $3,600

3 Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
A $0 because Prepaid Insurance is reported on the Income Statement
B $1,400
C $2,200
D $3,600

4 Southwestern City College sold season tickets for the 2010 football season for $160,000. A total of 8 games will be played during September, October and November. Assuming all the games are played, the Unearned Revenue balance that will be reported on the December 31 balance sheet will be
A $0
B $60,000
C $100,000
D $160,000

5 The operating cycle of a company is the average time that is required to go from cash to
A Sales in producing revenues
B Cash in producing revenues
C Inventory in producing revenues
D Accounts receivable in producing revenues

6 The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information:

The entry to close Income Summary to Ramirez, Capital includes
A A debit to Revenue for $7,000
B Credits to Expenses totaling $3,600
C A credit to Income Summary for $3,400
D A credit to Ramirez, Capital for $3,400

7 Joyce’s Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $50,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?


8 All of the following statements about the post-closing trial balance are correct except it
A Shows that the accounting equation is in balance
B Provides evidence that the journalizing and posting of closing entries have been properly completed
C Contains only permanent accounts
D Proves that all transactions have been recorded

9 The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:
What is the company’s net income for the year ending December 31, 2010?
A $133,000
B $42,000
C $28,000
D $12,000

10 O.K.C. Company collected $8,400 in May of 2010 for four months of service which would take place from October of 2010 through January of 2011. The revenue reported from this transaction during 2010 would be
A 0
B $6,300
C $8,400
D $2,010

11 The following information is for Benton Office Supplies:
The total dollar amount of assets to be classified as property, plant, and equipment is
A $320,000
B $170,000
C $245,000
D $190,000

12 Henry-K Company purchased a computer system for $3,600 on January 1, 2010. The company expects to use the computer system for 3 years. It has no salvage value. Monthly depreciation expense on the asset is
A $0
B $100
C $1,200
D $3,600

13 What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies of $4,500?
A Debit Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500
B Debit Insurance Expense, $15,500; Credit Prepaid Insurance, $15,500
C Debit Prepaid Insurance, $11,000; Credit Insurance Expense, $11,000
D Debit Insurance Expense, $11,000; Credit Prepaid Insurance, $11,000

14 The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:
The sub-classifications for assets on the company’s classified balance sheet would include all of the following except
A Current Assets
B Property, Plant, and Equipment
C Intangible Assets
D Long-term Assets

15 Can financial statements be prepared directly from the adjusted trial balance?
A They cannot. The general ledger must be used
B Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts
C No, the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose
D They can because that is the only reason that an adjusted trial balance is prepared

16 The following information is for Acme Auto Supplies:
The total dollar amount of assets to be classified as current assets is
A 220,000
B $150,000
C $300,000
D $180,000

17 A post-closing trial balance is prepared
A After closing entries have been journalized and posted
B Before closing entries have been journalized and posted
C After closing entries have been journalized but before the entries are posted
D Before closing entries have been journalized but after the entries are posted

18 The following information is for Acme Auto Supplies:
The total dollar amount of assets to be classified as investments is
A $0
B $150,000
C $80,000
D $180,000

19 The following selected account balances appear on the December 31, 2010 balance sheet of Chen Co.
Land (location of the corporation’s office building) $150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment 675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the total amount of property, plant, and equipment that will be reported on the balance sheet?
A $1,950,000
B $1,650,000
C $2,400,000
D $1,425,000

20 A post-closing trial balance should be prepared
A Before closing entries are posted to the ledger accounts
B After closing entries are posted to the ledger accounts
C Before adjusting entries are posted to the ledger accounts
D Only if an error in the accounts is detected

21 The balance in the Prepaid Rent account before adjustment at the end of the year is $15,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is to
A Debit Rent Expense, $5,000; credit Prepaid Rent, $5,000
B Debit Rent Expense, $10,000; credit Prepaid Rent $10,000
C Debit Prepaid Rent, $5,000; credit Rent Expense, $5,000
D Debit Prepaid Rent, $10,000; credit Rent Expense, $10,000

22 Closing entries
A Are prepared before the financial statements
B Reduce the number of permanent accounts
C Cause the revenue and expense accounts to have zero balances
D Summarize the activity in every account

23 uestion: On January 1, 2010, Masters and Masters Company purchased equipment for $30,000. The company is depreciating the equipment at the rate of $700 per month. The book value of the equipment at December 31, 2010 is
A $0
B $8,400
C $21,600
D $30,000

24 James Corporation purchased a one-year insurance policy in January 2010 for $48,000. The insurance policy is in effect from May 2010 through April 2011. If the company neglects to make the proper year-end adjustment for the expired insurance
A Net income and assets will be understated by $32,000
B Net income and assets will be overstated by $32,000
C Net income and assets will be understated by $16,000
D Net income and assets will be overstated by $16,000

25If errors occur in the recording process, they
A Should be corrected as adjustments at the end of the period
B Should be corrected as soon as they are discovered
C Should be corrected when preparing closing entries
D Cannot be corrected until the next accounting period

26 Prepaid expenses are
A Paid and recorded in an asset account before they are used or consumed
B Paid and recorded in an asset account after they are used or consumed
C Incurred but not yet paid or recorded
D Incurred and already paid or recorded

27 Niagara Corporation purchased a one-year insurance policy in January 2010 for $66,000. The insurance policy is in effect from March 2010 through February 2011. If the company neglects to make the proper year-end adjustment for the expired insurance
A Net income and assets will be understated by $55,000
B Net income and assets will be overstated by $55,000
C Net income and assets will be understated by $11,000
D Net income and assets will be overstated by $11,000

28 An accounting time period that is one year in length, but does not begin on January 1, is referred to as
A A fiscal year
B An interim period
C The time period assumption
D A reporting period

29 The balance in the income summary account before it is closed will be equal to
A The net income or loss on the income statement
B The beginning balance in the owner's capital account
C The ending balance in the owner's capital account
D Zero

30 Betty Carson has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Betty make?
A Debit Cash and credit Unearned Revenue
B Debit Accounts Receivable and credit Unearned Revenue
C Debit Accounts Receivable and credit Service Revenue
D Debit Unearned Revenue and credit Service Revenue

Multiple Choice


Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the number of units of Product A Baines must sell to break even.
5,580.
9,300.
5,080.
3,100.
6,200.

