Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Questions
Q:
Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.
Q:
Which of the following is most likely to be a monopolistically competitive firm?A) a soybean farmer B) a lettuce farmerC) a municipal water district D) a fast food restaurant
Q:
In the age of the Internet and virtual conferencing, face-to-face negotiations are rare.
Q:
A monopolist finds the price-output combination that maximizes its profits by
A) equating total revenue and total cost.
B) equating marginal revenue and marginal cost.
C) finding the combination for which the difference between marginal revenue and marginal cost is the greatest.
D) equating price and marginal cost.
Q:
The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because
A) wages and other overheads may be higher in an FTZ.
B) locally produced components do not qualify for tariffs.
C) unassembled goods may qualify for lower freight rates.
D) the finished goods cannot be exported to other countries.
E) goods imported in an FTZ qualify for the same level of tariffs as other imported goods.
Q:
Unlimited liability is an advantage of a sole proprietorship.
Q:
If the long-run supply curve slopes upward, we know that this isA) a decreasing-cost industry. B) a constant-cost industry.C) an increasing-cost industry.D) a situation in which no input prices change as firms enter and exit the industry.
Q:
A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because
A) locally produced components may not be used in production.
B) labor costs may be lower in the importing country.
C) FTZs levy higher taxes and surcharges on imported goods.
D) ocean transportation rates may not be affected by the weight and volume of the components.
E) duties may be assessed at a higher rate for unassembled goods.
Q:
Refer to the above figure. Profits for this firm will be maximized atA) point B. B) point C.C) a quantity greater than point C. D) a quantity between points B and C.
Q:
By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can typically lower costs because
A) labor costs are higher in the importing country.
B) the final prices of the goods are adjusted for inflation.
C) use of unassembled goods gives the marketer immunity from dumping penalties.
D) duties are typically assessed at lower rates for unassembled goods.
E) local content used in production is low.
Q:
A sole proprietorship is a business owned by one or more persons.
Q:
Summing all of the costs that do not change as output varies yieldsA) variable costs. B) fixed costs. C) implicit costs. D) explicit costs.
Q:
The creation of a free trade zone may lead to
A) a decline in exports.
B) an increase in taxes and duties levied on a product.
C) a reduction in the price escalation.
D) a decline in imports.
E) an increase in labor costs and overheads.
Q:
FastForward has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.
Q:
The PE ratio for a stock is
A) the predicted earnings per share of the stock divided by its current yield.
B) the current yield of the stock.
C) the price of the stock divided by its earnings per share.
D) the predicted volatility of the stock.
Q:
Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ________ basis.
A) specific
B) alternative
C) accrual
D) shorter, lower
E) ad valorem
Q:
General accounting principles arise from long-used accounting practice.
Q:
Expenses that a firm does not have to pay out of pocket areA) wages of employees. B) taxes.C) implicit costs. D) explicit costs.
Q:
What is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country?
A) to standardize middlemen margins
B) to reduce the credit risk of the seller
C) to increase the capitallabor ratio
D) to avoid antidumping duties
E) to reduce manufacturing costs
Q:
Data for Madison Realty are as follows:The owner, Mary Madison, withdrew a total of $30,000 for personal use during 2009. From the above data, prepare Madison Realty's Statement of Owner's Equity for the year ended December 31, 2009.
Q:
The marginal rate of substitution is measured alongA) the demand curve. B) the total utility curve.C) a given indifference curve. D) a given budget line.
Q:
When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if
A) the channels of distribution are short.
B) the number of middlemen in its distribution channels is low.
C) large orders are placed by retailers.
D) marketing and distribution channel infrastructures are well developed.
E) the middleman markups are not standardized.
Q:
Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.
Q:
Given the above figure, marginal utility becomes negative when Joey consumes the ________piece of pizza.A) 1st B) 3rdC) 4th D) 5th
Q:
When the Indian rupee depreciated against the U.S. dollar, PC manufacturers who were dependent on imported components had to either absorb the increased cost or
A) raise the quantity of inputs they used in production.
B) give discounts to their customers.
C) increase the wages that they paid to labor.
D) increase the production of PCs.
E) raise the price of PCs.
Q:
The following information is available for the Skate and Boards Rental.Using the above information prepare an Income Statement, Statement of Owner's Equity, and Statement of Cash Flows for the Skate and Boards Rental for 2008. Also prepare its Balance Sheet as of December 31, 2009.
Q:
Suppose that the number of units of good X consumed falls 6 percent when the price of good Y falls 4 percent. The cross price elasticity of demand between goods X and Y isA) 0.66. B) 1.75. C) 2.0. D) 1.5.
Q:
When the value of the dollar is weak relative to the buyer's currency, sellers usually use ________ pricing.
A) competition-based
B) demand-based
C) premium
D) psychological
E) cost-plus
Q:
In a deflationary market, in order to win the trust of consumers, it is essential for a company to
A) engage in forfaiting agreements with consumers.
B) spend more on advertising and stall the production of products.
C) allow prices to escalate and target the price insensitive segment of the market.
D) keep prices low and raise brand value.
E) form a cartel to control the dynamics of the market.
Q:
As a general rule, revenues should not be recognized in the accounting records until it is received in cash.
Q:
An absolute price elasticity of demand equal to 0.4 indicates that aA) 4 percent increase in price leads to a 10 percent decrease in quantity demanded.B) 1 percent increase in price leads to a 4 percent decrease in quantity demanded. C) 0.4 percent decrease in price leads to a 1 percent increase in quantity demanded. D) 10 percent decrease in price leads to a 4 percent increase in quantity demanded.
Q:
The business entity principle means that a business is accounted for separately from other business entities, including its owner or owners.
Q:
What primary discriminatory tax must be taken into account in foreign competition?
A) transfer taxes
B) tariffs
C) tolls
D) excise taxes
E) inflation taxes
Q:
Refer to the above figure. If the marginal cost curve for pollution abatement shifts to the right, everything considered, theA) degree of air quality or cleanliness will also decrease.B) the degree of air quality or cleanliness will stay unchanged. C) the degree of air quality will improve.D) the marginal cost of pollution abatement has nothing to do with air quality.
Q:
________ duties are levied as a percentage of the value of the goods imported.
A) Specific
B) Protective
C) Prohibitive
D) Ad valorem
E) Compound
Q:
On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts:From the information given, prepare a November 30 balance sheet.
Q:
Originally, the threshold income level used to determine official poverty statistics was based on
A) a per capita income of $3000 in 1955 prices.
B) the lowest income of the second quartile of families in the country.
C) an income three times greater than necessary to purchase a nutritionally adequate diet.
D) figures developed by a committee in the American Economic Association.
Q:
A(n) ________ duty is a flat charge per physical unit imported.
A) ad valorem
B) compound
C) prohibitive
D) alternative
E) specific
Q:
Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements.
Q:
In a monopsonistic market,A) employment is lower but wages are higher than in a comparable competitive market.B) employment is higher but wages are lower than in a comparable competitive market. C) both employment and wages are higher than in a comparable competitive market.D) both employment and wages are lower than in a comparable competitive market.
Q:
What results from the added costs incurred as a result of exporting products from one country to another?
A) price deflation
B) penetration pricing
C) price escalation
D) price gouging
E) predatory pricing
Q:
The percentage of U.S. workers in the private sector who belong to unions is currentlyA) greater than 50 percent. B) approximately 20 percent.C) approximately 12 percent. D) approximately 8 percent.
Q:
In most cases, the reason products cost relatively little in one country and cost more in another is the
A) profiteering measures taken by exporting companies.
B) consistency in perception of quality in all countries.
C) inelastic demand of most consumer goods.
D) requirement that all export goods must use set skimmed price.
E) higher costs of exporting.
Q:
Quantity of WorkersTotal ProductMarginal Marginal Physical Product Revenue Product00- -17 218 330 440 548 In the above table, if this is a perfectly competitive firm and the market price of the product is $5 and the marginal factor cost of labor is $60, how many units of labor will the firm hire?A) 2 B) 3 C) 4 D) 6
Q:
The business entity principle means that a business will continue operating for an indefinite period of time.
Q:
Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of
A) penetration pricing policy.
B) psychological pricing policy.
C) bundling.
D) price skimming.
E) cost-based pricing policy.
Q:
Behavior on the part of the firm that allows it to comply with the letter of the law but violate the spirit reducing the lawʹs effect isA) asymmetric information. B) creative response.C) the lemons problem. D) only a problem in a monopoly.
Q:
A ________ policy is used to stimulate market and sales growth by deliberately offering products at low prices.
A) penetration pricing
B) variable-cost pricing
C) premium pricing
D) price skimming
E) full-cost pricing
Q:
The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.
Q:
Which of the following games yields an outcome in which two firms would simultaneously be willing to adopt a compatible product format?A) the prisonersʹ dilemma B) Tweedle Dee-Tweedle DumC) Battle of the Sexes D) none of the above
Q:
If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply.
