Q&A Hero

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: 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: Identify several opportunities in accounting and its related fields.

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: 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: What are two questions that an owner might be able to answer by looking at accounting information?

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: 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: What is the balance sheet? What is its purpose?

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: How does the family impact the success of an expatriate manager?

Q: Explain the role of accounting in the information age.

Q: Describe three reasons for the low morale and growing amount of attrition among returning expatriates.

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: 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: Discuss how compensation plans of American companies vary substantially around the world.

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: What is the reason for the failure of individual incentives to motivate employees in Japan?

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: 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: 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: 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: 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: 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: 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: The equation TR/Q is used to computeA) total cost. B) average revenue.C) demand. D) marginal revenue.

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: 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: 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: 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: 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: 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: 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: Match the following terms with the appropriate definition.1)Social responsibility 2)Internal users 3)Operating activities 4)Financing activities 5)Investing activities 6)Accounting 7)Ethics 8)Recordkeeping 9)External users A)The acquisition and disposing of resources that an organization uses to acquire and sell products and services.B)Beliefs that distinguish right from wrong.C)The part of accounting that involves recording transactions and events, either electronically or manually.D)Persons using accounting information who are directly involved in managing the organization.E)An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities.F)Provide the means organizations use to pay for resources such as land, buildings, and equipment to carry out plans.G)Concern for the impact of actions on society.H)The use of resources to research, develop, purchase, produce, distribute, and market products and services.I)Persons using accounting information who are not directly involved in the running of the organization.

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.

Q: Most expatriate failures are caused by the lack of A) management skills. B) technical skills. C) an understanding of cultural differences. D) knowledge of the product line. E) knowledge of the company.

Q: A company reported total equity of $145,000 on its December 31, 2008 balance sheet. The following information is available for the year ended December 31, 2009: What are the total assets of the company at December 31, 2009? A.$45,000. B.$92,000. C.$98,000. D.$210,000. E.$282,000.

Q: If the price elasticity of demand for good A is -1, then a 1% increase inA) consumer income will result in a 1% decrease in the demand for good A.B) consumer income will result in a 1% increase in the demand for good A.C) the market price of good A will result in a 1% increase in the quantity demanded of good A .D) the market price of good A will result in a 1% decrease in the quantity demanded of good A .

Q: Which factor significantly differentiates companies with the least amount of returnee attrition from those with the highest attrition? A) specialized expatriate department B) personal career planning for expatriates C) continued cultural training D) protection from work councils E) family migration planning

Q: A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? A.$17,000. B.$29,000. C.$71,000. D.$88,000. E.$105,000.

Q: The optimal amount of pollution is not zero becauseA) it has been found that pollution in moderate amounts actually has positive benefits.B) there are no benefits to anyone from having zero pollution. C) zero pollution would be too costly.D) we donʹt have the political structure that could accomplish the goal.

Q: What is likely the single most important reason for expatriate dissatisfaction? A) unsuccessful family adjustment B) cultural conflict in the foreign country C) noncooperation of foreign colleagues D) communication issues with home-country headquarters E) redundant skills in a foreign country

Q: Fees earned (but not yet received in cash) by a business in exchange for services it provided appear on which of the following statements? A.Balance sheet. B.Income statement. C.Statement of owner's equity. D.Statement of cash flows. E.Both A and B.

Q: The purpose of the Supplemental Security Income program is A) to provide a minimum income for all households with children. B) to provide a guaranteed minimum income for all Americans. 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: When Sandra was offered a transfer to the London office from New York, she worried that she would miss out on opportunities in the New York office when she returned because she hadn't been there. This is a common problem with A) conflict of interests. B) acculturation. C) skill redundancy. D) repatriation. E) assimilation.

Q: Rent expense that is paid with cash appears on which of the following statements? A.Balance sheet. B.Income statement. C.Statement of owner's equity. D.Statement of cash flows. E.Both B and D.

Q: Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of A) conflict of interests. B) acculturation. C) skill redundancy. D) naturalization. E) repatriation.