At Flint Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
$100.
$80.
$60.
$40.
$20.

Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in dollars with the purchase of the new machine.
$460,000.
$500,000.
$521,923.
$480,000.
$440,678.

The least-squares regression method is:
The only identify cost estimation method allowed by GAAP.
A statistical method to identify cost behavior.
A cost estimation method that only uses the two extreme values.
A graphical method to identify cost behavior.
An algebraic method to identify cost behavior.

In Davis Corporation's most recent fiscal year, the company reported pretax earnings of $215,000.
Fixed costs totaled $325,800, the unit selling price of the firm's only product was $60, and the variable costs per unit were 40% of the selling price. Based on this information, the firm's break-even point in units was:
15,023 units.
13,575 units.
9,050 units.
8,750 units.
13,750 units.

The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation's income tax rate is 40%, compute the number of units that must be sold in order to achieve a target pretax income of $130,000. (Do not round intermediate calculations.)
sales(50000units) $1,000,000
Costs:
direct materials $270,000
direct labor 240,000
fixed factory overhead 100,000
variable factory overhead 150,000
fixed marketing costs       110,000
variable marketing costs 50,000 920,000
Pretaxt income $80,000
50,000.
81,250.
58,621.
36,207.
53,165.

A statistical method for deriving an estimated line of cost behavior is the:
High-low method.
Least-squares regression method.
Composite method.
Scatter diagram method.
CVP charting method

A cost-volume-profit chart is also known as a(n)
Margin of safety chart.
Sales chart.
Break-even chart.
Operating leverage chart.
Operating profit chart.

Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Dunkin company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the dollar sales to earn the target after-tax net income.
$5,050,000.
$5,043,750.
$5,640,000.
$4,890,000.
$4,327,500.

Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit.
$240.
$300.
$330.
$285.
$270.

In cost-volume-profit analysis, the unit contribution margin is:
Sales price per unit less cost of goods sold per unit.
Sales price per unit less total variable cost per unit.
Sales price per unit less unit total cost per unit.
The same as the contribution margin ratio.
Sales price per unit less unit fixed cost per unit.

Ginger Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?
$20.
$30.
$50.
$40.
$5. 

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. What is the break-even point in dollar sales?
$6,000.
$420,000.
$1,200,000.
$646,154.
$2,100.

Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:
Unit sales price $7 $4 $6
unit variable costs $3 $2 $3
Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand):
$629,000.
$20,000.
$289,000.
$400,000.
$740,000.

Select cost information for Winfrey Enterprises is as follows:
Based on this information:
Both direct materials and rent expense are variable costs.
Utilities expense is a mixed cost and rent expense is a variable cost.
Utilities expense is a mixed cost and rent expense is a fixed cost.
Direct materials is a fixed cost and utilities expense is a mixed cost.
Both direct materials and utilities expense are mixed costs

If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is:
$440,000.
$190,000.
$24,000.
$250,000.
$60,000.

Wayward Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's break-even point in sales dollars.
$13,000,000.
$12,750,000.
$12,900,050.
$12,750,625.
$13,250,000.

A line on a scatter diagram that is intended to reflect the past relation between cost and volume is the:
Break-even line.
Standard cost line.
Estimated line of cost behavior.
Margin of safety line.
Contribution margin line.

MGT 230


MGT 230

Week 3 Discussion Question

How do organizational functions affect organizational structures? How do your organization’s functions affect its organizational structure?

Multiple Choice


1. A theory of leadership which suggests that everyone can learn to be a leader depending upon the circumstances and the abilities of that person in that situation is called:
contingent leadership
transient leadership
human relations
conditional training

2. What is a (an) order requiring a lower court to give the Supreme Court the record of a case for review?
Writ of Certiorari
Writ of Habeas Corpus
Writ of Mandamus
Ex Post Facto Mandate

3. What law prohibits evidence using evidence solely found as a result of a prior illegal search?
Fruit of the poisonous tree
Suppression
Exclusionary Rule
Silver Platter
Double suppression

4. The US governmental structure is typically described as a(an):
dictatorship
oligarchy
pure democracy
representative democracy

5. The __________is an approach that views behavior from a “rule-based” philosophy, in that the law is paramount, and it is a guide for behavior that everyone must follow.
legal perspective
public policy perspective
systems perspective
global perspective

6. The work of Jerome Skolnick regarding the “working personality” suggests that the variables of danger and authority are fundamental to the development of an officer’s occupational personality, also fosters what other personality characteristic due to a preoccupation with potential violence?
Gun - run syndrome
symbolic assilant
excessive force tendencies
destructive fervor personality disorder

7. When promotions are evaluated based on the candidate’s strengths (i.e. talents, skills, and knowledge), experiences, and accomplishments, what type of promotion is this?
seniority
political
merit
accredited

8. What is the practice called for providing the basic necessities to those under a leader’s control or subject to a leader’s authority is called?
socialism
feudalism
frankpledge
Darwinism

9. Which of the following is the name of the volunteer associations in early British history whose contributions went toward apprehension of criminal offenders?
The Praetorian Guards
The Vigiles
The Courts of Leet
The Peace Guilds

10. Which one of the domains relates to learning that impacts one’s values, emotions, and/or attitudes. In policing it relates to “appreciations” and keeping an open, accepting mind to new knowledge. Persons who are “set in their ways” and are not receptive to new ideas or thinking about things differently are difficult to train?
Intellectual
Cognitive
Psychomotor
Affective

11. Which of these is not usually included during in-service training sessions?
Modifications to standard operating procedures  ?
Individual evaluations of performance
Proper use of new equipment and weapons
Utilization of new forms or means of incident reporting

12. What was the first federal law enforcement position established in the newly formed United States?
federal marshal
militiaman
warden
deputy of arms

13. What type of state laws that specifically spelled out the rights and responsibilities of the newly freed slaves?
"Jim Crow" laws
Black Codes
Free Men laws
Radical Rights
Inalienable rights

