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:
A concentration ratio givesA) the average size of the firms in an industry.B) the total sales of four or eight of the mid-sized firms in the industry.C) the percentage of all sales contributed by the four or eight largest firms in the industry.D) the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry.
Q:
Jeale Corporation is preparing its interim financial statements for the third quarter of calendar 2011. The following information was provided for the preparation of the statements:Credit sales for the quarter $1,700,000Cash sales for the quarter 800,000Inventories, July 1 (FIFO cost method) 250,000Cash purchases of inventory during the quarter 400,000Inventory purchases made on account for the quarter 650,000Estimated cost of goods sold ratio 45%Selling and general administrative expenses paid 111,000Effective corporate tax rate 28%Loss on sale of securities sold on June 30, 2011 75,000Annual insurance premiums paid on August 1(the 84,000 anniversary date of the policy) (Last year's insurance expense is included in general administrative expenses.)Additional information:At the end of the year, Jeale accrues its annual pension and depreciation expenses which amount to $60,000 and $42,000, respectively.Required:Prepare Jeale's interim income statement for the third quarter of calendar 2011.
Q:
At its profit-maximizing output, the firm in the above figure incurs a total cost of production ofA) $7,000. B) $9,000. C) $6,300. D) $3,900.
Q:
Illiana Corporation has several accounting issues with respect to its interim financial statements for the first quarter of calendar 2011.Required:For each of the independent situations given below, state whether or not the method proposed by Illiana is acceptable. Justify each answer with appropriate reasoning.1. Illiana will not perform a physical inventory at the end of the calendar quarter. It intends to estimate the cost of sales by using the gross profit inventory method.2. Illiana grants volume discounts to its customers based upon their total annual purchases. The discounts are calculated on a sliding scale ranging from 1% to 8%. The amount of discount applied will progressively increase for a customer as the cumulative purchase total for the customer increases during the year. Illiana will use the average rate of discounts earned for each customer in the prior year as the expected discount rate for the current year.3. At the beginning of the current quarter, Illiana incurred a large loss on the sale of some of its marketable securities. It intends to distribute the loss evenly to each of the four calendar quarters.4. Illiana incurs maintenance costs during its year-end holiday shut down, but has minimal maintenance costs during the rest of the year. It intends to deduct one-fourth of the yearly estimated cost on its interim income statement.
Q:
The point of profit maximization for a monopolist is exemplified byA) TR = TC. B) MR = MC. C) ATCmin. D) MR > MC.
Q:
The following data relate to Elle Corporation's industry segments. (Elle HQ represents the corporate headquarters). All other segments are geographical sales segments.Attribute Europe Russia China Japan Elle HQExternal sales $35,000 $24,000 $33,000 $0 $0IntersegmentSales 2,000 1,000 4,000 0 0Expenses 27,000 18,000 29,000 5,000 12,000Assets assigned 20,000 22,000 30,000 14,000 15,000Income fromEquity investee 5,000Required:1. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are not allocated to the operating segments.2. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are allocated evenly among the operating segments.
Q:
Which of the following is NOT a characteristic of a perfectly competitive long -run equilibrium?
A) Firms are earning zero profits.
B) Price equals marginal cost.
C) Price equals long-run minimum average cost.
D) Firms are producing on the downward sloping portions of their short -run average cost curves.
Q:
The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 20%. If the standard deviation on the complete portfolio is 25%, the expected return on the complete portfolio is _________.
A. 6%
B. 8.75 %
C. 10%
D. 16.25%
Q:
For a perfect competitor, marginal revenue equalsA) the slope of the demand curve. B) average revenue divided by price. C) price divided by average revenue. D) the market price.
Q:
What will be the minimum number of segments that must be reported?Answer:Requirement 1The reporting segments will be those segments whose segment revenue is 10% or more of the combined revenues of all operating segments. The total combined revenue of the operating segments is $149,500,000 and 10% of that number is $14,950,000. Only Canada and the United States will satisfy the 10% revenue test.Requirement 2The appropriate test value is the "75% of consolidated revenues" test which is $112,125,000 ($149,500,000 75%).Requirement 3Canada and the United States have combined revenues that total $98,000,000. The next largest segment in revenues is Other European at $14,000,000 which would get the total revenues to $112,000,000. Falcon would have to report one additional segment, European Union, to meet the 75% test for revenue.7) For internal decision-making purposes, Geogh Corporation identifies its industry segments by geographical area. For 2011, the total revenues of each segment are provided below. There are no intersegment revenues.TotalRevenuesCanada $980,000United States 1,410,000Mexico 1,260,000South America 430,000China 710,000Russia 660,000Australia 370,000European Union 1,220,000Other European 1,650,000Total revenues $8,690,000Required:1. Which operating segments will be considered reporting segments based on the revenue test?2. What is the test value for determining whether a sufficient number of segments are reported?3. What will be the minimum number of segments that must be reported?
Q:
You have $500,000 available to invest. The risk-free rate, as well as your borrowing rate, is 8%. The return on the risky portfolio is 16%. If you wish to earn a 22% return, you should _________.
A. invest $125,000 in the risk-free asset
B. invest $375,000 in the risk-free asset
C. borrow $125,000
D. borrow $375,000
Q:
For internal decision-making purposes, Falcon Corporation identifies its industry segments by geographical area. For 2011, the total revenues of each segment are provided below. There are no intersegment revenues.TotalRevenuesCanada $22,000,000United States 76,000,000Mexico 10,000,000South America 9,000,000China 2,000,000Russia 1,500,000Australia 3,000,000European Union 12,000,000Other European 14,000,000Total revenues $149,500,000Required:1. Which operating segments will be considered reporting segments based on the revenue test?2. What is the test value for determining whether a sufficient number of segments are reported?3. What will be the minimum number of segments that must be reported?
Q:
OutputFixed CostsVariable CostsTotal CostsAverage Total CostsAverage Marginal Variable Costs Costs0 $0$100 1 30 2 50 3 60 4 120 5 200 In the above table, what is the average total cost to produce 4 units of output?A) $30 B) $60 C) $55 D) $20
Q:
You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. The slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately _________.A. 1.040 B. .80 C. .50D. .25
Q:
The following data relate to Falcon Corporation's industry segments:Sales toExternal IntersegmentIndustry Segment Customers Sales AssetsOil Exploration $80,000 $$310,000Refinery 240,000 720,000Plastics 20,000 $20,000 120,000Chemicals 220,000 160,000 980,000Solar Power 20,000 75,000 270,000Totals $580,000 $255,000 $$2,400,000Required:1. Which of Falcon's operating segments would be considered reporting segments under the "revenue" test?2. Which of Falcon's operating segments would be considered reporting segments under the "asset" test?
Q:
Mr. Jamesʹ company produces candy bars. Which is NOT a variable input for this firm?A) Sugar B) Assembly line workersC) The big chocolate-stirring machines D) Packaging materials
Q:
The amount that must be paid to an individual to get them to invest in the industry isA) a normal rate of return. B) the explicit costs. C) reinvestment. D) financial capital.
Q:
For internal decision-making purposes, Elom Corporation's operating segments have been identified as follows:OperatingProfit IdentifiableOperating Segment Revenues or Loss AssetsAppliances $110,000 $(15,000) $120,000Lawn and Garden 85,000 15,000 15,000Auto Accessories 100,000 10,000 20,000Service Contracts 65,000 (5,000) 10,000Catalog Sales 230,000 5,000 50,000Corporate ________ ________ 25,000$590,000 $10,000 $240,000Corporate assets are typically allocated back evenly to the segments for internal analysis purposes.Required:1. In applying the "asset" test to identify reporting segments, what is the test value for Elom Corporation?2. Using the "asset" test, which of Elom's operating segments will also be reporting segments?
Q:
Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?Answer:Requirement 1In the revenue test, there is no separation of revenue earned from sales to other segments, thus the test value to be used is 10% of the total revenues listed, or $12,400,000 10% = $1,240,000.Requirement 2Reportable segments are Clothing, Catalog Sales, Home Furnishings and Tools. The revenue from these four segments does not exceed 75% of consolidated revenue of $11,800,000, which equals $8,850,000. As a result, another operating segment, Appliances, must be reportable.3) For internal decision-making purposes, Calam Corporation's operating segments have been identified as follows:OperatingProfit IdentifiableOperating Segment Revenues or Loss AssetsAppliances $110,000 $(15,000) $120,000Clothing 130,000 (75,000) 40,000Lawn and Garden 85,000 15,000 15,000Auto Accessories 100,000 10,000 20,000Service Contracts 65,000 (5,000) 10,000Catalog Sales 230,000 5,000 50,000Home Furnishings 280,000 25,000 100,000Tools 240,000 30,000 25,000$1,240,000 (10,000) $380,000Required:1. In applying the "operating profit or loss" test to identify reporting segments, what is the test value for Calam Corporation?2. Using the "reported profit or loss" test, which of Calam's operating segments will also be reporting segments?
Q:
All possible combinations of goods that can be purchased at fixed prices with a specific income isA) a marginal utility curve. B) a total utility curve. C) an indifference curve. D) a budget constraint.
Q:
For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:Revenues Operating(includes Profit IdentifiableOperating Segment intersegment or Loss Assetsrevenues)Appliances $1,100,000 $(150,000) $1,200,000Clothing 1,300,000 (750,000) 400,000Lawn and Garden 850,000 150,000 150,000Auto Accessories 1,000,000 100,000 200,000Service Contracts 650,000 (50,000) 100,000Catalog Sales 2,300,000 50,000 500,000Home Furnishings 2,800,000 250,000 1,000,000Tools 2,400,000 300,000 250,000$12,400,000 $(100,000) $3,800,000Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.Required:1. In applying the "revenue" test to identify reporting segments, what is the test value for Dashwood Corporation?2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?
Q:
Which of the following statements is true with respect to total utility and marginal utility?A) Marginal utility always rises as total utility increases. B) Marginal utility can decline as total utility rises.C) Total utility is not related to marginal utility.D) Total utility can decline while marginal utility rises.
Q:
Consider the following two investment alternatives: First, a risky portfolio that pays a 20% rate of return with a probability of 60% or a 5% rate of return with a probability of 40%. Second, a Treasury bill that pays 6%. If you invest $50,000 in the risky portfolio, your expected profit would be
_________.
A. $3,000
B. $7,000
C. $7,500
D. $10,000
Q:
The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:Electronics $1,760,000Hardware 3,420,000Plumbing 490,000Total $5,670,000The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments.Required:1. What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?2. Which of the operating segments are considered reporting segments?
Q:
The cross price elasticity between X and Y is -1.8. We can conclude thatA) goods X and Y are substitutes. B) goods X and Y are complements.C) goods X and Y are unrelated. D) perfect substitutes
Q:
On January 5, 2011, Eagle Corporation paid $50,000 in real estate taxes for the calendar year. In March of 2011, Eagle paid $180,000 for an annual machinery overhaul and $10,000 for the annual CPA audit fee. What amount was expensed for these items on Eagle's quarterly interim financial statements?A)Quarter 1Quarter 2Quarter 3Quarter 4$202,500$12,500$12,500$12,500B)Quarter 1Quarter 2Quarter 3Quarter 4$195,000$15,000$15,000$15,000C)Quarter 1Quarter 2Quarter 3Quarter 4$67,500$57,500$57,500$57,500D)Quarter 1Quarter 2Quarter 3Quarter 4$60,000$60,000$60,000$60,000
Q:
The holding-period return on a stock was 32%. Its beginning price was $25, and its cash dividend was $1.50. Its ending price must have been
_________.
A. $28.50
B. $33.20
C. $31.50
D. $29.75
Q:
PricePer Unit Quantity DemandedPer Week$10.00259.50309.00358.50408.00457.50507.00556.50606.00655.50705.0075Refer to the above table. What is the absolute price elasticity of demand when a price rises from $8 to $8.50?A) 5.15 B) 1.94 C) 0.515 D) 0.194
Q:
The estimated taxable income for Shebill Corporation on January 1, 2011, was $80,000, $100,000, $100,000, and $120,000, respectively, for each of the four quarters of 2011. Shebill's estimated annual effective tax rate was 30%. During the second quarter of 2011, the estimated annual effective tax rate was increased to 34%. Given only this information, Shebill's second quarter income tax expense wasA) $30,000.B) $34,000.C) $37,200.D) $61,200.
Q:
An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are __________ and __________ respectively.
A. 10%; 6.7%
B. 12%; 22.4%
C. 12%; 15.7%
D. 10%; 35%
Q:
The exclusive rights of ownership that allow the use, transfer, and exchange of property are calledA) common property rights. B) private property rights. C) externalities. D) social benefits.
Q:
Sandpiper Corporation paid $120,000 for annual property taxes on January 15, 2011, and $20,000 for building repair costs on March 10, 2011. Total repair expenses for the year were estimated to be $200,000, and are normally accrued during the year until incurred. What total amount of expense for these items was reported in Sandpiper's first quarter 2011 interim income statement?A) $ 50,000B) $ 80,000C) $100,000D) $140,000
Q:
The holding-period return on a stock was 25%. Its ending price was $18, and its beginning price was $16. Its cash dividend must have been
_________.
A. $.25
B. $1
C. $2
D. $4
Q:
A problem with third-party financing of so much of health care is that
A) it reduces the quality of health care received by most people.
B) it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed.
C) it causes the demand for medical services to increase, which causes health care costs to increase.
D) it discourages people from relying on the judgments of physicians in making decisions about health care.
Q:
In general, GAAP encourages the identification of reportable segments based on the following:A) Reported segments must account for at least 75% of all external and inter-segment sales.B) Reported segments must ideally account for at least 75% of all sales, unless there are many smaller divisions and separate reporting would create less clarity in reporting.C) If there are more than 10 reportable segments, the company should consider additional aggregation of their segments.D) Reported segments must account for 100% of the external sales, but only 75% of external and inter-segment sales.
Q:
Use the above table. If the marginal revenue product is $30, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?A) 1; $10 B) 2; $15 C) 3; $20 D) 4; $25
Q:
How does GAAP view interim accounting periods?A) As discrete units for which net income may be separately determinedB) As integral units of the entire year for which each interim period is an essential part of an annual periodC) As integral units of the entire year with each interim period as an independent accounting periodD) As discrete units of the entire year using the same principles that are applied to the annual period
Q:
Jacana Company uses the LIFO inventory method. During the second quarter, Jacana experienced a 100-unit liquidation in its LIFO inventory at a LIFO cost of $430 per unit. Jacana considered the liquidation temporary and expects to replace the units in the third quarter at an estimated replacement cost of $460 a unit. The cost of goods sold computation in the interim report for the second quarter willA) include the 100 liquidated units at the $460 estimated replacement unit cost.B) include the 100 liquidated units at the $430 LIFO unit cost.C) be understated by $3,000.D) be overstated by $3,000.
Q:
The following table is provided in the disclosures for interim reporting by Bigg Company, regarding the location of their assets.United States$1,860,000Mexico1,270,000Canada880,000Brazil440,000Other50,000Based on the table, which of the following statements is true?A) Only the U.S. and Mexico divisions would be reportable geographic divisions.B) The U.S., Mexico and Canada divisions would be reportable geographic divisions.C) All geographic divisions would be reportable, except for "other."D) All geographic divisions would be reportable.
Q:
The United Auto Worker (UAW) would best be classified asA) a craft union.B) an industrial union. C) a guild.D) closed shop union. E) none of the above
Q:
What is the purpose of interim reporting?A) Provide shareholders with more timely informationB) Provide shareholders with more accurate informationC) Provide shareholders with more extensive detail about specific accounts and transactionsD) Provide shareholders with more current audited information
Q:
Aluminum cannot be produced without bauxite. Hence, the price elasticity of demand for bauxite by aluminum manufacturers will beA) perfectly elastic. B) elastic.C) inelastic. D) unitary elastic.
Q:
Security A has a higher standard deviation of returns than security B. We would expect that:
I. Security A would have a higher risk premium than security B.
II. The likely range of returns for security A in any given year would be higher than the likely range of returns for security B.
III. The Sharpe ratio of A will be higher than the Sharpe ratio of B.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
Q:
Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals?A) AssetsB) LiabilitiesC) RevenuesD) Profit or loss
Q:
All of the following are exempt from antitrust laws EXCEPTA) labor unions. B) professional baseball.C) oil companies. D) public utilities.
Q:
You purchased a share of stock for $29. One year later you received $2.25 as dividend and sold the share for $28. Your holding-period return was _________.
A. -3.57%
B. -3.45%
C. 4.31%
D. 8.03%
Q:
Product differentiation always exists inA) perfect competition. B) monopolistic competition.C) oligopoly. D) monopoly.
Q:
Which one of the following operating segment disclosures is not required by GAAP?A) Total AssetsB) EquityC) Intersegment salesD) Extraordinary items
Q:
Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security A: E(r) = .15; variance = .0400
Security B: E(r) = .10; variance = .0225 Security C: E(r) = .12; variance = .1000 Security D: E(r) = .13; variance = .0625
The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. The security the investor should choose as part of her complete portfolio to achieve the best CAL would be _________.
A. security A
B. security B
C. security C
D. security D
Q:
Dott Corporation experienced a $100,000 extraordinary loss in the second quarter of 2011 in their East Coast operating segment. The loss should be recognizedA) only at the consolidated report level at the end of the year.B) entirely in the second quarter of 2011 in the East Coast operating segment.C) in equal amounts allocated to the remaining three quarters of 2011 at the corporate level.D) in equal amounts allocated to the remaining three quarters of 2011 of the East Coast segment.
Q:
As the definition of products narrows (i.e., becomes more specific), the concentration ratioA) is not valid.B) tends to decrease.C) tends to increase.D) does not change in any predictable manner.
Q:
A portfolio with a 25% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe ratio of
____.
A. .22
B. .60
C. 42
D. .25
Q:
An enterprise has eight reporting segments. Five segments show an operating profit and three segments show an operating loss. In determining which segments are classified as reporting segments under the operating profits test, which of the following statements is correct?A) The test value for all segments is 10% of consolidated net profit.B) The test value for profitable segments is 10% or more of those segments reporting a profit, and the test value for loss segments is 10% or more of those segments reporting a loss.C) The test value for loss segments is 10% of the greater of (a) the absolute value of the sum of those segments reporting losses, or (b) 10% of consolidated net profit.D) The test value for all segments is 10% of the greater of (a) the absolute value of the sum of those segments reporting profits, or (b) the absolute value of the sum of those segments reporting losses.
Q:
In the above figure, when this monopolistically competitive firm produces its profit-maximizing output, it sets a per-unit price ofA) $13. B) $11. C) $10. D) $8.
Q:
The formula is used to calculate the _____________.A. Sharpe ratioB. Treynor measureC. coefficient of variationD. real rate of return
Q:
For an operating segment to be considered a reporting segment under the revenue threshold, its reported revenue must be 10% or more ofA) the combined enterprise revenues, eliminating all relevant intracompany transfers and balances.B) the combined revenues, excluding intersegment revenues, of all operating segments.C) the combined revenues, including intersegment revenues, of all operating segments.D) the consolidated revenue of all operating segments.
Q:
A firm that can determine the price-output combination in order to maximize profit is known as aA) price searcher. B) price taker. C) demand searcher. D) cost taker.
Q:
Historically, the best asset for the long-term investor wanting to fend off the threats of inflation and taxes while making his money grow has been____.A. stocksB. bondsC. money market fundsD. Treasury bills
Q:
Which of the following is not a quantitative threshold for determining a reportable segment?A) Segment assets are 10% or more of the combined assets of all operating segments.B) The absolute value of a segment's profit or loss is 10% or more of the greater of (1) the combined reported profit of all operating segments that reported a profit or (2) the absolute value of the combined reported loss of all operating segments that reported a loss.C) Segment reported revenue, including intersegment revenues, is 10% or more of the combined revenue (both internal and external) of all operating segments.D) Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.
Q:
Price equals the minimum of long-run average costA) in a long-run equilibrium.B) in a short-run equilibrium as well as in a long-run equilibrium. C) whenever average revenue equals marginal cost.D) along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.
Q:
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: Asset A E(rA) = 10% σA = 20%
Asset B E(rB) = 15% σB = 27%
An investor with a risk aversion of A = 3 would find that _________________ on a risk-return basis.