A) penetration
B) psychological pricing
C) variable-cost pricing
D) predatory pricing
E) price skimming
Q:
Ann Maslow's consulting practice had equity of $172,500 at December 31, 2008. Net income for 2009 amounted to $56,400. Ann's withdrawals during 2009 were $48,000, and Ann made no investments in the business during 2009. Prepare the statement of owner's equity for 2009.
Q:
Which of the following does NOT help explain why oligopolies exist?A) Economies of scale B) MergersC) Product homogeneity D) Barriers to entry
Q:
A company uses ________ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.
A) penetration pricing
B) everyday low pricing
C) predatory pricing
D) price skimming
E) psychological pricing
Q:
The balance sheet shows whether or not the firm had net income or loss over a period of time.
Q:
Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?
A) full-cost pricing
B) marginal-cost pricing
C) static-cost pricing
D) demand-based pricing
E) premium pricing
Q:
All of the following are characteristics of a monopolistically competitive industry EXCEPT A) homogeneous products. B) many firms.C) low barriers to entry and exit. D) sales promotion and advertising.
Q:
Companies that use ________ pricing insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:
Q:
The price-output combination that maximizes profits for a monopolist occurs at the point whereA) total revenues and total costs are equal.B) the difference between total revenues and total costs is the greatest. C) total revenues are the greatest.D) the elasticity of demand equals one.
Q:
Accounting information is communicated to various parties through financial statements.
Q:
________ pricing is a practical approach to use when a company has high fixed costs and unused production capacity.
A) Full-cost
B) Cost-plus
C) Marginal-cost
D) Demand-based
E) Premium
Q:
If the long-run supply curve slopes downward, we know that this isA) a decreasing-cost industry. B) a constant-cost industry.C) an increasing-cost industry.D) a situation in which no input prices change as firms enter and exit the industry.
Q:
What characterizes the variable-cost pricing approach?
A) Prices are often set on a cost-plus basis, that is, total costs plus a profit margin.
B) No unit of a similar product is different from any other unit in terms of cost.
C) Each unit must bear its full share of the total fixed and variable cost.
D) This approach is suitable when a company has high variable costs relative to its fixed costs.
E) Any contribution to fixed cost after variable costs are covered is profit to the company.
Q:
Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:
Q:
Refer to the above figure. Profits for this firm are positiveA) only for all points less than B. B) only at points B and C.C) for points between B and C.D) for all points less than B and greater than C.
Q:
Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Marianne has decided to see if she can sell them in Mexico, so she sets a price that is just over her cost. She figures if she makes even a little money, it would be worth it. Marianne is using ________ pricing.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
A sole proprietorship is one or more individuals selling products or services for profit.
Q:
In the short run, total costs equalA) the sum of total fixed costs and total variable costs.B) the sum of total fixed costs and total explicit costs.C) the sum of total variable costs and total implicit costs.D) the sum of total fixed costs and total implicit costs.
Q:
In ________ pricing, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare the income statement for 2009.
Q:
The yield percentage of a stock is calculated asA) the corporationʹs net worth divided by the number of shareholders. B) the book value of the stock divided by the number of shareholders. C) the stock dividend divided by the price of the stock.D) the expected appreciation of the stock.
Q:
Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of
A) cultural differences in perceptions of pricing.
B) market segmentation from market to market.
C) the costs of production of the goods.
D) market segmentation from country to country.
E) competitive pricing in the market.
Q:
In the partnership form of business, the owners are called stockholders.
Q:
Out-of-pocket expenses such as wages and raw materials areA) direct costs. B) an owner-provided capital cost. C) implicit costs. D) explicit costs.
Q:
________ distribution, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.
A) Exclusive
B) Speculative
C) Intensive
D) Lateral
E) Dual
Q:
Della's Donuts had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
Q:
The marginal rate of substitution is theA) rate at which the consumer can exchange one good for the other.B) change in the quantity of one good that just offsets a one -unit change in the consumption of another good such that the total satisfaction remains constant.C) change in the quantity of one good that changes the utility received by one unit. D) same thing as the marginal utility of a good.
Q:
Gift Group Inc., an importing organization in New York, buys perfume from a company in France for $13 a unit. Unknown to the French company, Gift Group sells this product in the United States for $19 a unit. This leads to a loss of revenue for the French company as it also sells its perfume in the United States but for a higher price of $22. What concept does this demonstrate??
A) black-listed importing
B) indirect importing
C) circular importing
D) co-mingled importing
E) parallel importing
Q:
Owners of a corporation are called shareholders or stockholders.