Q&A Hero

Q: FirmAnnual SalesFirmAnnual SalesA$1000G$800B900H1200C120I1050D75J90E50K75F40L600According to the above table, the four-firm concentration ratio of this industry isA) 69.2 percent. B) 35.1 percent. C) 66.7 percent. D) 67.5 percent.

Q: The CAL provided by combinations of 1-month T-bills and a broad index of common stocks is called the ______. A. SML B. CAPM C. CML D. total return line

Q: (p. $$pageTag$$) A loan for a new car costs the borrower .8% per month. What is the EAR? A. .80% B. 6.87% C. 9.6% D. 10.03%

Q: In the above figure, this profit-maximizing monopolistic competitive firm will realize an economic profit ofA) -$1,400. B) $2,100. C) $1,400. D) $700.

Q: Use the following information to answer the question(s) below.A summary balance sheet for the Lemon, Mango, and Nobb partnership appears below. Lemon, Mango, and Nobb share profits and losses in a ratio of 2:3:5, respectively.AssetsCash $ 100,000Marketable securities 200,000Inventory 125,000Land 100,000Building-net 500,000Total assets $1,025,000EquitiesLemon, capital $ 425,000Mango, capital 400,000Nobb, capital 200,000Total equities $1,025,000The partners agree to admit Oran for a one-fifth interest. The fair market value of partnership land is appraised at $200,000 and the fair market value of inventory is $175,000. The assets are to be revalued prior to the admission of Oran and there is $30,000 of goodwill that attaches to the old partnership.What will the profit and loss sharing ratios be after Oran's investment?A) 1:2:4:2B) 2:3:5:2C) 3:4:6:2D) 4:6:10:5

Q: The buyer of a new home is quoted a mortgage rate of .5% per month. What is the APR on the loan? A. .50% B. 5% C. 6% D. 6.5%

Q: A monopolist determines the profit-maximizing outputA) at the point at which TR = TC. B) at the point at which MR = MC.C) at any point it wants because it is the only producer of the product.D) at the point at which TR is maximum.

Q: For a perfectly competitive firm at its long -run equilibrium, A) P = MR = MC = AC.B) P = MR > MC.C) accounting profit must be zero.D) there are no opportunity costs to be concerned with.

Q: According to historical data, over the long run which of the following assets has the best chance to provide the best after-inflation, after-tax rate of return? A. long-term Treasury bonds B. corporate bonds C. common stocks D. preferred stocks

Q: If the nominal rate of return on investment is 6% and inflation is 2% over a holding period, what is the real rate of return on this investment? A. 3.92% B. 4% C. 4.12% D. 6%

Q: Which of the following is not true for a perfectly competitive firm?A) P = MR B) AR = MR C) MR = TR D) P = AR

Q: Austin contributes his computer equipment to the landscaping partnership he starts with Bentley. At what amount should the computer equipment be credited to Austin's partnership capital? A) The tax basis B) The fair value at the date of contribution C) Austin's original cost D) At the amount that Bentley contributes, with the assumption that they both contribute equally to the partnership

Q: What is the geometric average return over 1 year if the quarterly returns are 8%, 9%, 5%, and 12%? A. 8% B. 8.33 % C. 8.47% D. 8.5 %

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 5 units of output?A) $80 B) $55 C) $40 D) $60

Q: What is the geometric average return of the following quarterly returns: 3%, 5%, 4%, and 7%? A. 3.72% B. 4.23% C. 4.74% D. 4.90%

Q: Partnerships A) are required to prepare annual reports. B) are required to file income tax returns but do not pay Federal income taxes. C) are required to file income tax returns and pay Federal income taxes. D) are not required to file income tax returns or pay Federal income taxes.

Q: In economics, how long is the long run? A) More than 12 months B) 24 months or longer C) 5 years or more D) Whatever time it takes a firm to vary all inputs

Q: Which one of the following would be considered a risk-free asset in real terms as opposed to nominal?A. money market fundB. U.S. T-billC. short-term corporate bondsD. U.S. T-bill whose return was indexed to inflation

Q: The opportunity cost of capital is A) an explicit cost. B) a part of economic profits. C) usually unknown and must be estimated by looking at the price of capital goods. D) the normal rate of return.

Q: In the Uniform Partnership Act, partners have I. mutual agency. II. unlimited liability. A) I only B) II only C) I and II D) Neither I nor II

Q: You invest all of your money in 1-year T-bills. Which of the following statements is (are) correct? I. Your nominal return on the T-bills is riskless. II. Your real return on the T-bills is riskless. III. Your nominal Sharpe ratio is zero. A. I only B. I and III only C. II only D. I, II, and III

Q: A partner assigned his partnership interest to a third party. Which statement best describes the legal ramifications to the assignee? A) The assignment of the partnership interest does not entitle the assignee to partnership assets upon a liquidation. B) The assignment dissolves the partnership. C) The assignee has the right to share in the management of the partnership. D) The assignee does not become a partner but has the right to share in future partnership profits and to receive the proper share of partnership assets upon liquidation.

