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:
Preferred stock is like long-term debt in that ___________.
A. it gives the holder voting power regarding the firm's management
B. it promises to pay to its holder a fixed stream of income each year
C. the preferred dividend is a tax-deductible expense for the firm
D. in the event of bankruptcy preferred stock has equal status with debt
Q:
Negotiations between the management of a company and the management of a union for the purpose of setting a mutually agreeable contract on wages, fringe benefits and working conditions for all employees in a union is know asA) a closed shop. B) a union shop.C) collective bargaining. D) an industrial union.
Q:
Use the following information to answer the question(s) below.Bower Corporation purchased a 70% interest in Stage Corporation on June 1, 2010 at a purchase price of $350,000. On June 1, 2010, the book values of Stage's assets and liabilities were equal to fair values. On June 1, 2010, Stage's stockholders' equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings. All cost-book differentials were attributed to goodwill.During 2010, Stage earned $120,000 of net income, earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.Preacquisition income for 2010 isA) $50,000.B) $35,000.C) $44,000.D) $36,000.
Q:
What is the marginal revenue product of labor (MRP)? What shape does the MRP curve have?
Why?
Q:
Investors will earn higher rates of returns on TIPS than on equivalent default-risk standard bonds if _______________.
A. inflation is lower than anticipated over the investment period
B. inflation is higher than anticipated over the investment period
C. the U.S. dollar increases in value against the euro
D. the spread between commercial paper and Treasury securities remains low
Q:
Which of the following is NOT an antitrust law?A) The Robinson-Patman Act B) The Smoot-Hawley ActC) The FTC Act D) The Sherman Act
Q:
The Dow Jones Industrial Average is _________.
A. a price-weighted average
B. a value weight and average
C. an equally weighted average
D. an unweighted average
Q:
A subsidiary split its stock 2 for 1. Which of the following statements is false?A) A stock split does not affect the amount of net assets of the subsidiary.B) A stock split does not affect parent and noncontrolling interest ownership percentages.C) A stock split does not affect consolidation procedures.D) A 2 for 1 stock split decreases the number of shares outstanding.
Q:
The price quotations of Treasury bonds in the Wall Street Journal show a bid price of 104.5313 and an ask price of 104.5489. If you sell a Treasury bond, you expect to receive _________.
A. $ 1,000.00
B. $ 1,045.00
C. $ 1,045.31
D. $ 1,045.48
Q:
A market situation in which there are a few large firms is calledA) monopolistic competition. B) imperfect competition.C) oligopoly. D) monopoly.
Q:
If a parent company and outside investors purchase shares of a subsidiary in relation to existing stock ownership (ratably), thenA) there will be an adjustment to additional paid-in capital if the stock is sold above book value.B) there will be no adjustment to additional paid-in capital regardless whether the stock is sold above or below book value.C) there will be an adjustment to additional paid-in capital if the stock is sold below book value.D) there will be the elimination of a gain.
Q:
TIPS are ______.
A. Treasury bonds that pay no interest and are sold at a discount
B. U.K. bonds that protect investors from default risk
C. securities that trade on the Toronto stock index
D. Treasury bonds that protect investors from inflation
Q:
In general, horizontal mergers willA) increase the number of firms in an industry.B) decrease the number of firms in an industry. C) increase competition in an industry.D) reduce economic profits in an industry.
Q:
Consider a sale of stock by a subsidiary to parties outside the consolidated entity. This transaction requires an adjustment of the parent's investment and additional paid-in capital accounts except whenA) the shares are sold below book value per share.B) the shares are sold above book value per share.C) the shares are sold at book value per share.D) All of the above are correct.
Q:
If a Treasury note has a bid price of $996.25, the quoted bid price in the Wall Street Journal would be _________.
A. 99:5/8
B. 99:6/10
C. 99.6250
D. none of the options
Q:
In the short run, a monopolistically competitive firm can earnA) positive profits only. B) zero profits only.C) zero or positive profits only. D) zero, positive or negative profits.
Q:
Use the following information to answer the question(s) below.Great Corporation acquired a 90% interest in SOS Corporation at its $810,000 book value on December 31, 2010. A summary of the stockholders' equity for SOS at the end of 2010 and 2011 is as follows:12/31/10 12/31/11Capital stock, $10 par $600,000 $600,000Additional paid-in capital 30,000 30,000Retained Earnings 270,000 420,000Total stockholders' equity $900,000 $1,050,000On January 1, 2012, SOS sold 10,000 new shares of its $10 par value common stock for $45 per share.If SOS sold the additional shares directly to Great, Great's Investment in SOS account after the sale would beA) $1,350,000.B) $1,395,000.C) $1,425,000.D) $1,500,000.