A. only asset A is acceptable
B. only asset B is acceptable
C. neither asset A nor asset B is acceptable
D. both asset A and asset B are acceptable
Q:
The change in total revenues resulting from a change in output of one unit isA) average revenue. B) marginal revenue.C) quantity revenue. D) price revenue.
Q:
Most studies indicate that investors' risk aversion is in the range _____.
A. 1-3
B. 1.5-4
C. 3-5.2
D. 4-6
Q:
Cole Company has the following 2011 financial data:Consolidated revenue per income statement $800,000Intersegment sales 200,000Intersegment transfers 100,000Combined revenues of all segments $1,100,000Cole Company should add segments ifA) the sum of its segments' external revenue does not exceed $600,000.B) the sum of its segments' external revenue does not exceed $825,000.C) the sum of its segments' revenue including intersegment revenue does not exceed $600,000.D) the sum of its segments' revenue including intersegment revenue does not exceed $825,000.
Q:
OutputFixed CostsVariable CostsTotal CostsAverage Total CostsAverage Marginal Variable Costs Costs0 $0$100 1 30 2 50 3 60 4 120 5 200 In the above table, what is the average variable cost to produce 2 units of output?A) $30 B) $60 C) $55 D) $20
Q:
In the mean standard deviation graph, the line that connects the risk-free rate and the optimal risky portfolio, P, is called the _________.
A. capital allocation line
B. indifference curve
C. investor's utility line
D. security market line
Q:
What is the threshold for reporting a major customer?A) 5 percent of revenuesB) 5 percent of profitsC) 10 percent of revenuesD) 10 percent of profits
Q:
GAAP requires disclosures for each reportable operating segment for each of the following, except forA) Revenues.B) Depreciation expense.C) R&D expenditures.D) Extraordinary items.
Q:
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least ______.
A. 8.67%
B. 9.84%
C. 21.28%
D. 14.68%
Q:
Which of the following would be a fixed input for an amusement park?A) Ticket takers B) Unpopped popcornC) Concession workers D) The roller coaster
Q:
One method of forecasting the risk premium is to use the _______.
A. coefficient of variation of analysts' earnings forecasts
B. variations in the risk-free rate over time
C. average historical excess returns for the asset under consideration
D. average abnormal return on the index portfolio
Q:
GAAP requires that segment information be reportedA) by geographics, without regard to size of the segment.B) by geographics, without regard to industry or product-line.C) however management organizes the enterprise into units for internal decision-making and performance-evaluation purposes.D) by industry or product-line, without regard to geographics.
Q:
Normal rate of return is A) accounting profit. B) an explicit cost.C) economic profit.D) the amount that must be paid to obtain investment in a business.
Q:
If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next year to be 3%, what is the lowest nominal return that you would be satisfied with?
A. 3%
B. 8%
C. 11%
D. 11.24%
Q:
Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?A) They have similar amounts of intersegment revenues or expenses.B) They have a similar distribution method for products.C) They have similar production processes.D) They have similar products or services.
Q:
The budget constraint shows theA) combinations of goods that generate the same amount of total satisfaction.B) possible combinations of goods that can be purchased with a specified income.C) changes in consumption of goods that a consumer makes when his income increases.D) amount of a good the consumer will buy at various prices.
Q:
1) Similar operating segments may be combined if the segments have similar economic characteristics. Which one of the following is a similar economic characteristic under GAAP?A) The segments' management teamsB) The tax reporting law sectionsC) The distribution method for products or servicesD) The expected rates of return and risk for the segments' productive assets
Q:
If you are promised a nominal return of 12% on a 1-year investment, and you expect the rate of inflation to be 3%, what real rate do you expect to earn?
A. 5.48%
B. 8.74%
C. 9%
D. 12%
Q:
Diminishing marginal utility means that as more of a good is consumed, A) the rate at which total utility increases starts to diminish.B) the rate at which total utility increases stays the same.C) the rate at which total utility increases starts to increase.D) there is no impact on the rate of change of total utility.
Q:
Suppose the price of X increases by 20 percent while the quantity demanded of Y does not change. We would conclude thatA) the two goods are substitutes, but the cross elasticity of demand is not large.B) the two goods are complements, but the cross elasticity of demand is not large.C) the two goods are perfect substitutes. D) the two goods are not related.