Question : 101. On December 30, Year 1, PBE Company entered into a : 1230519

Accounting

101. On December 30, Year 1, PBE Company entered into a contract to purchase inventory over the next year. This is an example of a(n)
A. debit to an intangible asset
B. debit to a tangible asset
C. credit to a current liability
D. executory contract
E. anticipatory contract

102. A prefabricated steel storage shed is purchased for $20,000 cash and a $80,000 interest-bearing note payable over a 5-year period at an annual interest rate of 10 percent per annum. The cost to be recorded as an asset (in addition to the $100,000 purchase price) should include all of the following except
A. shipping and handling charges
B. insurance while in transit
C. interest on the note payable
D. reassembly and installation costs
E. all of the above

103. The value of fixed assets (such as plant, property, and equipment) included in total assets on the statement of financial position is/are the
A. loan value
B. wholesale or liquidation value
C. real estate tax basis assessment
D. acquisition cost reduced by accumulated deprecation
E. current net realizable value

104. (CMA adapted, Dec 94 #5) Several alternatives have been identified for measuring items on the statement of financial position. Which of the following alternatives may be used?

   Present Value   Current Cost   Net Realizable Value
A. No                       No                        No
B. No                      Yes                       Yes
C. Yes                     Yes                       No
D. Yes                     Yes                       Yes
E. Yes                     No                        Yes

105. Generally accepted accounting principles in the United States require firms to
A. capitalize and amortize all research and development costs over the future expected benefit period
B. capitalize and amortize all research and development costs over a period no greater than 5 years
C. capitalize and amortize all research and development costs over a period no greater than 10 years
D. expense all research and development costs in the period incurred
E. none of the above

106. Assets are classified as current for reporting purposes when
A. shares of common stock in a company’s important supplier are acquired to ensure continued availability of raw materials
B. shares of common stock in another company are acquired to diversify operations
C. expenditures are made in developing new technologies or advertising products
D. they are reasonably expected to be turned into cash or to be sold or consumed during the normal operating cycle of the business.
E. none of the above

107. A liability arises when a firm
A. signs a new labor union contract which includes a 6% pay raise for its union employees
B. issues a purchase order for 100,000 units of inventory from a supplier over the next two years
C. receives inventory previously ordered
D. both b and c
E. none of the above

108. The stockholders’ equity of a firm can be defined as
A. net current assets
B. a residual interest
C. total assets plus total liabilities
D. the owners’ claim to the assets and liabilities
E. none of the above

109. The shareholders’ equity section of the balance sheet for a corporation generally does not include
A. dividends paid
B. retained earnings
C. par or stated value of common stock
D. amounts contributed in excess of par or stated value
E. none of the above

110. Before preparing the balance sheet and income statement, an accountant would use what accounting record to first record the firm’s transactions?
A. the trial balance
B. the adjusting entry
C. the general ledger
D. the journal
E. the subsidiary ledger

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July 1, 2023

41) The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

42) The above figure shows the production possibility frontier for an economy. The point or points that are attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

43) The above figure shows the production possibility frontier for an economy. The point or points that are NOT attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

44) In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of

A) producing at a point that lies beyond the PPF.

B) zero opportunity cost.

C) opportunity benefit.

D) a free lunch.

E) a tradeoff.

45) As we move along the production possibilities frontier,

A) the production of one good increases as the production of the other good decreases.

B) the possibilities of tradeoffs diminish.

C) a tradeoff is not possible because nations need all goods.

D) more of both goods can be produced.

E) less of both goods can be produced.

46) Which of the following statements is correct?

A) If capital is idle, the economy is producing at its full potential.

B) The production possibilities frontier shows that there are no limits to production.

C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.

D) Any point on or within the PPF is production efficient.

E) None of the above answers is correct.

47) When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods

A) must increase.

B) must decrease.

C) must remain the same.

D) must change, but they might increase or decrease.

E) might increase if the nation can produce more efficiently.

48) The negative slope of the production possibilities frontier represents the idea

A) that free lunches are possible.

B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.

C) of unemployment.

D) of inefficient production.

E) that prices rise as less is produced.

49) A movement from one point on a production possibilities frontier to another represents

A) a tradeoff.

B) a free lunch.

C) full employment of labor but not capital.

D) unemployment.

E) an advance in technology.

50) The saying "There's no such thing as a free lunch," applies

A) when there is some unemployment.

B) on the production possibilities frontier.

C) to unattainable combinations of goods and services.

D) when more of one good can be produced without decreasing production of another.

E) at all points inside the PPF.

July 1, 2023

31) Steve, an HR supervisor at APEX construction, has recently noticed a shortage of skilled workers due to a building boom in the area. He must find new workers quickly because it is uncertain how long the boom will last. He decides to hire nontraditional laborers. The most likely disadvantage of using nontraditional laborers is the:

A) high costs of making reasonable accommodations.

B) additional training that will be necessary.

C) extensive involvement of the EEOC.

D) high advertising costs.

32) Which of the following is primarily associated with hiring external candidates?

A) Lowers training costs

B) Provides new ideas and perspectives

C) Decreases recruitment time and expense

D) Motivates other workers to strive for advancement

33) One of the advantages of promoting internal candidates is:

A) rejuvenating work units.

B) reducing training costs.

C) fostering innovative ideas.

D) reducing employee turnover.

34) Tatiana needs to hire a line manager and has a very small recruiting budget. The firm's current employees don't feel they have many advancement opportunities. It would be best for Tatiana to recruit:

A) internally.

B) externally.

C) former military members.

D) nontraditional workers.

35) Which of the following is most likely a true statement about recruiting?

A) Internal recruiting enhances organizational communication.

B) External recruiting fills positions quickly and inexpensively.

C) External recruiting promotes innovation and new perspectives.

D) Internal recruiting requires developing new organizational policies.

36) Which of the following is most likely a true statement about recruiting employees in a protected class?

A) The recruiting message should be targeted to specific minority groups.

B) All private sector firms are legally required to have an affirmative action policy.

C) Using media that focuses on minorities is an effective way to recruit protected group members.

D) Intense minority competition for jobs ensures a large pool of qualified and motivated applicants.

37) Which of the following must have written affirmative action plans?

A) Non-profit groups

B) Government contractors

C) Privately-held corporations

D) Publicly-held corporations

38) In human resource planning the answer to the question, "How many candidates should we recruit?":

A) is based on the firm's affirmative action plan.

B) comes from the yield ratio calculated in the forecast.

C) is directed by EEO consideration and the size of the labor pool.

D) depends on the state of the labor pool and the current economy.

39) The offer-to-acceptance ratio at Central Manufacturing is 6:1. How many offers will the firm need to make in order to fill 80 positions?

A) 120

B) 240

C) 480

D) 540

40) After an extensive recruiting effort, your company has contacted 225 interested individuals. At the application deadline, you have received 75 applications. What is your contact-to-applicant ratio?