Q:
An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.4%, respectively. If the investor is in the 15% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
A. 5% and 6.4%
B. 5% and 5.44%
C. 4.25% and 6.4%
D. 5.75% and 5.44%
Q:
A monopolist who is maximizing profits produces to the point at whichA) marginal cost and average total cost are equal.B) price, marginal cost and average variable cost are equal.C) price is greater than marginal cost.D) price is greater than average total cost.
Q:
Currently, the Dow Jones Industrial Average is computed by _________.
A. adding the prices of 30 large "blue-chip" stocks and dividing by 30
B. calculating the total market value of the 30 firms in the index and dividing by 30
C. measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day
D. adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends
Q:
Explain what happens to the long-run supply curve of an industry when firm entry raises the price of inputs used in the industry.
Q:
Use the following information to answer the question(s) below.Goldberg Corporation owned a 70% interest in Savannah Corporation on December 31, 2010, and Goldberg's Investment in Savannah account had a balance of $3,900,000. Savannah's stockholders' equity on this date was as follows:Capital stock, $10 par value $3,000,000Retained Earnings 2,400,000Total Stockholders' Equity $5,400,000On January 1, 2011, Savannah issues 80,000 new shares of common stock to Goldberg for $16 each.On January 1, 2011, assume the fair values of Savannah's identifiable assets and liabilities equal book values. What is the change in the amount of goodwill associated with the issuance of 80,000 additional shares to Goldberg? (Use four decimal places.)A) Increase goodwill $38,176.B) Decrease goodwill $38,176.C) Increase goodwill $384,000.D) Decrease goodwill $384,000.
Q:
A firm that has large securities holdings and wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following?
A. reverse repurchase agreement
B. bankers' acceptance
C. commercial paper
D. repurchase agreement
Q:
If a firm is producing an output rate at which marginal cost is greater than price, the firm A) is sustaining economic loss. B) should increase its output level. C) should reduce its output level. D) will not be covering its fixed cost.
Q:
The interest rate charged by large banks in London to lend money among themselves is called _________.
A. the prime rate
B. the discount rate
C. the federal funds rate
D. LIBOR
Q:
Utah Company holds 80% of the stock of a subsidiary company. The subsidiary issues 100 additional shares of stock to Utah Company at a price above book value per share. The subsidiary does not issue any additional shares at the same time. How will Utah Company record the purchase?A) Utah Company records a gain on sale of stock.B) Utah Company increases additional paid-in capital.C) Utah Company decreases additional paid-in capital.D) Utah Company assigns any excess cost over book value acquired to increase undervalued identifiable assets or goodwill as appropriate.
Q:
Using the above table, the TC, the AFC, and the TVC when output is 2 units areA) $20, $2.50, and $15, respectively. B) $35, $2.50, and $30, respectively. C) $30, $2.50, and $40, respectively. D) $35, $2.50, and $20, respectively.
Q:
Which of the following indexes are market value-weighted?
I. The NYSE Composite
II. The S&P 500
III.The Wilshire 5000
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III
Q:
Jersey Company acquired 90% of York Company on April 1, 2011. Both Jersey Company and York Company have December 31 fiscal year ends. Under current GAAP, which of the following statements is false?A) The consolidated income statement in 2011 should not include York's revenues and expenses prior to April 1, 2011.B) When preparing consolidating work papers in 2011, York's revenues prior to April 1, 2011 are eliminated.C) York's earnings prior to April 1, 2011 should appear as a deduction on the consolidated income statement in 2011.D) The consolidated income statement in 2011 should include York's revenues and expenses after April 1, 2011.
Q:
How can one ʺbeat the market?ʺ
Q:
Which one of the following provides the best example of securitization?
A. convertible bond
B. call option
C. mortgage pass-through security
D. preferred stock
Q:
Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly); no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000.If Bird uses the "actual-sale-date" sales assumption, its gain on the sale and income from Brush for 2011 will beA) Gain on SaleIncome from Brush$5,700$59,400B)Gain on SaleIncome from Brush$5,700$62,700C)Gain on SaleIncome from Brush$21,360$59,400D)Gain on SaleIncome from Brush$21,360$62,700
Q:
In a partnership,
A) each partnerʹs liability is limited to their investment in the company.
B) profits are taxed at both the corporate rate and the personal income tax rate.
C) upon the death of a partner it may be necessary to sell the business.
D) there is a separation of ownership and management like in a corporation.
Q:
A __________ gives its holder the right to buy an asset for a specified exercise price on or before a specified expiration date.
