Question : 21) Tim’s Tams donated 100 baseball caps to the local : 1253083

Accounting

21) Tim’s Tams donated 100 baseball caps to the local homeless shelter. The company will record the donation as an operating expense. The caps cost Tim’s Tams $2.00 each and the company usually sells them for $8.50. If Tim’s Tams reports a charity expense of $850, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

22) Tom’s Ware donated 100 T-shirts to the local high school. The company will record the donation as an operating expense. The shirts cost Tom’s Ware $6.00 each and the company usually sells them for $10.50. If Tom’s Ware reports a charity expense of $1,050, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

23) Tom’s Ware donated 100 T-shirts to the local high school. The company will record the donation as an operating expense. The shirts cost Tom’s Ware $6.00 each and the company usually sells them for $10.50. If Tom’s Ware reports a charity expense of $600, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

24) The town of Columbia gave a piece of land to Wind Energy, Inc. so that the company would build its new factory in Columbia and create many local jobs. One appraiser said the land was worth $200,000, while a second appraiser said the land was worth $220,000. If Wind Energy, Inc. records the land at $200,000, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

25) The town of Columbia gave a piece of land to Wind Energy, Inc. so that the company would build its new factory in Columbia and create many local jobs. One appraiser said the land was worth $200,000, while a second appraiser said the land was worth $220,000. If Wind Energy, Inc. records the land at $220,000, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

26) Ken’s Candy has been selling to Art’s Quik Mart for thirty years. Lately Art’s has been paying its bills increasingly slowly. Right now, Ken’s Candy has $10,000 in accounts receivable on its books from Art’s Quik Mart for candy sold to Art’s over the last six months. Art’s Quik Mart says it will pay the bill as soon as it can. Ken’s Candy is trying to decide whether it should increase its allowance for uncollectible accounts to cover the amount owed by Art’s. If Ken’s Candy increases the allowance, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

27) Ken’s Candy has been selling to Art’s Quik Mart for thirty years. Lately Art’s has been paying its bills increasingly slowly. Right now, Ken’s Candy has $10,000 in accounts receivable on its books from Art’s Quik Mart for candy sold to Art’s over the last six months. Art’s Quik Mart says it will pay the bill as soon as it can. Ken’s Candy is trying to decide whether it should increase its allowance for uncollectible accounts to cover the amount owed by Art’s. If Ken’s Candy does not increase the allowance, this accounting choice would be considered ________.

A) conservative

B) fundamental

C) basic

D) aggressive

28) A firm with high quality earnings may indicate the firm ________.

A) has fewer internal controls

B) postpones recognition of revenue

C) delays recognition of expenses

D) has fewer external risks than internal risks

29) A firm with low quality earnings may indicate the firm ________.

A) has made conservative accounting choices resulting in lower net income

B) postpones recognition of revenue

C) delays recognition of expenses

D) has fewer external risks than internal risks

30) Quality of earnings is considered higher if management ________.

A) depreciates its long-term assets over a shorter period than the industry average

B) uses larger salvage values for its long-term, depreciable assets

C) uses a lower percentage for its bad debts expense estimate

D) reduces its internal controls

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July 1, 2023

121.In the context of the 1997 Asian crisis, how did the International Monetary Fund's “one-size-fits-all” approach to macroeconomic policy affect South Korea?

A. It led to a decrease in the interest rates of short-term loans.

B. It made it difficult for companies to service their excessive short-term debt obligations.

C. It decreased the probability of widespread corporate defaults.

D. South Korea failed to recover from its financial crises.

E. South Korea was forced to increase restrictions on foreign direct investment.

122._____ arises when people behave recklessly because they know they will be saved if things go wrong.

A. Systemic risk

B. Moral hazard

C. Ethical dilemma

D. Tragedy of the commons

E. Risk compensation

123.Jade, a working professional, began driving rashly ever since she got her car insured against damage. She believed that the insurance claim would cover her in case of any accidents. Jade’s behavior is due to a situation known as _____.

A. cognitive dissonance

B. conflict of interest

C. systemic risk

D. moral hazard

E. tragedy of the commons

124.The International Monetary Fund been criticized for:

A. its lack of “one-size-fits-all” approach to macroeconomic policy.

B. encouraging moral hazard among banks.

C. its lack of power and authority.

D. using external experts to gain knowledge about a country.

E. keeping its operations open to outside scrutiny.

125.According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved?

A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy.

B. The IMF should establish a mechanism for accountability.

C. The IMF should free all banks from the obligation of financial reporting.

D. The banks should be forced to pay the price for their rash lending policies.

E. The IMF should bail out the banks whose loans gave rise to financial crises.

126.According to the noted economist Jeffrey Sachs, the International Monetary Fund should:

A. not be accountable to anyone as it is a powerful institution.

B. bail out the banks that have rash lending policies.

C. have a “one-size-fits-all” approach to macroeconomic policy.

D. keep its operations open to greater outside scrutiny.

E. lend only to countries with safe credit ratings.

127.The International Monetary Fund programs have been counterproductive, or only had limited success in _____.

A. Turkey

B. Iceland

C. Greece

D. Ireland

E. Latvia

128.In response to the global financial crisis of 2008–2009, the International Monetary Fund began to:

A. exercise tight controls on fiscal policy of the borrowing countries.

B. encourage activities that resulted in high inflation rates.

C. display inflexibility in policy responses.

D. urge countries to adopt policies that included fiscal stimulus and monetary easing.

E. adopt a “one-size-fits-all” approach to macroeconomic policy.

129.Which of the following observations about the International Monetary Fund (IMF) is true?

A. The IMF can force countries to adopt the policies required to correct economic mismanagement.

B. Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.

C. In recent years, the IMF has begun to make its policies more tight and inflexible.

D. In response to the global financial crisis of 2008–2009, the IMF began to adopt a “one-size-fits-all” approach to macroeconomic policy.

E. In recent years, the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

130.Which of the following poses a problem for international businesses in the long run?

A. Using exchange rate instruments like the forward market and swaps

B. Volatility of global exchange rate regime

C. Anti-inflationary monetary policies

D. Maintaining strategic flexibility by dispersing production to different locations

E. A policy of reduction in government spending