zilongwang/ReadingBank huggingface dataset:
49. The American profession of advertising when _____ set up business in Philadelphia in 1841. 50. Which of the following can be attributed to the ad agency, N. W. Ayer & Sons, set up by Francis Ayer in 1869?
Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Discuss the functions advertising performs in a free market. Topic: Functions and Effects of Advertising in a Free Economy 8. (p. 38) Messages aimed to encourage trade were unheard of in pre-industrial societies. FALSE Thousands of years ago, most human effort was devoted to meeting basic survival needs: food, clothing, and shelter. There were no mass media available for possible advertisers to use. Nevertheless, archaeologists have found evidence of messages meant to encourage trade among the Babylonians dating back as far as 3000 BC. AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-04 Identify important milestones in the history of advertising. Topic: The Evolution of Advertising as an Economic Tool 9. (p. 44) Benjamin Franklin was the first American known to use illustrations in ads. TRUE Benjamin Franklin was the American known to use illustrations in ads. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Identify important milestones in the history of advertising. Topic: The Evolution of Advertising as an Economic Tool 10. (p. 44) The emergence of urban markets following the Industrial Revolution hindered the growth of advertising. FALSE In the the Industrial Revolution began in England, and by the early 1800s it had reached North America. As people left the farm to work in the city, mass urban markets began to emerge, further fueling market development and the growth of advertising. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Identify important milestones in the history of advertising. Topic: The Evolution of Advertising as an Economic Tool
Answer: B Feedback:Esprit de corpsrefers to shared feelings of comradeship, enthusiasm, or devotion to a common among members of a group. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Topic: Fayol’s Division of Labor Management Theory
39 d. 560 ANSWER: b Add and show as reduced mixed number or proper fraction: a. b. c. d. ANSWER: b Verna shipped three packages to Chicago. If the packages weighed pounds, what was the total weight? pounds pounds pounds pounds ANSWER: a Lee shipped three packages to New York. If the packages weighed pounds, what was the total weight? pounds 73 pounds pounds pounds ANSWER: c Subtract and reduce: a. b. c. d. ANSWER: c
b. c. d. ANSWER: a Divide and reduce: a. b. c. d. ANSWER: b Divide and reduce: a. b. c. d. ANSWER: d Convert the following improper fraction to a number or a mixed number: a. b. c. d. 11 ANSWER: d Reduce the fraction: a. b. c. d. ANSWER: c Reduce the following fraction to lowest a. b. c. d. ANSWER: d
b. c. d. ANSWER: a Identify the type of fraction and write it in word form: ANSWER: mixed number; thirty-three and three-eighths Identify the type of fraction and write it in word form: ANSWER: proper fraction; five-seventeenths Identify the type of fraction and write it in word form: ANSWER: improper fraction; twelve-twelfths Convert the improper fraction to a whole or mixed number: ANSWER: Convert the improper fraction to a whole or mixed number: ANSWER: Convert the improper fraction to a whole or mixed number: ANSWER: Convert the improper fraction to a or mixed number: ANSWER: Convert the number to an improper fraction: ANSWER: Convert the mixed number to an improper fraction: ANSWER: Convert the mixed number to an improper fraction: ANSWER:
Earnings before interest and taxes = $800 + $215 = $1,015; Operating cash flow = $1,015 + $375 - ($800 - $520) = $1,110 Analytic Blooms: Apply Difficulty level: 2 Medium Topic: Financial Cash Flow 83. What are the sales for 2011? Sales = $1,015 + $375 + $3,210 = $4,600 Analytic Blooms: Apply Difficulty level: 2 Medium Topic: The Income Statement 84. Calculate net income based on the following information. Sales are $250, cost of goods sold is $160, depreciation expense is $35, interest paid is $20, and the tax rate is 34%. ((Sales - COGS) - Depreciation - Interest) - Taxes = Net Income (($250 - $160) - $35 - $20) - $11.9 = $23.10 AACSB: Analytic Blooms: Apply Difficulty level: 2 Medium Topic: The Income Statement Essay Questions 85. What is a liquid asset and why is it necessary for a firm to maintain a reasonable level of liquid assets? Liquid assets are those that can be sold quickly with little or no loss in value. A firm that has sufficient liquidity will be less likely to experience financial distress.
AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: The Income Statement 33. When you are making a financial decision, the most relevant tax rate is the __________ rate. Analytic Blooms: Understand Difficulty level: 2 Medium Topic: Taxes 34. An increase in which one of the following will cause the operating cash flow to increase? AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: Financial Cash Flow 35. A firm starts its year with a positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that: AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: Net Working Capital 36. The cash flow to creditors includes the cash:
(2.7) Total operating capital C K Answer: b MEDIUM . Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have? Cash $ 20.00 Accounts payable $ 30.00 Short-term investments 50.00 Accruals 50.00 Accounts receivable 20.00 Notes payable 30.00 Inventory 60.00 Current liabilities $110.00 Current assets $150.00 Long-term debt 70.00 Gross fixed assets $140.00 Common stock 30.00 Accumulated deprec. 40.00 Retained earnings 40.00 Net fixed assets $100.00 common equity $ 70.00 Total assets $250.00 Total liab. & equity $250.00 a. $114.00 b. $120.00 c. $126.00 d. $132.30 e. $138.92 (2.8) Economic Value Added (EVA) C K Answer: e MEDIUM . Barnes’ Brothers has the following data for the year ending 12/31/10: Net income = $600; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100. Barnes' weighted average cost of capital is 10%. What is its economic value added (EVA)? a. $399.11 b. $420.11 c. $442.23 d. $465.50 e. $490.00 (Comp: 2.3,2.5) Income statement: net cash flow C K Answer: e MEDIUM . Edwards Electronics recently reported $11,250 of $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was its net cash flow? a. $3,284.75
16. If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing or decreasing jobs, the company would be using which of the following management techniques? 17. A consulting firm is trying to increase the long-term strategic focus of its company reports. Therefore, the firm has decided to use the balanced scorecard. What type of new information, that the company currently does not use in its financial reports, should the company now include? 18. In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing?
25. When performing value chain analysis, which of the following should a firm take into account? 26. Both cost leadership and differentiated firms can improve on execution through: 27. To increase profitability, technology companies such as IBM have shifted their strategic focus toward: 28. Which of the following is not a key benefit of the balanced scorecard (BSC)?
65. Levis Strauss and Co, maker of Levi's familiar 501 and 505 brands of jeans, also make a new brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans was to sell a competitively priced pair. The jeans will be about the price of the familiar 501 and 505 jeans. To get costs down Levi's will: • Use cheaper fabrics and materials. • Shun costly mass-market advertising. • Strictly limit the number of fits, styles, and colors. Required: 1. Assess the new strategy at Levi. What do you think are the potential benefits and risks? 2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?
60. Auto engines have become more complex over the past twenty years, partly as a result of environmental concerns about exhaust contaminants. Engineers have developed two basic approaches to solving the contaminant problem. The first emphasized the catalytic converter, a modification of the auto exhaust system designed to break down pollutants. The second emphasized redesign of the auto engine's combustion process, which adds more than twice the cost of the catalytic converter alone. However, redesigning the combustion process usually results in improved full efficiency. Required: (a) Comment on the strategic advantage of redesigning the combustion process versus simply adding a catalytic converter. (b) What are the ethical questions, if any, that should be addressed in the above decision? Answer may vary Feedback: (a) This illustrates the basic conflict between higher upstream costs with higher downstream benefits versus lower initial cost to meet minimum standards or requirements. The advantage of increased gas mileage and lowered pollution will have to be "sold" to the consumer as beneficial, not only to the auto's owner, but also to society in the form of a cleaner environment. (b) Several ethical issues are involved in this decision. What responsibility does the auto company have regarding a cleaner environment and reduced use of oil, a resource? What responsibility does the auto company have in meeting, if not exceeding, government regulations on pollution control? What responsibility do we as auto buyers have to a cleaner environment and protection of natural resources? Strategic long-range planning would require consideration of options that cost more to produce but generate higher future benefits, even if those benefits do not accrue directly to the manufacturer. Difficulty: 2 Medium Learning Objective: 02-03 Explain how to implement a competitive strategy using value-chain analysis Topic: Ethics Topic: Strategy
Chapter 02 Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Multiple Choice Questions 1. In SWOT analysis, strengths and weaknesses are most easily identified by looking: 2. In SWOT analysis, opportunities and threats are identified by: 3. Which of the following does not represent a possible opportunity for a manufacturing firm as a part of SWOT analysis?