A. call option
B. futures contract
C. put option
D. interest rate swap
Q:
Refer to the above figure. Which point(s) represents the lowest level of utility?A) Points A & C B) Point B C) Point C only D) Point D
Q:
Use the following information to answer the question(s) below.Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly); no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000.If Bird uses a "beginning-of-the-year" sale assumption, its gain on sale and income from Brush for 2011 will beA)Gain on SaleIncome from Brush$5,700$59,400B)Gain on SaleIncome from Brush$5,700$62,700C)Gain on SaleIncome from Brush$9,000$59,40D)Gain on SaleIncome from Brush$9,000$62,70
Q:
The U.K. stock index is the _________.
A. DAX
B. FTSE
C. GSE
D. TSE
Q:
QuantityPer WeekTotal UtilityAmyRobertDavidMichelle0000015.01006006029.91901200130314.72701800220419.43402400310524.04003000425628.54503600575732.94904200900837.252048001275941.451054001770Refer to the above table. Robertʹs utility schedule showsA) diminishing marginal utility throughout the entire schedule.B) initially increasing marginal utility and then decreasing marginal utility.C) initially decreasing marginal utility and then increasing marginal utility. D) increasing marginal utility throughout the entire schedule.
Q:
An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The investor's bond equivalent yield on this investment is
_____.
A. 4.8%
B. 4.97%
C. 5.47%
D. 5.74%
Q:
The cross elasticity of demand isA) the percentage change in the demand divided by the percentage change in price of another good.B) the change in the price of one good divided by the change of quantity demanded of another good.C) the percentage change in the quantity demanded of one good divided by the percentage change in the quantity demanded of another good.D) the percentage change in the price of one good divided by the percentage change in the price of another good.
Q:
__________ is not a money market instrument.
A. A certificate of deposit
B. A Treasury bill
C. A Treasury bond
D. Commercial paper
Q:
Pass Corporation owns 80% of Sindy Company, purchased at the underlying book value on January 1, 2010. On January 1, 2010, Pass also purchased $200,000 par value 6% bonds that had been issued by Sindy on January 1, 2007 with a ten-year maturity(due January 1, 2017). Annual interest is paid on December 31. Straight-line amortization is used by both companies.At year-end 2010, the following entry was made on the consolidating worksheet.Bonds Payable $200,000Bond Premium 12,000Loss on Bond Retirement 7,000Interest Income (a)Investment in Sindy Bonds $218,000Interest Expense (b)Required:How much did Pass pay for the bonds?What is the book value of the bonds on the date of purchase?What amount of interest income and interest expense must be eliminated in the entry above designated as (a) and (b)?
Q:
A value of the absolute price elasticity of demand equal to 0.6 indicates thatA) a 6 percent increase in price leads to a 10 percent decrease in quantity demanded.B) a 10 percent increase in price leads to a 6 percent decrease in quantity demanded. C) a 0.6 percent increase in price leads to a 1 percent decrease in quantity demanded. D) a 1 percent increase in price leads to a 6 percent decrease in quantity demanded.
Q:
The yield on tax-exempt bonds is ______.
A. usually less than 50% of the yield on taxable bonds
B. normally about 90% of the yield on taxable bonds
C. greater than the yield on taxable bonds
D. less than the yield on taxable bonds
Q:
The level of pollution at which the marginal benefits equal the marginal cost of cleaning up is alwaysA) the zero pollution level. B) the optimal quantity of pollution. C) the pollution maximum. D) the pollution minimum.
Q:
Q:
Which one of the following is a true statement regarding corporate bonds?
A. A corporate callable bond gives its holder the right to exchange it for a specified number of the company's common shares.
B. A corporate debenture is a secured bond.
C. A corporate convertible bond gives its holder the right to exchange it for a specified number of the company's common shares.
D. Holders of corporate bonds have voting rights in the company.
Q:
Q:
Which of the following is NOT a program designed to attack poverty?A) Supplementary Security Income B) food stampsC) Social Security D) federal corporate income tax
Q:
A T-bill quote sheet has 90-day T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has a $10,000 face value, an investor could buy this bill for
_____.
A. $10,000
B. $9,878.50
C. $9,877
D. $9,880.16
Q:
Q:
Quantity of LaborHourly Wage RateTotal Marginal Wage Bill Factor Cost0-- -1$10 212 314 416 518 620 In the above table, if the marginal revenue product is $18, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?A) 5; $18 B) 3; $14 C) 3; $18 D) 4; $16
Q:
A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.
A. call option
B. futures contract
C. put option
D. interest rate swap
Q:
A labor union is likely to seek all of the following EXCEPT A) economic improvements for their members.B) safer working conditions.C) increased competitiveness in the labor market.D) increased job security for its members.
Q:
A bond that has no collateral is called a _________.
