Question : 71. When bonds retired before their maturity date: A. GAAP has been violated.B. The : 1236265

Accounting

71. When bonds are retired before their maturity date:
A. GAAP has been violated.
B. The issuing company will always report a non-operating gain.
C. The issuing company will always report a non-operating loss.
D. The issuing company will report a non-operating gain or loss.

72. The Viper retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bonds is $36 million. The entry to record the retirement will include:
A. A credit of $6 million to a gain account.
B. A debit of $6 million to a loss account.
C. No gain or loss on retirement.
D. A debit to cash for $42 million.

73. The Titan retires a $20 million bond issue when the carrying value of the bonds is $18 million, but the market value of the bonds is $23 million. The entry to record the retirement will include:
A. A debit of $5 million to a loss account.
B. A credit of $5 million to a gain account.
C. No gain or loss on retirement.
D. A debit to cash for $18 million.

74. In each succeeding payment on an installment note:
A. The amount of interest expense increases.
B. The amount of interest expense decreases.
C. The amount of interest expense is unchanged.
D. The amounts paid for both interest and principal increase proportionately.

75. The entry to record a monthly payment on an installment note such as a car loan:
A. Increases expense, decreases liabilities, and decreases assets.
B. Increases expense, increases liabilities, and increases assets.
C. Increases expense, decreases liabilities, and increases assets.
D. Increases expense, increases liabilities, and decreases assets.

76. How does the amortization schedule for an installment note such as a car loan differ from an amortization schedule for bonds?
A. The final carrying value is zero in an amortization schedule for an installment note.
B. The final carrying value is zero in an amortization schedule for bonds.
C. The final carrying value is zero in both amortization schedules.
D. The final carrying value is not zero in either amortization schedule.

77. Which of the following leases is just like a rental?
A. An operating lease.
B. A capital lease.
C. Both an operating and a capital lease.
D. Neither an operating lease nor a capital lease.

78. Which of the following leases is essentially the purchase of an asset with debt financing?
A. an operating lease.
B. a capital lease.
C. both an operating and a capital lease.
D. neither an operating lease nor a capital lease.

79. Which of the following is not a reason why some companies lease rather than buy?
A. Leasing may allow you to borrow with little or no down payment.
B. Leasing can improve the balance sheet by reducing long-term debt.
C. Leasing can lower income taxes.
D. Leasing transfers the title to the lessee at the beginning of the lease.

80. Financial leverage is best measured by which of the following ratios?
A. The debt to equity ratio.
B. The return on equity ratio.
C. The times interest earned ratio.
D. The return on assets ratio.

81. Which of the following is true regarding a company assuming more debt?
A. Assuming more debt is always bad for the company.
B. Assuming more debt is always good for the company.
C. Assuming more debt can be good for the company as long as they earn a return in excess of the rate charged on the borrowed funds.
D. Assuming more debt reduces leverage.

82. Which of the following is not a true statement?
A. The debt to equity ratio measures a company’s risk and is calculated as total liabilities divided by stockholders’ equity.
B. Leverage enables a company to earn a higher return using debt than without debt.
C. Return on assets is calculated as net income divided by the ending balance for total assets.
D. The times interest earned ratio compares interest expense with income available to pay interest charges.

83. The times interest earned ratio is calculated as
A. Interest expense/Net income.
B. Net income/Interest expense.
C. (Net income + interest expense + tax expense)/Interest expense.
D. Interest expense/(Net income + interest expense + tax expense).

84. Selected financial data for Home Depot is provided below:

What is the times interest earned ratio for Home Depot?
A. 6.9 times.
B. 3.9 times.
C. 0.3 times.
D. 97.9 times.

85. Selected financial data for Lowes is provided below:

What is the times interest earned ratio for Lowes?
A. 6.2 times.
B. 10.8 times.
C. 0.2 times.
D. 164.5 times.

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July 1, 2023

11) Refer to Figure 19-10. Europe suffers a recession. Assuming all else remains constant, this would be represented as a movement from ________.

A) D to A

B) C to D

C) B to C

D) A to D

E) A to B

12) Refer to Figure 19-10. Currency speculators believe that the value of the euro will increase relative to the dollar. Assuming all else remains constant, how would this be represented?

A) Supply would decrease, demand would decrease and the economy moves from B to C to D.

B) Supply would increase, demand would decrease and the economy moves from C to B to A.

C) Supply would decrease, demand would increase and the economy moves from A to D to C.

D) Supply would increase, demand would increase and the economy moves from D to A to B.

13) Refer to Figure 19-10. Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?

A) Supply would decrease, demand would decrease and the economy moves from B to C to D.

B) Supply would increase, demand would decrease and the economy moves from C to B to A.

C) Supply would decrease, demand would increase and the economy moves from A to D to C.

D) Supply would increase, demand would increase and the economy moves from D to A to B.

14) Refer to Figure 19-10. The appreciation of the dollar is represented as a movement from

A) B to A.

B) D to C.

C) C to B.

D) C to A.

15) Refer to Figure 19-10. The depreciation of the euro is represented as a movement from

A) D to A.

B) C to D.

C) B to C.

D) B to A.

16) Refer to Figure 19-10. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from

A) B to A.

B) D to C.

C) B to C.

D) A to D.

17) Refer to Figure 19-10. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from

A) D to A.

B) D to C.

C) C to B.

D) B to A.

18) Refer to Figure 19-10. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming all else remains constant, how would this be represented?

A) Supply would decrease, demand would decrease and the economy moves from B to C to D.

B) Supply would increase, demand would decrease and the economy moves from C to B to A.