16. A pharmaceutical firm has just announced its discovery of a revolutionary new drug for dieting. However, due to its deteriorating relationship with its union, the unionized portions of the company's employees have threatened to strike. In addition, the company's stock has started to drop due to the firm's difficulty in paying off some of its debt. In this example, what was the firm's core competency(ies)? 17. During the strengths and weaknesses portion of a firm's SWOT analysis, which of the following would not be discovered?
Difficulty: 1 Easy Learning Objective: 02-03 Explain how to implement a competitive strategy using value-chain analysis Topic: Strategy 52. Which of the following subjects would be found on the financial perspective section of a balanced scorecard? Difficulty: 3 Hard Learning Objective: 02-04 Explain how to implement a competitive strategy using the balanced scorecard and strategy map Topic: Strategy 53. A measure of research and development on the balanced scorecard could include: Difficulty: 1 Easy Learning Objective: 02-04 Explain how to implement a competitive strategy using the balanced scorecard and strategy map Topic: Strategy 54. Which of the following is not a reason why global companies choose to report on corporate responsibility? Difficulty: 1 Easy Learning Objective: 02-05 Explain how to expand the balanced scorecard by integrating sustainability Topic: Ethics 55. Which of the following is not an environmental performance indicator?
38. The World Resources Institute has defined: 39. A firm succeeds on its ability to deliver products to customers more quickly than rival companies in its industry. This skill is an example of the firm's: 40. SWOT analysis, a valuable analysis tool, stands for: 41. of the following perspectives of a Balanced Scorecard would most likely be the ultimate goal in a strategy map for a public company?
the meaning of each of the following levels of strategy and indicate what of management tends to take the lead responsibility for crafting the strategy at each of the four levels. a) corporate strategy b) business strategy c) functional area strategy d) operating strategy organization's strategic plan consists of the actions which management plans to take in the near future. True or false? Explain and justify your answer. and explain three actions that top executives can take to help instill a spirit of high achievement into the corporate culture and mobilize organizational energy behind the drive for good strategy execution and operating excellence.
AACSB: Analytic Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-01 Grasp why it is critical for company managers to have a clear strategic vision of where a company needs to head and why. Topic: Task 1: Developing a Strategic Vision, a Mission Statement, and a Set of Core Values 26. The managerial task of effectively conveying the essence of the strategic vision is made easier by:
AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Understand the importance of setting both strategic and financial objectives. Topic: Task 2: Setting Objectives 52. A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because:
70. Entrepreneurs Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Name the four economic resources and explain how they are used by the entrepreneur. 71. Scarcity exists because AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Identify the central fact of economics and explain how it relates to the economic problem. 72. A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs. AACSB: Analytic Blooms: Analyze Difficulty: 2 Medium Learning Objective: 02-02 Identify the central fact of economics and explain how it relates to the economic problem.
36. The PPF between goods X and Y will be a downward-sloping 37. A PPF is more likely to be a downward-sloping curve that is bowed outward than a downward-sloping straight line because most resources are 38. Economic growth causes the PPF to
61. to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society can choose points that lie only 62. Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, PPF2 may depict 63. A productive efficient society 64. If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. For Tom, the opportunity cost of building a bomb is __________ traps set. and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. For Jerry, the opportunity cost of building a bomb is ________ traps set. and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. After looking at the production possibilities for both Tom and Jerry, we can surmise that:
AACSB: Reflective Thinking Blooms: Understand Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves. Topic: PPF 89. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could not make would be: AACSB: Reflective Thinking Blooms: Understand Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves. Topic: PPF 90. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B would be working efficiently if they were producing: AACSB: Reflective Thinking Blooms: Understand Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves. Topic: Efficiency 91. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the comparative advantage in the production of:
96. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true?