A. callable bond
B. debenture
C. junk bond
D. mortgage
Q:
Q:
Parkview Holdings owns 70% of Skyline Corporation. On January 1, 2011, Skyline acquires half of the $2,000,000 of bonds originally issued by Parkview on January 1, 2006. The bonds were issued at a stated rate of 5% for 10 years, for $1,920,000. Skyline purchased them for $950,000. Assume that both Parkview and Skyline will use the straight-line method for any bond-related amortization. Annual interest is paid on December 31.Required: Prepare the entries required for the consolidating worksheet for the years ended December 31, 2006 through December 31, 2016.
Q:
ʺA firm should continue to hire more workers as long as wages are low.ʺ Do you agree or disagree? Why?
Q:
Which of the following are true statements about T-bills?
I. T-bills typically sell in denominations of $10,000.
II. Income earned on T-bills is exempt from all federal taxes.
III. Income earned on T-bills is exempt from state and local taxes.
A. I only
B. I and II only
C. I and III only
D. I, II, and III
Q:
Treasury bills are financial instruments issued by __________ to raise funds.
A. commercial banks
B. the federal government
C. large corporations
D. state and city governments
Q:
Q:
The first major law created to control the growth of monopoly power was theA) Sherman Act. B) Clayton Act.C) FTC Act. D) Robinson-Patman Act.
Q:
Q:
Which one of the following is a true statement regarding the Dow Jones Industrial Average?
A. It is a value-weighted average of 30 large industrial stocks.
B. It is a price-weighted average of 30 large industrial stocks.
C. It is a price-weighted average of 100 large stocks traded on the New York Stock Exchange.
D. It is a value-weighted average of all stocks traded on the New York Stock Exchange.
Q:
According to the textbook, what is the reason for the success of Appleʹs strategy of opting for product incompatibility for its iPod but the failure of Sonyʹs same strategy for its Beta videocassettes?
Q:
Which of the following combinations would constitute a vertical merger?
A) General Motors and Bridgestone Tire Company
B) General Motors and Ford Motor Company
C) Philip Morris and RJ Reynolds
D) Philip Morris and Barnes & Nobles Booksellers
Q:
The maximum maturity on commercial paper is _____.
A. 270 days
B. 180 days
C. 90 days
D. 30 days
Q:
Pachelor Corporation owns 70% of the outstanding stock of Stabb Company. On January 1, 2010, Stabb issued $1,000,000 in 7% bonds that matured on January 1, 2015. At the time of issuance, the bonds were sold at a discount of $125,000. At January 2, 2012, Pachelor purchased the bonds for $1,400,000, and constructively retired the debt. Interest is paid annually on January 1. Straight-line amortization is used by both companies.Required:Calculate the gain or loss that the consolidated entity incurred to retire the debt.Prepare eliminating/adjusting entries for the consolidating work papers for the year ended December 31, 2012.
Q:
Commercial paper is a short-term security issued by __________ to raise funds.
A. the Federal Reserve
B. the New York Stock Exchange
C. large well-known companies
D. all of these options
Q:
Why do firms in a monopolistically competitive industry advertise?
Q:
Q:
Which of the following is not a nickname for an agency associated with the mortgage markets?
A. Fannie Mae
B. Freddie Mac
C. Sallie Mae
D. Ginnie Mae
Q:
A monopolist finds the output (Q*) rate that maximizes profit. It finds the price byA) taking the height of the marginal revenue curve at output rate Q*. B) taking the height of the marginal cost curve at output rate Q*.C) taking the height of the demand curve at output rate Q*.D) setting price equal to marginal cost.
Q:
Q:
An individual who goes short in a futures position _____.
A. commits to delivering the underlying commodity at contract maturity
B. commits to purchasing the underlying commodity at contract maturity
C. has the right to deliver the underlying commodity at contract maturity
D. has the right to purchase the underlying commodity at contract maturity
Q:
Popcorn Corporation owns 90% of the outstanding voting common stock of Salty Corporation. On January 1, 2005, Salty issued $1,000,000 face amount of 12%, $1,000 bonds payable at 119.20. The bonds pay interest on January 1 and July 1 of each year and mature on January 1, 2013. On July 2, 2010, Popcorn purchased all of the outstanding bonds at a price of 107.50. Both companies use straight-line amortization.Required:Prepare the journal entries for July 1, 2010 through December 31, 2010 for Popcorn Corporation.Prepare the journal entries for July 1, 2010 through December 31, 2010 for Salty Corporation.Prepare the elimination entries necessary on the consolidating working papers for the year ended December 31, 2010.
Q:
What determines whether the industry long-run supply curve is upward sloping or horizontal?
Q:
Q:
When price is greater than both marginal cost and average variable cost, the perfectly competitive firmA) is maximizing economic profit. B) should increase its level of output. C) should reduce its level of output. D) should stop production.
Q: