21) The cost incurred from the production of an additional unit of a product A) is a marginal cost to the firm. B) is called a loss. C) is called opportunity cost. D) must be zero for a firm to be efficient. 22) Before a doctor decides to keep her office open on Saturdays, she should A) make sure that the marginal […]
71) When people expect that the future exchange rate will be lower, they ________ the supply of dollars and the current exchange rate ________. A) increase; rises B) increase; falls C) decrease; rises D) decrease; falls E) do not change; rises 72) Purchasing power parity is defined as A) a constant value for a currency. B) an equal value of money across currencies. C) […]
51.If the market value of inventory is greater than its cost, then the application of the lower-of-cost-or-market rule would: a.decrease both the current ratio and net income. b.decrease the current ratio but not change net income. c.not change the current ratio but decrease net income. d.change neither the current ratio nor net income. 52.During a period of rising prices and […]
111.Assuming aggregate demand is represented by AD3, the economy depicted in Figure 12.1 confronts a real GDP gap of: A. Zero. B. $400 billion. C. $520 billion. D. $560 billion. 112.Assuming aggregate demand is represented by AD1, the economy depicted in Figure 12.1 confronts a real GDP gap of: A. Zero. B. $400 billion. C. $800 billion. D. $560 billion. 6.0 trillion – 5.6 […]
51.Your family always has rice available at every meal, just as it has been for every generation. This is an example of food selection due to: a.cultural tradition. b.emotional comfort. c.availability. d.social pressure. 52.Because nutrition science is a young category compared to other sciences, findings in nutrition research have been: a.extremely limited in the scientific community. b.very definite because of new technology. […]
121.Which of the following is the goal of the Caribbean Single Market and Economy? A.To remove all trade barriers between member nations in practice B.To establish a political union C.To adopt a common currency D.To harmonize macroeconomic and monetary policy between member states E.To establish an economic union 122.Which of the following is a major obstacle to the establishment of the Free Trade […]
61) The economy’s aggregate supply (AS) curve is assumed to slope upward because A) inputs become more expensive at higher levels of output. B) inputs become less expensive at higher levels of output. C) firms’ unit costs rise as output increases. D) firms’ unit costs fall as output increases. E) aggregate demand increases at higher levels of national income. Answer: C Comment: An […]
1.4 Integrative Questions 1) Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice, A) you must ignore the problem of scarcity. B) you considered the marginal cost and marginal benefit of your choice. C) you have used the ceteris paribus assumption. D) you have made a positive statement. E) you must have considered […]
21) Employees working primarily at the ________ decision level deal directly with customers and handle all routine transactions where their decisions follow predetermined policies and procedures that spell out how to handle different situations. A) strategic B) tactical C) operational D) directional 22) Which of the following best describes an operational-level decision? A) decisions undertaken at the highest level by leaders of […]
Table 6-5 Hourly Rental Rate (dollars) Quantity Demanded (hours) $60 40 75 32 80 30 100 24 21) Refer to Table 6-5. Katie Graham owns a kayak rental service in Santa Barbara. Table 6.3 below shows her estimated demand schedule for kayak rentals per week. She would like to increase her sales revenue by changing the price she charges […]
76. A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turnover for the period? A. 0.20.B. 5.00C. 20.0D. 73.0E. 3.0
77. Pepperdine reported net sales of $8,600 million, net income of $126 million and average accounts receivable of $890 million. Its accounts receivable turnover is: A. 37.8.B. 9.7.C. 68.3.D. 7.1.E. 51.7.
78. Axle Co’s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Betterman’s turnover was 9.3 for this year and 9.3 for last year. These results imply that: A. Betterman has the better turnover for both years.B. Axle has the better turnover for both years.C. Betterman’s turnover is improving.D. Axle’s credit policies are too looseE. Betterman is collecting its receivables more quickly than Axle 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. .13B. .80C. 7.75D. 8.00E. 10.00
80. A company had total sales of $600,000, net sales of $550,000, and an average accounts receivable of $95,000. Its accounts receivable turnover equals: A. 6.1B. 63.0C. 54.8D. 1.1E. 6.3
81. The matching principle, as applied to bad debts,requires: 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.
82. The materiality constraint, as applied to bad debts: A. Permits the use of the direct write-off method when bad debts expenses are relatively small.B. Requires use of the allowance method for bad debts.C. Requires use of the direct write-off method.D. Requires that bad debts not be written off.E. Requires that expenses be reported in the same period as the sales they helped produce.
83. If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: A. An increase in the expenses of the current period.B. A reduction in current assets.C. A reduction in equity.D. No effect on the expenses of the current period.E. A reduction in current liabilities.
84. On October 17 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? A. Decrease in net income; no effect on total assets.B. No effect on net income; no effect on total assets.C. Decrease in net income; decrease in total assets.D. Increase in net income; no effect on total assets.E. No effect on net income; decrease in total assets.
85. Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the write off of the accounton May 3 is:
A.
Accounts Receivable—A. Hopkins
2,000
Allowance for Doubtful Accounts
2,000
B.
Allowance for Doubtful Accounts
2,000
Bad debts expense
2,000
C.
Accounts Receivable—A. Hopkins
2,000
Bad debts expense
2,000
Cash
2,000
Accounts Receivable—A. Hopkins
2,000
D.
Allowance for Doubtful Accounts
2,000
Accounts Receivable—A. Hopkins
2,000
E.
Cash
2,000
Accounts Receivable—A. Hopkins
2,000
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more