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Questions
Q:
What distinguishes liabilities from equity?
Q:
Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a higher long-run price, we know thatA) this is a decreasing-cost industry. B) this is an increasing-cost industry.C) some firms will be losing money in the long run.D) after further adjustments, price will fall to its original level.
Q:
________ are the primary outside source of aid for companies affected by the uncertainty of a countertrade.
A) Trade unions
B) Barter houses
C) Industry associations
D) Swap centers
E) Satellite towns
Q:
Explain the accounting equation, and define its terms.
Q:
For a perfect competitor, price equalsA) marginal revenue only.B) average revenue only.C) both average revenue and marginal revenue.D) neither marginal revenue nor average revenue.
Q:
What do barter houses do?
A) They specialize in trading goods acquired through barter arrangements.
B) They negotiate barter arrangements with countries that accept the U.S. currency as a countertrade.
C) They specialize in bartering with third countries for unused raw materials.
D) They direct bartered goods to the World Trade Organization for its approval.
E) They review disputes in barter arrangements at the request of the International Court of Justice.
Q:
Describe the relation between revenues, expenses, and net income.
Q:
Notice the costs as given in the table below. What is the marginal cost when total cost is $23?Total OutputTotal Costs0$101$152$183$204$215$23A) $5 B) $3 C) $2 D) $1
Q:
A crucial problem confronting a seller in a countertrade negotiation is determining the ________ for the goods offered as payment.
A) delivery method
B) warranties
C) insurance premiums
D) potential demand
E) the cost
Q:
Identify and describe the three major activities of business organizations.
Q:
The random walk theory says that
A) stock prices follow a trend for varying periods of time.
B) successive stock prices increase more than they decrease.
C) successive stock prices are dependent on the weighted average of the previous weekʹs prices.
D) successive stock prices are independent of each other.
Q:
The use of countertrade in international trade
A) allows trade with countries short of hard currency.
B) reduces a firm's competitive advantage.
C) increases the tax liabilities of trading firms.
D) leads to a loss of revenue.
E) is considered unethical.
Q:
How does the going-concern principle affect reporting asset values of a business?
Q:
By definition, a firm isA) a business organization that makes profits.B) a business organization that utilizes resources to produce goods or services with the goal of making a profit.C) a business organization that consists of more than one person.D) an organization, whether private or public, that may or may not make a profit.
Q:
When Burger Boys an American fast-food company, wanted to market its burgers and fries in France, it was asked to import French mustard to the United States in return. This is an example of
A) bargaining.
B) countervailing duties.
C) buy-back.
D) countertrade.
E) bribery.
Q:
One characteristic of indifference curves is thatA) they must intersect at the origin. B) they cannot intersect. C) they have a positive slope. D) they are straight lines.
Q:
Identify the two main groups involved in establishing generally accepted accounting principles.
Q:
What would be considered an advantage of leasing equipment rather than owning it?
A) Lease revenue tends to fluctuate greatly.
B) Leased equipment rarely breaks down.
C) Leasing helps guarantee better maintenance on overseas equipment.
D) Leasing keeps companies from using experimental equipment.
E) Leasing is less risky than outright sale of equipment.
Q:
Why should assets be recorded at historical cost?
Q:
Using the above table, what is the total utility of consuming 3 bottles of soda?A) 115 B) 120 C) 240 D) 135
Q:
An important selling technique to alleviate high prices and capital shortages for capital equipment is the ________ system.
A) leasing
B) antidumping
C) direct buy-back
D) consignment
E) rental
Q:
A product that has an elastic demand curve has all of the following characteristics EXCEPT A) it has many substitutes.B) a consumer can wait to buy the product. C) it has few or no substitutes.D) it is a large part of a consumerʹs income.
Q:
How does the objectivity principle support ethical behavior?
Q:
Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as ________ plants.
A) antidumping
B) screwdriver
C) import-oriented
D) export-oriented
E) automated
Q:
The formal definition of price elasticity of demand is
A) change in quantity demanded divided by change in price.