C) Supply would decrease, demand would increase and the economy moves from A to D to C.

D) Supply would increase, demand would increase and the economy moves from D to A to B.

19) Refer to Figure 19-10. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?

A) Supply would decrease, demand would decrease and the economy moves from B to C to D.

B) Supply would increase, demand would decrease and the economy moves from C to B to A.

C) Supply would decrease, demand would increase and the economy moves from A to D to C.

D) Supply would increase, demand would increase and the economy moves from D to A to B.

20) If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?

A) The dollar will appreciate.

B) The dollar will depreciate.

C) There will be a decrease in the demand for dollars.

D) There will be a decrease in the supply of dollars.

July 1, 2023

The Tip Left column in the Friday worksheet contains a fill color and number formatting. You want to fill these formats to the other daily worksheets.

Group the Friday through Monday worksheets, staring with the Friday worksheet. Fill the format only for the range E5:E24.

Now you want to insert column totals for the five worksheets simultaneously.

With the worksheets still grouped, insert SUM functions in the range B25:E25 and apply the Totals cell style. Ungroup the worksheets.

The Week worksheet is designed to be a summary sheet. You want to insert a hyperlink to the Total heading in the Monday worksheet.

On the Week worksheet, in cell A5, insert a hyperlink to cell A25 in the Monday worksheet with the ScreenTip text Monday’s Totals. Test the hyperlink to ensure it works correctly.

In cell A6 on the Week worksheet, insert a hyperlink to cell A25 in the Tuesday worksheet with the ScreenTip text Tuesday’s Totals. Test the hyperlink to ensure it works correctly.

In cell A7, insert a hyperlink to cell A25 in the Wednesday worksheet with the ScreenTip text Wednesday’s Totals. Test the hyperlink to ensure it works correctly.

In cell A8, insert a hyperlink to cell A25 in the Thursday worksheet with the ScreenTip text Thursday’s Totals. Test the hyperlink to ensure it works correctly.

In cell A9, insert a hyperlink to cell A25 in the Friday worksheet with the ScreenTip text Friday’s Totals. Test the hyperlink to ensure it works correctly.

Now, you are ready to insert references to cells in the individual worksheets. First, you will insert a reference to Monday's Food Total.

In cell B5 on the Week worksheet, insert a formula with a 3-D reference to cell B25 in the Monday worksheet. Copy the formula to the range C5:E5.

The next formula will display the totals for Tuesday.

In cell B6, insert a formula with a 3-D reference to cell B25 in the Tuesday worksheet. Copy the formula to the range C6:E6.

In cell B7, insert a formula with a 3-D reference to cell B25 in the Wednesday worksheet. Copy the formula to the range C7:E7.

In cell B8, insert a formula with a 3-D reference to cell B25 in the Thursday worksheet. Copy the formula to the range C8:E8.

In cell B9, insert a formula with a 3-D reference to cell B25 in the Friday worksheet. Copy the formula to the range C9:E9.

Now you want to use a function with a 3-D reference to calculate the totals.

In cell B10 on the Week worksheet, insert the SUM function with a 3-D reference to calculate the total Food purchases (cell B25) for the five days. Copy the function to the range C10:E10.

The servers are required to share a portion of their tips with the Beverage Worker and Assistants. The rates are stored in another file.

Open the Exp_Excel_Ch09_Cap_Assessment_Rates.xlsx workbook. Go back to the Exp_Excel_Ch09_Cap_Assessment_Tips.xlsx workbook. In cell F5 of the Week worksheet, insert a link to the Beverage Worker Tip Rate (cell C4 in the Rates workbook) and multiply the rate by the Monday Drinks (cell C5). Copy the formula to the range F6:F9.

Next, you will calculate the tips for the assistant.

In cell G5 in the Tips workbook, insert a link to the Assistant Tip Rate (cell C5 in the Rates workbook) and multiply the rate by the Monday Subtotal (cell D5). Copy the formula to the range G6:G9. Close the Rates workbook.

Note: The tip is a monetary value in the Week worksheet. It should be formatted for Accounting Number Format.

You noticed a circular error when you first opened the Tips workbook. Now you will find and correct it.

On the Week worksheet, check for errors and correct the formula with the circular reference.

You want to create a validation rule to prevent the user from accidentally entering a negative value. For now, you will create a validation in the Friday worksheet.

Select the range E5:E24 in the Friday worksheet, create a validation rule to allow a decimal value greater than or equal to zero. Enter the input message title Tip and the input message Enter the amount of tip. (including the period). Use the Stop alert with the error alert title Invalid Number and the error alert message The tip must be zero or more. (including the period). Test the data validation by attempting to enter -20 in cell E5 and then cancel the change.

Now you will copy the validation settings to the other daily worksheets.

Copy the range E5:E24 in the Friday worksheet. Group the Monday through Thursday worksheets, select the range E5:E24, and use Paste Special Validation to copy the validation settings.

You want to unlock data-entry cells so that the user can change the tips in the daily worksheets.

Group the Monday through Friday worksheets. Select the ranges E5:E24 and unlock these cells.

Create footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of all worksheets.

Now that you unlocked data-entry cells, you are ready to protect the worksheets to prevent users from changing data in other cells. Individually, protect each sheet using the default allowances without a password.

Mark the workbook as final.

Note: Mark as Final is not available in Excel for Mac. Instead, use Always Open Read-Only on the Review tab.

Save and close Exp19_Excel_Ch09_Cap_Assessment_Tips.xlsx. Exit Excel. Submit the file as directed.