Q: The consumption possibilities curve is theA) supply curve. B) demand curve.C) budget constraint. D) indifference curve.

Q: The price of a stock is $38 at the beginning of the year and $41 at the end of the year. If the stock paid a $2.50 dividend, what is the holding-period return for the year? A. 6.58% B. 8.86% C. 14.47% D. 18.66%

Q: Under the Uniform Partnership Act, loans made by a partner to the partnership are treated as A) liabilities to the partnership for which interest shall be paid from the date of the advance. B) advances to the partnership that are carried in the partners' capital accounts. C) Accounts Payable of the partnership for which interest is paid. D) advances to the partnership for which interest does not have to be paid.

Q: Slices of PizzaTotal UtilityMarginal Utility00-120 250 3 204 105 0In the above table, the marginal utility of the second slice of pizza isA) 20. B) 30. C) 50. D) 10.

Q: Tillman Fabrications has five operating segments, as summarized below: WoodPlasticMetalPaperFabricSales to outside entities5,200,0001,200,0007,800,0001,600,0006,300,000Intersegment sales390,0004,700,000-0--0-750,000Operating Profit(520,000)(590,000)1,700,000190,000(960,000)Assets690,000450,000880,000280,000760,000 Required:Determine which of the operating segments of Tillman Fabrications are reportable segments for the period shown.

Q: The price of X falls by ten percent, and the quantity demanded of X increases by ten percent. Meanwhile, the quantity demanded of Y increases by ten percent too. We would conclude thatA) demand for X is elastic, and X and Y are substitutes.B) demand for X is elastic, and X and Y are complements.C) demand for X is unit-elastic, and X and Y are complements. D) demand for X is inelastic, and X and Y are unrelated.

Q: From 1926 to 2013 the world stock portfolio offered _____ return and _____ volatility than the portfolio of large U.S. stocks. A. lower; higher B. lower; lower C. higher; lower D. higher; higher

Q: Snodberry Catering has five operating segments, as summarized below: BuffetAlcoholBakeryWait ServiceBar ServiceSales to outside entities26,000110,00022,00024,0005,000Intersegment sales-0-20,0004,000-0-56,000Cost of goods sold16,00050,00019,00023,00069,000Operating Expenses9,00070,0006,0002,0004,000Interest Expense-0-5,000-0-2,0001,000Income Tax Expense-0-2,000-0--0-(3,000)Assets2,00022,0002,0001,0001,000 Required:Determine which of the operating segments of Snodberry Catering are reportable segments for the period shown.

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 price changes from $5.50 to $5.00?A) 0.72 B) 0.79 C) 1.38 D) 5.0

Q: The Manhawkin Fund has an expected return of 16% and a standard deviation of 20%. The risk-free rate is 4%. What is the reward-to-volatility ratio for the Manhawkin Fund? A. .8 B. .6 C. 9 D. 1

Q: Rollins Publishing has five operating segments, as summarized below: FictionNon-fictionReferenceChildrensPeriodicalsSales to outside entities870,000416,000796,000236,000517,000Intersegment sales-0--0-80,000-0-50,000Cost of goods sold430,000270,000290,00065,000420,000Operating Expenses120,00089,00095,00074,000238,000Interest Expense-0-61,000-0--0-24,000Income Tax Expense80,000(1,000)120,00024,000(28,000)Assets22,00024,00029,00016,000100,000 Required:Determine which of the operating segments of Rollins Publishing are reportable segments for the period shown.

Q: Economic theory suggests that if natural resources can be held as private property, then A) conservation will be nonexistent. B) owners will have an incentive not to abuse them. C) natural resources will be sold off for immediate use. D) people will simply hold them and refuse to make them available.

Q: A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is _____. A. 68.26% B. 95.44% C. 99.74% D. 100%

Q: Quantex Corporation has five operating segments, as summarized below: HouseholdIndustrialPackagingStorageServicesSales to outside entities700,0004,300,000400,0001,700,000100,000Intersegment sales50,000600,000800,000200,000-0-Cost of goods sold300,0002,700,000700,000900,000-0-Operating Expenses200,0001,300,000200,000600,00030,000Interest Expense10,00040,0005,000-0--0-Income Tax Expense60,000210,00070,000100,00018,000Assets540,0001,900,0001,600,00070,00032,000Required:Determine which of the operating segments of Quantex Corporation are reportable segments for the period shown.

Q: Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPTA) an emphasis on wellness programs and preventive medicine. B) the aging of the U.S. population.C) expensive new medical technologies.D) third-party financing.

Q: The following information was collected together for the Lawson Company relating to the preparation of their annual financial statements for 2011. For each item, indicate "yes" or "no" as to whether the item must be disclosed in the annual report._____ 1. Names of major customers for all reportable segments_____ 2. Interest revenue and expense for all reportable segments_____ 3. Cost of Goods Sold for all reportable segments_____ 4. Depreciation expense and amortization expense for all reportable segments_____ 5. Revenue from external customers for all reportable segments_____ 6. The basis for aggregating any operating segments to arrive at reporting segments_____ 7. Income tax expense (or benefit) for all reportable segments_____ 8. Total assets for all reportable segments_____ 9. Type of product or service for all reportable segments_____ 10. Extraordinary items for all reportable segments

Q: Use the above table. The data shows that the firmA) is hiring in a perfectly competitive labor market.B) is selling its output in a perfectly competitive market.C) is a monopsonist.D) is selling its output in an imperfectly competitive market.

Q: Osprin Corporation has three operating segments, as summarized below: CapsulePillLiquidTotalSales to retailers25,00035,0005,00065,000Intersegment sales4,00010,0002,00016,000Operating Expenses10,00018,0005,00033,000Interest Expense2,0003,0001,0006,000Income Tax Expense4,0006,0001,00011,000Assets12,0003,00016,00031,000Required:1. Using the revenue test, what is the minimum amount of revenue of a reportable segment?2. Using the operating profit or loss test, what is the minimum amount of operating profit or loss of a reportable segment?3. Using the asset test, what is the minimum amount of assets of a reportable segment?4. Based on the three tests, which segments will be separately reported?

Q: A closed shop is aA) strike by a union in sympathy with another unionʹs strike or cause.B) dispute involving two or more unions over which should have control of a particular jurisdiction.C) business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired.D) legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.

Q: Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000. Its estimated pretax accounting income for 2011, by quarter, is:1st 2nd 3rd 4th 2011Quarter Quarter Quarter Quarter TotalEst. Income $75,000 $165,000 $143,000 $120,000 $503,000Nettle expects to earn and receive operating income for the year and does not contemplate any changes in accounting procedures or principles that would affect its pretax accounting income.Required:1. Determine Nettle's estimated effective tax rate for 2011.2. Prepare a schedule to show Nettle's estimated net income for each quarter of 2011.

Q: Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D. In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion?A) A B) B C) C D) D

Q: Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011.The following trial balance information is available for third quarter:Account Debit CreditCash $98,000Accounts Receivable 285,000Inventory 750,000Fixed assets 600,000Accounts Payable $300,000Common Stock 50,000Retained Earnings 80,000Sales 4,400,000Administrative expense 312,000Cost of goods sold 2,650,000Loss on sale of securities sold on July 30 75,000Annual equipment overhaul costs paid on August 1 60,000Totals $4,830,000 $4,830,000Additional information:At the end of the year, Krull distributes annual employee bonuses and charitable donations that are estimated at $40,000, and $12,000, respectively. The cost of goods sold includes the liquidation of a $45,000 base layer in inventory that Krull will restore in the fourth quarter at a cost of $75,000. Effective corporate tax rate for 2011 is 32%.Required:Prepare Krull's interim income statement for the third quarter of calendar 2011.

Q: Which of the following is NOT exempt from antitrust laws?A) Professional baseball B) Labor unionsC) Airlines D) Public transit systems

Q: Maxtil Corporation estimates its income by calendar quarter as follows for 2011:1st 2nd 3rd 4th 2011Quarter Quarter Quarter Quarter TotalEst. Income $40,000 $30,000 $20,000 $20,000 $110,000Income tax rates applicable to Maxtil:From: $0 to $50,000 15%From: $50,001 to $75,000 25%Over: $75,000 35%Required:Determine Maxtil's estimated effective tax rate.

Q: Firms face downward sloping demand curves in A) monopolies only. B) monopolies and oligopolies only. C) monopolies and oligopolies that collude only. D) all market structures except perfect competition.

Q: You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. The dollar values of your positions in X, Y, and Treasury bills would be _________, __________, and __________, respectively, if you decide to hold a complete portfolio that has an expected return of 8%. A. $162; $595; $243 B. $243; $162; $595 C. $595; $162; $243 D. $595; $243; $162

Q: Leotronix Corporation estimates its income by calendar quarter as follows for 2011:1st 2nd 3rd 4th 2011Quarter Quarter Quarter Quarter TotalEst. Income $30,000 $40,000 $40,000 $50,000 $160,000Income tax rates applicable to Leotronix:From: $ 0 to $50,000 15%From: $50,001 to $75,000 25%Over: $75,000 35%Required:Determine Leotronix's estimated effective tax rate.

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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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.