B) quantity demanded divided by price.
C) percentage change in quantity demanded divided by percentage change in price.
D) quantity demanded multiplied by price and divided by 100.
Q:
Identify the three basic forms of business organizations.
Q:
Dumping in the world markets is most likely to increase when
A) domestic production capacity is low.
B) demand in the home country is low.
C) demand in the foreign country is low.
D) foreign production capacity is high.
E) cost of production is low.
Q:
The marginal benefit of pollution abatement
A) increases at an increasing rate as abatement increases.
B) decreases as pollution abatement increases because of the law of diminishing marginal utility.
C) increases as pollution abatement increases because of the law of increasing marginal returns.
D) is constant as pollution abatement increases.
Q:
Describe the three important guidelines for revenue recognition.
Q:
For ________ duties to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.
A) countertrade
B) domestic protection
C) countervailing
D) foreign practice
E) import restriction
Q:
The purpose of the Temporary Assistance to Needy Families program isA) to provide rebates of Social Security taxes to low -income workers.B) to provide cash assistance and supportive services to assist the family, helping them achieve economic self-sufficiency.C) to provide a minimum income for the aged, blind, and the disabled.D) to supplement Social Security for the elderly with medical problems.
Q:
Explain why ethics are an integral part of accounting.
Q:
A ________, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.
A) trigger volume
B) trigger price
C) minimum access volume
D) market access opportunity
E) substantial cause
Q:
When there is only one buyer of labor in a community, we talk of aA) monopoly. B) monopsony.C) monopolistic market. D) labor cooperative.
Q:
Identify several opportunities in accounting and its related fields.
Q:
What is the function of a countervailing duty?
A) balance revenues against costs
B) restrict the amount a country will import
C) increase revenues from parallel imports
D) increase the amount a country will export
E) permit the use of foreign currency within the country
Q:
Laws that make it illegal to require union membership as a condition of continuing employment in a firm areA) union shop laws. B) right-to-work laws. C) closed-shop laws. D) jurisdictional laws.
Q:
What are two questions that an owner might be able to answer by looking at accounting information?
Q:
Dumping has been defined as the situation in which a product is sold in the international market
A) at a price below the cost of production.
B) only to the premium, price insensitive segment of the market.
C) where the demand for the product is lower than in the domestic market.
D) at a higher price than in the domestic market.
E) at the same price as in the domestic market.
Q:
Identify the users and uses of accounting information.
Q:
Quantity of WorkersTotal ProductMarginal Marginal Physical Product Revenue Product00- -17 218 330 440 548 In the above table, what is the marginal physical product of worker 4?A) 10 B) 40 C) 11 D) 12
Q:
In the context of international marketing, how important is a second language for a manager?
Q:
The total costs of regulationA) include increased taxes and increased prices of the products being regulated. B) are paid entirely by the regulated industries.C) much higher than just the explicit government outlays to fund the administration of various regulations.D) are paid entirely by the consumers of regulated industries.
Q:
What is the balance sheet? What is its purpose?
Q:
How does the family impact the success of an expatriate manager?
Q:
Explain the role of accounting in the information age.
Q:
The situation in which firms choose incompatible product formats is calledA) the prisonersʹ dilemma. B) a Tweedle Dee-Tweedle Dum game. C) Battle of the Sexes. D) a cartel.
Q:
Describe three reasons for the low morale and growing amount of attrition among returning expatriates.
Q:
Discuss how compensation plans of American companies vary substantially around the world.
Q:
Classify the following activities according to the appropriate section of the statement of cash flows.a. Operating activityb. Investing activityc. Financing activity1) Cash paid for withdrawals by owners.2) Cash paid for utilities.3) Cash received from a one-time sale of used office equipment.4) Cash paid for a delivery van to be used in the business.5) Cash received from owner contributions.6) Cash received from customers.
Q:
Marginal cost pricing for an information productA) would cause the firm to experience economic losses. B) would allow the firm to break even.C) would cause the firm to earn economic profits.D) would cause the firm to expand output to increase economic profits.
Q:
Monopolistic competition meansA) monopolies from several countries compete in the global market. B) a large number of firms producing homogeneous products.C) a large number of firms producing differentiated products. D) few firms producing differentiated products.
Q:
Select the appropriate financial statement for each of the following items.
(Note: some items may appear on more than one financial statement.)
a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows
1)Consulting Revenue
2)Ahmad Khan, Capital
3)Cash investments by owner
4)Cash proceeds from a long-term loan
5)Supplies
6)Cash withdrawals by owner.
7)Cash payments to purchase equipment
8)Advertising Expense
Q:
What is the reason for the failure of individual incentives to motivate employees in Japan?
Q:
As a price searcher, a monopoly firm
A) must only determine the price it charges.
B) must determine its optimal price-output combination.
C) must determine its output level and then accept the market price for its product.
D) must determine the prices it pays for its inputs and accept the market price for its output.
Q:
What should be the nature of a training program for international marketing personnel?
Q:
Select the appropriate financial statement for each of the following accounts.
(Note: Some items may appear on more than one financial statement.)
a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows
1)Rent Expense
2)Withdrawals
3)Notes payable
4)Cash
5)Accounts receivable
6)Jay Miller, Capital
7)Supplies Expense
8)Fees earned
Q:
What are the eight specific characteristics and skills a company should look for when selecting sales and marketing personnel for international marketing positions?
Q:
Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know thatA) this is a decreasing-cost industry. B) this is an increasing-cost industry.C) some firms will be losing money in the long run.D) after further adjustments, price will rise to its original level.
Q:
Match each of the following items 1 through 8 with the financial statement a through d in which each item would most likely appear. An item may appear on more than one statement.
a. Income statement
b. Statement of owner's equity
c. Balance sheet
d. Statement of cash flows
1)Cash from investing activities.
2)Equity.
3)Revenues.
4)Liabilities.
5)Cash from operating activities.
6)Withdrawals.
7)Costs and expenses.
8)Assets.
Q:
What are third-country nationals (TCNs)? Why do American companies favor third-country nationals over expatriates from other English-speaking countries for overseas assignments?
Q:
The equation TR/Q is used to computeA) total cost. B) average revenue.C) demand. D) marginal revenue.
Q:
Identify each of the following business activities 1 through 6 into the appropriate category a, b, and c.
a. Operating
b. Investing
c. Financing
1)Paid employee wages.
2)Purchase of land.
3)Sale of used equipment.
4)Borrowed money from a bank on a long-term note.
5)Paid utilities expenses.
6)Withdrawal of funds by owners.
Q:
What are virtual expatriates, and what are the disadvantages associated with using these sales managers?
Q:
Notice the costs of production for a firm in the table below. What are the total costs for outputs of 7 units and 8 units respectively?Total Output (Q/day)Total Fixed Costs (TFC)Total Variable Costs (TVC)0$10$01$10$3.502$10$4.753$10$5.804$10$6.405$10$7.256$10$8.327$10$9.338$10$10.12A) $20.12; $19.33 B) $17.25; $18.32 C) $19.33; $20.12 D) $9.33; $10.12
Q:
Match the following definitions with the terms 1 through 9. Place the letter that identifies the best definition in the blank space next to the term.a. The relation between a company's assets, liabilities, and equity.b. An exchange of value between two parties.c. The principle that assumes transactions and events can be expressed in money units.d. A financial statement that reports the changes in equity over the reporting period; adjusted for increases such as owner investment and net income and for decreases such as owner withdrawals or net loss.e. A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.f. Creditor's claims on assets.g. The cost of assets or services used to earn revenue.h. The principle that requires a business to be accounted for separately from its owners.i. The principle that revenue is recognized when earned.1)Business transaction2)Accounting equation3)Liabilities4)Statement of owner's equity5)Revenue recognition principle6) Monetary unit principle7)Expenses8)Statement of cash flows9)Business entity principle
Q:
Describe the advantages and disadvantages of using an expatriate sales force.
Q:
According to the random walk theory,
A) todayʹs stock price will be related to yesterdayʹs stock price.
B) successive prices of a stock are independent of each other.
C) stock prices can easily be predicted for as much as 52 weeks into the future.
D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.
Q:
Match the following definitions with terms 1 through 8. Place the letter that identifies the best definition in the blank space next to the term.a. The accounting principle that requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange.b. A principle that requires the information in financial statements to be supported by independent unbiased evidence.c. Gross increase in equity from a company's earnings activities.d. A principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold.e. Resources owned or controlled by a company that are expected to yield future benefits.f. A financial statement that reports the changes in equity over the reporting period; including increases such as owner investment and net income and for decreases such as owner withdrawals or net loss.g. Assets an owner takes from the company for personal use.h. Another term for equity.1)Net assets2)Owner withdrawal3)Objectivity principle4)Assets5) Revenues6)Cost principle7)Statement of owner's equity8)Going-concern principle
Q:
What decisions must be made in designing an international sales force, and what are the complications that tend to arise?
Q:
A proprietorship is a businessA) with annual sales below $100,000.B) in which the stock of the company is closely held by members of one family. C) which produces a service rather than goods.D) owned by one individual who is responsible legally for the debts of the firm.
Q:
Match each of the following transactions and events to the accounting principle applicable to recording and reporting them.1) An insurance company receives insurance premiums for six future month's worth of coverage.2) Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.3) To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.4) A building is for sale at $480,000. An appraisal is given for $450,000.5) Mayan Imports receives a shipment from Mexico. The invoice is stated in pesos.a. Business entity principleb. Objectivity principlec. Cost principled. Going concern principlee. Monetary unit principlef. Revenue recognition principle
Q:
A foreign managerial posting is becoming increasingly viewed as
A) a negative for advancement.
B) a necessary evil that can't be avoided.
C) an important stepping stone to executive positions.
D) a cherished experience.
E) an experience to be avoided at all costs.
Q:
An indifference curveA) must be convex to the origin. B) must be concave to the origin.C) may be convex or concave to the origin.D) depends on the prices of the products and the consumerʹs income.
Q:
The following is a list of selected users of accounting information. Match the appropriate user to the following information needs.1)Production Managers 2)Lenders 3)Suppliers 4)Employees 5)Shareholders A)Judge the soundness of a customer before making sales on credit.B) Measuring risk and return of loans.C) Assessing the risk and return of acquiring shares.D)Monitor costs and ensure quality.E)Assessing employment opportunities.
Q:
In the past, most chief executives came from one of three backgrounds. What is one of these?
A) accounting
B) information technology
C) law
D) marketing
E) public relations
Q:
Match each of the following terms with the most appropriate definition.1)Risk 2)Liabilities 3)Net income 4)Expenses 5)Managerial accounting 6)Planning 7)Return on assets 8)Financial accounting A) A financial ratio useful in evaluating management, analyzing and forecasting profits, and planning activities.B) Area of accounting aimed at serving external users.C) Costs of assets or services used to earn revenues.D) The uncertainty about the expected return to be earned.E) Creditor's claims on a company's assets.F) Defining the idea, goals, and actions of an organization.G) The excess of revenue over expensesH) Area of accounting aimed at serving the decision making needs of internal users.
Q:
Using the above table, what is the total utility of consuming 2 bottles of soda?A) 115 B) 120 C) 140 D) 240
Q:
What is a trait of people with good cultural skills?
A) They have a clear set of principles and do not tolerate ambiguity.
B) They take pride in their culture and practice cultural ethnocentrism.
C) They monitor the behavior of their employees and judge them accordingly.
D) They convey a sincere interest in people and their culture.
E) They try to propagate their culture and insist that others follow them.
Q:
Generally, expenses on a sport utility vehicle are a large part of a consumerʹs budget, so the demand for sport utility vehicles is more likely to beA) elastic. B) inelastic.C) unit elastic. D) perfectly elastic.