Question : 71. Pledging receivables: A. Allows firms to raise cash. B. Allows a firm to retain : 1225976

71. Pledging receivables:

A. Allows firms to raise cash.

B. Allows a firm to retain ownership of its receivables.

C. Does not transfer risk of bad debts to the lender.

D. Should be disclosed in the financial statements.

E. All of these.

72. A company factored $45,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this transaction would include a:

A. Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,350, and credit to Accounts Receivable of $43,650.

B. Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.

C. Debit to Cash of $43,650, a debit to Factoring Fee Expense of $1,350, and a credit to Accounts Receivable of $45,000.

D. Debit to Cash of $46,350 and a credit to Accounts Receivable of $46,350.

E. Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.

73. The quality of receivables refers to:

A. The creditworthiness of sellers.

B. The speed of collection.

C. The likelihood of collection without loss.

D. Sales turnover.

E. The interest rate.

74. The account receivable turnover measures:

A. How long it takes to sell accounts receivable to a factor.

B. How often, on average, receivables are received and collected during the period.

C. The relation of cash sales to credit sales.

D. How long it takes to sell merchandise inventory.

E. All of these.

75. The accounts receivable turnover is calculated by:

A. Dividing net sales by average accounts receivable.

B. Dividing net sales by average accounts receivable and multiplying by 365.

C. Dividing average accounts receivable by net sales.

D. Dividing average accounts receivable by net sales and multiplying by 365.

E. Dividing net income by average accounts receivable.

76. A company has net sales of $900,000 and average accounts receivable of $300,000. What is its accounts receivable turnover for the period?

A. 0.20.

B. 5.00

C. 20.0

D. 73.0

E. 3.0

77. Dart reported net sales of $8,739 million and average accounts receivable of $864 million. Its accounts receivable turnover is:

A. 0.90.

B. 10.1.

C. 36.1.

D. 50.0.

E. 3,686.

78. Tepsi’s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Craig’s turnover was 9.3 for this year and 9.3 for last year. These results imply that:

A. Craig has the better turnover for both years.

B. Tepsi has the better turnover for both years.

C. Craig’s turnover is improving.

D. Craig’s credit policies are too loose.

E. Craig’s is collecting its receivables more quickly than Tepsi in both years.

79. A company had net sales of $600,000, total sales of $750,000, and an average accounts receivable of $75,000. Its accounts receivable turnover equals:

A. .13

B. .80

C. 7.75

D. 8.00

E. 10.00

80. The matching principle precribes:

A. That expenses be ignored if their effect on the financial statements is unimportant to users’ business decisions.

B. The use of the direct write-off method for bad debts.

C. The use of the allowance method of accounting for bad debts.

D. That bad debts be disclosed in the financial statements.

E. That bad debts not be written off.

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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?