and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. After looking at the production possibilities for both Tom and Jerry, we can conclude that:
AACSB: Reflective Thinking Blooms: Understand Learning Objective: 02-03 Define specialization and explain why people specialize. Topic: Specialization 136. Tom and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. Because Tom has a ____________ opportunity cost for one bomb compared to Jerry, we know Tom has _________________________. AACSB: Reflective Thinking Blooms: Remember Learning Objective: 02-02 Define absolute and comparative advantage. Topic: Comparative Advantage 137. Tom and Jerry have two tasks to do all day: set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his day to building bombs, Tom will build 4 bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. Jerry has a comparative advantage in: AACSB: Reflective Thinking Blooms: Remember Learning Objective: 02-02 Define absolute and comparative advantage. Topic: Opportunity Costs
Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-A Topic: Slope of a Line 107. The slope of a line is zero when it is: When a line is horizontal, its rise is always zero, and so its slope is always zero. Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-A Topic: Slope of a Line 108. The slope of a line that is vertical is:
129. The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to the destruction of the ozone layer that surrounds the earth. This layer protects humans from ultraviolet radiation, which causes skin cancer. Industry has been prohibited from using these substances in aerosol cans, but the government has been reluctant to ban their use altogether because of the serious economic consequences. Economists analyze such problems and refer to them as
29. The programs on gateway computers that determine the best path on to send each packet contain rules called _____. 30. A _____ is a permanent telephone connection between two points. 31. _____ creates a private passageway through the public Internet that provides secure transmission from one computer to another.
20. Regarding employees, actions within the scope of employment are those which: a. relate to work the worker was to perform b. occur on company time at the usual place of work c. occur during work hours d. serve only the interests of the employer e. all of these f. a thru c only Answer: F ESSAY QUESTIONS 1. Why is each of the following good legal advice? a. When using independent contractors, firms must be prepared to relinquish most of their control over how work is done. Answer: Independent contractor status, right of control – The element of right of control is an important factor under both the economic realities and common law tests for determining independent contractor status. b. Firms should closely review the status of long-term independent contractors and not assign new projects to them without renewing agreements. Answer: Independent contractor status, duration of work – Independent contractors are typically utilized for short periods of time and to accomplish particular projects. An open-ended relationship raises serious questions about IC status. c. Independent contractor agreements should be used, but only when they document actual independent contractor relationships. Answer: Independent contractor status does not depend on pieces of paper or labels used by firms. However, a contractor agreement that incorporates substantial right of control and other features consistent with IC status can help document the relationship. It might also help avert disputes over the relationship. d. Be particularly cautious about changing the status of workers from employees to contingent workers or having workers with different statuses perform the same work for long periods of time. Answer: It is not illegal to do these things, but since different rights and privileges attach to contingent workers and “regular” employees, these circumstances will generally lead to invidious comparisons and dissatisfied persons who would be more likely to sue. Additionally, it is problematic to structure the same type of work as both employment and contracting.
43. To quickly jump to the cell in a worksheet press ____. 44. To move one screen to the left press ____. 45. To quickly jump to the last cell in a worksheet press ____. 46. You can change, or ____, the contents of an active cell at any time.
Late career entrepreneurs (also known as second career entrepreneurs) are people who begin their businesses after having retired or resigned from work in corporations at age 50 or later. Whether these individuals start their business as part of a postretirement career plan or after early retirement has forced them to reevaluate their lives, a late career as a business owner has become a necessity for them.
e. cell nuclei ANS: C PTS: 1 DIF: Moderate TOP: 2-2 WHAT IS MATTER AND WHAT HAPPENS WHEN IT UNDERGOES CHANGE? 27. The smallest functional and structural unit of life is the a. ion b. atom c. compound d. molecule e. cell ANS: E PTS: 1 DIF: Easy TOP: 2-2 WHAT IS MATTER AND WHAT HAPPENS WHEN IT UNDERGOES CHANGE? 28. Which organic polymer consists of two or more monomers of simple sugars such as glucose? a. lipids b. proteins c. nucleic acids d. complex carbohydrates e. nucleic acids and complex carbohydrates ANS: D PTS: 1 DIF: Moderate TOP: 2-2 WHAT IS MATTER AND WHAT HAPPENS WHEN IT UNDERGOES CHANGE? 29. Genetic information is contained in coded units on chromosomes called a. DNA molecules b. c. macromolecules d. nucleotides e. proteins ANS: B PTS: 1 DIF: Moderate TOP: 2-2 WHAT IS MATTER AND WHAT HAPPENS WHEN IT UNDERGOES CHANGE? 30. The law of conservation of matter states that a. can be created. b. Atoms can be destroyed. c. Atoms cannot be created or destroyed. d. Atoms can be destroyed if we compost them. e. Atoms can be created through nuclear fission. ANS: C PTS: 1 DIF: Easy TOP: 2-2 WHAT IS MATTER AND WHAT HAPPENS WHEN IT UNDERGOES CHANGE? 31. If a carbon atom combines with oxygen atoms to form CO2, this would be described as a a. Physical change. b. Chemical change.
AACSB: Analytic Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Construct and interpret histograms; polygons; and ogives. Topic: Summarizing Qualitative Data 69. Exhibit 2-12. Recent home sales in a suburb of Washington, D.C., are shown in the accompanying ogive. Refer to Exhibit 2-12. Approximate the percentage of houses that sold for less than $600,000.
Refer to Section 2.1. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. Section: 2.1 Topic: Liquidity 23. Highly liquid assets: Refer to Section 2.1. Analytic Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. Section: 2.1 Topic: Liquidity 24. Financial leverage: Refer to Section 2.1.
Net working capital = $43,100 - $23,700 - $24,300 = -$4,900 AACSB: Analytic Blooms: Analyze Difficulty: 1 Easy Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. Section: 2.1 Topic: Net working capital 57. Pete's Warehouse has net working capital of $2,400, total assets of $19,300, and net fixed assets of $10,200. What is the value of the current liabilities? Current liabilities = $19,300 - $10,200 - $2,400 = $6,700 AACSB: Analytic Blooms: Analyze Difficulty: 1 Easy Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. Section: 2.1 Topic: Net working capital 58. Baugh and Essary reports the following account balances: inventory of $17,600, equipment of $128,300, accounts payable of $24,700, cash of $11,900, and accounts receivable of $31,900. What is the amount of the current assets? Current assets = $17,600 + $11,900 + $31,900 = $61,400 AACSB: Analytic Blooms: Analyze Difficulty: 1 Easy Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. Section: 2.1 Topic: Current assets 59. Donner United has owners' equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt?
72. The idea that firms and resource suppliers, while seeking to further their own in a market economy, also promote the public interest describes: 73. The influential book written by Adam Smith was: 74. The "invisible hand" concept to describe the guiding function of prices was developed by: 75. The development of the Internet and e-mail to often replace regular mail services is an example of:
88. Marketing cost analysis usually requires a new way of classifying accounting data. TRUE Feedback: Marketing cost analysis usually requires a new way of classifying accounting data. Instead of using the type of accounts typically used for financial analysis, we have to use functional accounts. Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: BC2-6 Level of Difficulty: 1 Easy Topic: Accounting Data Can Help in Understanding Costs and Profit 89. Marketing cost analysis usually requires a new way of classifying accounting data based on functional accounts rather than the natural accounts typically used for financial analysis. TRUE Feedback: Marketing cost analysis usually requires a new way of classifying accounting data. Instead of using the type of accounts typically used for financial analysis, we have to use functional accounts. AACSB: Reflective Thinking Blooms: Remember Learning Objective: BC2-6 Level of Difficulty: 1 Easy Topic: Accounting Data Can Help in Understanding Costs and Profit 90. Marketing cost analysis usually requires a new way of classifying accounting data on natural accounts rather than the functional accounts that are typically used for financial analysis. FALSE Feedback: Marketing cost analysis usually requires a new way of classifying accounting data. Instead of the type of accounts typically used for financial analysis, we have to use functional accounts. AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: BC2-6 Level of Difficulty: 1 Easy Topic: Accounting Data Can Help in Understanding Costs and Profit
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 10. Stockholders' equity reflects the financing provided by owners. TRUE The stockholders' equity section of the balance sheet includes financing provided by owners and net income retained from business operations. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 11. Common stock and additional-paid in capital represent the financing sources from shareholders. TRUE Common stock and additional paid-in capital are contributed capital components representing the financing sources from owners. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 12. Financial reporting focuses on reporting the impact of transactions on an entity's financial position. TRUE Accounting focuses on certain events that have an economic impact on the entity. Those events that are recorded as part of the accounting process are called transactions.
The note is noncurrent because it is due in two years. The cash flow is created from borrowing money, and categorized as a financing cash flow. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Identify investing and financing transactions and demonstrate how they impact cash flows. Topic Area: Focus on Cash Flows 111. Which of the following would result when a company sells additional shares of common stock for cash? Selling additional shares of stock increases common stock and additional paid-in capital. Financing cash flow activities include issuing common stock. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Identify investing and financing transactions and demonstrate how they impact cash flows. Topic Area: Focus on Cash Flows 112. Which of the following would result when a company purchases a factory building using cash?
access to the same set of resources and information: databases, calendars, project plans, pertinent messaging and exchanges, reference materials, and team-created documents. They are also sometimes called intranets and extranets. Diff: 2 Concept Objective: 2 AACSB: Information technology Learning Outcome: Describe best practices in team and interpersonal communication. 14) Social networking technologies can help a company create communities of practice that A) discourage employees from socializing at work. B) compel employees to develop new workplace skills. C) discourage teamwork so individual employees can reach their full potential. D) help employees respect the distinction between personal time and work. E) link employees with similar professional interests throughout the company. Answer: E Explanation: E) Some companies use social networking technologies to create virtual communities of practice that link employees with similar professional interests throughout a company; they sometimes link employees with customers and suppliers, as well. Diff: 1 Skill: Concept Objective: 2 AACSB: Information technology Learning Outcome: Describe best practices in team and interpersonal communication. 15) The primary difference between constructive feedback and destructive feedback is A) constructive feedback is focused on the people involved. B) destructive feedback is focused on the process and outcomes of communication. C) constructive feedback can hurt people's feelings. D) destructive feedback delivers criticism with no guidance for improvement. E) constructive feedback includes a threat of consequences for failure. Answer: D Explanation: D) Constructive feedback sometimes called constructive criticism focuses on the process and outcomes of communication, not on the people involved. Destructive feedback delivers criticism with no guidance to stimulate improvement. The other answers are the opposite of what constructive and destructive feedback are about. Diff: 2 Skill: Concept Objective: 2 AACSB: Interpersonal relations and teamwork Learning Outcome: Describe best practices in team and interpersonal communication. 16) Much of your workplace communication will occur during in-person or online meetings. If you're leading a meeting, you can help to make sure it's productive by A) preparing carefully. B) conducting the meeting efficiently.
45. (p. 42) Levi collects data for a by questioning anybody who walks by his store at the mall. What data collection method is he using? A. random sampling B. quota sampling C. convenience sampling D. intermediary sampling Bloom's Taxonomy: Apply Level: Basic Topic: Doing Research 46. (p. 42) A sampling method that involves selecting cases to include by chance is called ________ sampling. A. convenience B. random C. intermediary D. quota Bloom's Taxonomy: Remember Level: Basic Topic: Doing Research 47. (p. 42) Dr. Karner is interested in learning how students in his department feel about the courses being offered. To select the students who will take the questionnaire, he wrote the names of every student on a small slip of paper and blindly drew 100 names from a hat. What sampling method did he use? A. convenience sampling B. lotto sampling C. quota sampling D. random sampling Bloom's Taxonomy: Apply Level: Moderate Topic: Doing Research
73. (p. 49) Steven's college has a major problem with student drinking on campus. He decided to study student drinking behavior by focusing on the factors that influence drinking behavior and the variables that predict that a student will engage heavy drinking. What type of research is he conducting? A. positivist social science B. interpretive social science C. critical social science D. All these answers are correct. Bloom's Taxonomy: Apply Level: Moderate Topic: Types of Research 74. (p. 49) What term refers to the process of removing one's personal viewpoints and opinions from the research process? A. transparency B. value-detachment C. value-neutrality D. objectivity Bloom's Taxonomy: Remember Level: Basic Topic: Types of Research 75. (p. 51) Sociological research is evaluated for quality prior to publication. This is known as A. public sociology. B. basic research. C. the peer-review process. D. quality assurance. Bloom's Taxonomy: Remember Level: Basic Topic: Thinking Critically: How to Assess Research
89. (p. 36) The purpose of a hypothesis is to summarize the key findings from a research study. FALSE Bloom's Taxonomy: Remember Level: Moderate Topic: Social Science as a Way of Knowing 90. (p. 36) Randal found that as one's years of education increased, so did one's annual income. In his study, the independent variable is income. FALSE Bloom's Taxonomy: Apply Level: Basic Topic: Social Science as a Way of Knowing 91. (p. 36) Sociologists use empirical evidence to understand patterns in everyday life. TRUE Bloom's Taxonomy: Remember Level: Basic Topic: Social Science as a Way of Knowing 92. (p. 45) An experiment is any research that collects data for analysis. FALSE Bloom's Taxonomy: Remember Level: Basic Topic: Doing Research 93. (p. 44) Intensive interviewing is a type of survey research. FALSE Bloom's Taxonomy: Apply Level: Basic Topic: Doing Research
Difficulty Apply/Analyze Topic: Investigating Geologic Questions What can you interpret about the relative ages of the rocks and features in this photograph? The sandstone is older because it is lighter in color. The metamorphic rock is older because it is rougher from longer weathering. The metamorphic rock is older because pieces of it are in the sandstone. The sandstone is older because it is on top. Answer: c Section: 2.2 Difficulty Level: Apply/Analyze Topic: Investigating Geologic Questions What sort of environment would possibly deposit sediment like that seen in the image? river channels floodplain steep mountain slope cliff face Answer: a Section: 2.2 Difficulty Level: Apply/Analyze Investigating Geologic Questions The feature shown is a smaller, steep-sided mountain and has had its edges eroded away. This feature would commonly be called a: butte mesa knob Answer: a Section: 2.2 Difficulty Level: Remember/Understand Topic: Investigating Geologic Questions The image represents a broad, flat-topped mountain with steep sides. This feature is called a: mesa butte knob Answer: a
A B C D Answer: b Section: 2.6 Difficulty Level: Remember/Understand Topic: Nature of Geology This figure shows the main subdivisions of the geologic timescale. Which of these is the Paleozoic? A B C D Answer: c Section: 2.6 Difficulty Level: Remember/Understand Topic: Nature of Geology This figure shows the main subdivisions of the geologic timescale. Which of these is the Precambrian? A B C D Answer: d Section: 2.6 Difficulty Level: Remember/Understand Topic: Nature of Geology Which of the following correctly lists the four main chapters of Earth’s history, from oldest to youngest? Paleozoic, Mesozoic, Cenozoic, Precambrian Cenozoic, Mesozoic, Paleozoic, Precambrian Paleozoic, Precambrian, Mesozoic, Cenozoic Precambrian, Cenozoic, Mesozoic, Paleozoic Precambrian, Paleozoic, Mesozoic, Cenozoic Answer: e Section: 2.6 Difficulty Level: Remember/Understand Investigating Geologic Questions
19. believe that most people's actions are rational and purposeful, not random and chaotic. 20. good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the questions being investigated. 21. good economic theory, or weeds out the irrelevant facts from the relevant ones. 22. models are of limited use since they cannot be tested empirically. A A ​
The search “stock or securities” would find documents that contain both the term “stock” and the term “securities.” True ANSWER: False RATIONALE: FEEDBACK: This search would find documents that have either the word “stock” or the word “securities.” POINTS: 1 DIFFICULTY: Easy The IRS website is a full-service, tax research resource. True False ANSWER: RATIONALE: FEEDBACK: The IRS website, while containing much useful information, is not a full-service tax research resource. POINTS: 1 DIFFICULTY: Easy One of the issues a tax researcher should be concerned about is how definitive a research result must be. True ANSWER: True POINTS: 1 DIFFICULTY: Easy The CPA exam is prepared by the AICPA. True False ANSWER: True POINTS: 1 DIFFICULTY: Easy All primary source material has the same precedential value. True False ANSWER: False RATIONALE: FEEDBACK: Different types of primary authority have different value as precedent. The researcher must understand the hierarchy of primary sources. POINTS: 1 DIFFICULTY: Moderate
each of the following accounts, indicate whether we use a debit or a credit to increase the balance of the account. (a) Accounts Receivable (b) Accounts Payable (c) Salaries Expense (d) Service Revenue (e) Supplies (f) Common Stock (g) Advertising Expense (h) Dividends each of the following accounts, indicate whether we use a or a credit to decrease the balance of the account. (a) Accounts Receivable (b) Accounts Payable (c) Salaries Expense (d) Service Revenue (e) Supplies (f) Common Stock (g) Advertising Expense (h) Dividends trial
147. Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January: 1. Issued 10,000 shares of common stock for $15,000 cash. 2. Purchased land for $12,000, signing a note payable for the full amount. 3. Purchased office equipment for $1,200 cash. 4. Received cash of $14,000 for services provided to customers during the month. 5. Purchased $300 of office supplies on account. 6. Paid employees $10,000 for their first month's salaries. What was the balance of Gotebo's Cash account following these six transactions? Cash = ($15,000 - $1,200 + $14,000 - $10,000) = $17,800. AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Post transactions to the general ledger. Topic: Posting to the General Ledger 148. The Accounts Payable account has a beginning balance of $12,000 and the company purchased $50,000 of supplies on account during the month. The ending balance was $10,000. How much did the company pay to creditors during the month? $12,000 + $50,000 - $10,000 = $52,000. AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Post transactions to the general ledger. Topic: Posting to the General Ledger 149. On 3, Cobra Inc. purchased a desk for $450 on account. On March 22, Cobra purchased another desk for $500 also on account, and then on March 24, Cobra paid $400 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)? Trial
Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 16. The accounting equation does not have to be in balance after the recording of each transaction. FALSE One of the underlying principles of an accounting transaction is that the accounting equation must be in balance after recording the transaction. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 17. Additional-paid in capital is reported on the balance as a component of shareholders' equity. TRUE Shareholders' equity includes common stock, additional paid-in capital, and retained earnings. Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 18. Common stock and additional-paid in capital are both reported on the balance sheet as a component of shareholders' equity. TRUE Shareholders' equity includes common additional paid-in capital, and retained earnings. trial
D) liabilities. Answer: B Diff: 2 LO: 2-4 Analytical Skills AICPA Bus Persp: Strategic/Critical Thinking AICPA Functional: Measurement 19) An important rule to remember when analyzing the impact of business transactions on accounts is: A) net income increases stockholders' equity. B) if expenses exceed revenues, the company will have a net income. C) a net loss does not affect stockholders' equity. D) stockholders' equity includes the two categories of income statement accounts, revenues and liabilities. Answer: A Diff: 2 LO: 2-4 AASCB: Analytical Skills AICPA Bus Persp: Strategic/Critical Thinking AICPA Functional: Measurement 20) An important rule of debits and credits is: A) credits increase a liability account. B) debits decrease an asset account C) revenues are increased by a debit. D) expenses are increased by a credit. Answer: A Diff: 2 LO: 2-4 Analytical Skills Bus Persp: Strategic/Critical Thinking AICPA Functional: Measurement 21) accounts are increased by debits? A) Cash and accounts payable B) Salaries expense and common stock. C) Accounts receivable and utilities expense D) Accounts payable and service revenue Answer: C Diff: 3 LO: 2-4 Analytical Skills Bus Persp: Strategic/Critical Thinking AICPA Functional: Measurement 22) An account is increased by a debit and has a debit balance. This account is: A) an expense account. B) a liability account. C) an asset account.
Answer: C Diff: 2 Objective: LO 2-2 2.2-21) Supplies expense on the Team Shirts' income statement represents only supplies that were used to earn revenue during the accounting period. The accounting rule that applies is the ________. A) going-concern assumption B) historical-cost principle C) revenue-recognition principle D) matching principle Answer: D Diff: 2 Objective: LO 2-2 2.2-22) On December 31, 2012, Twisted Pretzel was told by an appraiser that its land, which cost $100,000, was worth $120,000. How should Twisted Pretzel show this information on its financial statements prepared under U.S. GAAP? A) Report a gain of $20,000 on its income statement. B) Report land at $100,000 on its income statement. C) Report land at $120,000 on its income statement. D) Continue showing the land at its cost of $100,000. Answer: D Diff: 2 Skill: Analytic skills Objective: LO 2-2 2.2-23) On December 31, 2012, Twisted Pretzel was told by an appraiser that its land, which cost $100,000, was worth $120,000. Under IFRS, Twisted Pretzel would be allowed to: show the land on its financial statements as ________. A) an expense of $100,000 on the income statement B) an expense of $120,000 on the balance sheet C) an asset of $120,000 on the income statement D) an asset of $120,000 on the balance sheet Answer: D Diff: 3 Analytic skills, Dynamics of the global economy Objective: LO 2-2 2.2-24) For information to be useful, it must be relevant and reliable. Answer: TRUE Diff: 1 Objective: LO 2-2 2.2-25) The of a sole proprietorship should not include personal financial records as part of the financial records and statements of the business.