Q: When there is only one buyer in a market, there is aA) buyerʹs monopoly. B) monopoly.C) monopsony. D) buyerʹs cooperative.

Q: Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is: A.$223,000. B.$240,000. C.$268,000. D.$274,000. E.$208,000.

Q: The primary control tool used by American sales managers with sales representatives is the A) encumbrance system. B) quota system. C) incentive system. D) attraction of a foreign assignment. E) threat of foreign postings.

Q: A closed shop is a business enterprise in whichA) employees cannot belong to a union when they are employed, and cannot join a union and keep working there.B) employees must join the union to maintain employment.C) employees must belong to the union before they can be employed.D) employees cannot belong to the union when they are hired, but may join the union laterand keep their jobs.

Q: Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: A.$40,500 increase. B.$40,500 decrease. C.$134,500 decrease. D.$134,000 increase. E.$9,500 increase.

Q: What practice, with respect to motivating sales personnel, is most common in relationship-oriented countries like Japan? A) Companies lay greater emphasis on incentives that are based on individual performance. B) Companies do not allow local managers to decide the mix between base and incentive pay. C) Commissions are measured by sales revenues generated by each employee. D) Companies are not very tolerant of poor performers and fire them immediately. E) Companies motivate sales representatives through frequent interaction with supervisors.

Q: The demands for labor and other input factors are calledA) derived demands, because the demand for these inputs depends on the demand for goods and services they are employed to produce.B) developed demands, because the demand for these inputs is developed from an analysis of the costs of advertising products.C) indirect demands, because the demand for these inputs is indirectly related to the costs of advertising products.D) reverse demands, because the demand for these inputs varies inversely with the demand for goods and services they are employed to produce.

Q: A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n): A.Revenue activity. B.Operating activity. C.Expense activity. D.Investing activity. E.Financing activity.

Q: Unlike the Japanese, the American sales managers have less need to worry about the problem of motivating poor performers. What is the reason for this? A) The group incentive system balances pay differences and thus is motivating enough. B) Companies are more focused on long-term loyalty and are willing to compromise on performance initially. C) Sales personnel are shifted to areas where their performance levels can meet expectations. D) The base pay that is higher than their performance based incentive motivates them. E) The team usually does not have any low performers as they either quit or are fired.

Q: The costs of regulationA) include increased taxes and increased prices of the products being regulated. B) are paid entirely by the regulated industries.C) are more than covered by the benefits gained from the regulation. D) are relatively small.

Q: What strategy should be practiced when determining compensation globally? A) A similar framework should be created for jobs with different responsibilities. B) The support of senior sales executives should not be sought before taking action. C) Local managers should not decide the mix between base and incentive pay. D) Consistent communication and training themes should be used worldwide. E) The incentive plan should be designed centrally and dictated to local offices.

Q: A company acquires equipment for $75,000 cash. This represents a(n) A.Operating activity. B.Investing activity. C.Financing activity. D.Revenue activity. E.Expense activity.

Q: Beta videocassettes had the highest degree of product compatibility with A) VHS videocassettes. B) audiocassettes. C) videocassette players. D) CD players.

Q: Determine the net income of a company for which the following information is available for the month of May. A.$190,000. B.$210,000. C.$230,000. D.$400,000. E.$610,000.

Q: A survey showed that most companies establish sales compensation practices locally (either at the country or regional levels). The program element most often determined at the global level is A) Program Design Principles. B) Pay Mix. C) Job Grades. D) Formula Mechanics. E) Performance Measures.

Q: An information product typically hasA) high total fixed costs and high marginal costs. B) low total fixed costs and low marginal costs. C) low total fixed costs and high marginal costs. D) high total fixed costs and low marginal costs.

Q: What is actively involved in setting rules about compensation companywide in Europe? A) pension committees B) work councils C) external labor unions D) the European Union E) the World Trade Organization

Q: Use the following information as of December 31 to determine equity. A.$57,000. B.$141,000. C.$297,000. D.$438,000. E.$579,000.