14. What was the formal name of the enabling legislation for the LEAA, which was created to implement the recommendations of the President’s Commission?
the Omnibus Crime Control and Safe Streets Act of 1968
the Safe Streets Act
the Crime Control Act
the William Clinton Crime Act

15. Which of these is a behavioral role statement?
Crime suppression
To preserve the peace
Conducts investigations
Protection of life

16. According to William Muir (1977) there are four types of officers in his research on coercive power and the policing function. Which style emphasizes legal authority and makes quick decisions as to whether arrest is necessary. Crime control is the major objective?
Reciprocator—adopts an extreme helping pose trying to reach a solution in all problems, and attempts accommodation with vice operators and undesirables
Enforcer—emphasizes legal authority and makes quick decisions as to whether arrest is necessary. Crime control is the major objective
Avoider—an officer who attempts to avoid all involvement in situations
Professional—officer understands the complexities of the job and attempts to do the best he or she can,

17. The Bill of Rights is comprised of the:
first seven amendments to the US Constitution
first 10 amendments to the US Constitution
first 15 amendments to the US Constitution
first article of the US Constitution


18. When a law enforcement officer’s responsibility and right to investigate is limited (or restricted) by law to certain matters, it is called:
concurrent/overlapping jurisdiction
general policing authority
specific police authority
power restraint

19. The field of practice and study that examines how people act within an organization is called:
organization theory
organization behavior
situational behavior theory
interaction studies


Multiple Choice


Question 1
The Clean Air Act requirements are:
a. applicable to pesticides only
b. applicable to all pollutants
c. applicable to automobiles only
d. no longer necessary because polluters have complied with the Act
e. applicable to six major air pollutants emitted from stationary and mobile sources

Question 2
After a plaintiff establishes a prima facie case of employer discrimination under Title VII, what happens?
a. the plaintiff wins
b. the plaintiff receives a punitive damages award
c. the plaintiff concedes the case and the defendant wins
d. the defendant automatically loses
e. the burden of proof shifts to the employer

Question 3
The first regulation of securities in the U.S. was the:
a. Uniform Securities Act
b. Kansas blue sky law
c. Securities Exchange Act
d. Interstate Commerce Act
e. none of the above 

Question 4
The SEC allows for a private placement exemption because:
a. registration of "blue chip" securities is simply not necessary
b. small investors have insufficient information about the background of such offerings, so they need this additional protection
c. small issuers need a break in the costs of the process to be able to compete effectively with large securities' issuers
d. purchasers of these securities are sophisticated and therefore more able to protect themselves when purchasing unregistered securities
e. issuers need greater flexibility when dealing with large numbers of small investors
Question 5
A trespass is defined as:
a. an illegal entry onto one's own property
b. an entry onto the property of another person
c. an entry onto one's property by government officials holding a warrant
d. an unauthorized breach of the boundaries of another's property
e. a pre-authorized breach of the boundaries of one's property
Question 6
A possible way to the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called:
a. a shelf registration exemption
b. an accredited investor exemption
c. a private placement exemption
d. a blue sky exemption
e. none of the above
Question 7
A trucking company has ten employees whose job is loading 100-pound sacks on trucks. Of those who apply for the jobs, one man in three can do the lifting, but only one woman in fifty. As a result, all employees are men. In sex discrimination suit, the most likely result will be that the company will:
a. lose because the statistics prove the structure of the employment situation is discriminatory
b. lose because it could make smaller sacks smaller, which would increase the number of women who would be eligible
c. win because there is a business necessity that produces the all male workforce
d. win because the work involved is traditional male work
e. none of the above
Question 8
The hazard communication standard requires employers using hazardous chemicals to do all but which of the following?
a. have a written hazard communication program
b. label all hazardous chemicals
c. give employees material about the hazardous communication requirements and train them to detect hazards
d. keep Material Safety Data Sheets with every hazardous chemical container
e. all of the above are required
Question 9
Which of the following items is not required to be disclosed by a creditor as a part of the statement given a debtor?
a. service, activity, carrying and transaction charges
b. loan fees and points
c. portion of interest charges to cover creditor expenses
d. charges for credit life and credit accident and health insurance
e. fees for credit reports and appraisals in nonestate transactions
Question 10
Under SEC rules, a "private company" is a company:
a. with all its securities held by investment firms
b. with fewer than 500 shareholders and shares are not trades openly
c. that does not allow foreign investors to own its stock
d. with financial assets belonging only mutual funds
e. none of the above
Question 11
Every year millions of children are vaccinated against polio. For reasons that are unclear, some children contract polio from the vaccine, even though their dose was no different than the others. Assume that a child who contracts polio after receiving a vaccine sues the vaccine maker for damages. The likely result of the case will be that:
a. no liability will be imposed because of the public health benefits from the polio vaccine outweigh any personal injuries.
b. no liability will be imposed because the FDA Act prohibits liability from being imposed on drug producers who sell FDA-approved drugs.
c. if the FDA has approved the vaccine, liability may not be imposed due to the learned intermediary doctrine.
d. It is uncertain if liability will be imposed by a jury.
e. Even though the vaccine is approved by the FDA, the rule of strict liability makes the producer legally liable for all damages.
Question 12
The Clean Air Act requires the EPA to:
a. set pollution standards
b. enforce cooperation among the states on the issue of air pollution control
c. implement pollution standard across the country
d. protect and enhance the quality of the nation's air resources
e. do all of the above
Question 13
Internationally, the most visible franchises are:
a. feedstock cooperatives
b. fast food restaurants
c. supermarket chains
d. gasoline stations
e. clothing stores
Question 14
In general, the NLRB and the courts will not permit outside union organizers access to:
a. employees who wish to unionize
b. employees who oppose unionization
c. management of companies that compete with the company opposing unionization
d. the property of a company opposing unionization
e. media if they seek to promote the unionization effort
Question 15
A specific tariff differs from an ad valorem tariff in international trade because the specific tariff is:
a. applied only to imports while the ad valorem tariff is applied only to exports
b. a fixed tax and the ad valorem tariff is set as a percentage of the product price
c. applied only to products produced in countries that are not members of the WTO
d. applied only to goods and the ad valorem is applied only to services
e. none of the above; the tariffs do not differ in use in international trade
Question 16
Producers of quality brand-name products, such as Sony, often favor resale price maintenance because it:
a. allows retailers to earn higher profits
b. encourages retailers to advertise more
c. encourages retailers to give customers better service
d. promotes retail competition based on service
e. all of the above
Question 17
If you lose the bank card you use to withdraw cash from your bank by machine, and you report it to the bank within two days, you are liable for how much in losses?
a. $0
b. $50
c. $500
d. $5,000
e. however much is in your account
Question 18
Insider trading is:
a. legal if no profit is made
b. legal if the insider gets an outsider to buy or sell
c. illegal because insiders are strictly prohibited from any trading under SEC Rule 10b
d. illegal when insiders trade based on information they have a fiduciary duty not to trade on
e. illegal because employment contracts for insiders prohibit trading in the securities issued by their employer
Question 19
An ad valorem tariff is:
a. duty or tax levied by a government on an exported good
b. fixed tax or duty on each unit of the product
c. tax based on a percentage of the price of the product
d. applied only to such products as munitions, alcohol, and tobacco products
e. None of the above
Question 20
Under the Immigration Reform and Control Act of 1986 all:
a. employees must obtain a work identification card from the Immigration and Naturalization Service
b. employees must be certified as eligible to work by the Department of Labor or similar state agency
c. employers must collect evidence of citizenship or of legal work status for all employees
d. employers must keep a certified copy of passports of all new employees
e. none of the above
Question 21
Which of the following is a global environmental issue?
a. the marine environment
b. the ozone layer
c. habitat destruction
d. global climate change
e. all of the above
Question 22
The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as:
a. actual authority
b. authority in rem
c. authority at law
d. general authority
e. special authority
Question 23
An affirmative action program is an effort by:
a. a group of employees to correct past discriminatory practices
b. employers to continue hiring practices that led to under-representation of certain classes of workers
c. employers to remedy discriminatory employment practices that produced imbalanced workforces
d. independent contractors to correct racial balances in the public contracting system
e. none of the above
Question 24
If a dispute between an employer and the union representing workers cannot be resolved by the standard internal grievance procedure, then most collective bargaining agreements call for the dispute to go to:
a. federal district court
b. the National Labor Relations Board
c. an outside labor arbitrator
d. the LaborResolution Board
e. none of the above 

Question 25
Workers' compensation law:
a. gives an employer immunity from employee tort suits arising from on accidents
b. applies only to accidents that conform to a specified set of allowable work injuries
c. holds employees responsible for reimbursing employers for the cost of injuries for which employees are at fault
d. is a federal program that is mandatory for nearly all workers
e. all of the above
Question 26
Which class of securities is (are) exempt from the federal securities laws?
a. issues by governments
b. issues by corporations with assets under $1 million
c. issues by corporations with over $1 billion in assets
d. all of the above
e. none of the above
Question 27
When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the following may result:
a. firms may exercise monopoly power in their assigned region
b. competition within regions will be reduced
c. their actions may be found per se illegal
d. the Sherman Act may be violated
e. all of the above
Question 28
A union shop refers to work places where:
a. only nonhelp is hired
b. a condition of employment is being a member of the union
c. nonmembers are subjected to lockouts during strikes
d. only people already union members may be hired to work
e. none of the above
Question 29
The fact that many old industrial areas have become abandoned and firms do not wish to buy the land for future use because of potential Superfund liability is called the problem of:
a. urban blight
b. urban Superfunds
c. urban toxic abandonment
d. brownfields
e. none of the above
Question 30
The Landrum Act provided which of the following?
a. a Bill of Rights for employers
b. states the right to pass laws that prohibit agency shops
c. penalties for union officials who abuse the powers of their offices
d. prevents federal courts from issuing injunctions to prevent orderly labor disputes
e. all of the above
Question 31
The most important law that addresses protection for all wildlife and plants is:
a. the Migratory Bird Treaty Act
b. the United Nations Law of the Sea Treaty
c. the Anadromous Conservation Act
d. the Treaty of Rio
e. the Endangered Species Act
Question 32
The Truth Act: ?
a. is intended to help married women establish credit history
b. is intended to eliminate credit discrimination on the basis of sex, race, color, religion, and other characteristics set forth in the Act
c. restricts interest rates creditors may charge consumers
d. encourages competition in financing consumer credit
e. all of the above
Question 33
When a seller will sell a product only on the condition that the buyer also purchases a different product, there is a:
a. resale price maintenance agreement
b. an exclusive dealing arrangement
c. a group boycott
d. tie-in sale
e. a Robinson-Patman price discrimination sale
Question 34
If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the:
a. employee must file suit against the employer with an administrative law judge of the EEOC
b. EEOC investigator must file suit against the employer with an administrative law judge of the EEOC
c. EEOC issues a "right-to-sue" letter giving the employee the right to sue the employer in court
d. EEOC must file suit in federal court on behalf of the employee
e. EEOC must turn the case over to the Department of Justice for possible prosecution
Question 35
The requirement that if one product or service is purchases then another product or service must also be purchased, even if not desired by the customer, is called:
a. a tying arrangement
b. a boycott
c. a merger
d. a cartel
e. a discrimination
Question 36
When rival firms come together to agree to control output and raise prices, there is:
a. a horizontal merger
b. a cartel
c. a tying arrangement
d. an interlocking directorate
e. a vertical merger
Question 37
A particular problem faced by software companies in international markets is:
a. excessively restrictive tariffs
b. piracy of their intellectual property
c. difficult customs procedures
d. inability to export to developing nations
e. lack of interest in the product overseas
Question 38
Before passage of the 1938 Food, Drug, and Cosmetic Act, medicinal drugs were:
a. all prescribed by physician only
b. all prescribed by pharmacists or physicians
c. regulated by the FDA only if they posed "serious risks" to human health
d. either legal or illegal
e. completely unregulated, you could buy anything
Question 39
Which of the following organizations are at least partly exempt from the antitrust laws?
a. agricultural cooperatives
b. labor unions
c. insurance companies
d. banks
e. all of the above
Question 40
A place of entry in a country that does not assess duties or tariffs on products is called:
a. foreign trade zone
b. countervailing duty zone.
c. duty-free port
d. trade-enhancement zone
e. none of the above
Question 41
Federal minimum wage requirements:
a. are designed to encourage full employment for minorities
b. started in 1938 as part of the Fair Labor Standard Act
c. establish entry level wages by occupation
d. was to increase competition offered by itinerant contractors and their lower paid laborers
e. all of the above
Question 42
In a movement to unionize, employees of a company sign:
a. an official union scroll
b. individual union work sheets
c. authorization cards
d. NLRB documentation forms
e. none of the above
Question 43
The “bubble concept:”
a. allows facilities in an industrial complex to be treated as a single pollution source if the complex is expanded
b. is used in making EPA technology assessments in PSD areas
c. is a part of the emissions offset policy provided for the control of air pollution in nonattainment areas
d. is a part of the National Pollution Discharge Elimination System
e. is specified as the means through which the acid rain regulations are implemented under the 1990 Amendments
Question 44
Charging different prices in different markets for the same goods is called:
a. predatory pricing
b. price discrimination
c. price disparagement
d. boycotting
e. vertical discrimination
Question 45
Securities in the U.S. are valued at about:
a. $500 million
b. $5 billion
c. $50 billion
d. $500 billion
e. in the trillions of dollars
???
Question 46
A forum selection clause is concerned with choosing:
a. an appropriate bank from which to draw a letter of credit
b. a country in which to locate a manufacturing plant
c. the country in which a dispute over the contract is to be litigated
d. which language will be controlling if disputes concerning the interpretation of a contract arise
e. the proper method of payment for a contract
Question 47
Public nuisance cases are usually brought against a polluter by:
a. an injured person seeking damages for unreasonable interference with her land
b. a consumer group, suing under a citizen suit provision in the law
c. the city attorney or other similar public official in the community's name
d. the federal government under the direction of either the EPA or the Interior Department
e. a federal prosecutor since the defendant's activities are criminal in nature
Question 48
Which of the following is not a duty owed by the agent to the principal:
a. loyalty
b. reasonable care
c. accounting
d. notification
e. all of the above are required
Question 49
BT Company (American) is considering opening a factory in the Ukraine. The Ukraine political environment is a major concern. To protect itself in case of nationalization by the Ukraine government, BT should:
a. seek a guarantee from the World Bank
b. not be concerned; overseas investments are protected by the Export Administration Act
c. not be concerned; overseas investments are protected by the Export Trading Company Act
d. buy an "all risk" insurance policy to cover losses in case of nationalization of specified property
e. demand a higher rate of return because projects with the Ukraine and Third World countries are inherently risky

Question 50
Using the EEOC's guidance regarding the ADA, which of the following questions would NOT be illegal to ask a job applicant?
a. How many sick days were you out last year?
b. Have you ever been treated for a mental health problem?
c. Can you demonstrate how you are able to perform the tasks required for this job?
d. Have you ever been treated for drug abuse, drug addition, or AIDS?
e. All of these questions would violate the law.

Multiple Choice




1. Amortization:
Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life
Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use
Is the process of allocating the cost of natural resources to periods when they are consumed
Is an accelerated form of expensing an asset's cost
Is the same as depletion


2. Liabilities:
Must be certain
Must sometimes be estimated
Must be for a specific amount
Must always have a definite date for payment
Must involve an outflow of cash


3. Depreciation:
Measures the decline in market value of an asset
Measures physical deterioration of an asset
Is the process of allocating to expense the cost of a plant asset
Is an outflow of cash from the use of a plant asset
Is applied to land


4. The interest accrued on $3,600 at 7% for 60 days is:
$36
$42
$252
$180
$420


5. A special bank account used solely for the purpose of paying employees, is created by depositing the amount of each employees' net pay into the account every pay period. This account is referred to as a(n):
Federal depository bank account
Employee's Individual Earnings account
Employees' bank account
Payroll register account
Payroll bank account


6. A company had a fixed interest expense of $6,000, its income before interest expense and any income taxes was $18,000 and its net income was $8,400. The company's times interest earned ratio is equals to
0.33
0.71
1.40
3.00
12,000


7. A change in an accounting estimate is:
Reflected in past financial statements
Reflected in future financial statements and also requires modification of past statements
A change in a calculated amount that is part of financial statements that results from new information or subsequent developments and from better insight or improved judgment
Not allowed under current accounting rules
Considered an error in the financial statements


8. The useful life of a plant asset is:
The length of time it is used productively in a company's operations
Never related to its physical life
Its productive life, but not to exceed one year
Determined by the FASB
Determined by law


9. An employee earned $4,300 working for an employer. The current rate for FICA social security is 6.2% and the FICA Medicare rate is 1.45%. The employer's total FICA payroll tax for this employee is:
$62.35
$266.60
$328.95
$657.90


10. A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:
$0.75
$0.625
$0.875
$6.00
$8.00


11. A contingent liability:
Is always of a specific amount
Is a potential obligation that depends on a future event arising out of a past transaction or event
Is an obligation not requiring future payment
Is an obligation arising from the purchase of goods or services on credit
Is an obligation arising from a future event


12. On October 10, 2010, Printfast Company sells a commercial printer for $2,350 with a one year warranty that covers parts. Warranty expense is project to be 4% of sales. On February 28, 2011, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What is the warranty liability at the end of 2010?
$49.00
$84.80
$94.00
$0, there is no liability at the end of 2010
$230.00


13. FICA taxes include:
Social Security taxes
Charitable giving
Employee income taxes
Unemployment taxes


14. Depletion:
Is the process of allocating the cost of natural resources to periods in which they are consumed
Is also called depreciation
Is also called amortization
Is an unrealized expense reported in equity
Is the process of allocating the cost of intangibles to periods in which they are used


15. Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year. Coke's turnover was 9.3 for this year and 9.3 for last year. These results imply that:
Coke has the better turnover for both years
Pepsi has the better turnover for both years
Coke's turnover is improving
Coke's credit policies are too loose
Coke is collecting its receivables more quickly than Pepsi in both years


16. Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as:
Convertible bonds
Sinking fund bonds
Callable bonds
Serial bonds


17. Shamrock Company had net income of $30,000. On January 1, there were 8,000 shares of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. There were no other stock transactions. The company has an earnings per share of:
$3.75
$3.00
$3.33
$15.00
$3.16


18. A company must repay the bank $10,000 cash in 3 years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for 3 years at 8% is 0.7938. The present value of the loan is:
$10,000
$12,400
$7,938
$9,200
$7,600


19. To provide security to creditors and to reduce interest costs, bonds and notes payable can be secured by:
Safe deposit boxes
Mortgages
Equity
The FASB
Debentures


20. The market value of a bond is equal to:
The present value of all future cash payments provided by a bond
The present value of all future interest payments provided by a bond
The present value of the principal for an interest-bearing bond
The future value of all future cash payments provided by a bond
The future value of all future interest payments provided by a bond


21. Dividend yield is the percent of cash dividends paid to common shareholders relative to the:
Common stock's market value
Earnings per share
Investors' purchase price of the stock
Amount of retained earnings
Amount of cash


22. Which of the following statements is true?
Interest on bonds is tax deductible
Interest on bonds is not tax deductible
Dividends to stockholders are tax deductible
Bonds do not have to be repaid


23. If an issuer sells a bond at any other date than the interest payment date:
This means the bond sells at a premium
This means the bond sells at a discount
The issuing company will report a loss on the sale of the bond
The issuing company will report a gain on the sale of the bond
The buyer normally pays the issuer the purchase price plus any interest accrued since the prior interest payment date


24. A bond sells at a discount when the:
Contract rate is above the market rate
Contract rate is equal to the market rate
Contract rate is below the market rate
Bond has a short-term life
Bond pays interest only once a year


25. The Discount on Bonds Payable account is:
A liability
A contra liability
An expense
A contra expense
A contra equity


26. Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
Financing activities
Investing activities
Operating activities
Direct activities
Indirect activities


27. The amount of income earned per share of a company's common stock is known as:
Restricted retained earnings per share
Earnings per share
Continuing operations per share
Dividends per share
Book value per share


28. The date the board of directors votes to pay a dividend is called the:
Date of stockholders' meeting
Date of declaration
Date of record
Date of payment
Liquidating date


29. Bonds that give the issuer an option of retiring them prior to the date of maturity are:
Debentures
Serial bonds
Sinking fund bonds
Registered bonds
Callable bonds


30. A company issues 9%, 20-year bonds with a par value of $750,000. The current market rate is 9%. The amount of interest owed to the bondholders for each semiannual interest payment is.
$0
$33,750
$67,500
$750,000
$1,550,000


31. Financial reporting refers to:
The application of analytical tools to general-purpose financial statements
The communication of relevant financial information to decision makers
Financial statements only
Ratio analysis
Profitability


32. Net sales divided by average accounts receivable is equal to the:
Days' sales uncollected
Average accounts receivable ratio
Current ratio
Profit margin
Accounts receivable turnover ratio


33. Accounting standards:
Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset
Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities
Require that companies include a statement of cash flows in a complete set of financial statements
Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets
Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities


34. The statement of cash flows reports:
Assets, liabilities and equity
Revenues, gains, expenses and losses
Cash inflows and outflows for an accounting period
Equity, net income and dividends
Changes in equity


35. A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
$50,000
$5,000
$45,000
Zero. This is an operating activity
Zero. This is a financing activity


36. Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the:
Inventory turnover ratio
Profit margin
Days' sales in inventory
Current ratio
Total asset turnover


37. The ability to meet short-term obligations and to efficiently generate revenues is called:
Liquidity and efficiency
Solvency
Profitability
Market prospects
Creditworthiness


38. Internal users of financial information:
Are not directly involved in operating a company
Are those individuals involved in managing and operating the company
Include shareholders and lenders
Include directors and customers
Include suppliers, regulators and the press


39. The comparison of a company's financial condition and performance across time is known as:
Horizontal analysis
Vertical analysis
Political analysis
Financial reporting
Investment analysis


40. Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100%, are called:
Comparative statements
Common-size comparative statements
General-purpose financial statements
Base line statements
Index statements


41. The measurement of key relations among financial statement items is known as:
Financial reporting
Horizontal analysis
Investment analysis
Ratio analysis
Risk analysis


42. External users of financial information:
Are those individuals involved in managing and operating the company
Include internal auditors and consultants
Are not directly involved in operating the company
Make strategic decisions for a company
Make operating decisions for a company


43. One of several ratios that reflects solvency includes the:
Acid-test ratio
Current ratio
Times interest earned ratio
Total asset turnover
Days' sales in inventory


44. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers and subtracts the major items of operating cash disbursements, such as cash paid for merchandise is referred to as the:
Direct method of reporting net cash provided or used by operating activities
Cash basis of accounting
Classified statement of cash flows
Indirect method of reporting net cash provided or used by operating activities
Net method of reporting cash flows from operating activities


45. A company's transactions with its creditors to borrow money and/or to repay the principal amounts of loans are reported as cash flows from:
Operating activities
Investing activities
Financing activities
Direct activities
Indirect activities


46. Wessen Company reports net income of $180,000 for the year ended December 31, 2010. It also reports $45,800 depreciation expense, $21,410 amortization expense and a $15,000 gain on the sale of machinery. Its comparative balance sheets reveal a $28,300 increase in accounts receivable, $20,400 decrease in accounts payable, $10,470 increase in prepaid expenses, and $33,140 decrease in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?
($140,200)
$133,490
$139,900
($133,490)
$78,300


47. A company has a profit margin of 5%. If net income is equal to $83,000 and average total assets is equal to $45,000, how much are net sales?
$4,150
$2,250
$1,660,000
$6,400
$128,000


48. Reporting of discontinued segments includes:
Income or loss from operating the discontinued segment net of tax and gain or loss from disposal of the segment's net assets net of tax
Extraordinary items
Changes in accounting principle
Items that are both unusual and infrequent
Writing off of receivables


49. Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
Financing activities
Investing activities
Operating activities
Direct activities
Indirect activities


50. A company had net cash flows from operations of $120,000, total cash flows of $500,000 and average total assets of $2,500,000. The cash flow on total assets ratio equals:
4.8%
5.0%
20.0%
20.8%
24.0%

Multiple Choice


1. You purchase an item from the Web site www.buyme.com on January 27 and pay with a credit card.  However, they’ve charged you twice. When is the last day that the consumer can contest an online credit card purchase?
A.  January 30 C.  February 26
B.  March 1 D.  February 6

2. Which of the following statements best represents an open loop system?
A. Two companies both buy and sell products to one another.
B. A third party processes a financial payment.
C. Two companies are involved in a financial payment without any intermediary services.
D. A merchant bank is using the EMV standard.

3. One of the disadvantages of electronic cash is that
A. there’s no audit trail. C.  it has high transaction costs.
B. it can be easily counterfeited.  D. it requires special hardware.

4. Which of the following is a disadvantage to server-side electronic wallets?
A. They aren’t portable.
B. They require software downloads.
C. They’re subject to possible security problems.
D. They require special hardware.

5. Which of the following represents digital cash that can be exchanged for goods or
services, but not physical cash?
A. Yahoo! Wallet C.  VISA’s smart card
B. Microsoft .NET Passport D. Scrip

6. Which of the following statements best describes fast venturing?
A. A company offers start-up companies location, assistance, and technology at a low cost.
B. A company offers outsourcing skills for partial profits for a start-up company.
C. A company offers outsourcing skills for stock options in an established company.
D. An existing company joins up with another company to start an electronic
commerce initiative.

7. Which of the following employees is responsible for tracking costs, objectives, and
performance for a product?
A. Account manager C.  Business manager
B. Project manager D. Portfolio manager

8. Which of the following companies represents an incubator?
A. Microsoft C.  Yahoo!
B. Idealab D. HostCompare.com

9. What is one of the most predictable results of widespread use of electronic billing and
payment over the Internet?
A. Reduction in transaction costs C.  Spread of computer literacy
B. Increase in online banking services D. Higher network speeds

10. Which of the following is not a type of payment card?
A. Charge cards C.  PayPal
B. Debit cards D. Credit cards

11. Which of the following is the primary reason that online merchants accept payment
cards for Web purchases?
A. Assurance of payment C.  Product warranty
B. Limitation of liability D. No fee for transactions

12. Marianne never received the electric drill she bought from http://www.tools.com.
She successfully had the charge removed from her MasterCard bill. The bank then
retrieved that amount from the Web site’s account in a process called a
A. credit transfer. C.  bill reversal.
B. chargeback. D. payment revocation.

13. A type of fraud where the same electronic cash is sent to several different
vendors is called
A. e-cash overdrafting. C.  double spending.
B. slamming. D. counterfeiting.

14. What makes smart cards safer than conventional credit cards?
A. Installation software C.  Multiple-account access
B. Encryption D. Security clearances

15. A company hesitates to build a sales Web site because they want to save money.
The company loses sales due to its inaction, and has experienced a/an
A. opportunity cost. C.  customer loss.
B. marketing damage. D. public relations fiasco.

16. To create a Web site with electronic commerce operations that’s far ahead of
competitors costs _______ million and up.
A. five 
B. ten 
C.  fifteen
D. twenty

17. In which form of outsourcing does a company outsource specific components
of the project?
A. Early
B. Late
C.  Partial
D. Total

18. Why are electronic commerce projects shorter in duration than other information
technology projects?
A. Qualified personnel are in short supply.
B. Technology changes rapidly.
C. Funding is insufficient for long projects.
D. Project benefits are too vague to measure.

19. Once the electronic commerce project is operational, a call center is needed to
A. respond to customer inquiries.
B. plan for future implementations.
C. monitor the usage of server disk space.
D. audit payment methods.

20. Which one of the following is not a tangible benefit of electronic commerce initiatives?
A. Increased sales
B. Reduced costs
C. Measured faster deliveries of ordered goods

D. Increased customer satisfaction

Week 4 Caledonia Team Assignment


Week 4 Caledonia Team Assignment

1 Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project?
2 What are the incremental cash flows for the project in years 1 through 5 and how do these cash flows differ from accounting profits or earnings?
3 What is the project’s initial outlay?
4 Sketch out a cash flow diagram for this project.
5 What is the project’s net present value?
6 What is its internal rate of return?
7 Should the project be taken on? (Explain your answer) 

Answer of the below questions


Answer of the below questions

​1. Explain the functions of the following agencies:
a.​Overseas Private Investment Corporation (OPIC)
b.​Export-Import Bank (Eximbank)
​c.​Foreign Credit Insurance Association (FCIA)
d. International Finance Corporation (IFC)

2.​ You are the vice-president of finance for Exploratory Resources, headquartered in Houston, Texas. In January 2007, your firm’s Canadian subsidiary obtained a six-month loan of 100,000 Canadian dollars from a bank in Houston to finance the acquisition of a titanium mine in Quebec province. The loan will also be repaid in Canadian dollars. At the time of the loan, the spot exchange rate was U.S. $0.8180/Canadian dollar and the Canadian currency was selling at a discount in the forward market. The June 2007 contract
​(Face value = $100,000 per contract) was quoted at U.S. $0.8120/Canadian dollar.

​a.​Explain how the Houston bank could lose on this transaction assuming no hedging.
​b.​If the bank does hedge with the forward contract, what is the maximum amount it can lose

Multiple Choice


1
Question: Henson Company incurred $300,000 of research and development costs in its laboratory to develop a new product. It spent $40,000 in legal fees for a patent granted on January 2, 2010. On July 31, 2010, Henson paid $30,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2010?
A$300,000
B$70,000
C$370,000
DSome other amount

2
Question: Drago Company purchased equipment on January 1, 2010, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used?
A$120,000
B$240,000
C$117,000
D$234,000

3
Question: Farr Company purchased a new van for floral deliveries on January 1, 2010. The van cost $36,000 with an estimated life of five years and $9,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the depreciation expense for 2010?
A$7,200
B$5,400
C$10,800
D$14,400

4
Question: Presto Company purchased equipment and these costs were incurred:

Presto will record the acquisition cost of the equipment as
A$22,500
B$24,300
C$24,620
D$25,050

5
Question: An asset that cannot be sold individually in the market place is
AA patent
BGoodwill
CA copyright
DA trade name
               
               
6
Question: Cost allocation of an intangible asset is referred to as
AAmortization
BDepletion
CAccretion
DCapitalization

7
Question: On July 1, 2010, Jenks Company purchased the copyright to Jackson Computer tutorials for $162,000. It is estimated that the copyright will have a useful life of five years with an estimated salvage value of $12,000. The amount of Amortization Expense recognized for the year 2010 would be
A$32,400
B$15,000
C$30,000
D$16,200

8
Question: Santayana Company purchased a machine on January 1, 2008, for $12,000 with an estimated salvage value of $3,000 and an estimated useful life of eight years. On January 1, 2010, Santayana decides the machine will last 12 years from the date of purchase. The salvage value is still estimated at $3,000. Using the straight-line method, the new annual depreciation will be
A$675
B$750
C$900
D$1,000

9
Question: Improvements are
ARevenue expenditures
BDebited to an appropriate asset account when they increase useful life
CDebited to accumulated depreciation when they do not increase useful life
DDebited to an appropriate asset account when they do not increase useful life

10
Question: Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as
ACapital expenditures
BExpense expenditures
CImprovements
DRevenue expenditures

11
Question: On October 1, 2010, Holt Company places a new asset into service. The cost of the asset is $60,000 with an estimated five-year life and $15,000 salvage value at the end of its useful life. What is the depreciation expense for 2010 if Holt Company uses the straight-line method of depreciation?
A$2,250
B$12,000
C$3,000
D$6,000

12
Question: A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its five-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is
A20%
B25%
C40%
D4%

13
Question: The cost of land does not include
AReal estate brokers' commission
BAnnual property taxes
CAccrued property taxes assumed by the purchaser
DTitle fees

14
Question: Natural resources are generally shown on the balance sheet under
AIntangibles
BInvestments
CProperty, Plant, and Equipment
DOwner's Equity

15
Question: A gain or loss on disposal of a plant asset is determined by comparing the
AReplacement cost of the asset with the asset's original cost
BBook value of the asset with the asset's original cost
COriginal cost of the asset with the proceeds received from its sale
DBook value of the asset with the proceeds received from its sale

16
Question: If a plant asset is retired before it is fully depreciated, and no salvage or scrap value is received
AA gain on disposal will be recorded
BPhantom depreciation must be taken as though the asset were still on the books
CA loss on disposal will be recorded
DNo gain or loss on disposal will be recorded

17
Question: Additions and improvements
AOccur frequently during the ownership of a plant asset
BNormally involve immaterial expenditures
CIncrease the book value of plant assets when incurred.
DTypically only benefit the current accounting period

18
Question: A factory machine was purchased for $75,000 on January 1, 2010. It was estimated that it would have a $15,000 salvage value at the end of its five-year useful life. It was also estimated that the machine would be run 40,000 hours in the five years. The company ran the machine for 4,000 actual hours in 2010. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2010 would be
A$7,500
B$12,000
C$15,000
D$6,000

19
Question: A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the
ASalvage value of the asset sold
BMarket value of the asset sold
CBook value of the asset sold
DAccumulated depreciation on the asset sold

20
Question: The entry to record depletion expense
ADecreases owner's equity and assets
BDecreases net income and increases liabilities
CDecreases assets and liabilities
DDecreases assets and increases liabilities

21
Question: During 2010, Rathke Corporation reported net sales of $2,000,000, net income of $1,200,000, and depreciation expense of $100,000. Rathke also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Rathke’s asset turnover ratio is
A2 times
B1.6 times
C1.3 times
D.96 times

22
Question: If a fully depreciated plant asset is still used by a company, the
AEstimated remaining useful life must be revised to calculate the correct revised depreciation
BAsset is removed from the books
CAccumulated depreciation account is removed from the books but the asset account remains
DAsset and the accumulated depreciation continue to be reported on the balance sheet without adjustment until the asset is retired

23
Question: The entry to record patent amortization usually includes a credit to
AAmortization Expense
BAccumulated Amortization
CAccumulated Depreciation
DPatents

24
Question: Accountants do not attempt to measure the change in a plant asset's market value during ownership because
AThe assets are not held for resale
BPlant assets cannot be sold
CLosses would have to be recognized
DIt is management's responsibility to determine fair values

25
Question: A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's Depreciation Expense is $4,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is
A10 years
B8 years
C5 years
D3 years

26
Question: Yanik Company's delivery truck, which originally cost $70,000, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $47,500. The company received $40,000 reimbursement from its insurance company. The gain or loss as a result of the fire was
A$30,000 loss
B$17,500 loss
C$30,000 gain
D$17,500 gain

27
Question: Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as
ACapital expenditures
BExpense expenditures
COrdinary repairs
DRevenue expenditures

28
Question: Farr Company purchased a new van for floral deliveries on January 1, 2010. The van cost $36,000 with an estimated life of five years and $9,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2011?
A5,760
B$17,280
C$23,040
D$8,640

29
: Equipment was purchased for $75,000. Freight charges amounted to $3,500 and there was a cost of $10,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $15,000 salvage value at the end of its five-year useful life. Depreciation expense each year using the straight-line method will be
A$17,700
B$14,700
C$12,300
D$12,000

30
Question: Carey Company buys land for $50,000 on 12/31/09. As of 3/31/10, the land has appreciated in value to $50,700. On 12/31/10, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2010?
A$0
B$700
C$1,100
D$1,800