general business data bank general business data bank Question Corporate Finance, 2e (Berk/DeMarzo) Chapter 6 Investment Decision Rules 6.1 NPV and Stand-Alone Projects 1) Which of the following statements is false? A) About 75% of firms surveyed used the NPV rule for making investment decisions. B) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. C) To decide whether to invest using the NPV rule, we need to know the cost of capital. D) NPV is positive only for discount rates greater than the internal rate of return. Use the following information to answer the question(s) below. Sarah Palin reportedly was paid a $11 million advance to write her book Going Rogue. The book took one year to write. In the time she spent writing, Palin could have been paid to give speeches and appear on TV news as a political commentator. Given her popularity, assume that she could have earned $8 million over the year (paid at the end of the year) she spent writing the book. Assume that she was able to write the book while simultaneously fulfilling her media commitments of appearing on TV news as a political commentator and give speeches. 2) Assume that once her book is finished, it is expected to generate royalties of $5 million in the first year (paid at the end of the year) and these royalties are expected to decrease by 40% per year in perpetuity. Assuming that Palin's cost of capital is 10% and given these royalties payments, the NPV of Palin's book deal is closest to: A) $3.75 million B) $12.20 million C) $13.00 million D) $13.75 million 3) Which of the following statements is false? A) In general, the difference between the cost of capital and the IRR is the maximum amount of estimation error in the cost of capital estimate that can exist without altering the original decision. B) The IRR can provide information on how sensitive your analysis is to errors in the estimate of your cost of capital. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. D) If the cost of capital estimate is more than the IRR, the NPV will be positive. Use the following information to answer the question(s) below. You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. 4) The NPV for this project is closest to: A) $29,200 B) $39,500 C) $129,200 D) $139,500 5) The IRR for this project is closest to: A) 15.60% B) 18.95% C) 20.00% D) 25.85% 6) The decision you should take regarding this project is A) reject the project since the NPV is negative. B) reject the project since the NPV is positive. C) accept the project since the IRR < 20%. D) accept the project since the IRR > 20%. Use the following information to answer the question(s) below. Sarah Palin reportedly was paid a $11 million advance to write her book Going Rogue. The book took one year to write. In the time she spent writing, Palin could have been paid to give speeches and appear on TV news as a political commentator. Given her popularity, assume that she could have earned $8 million over the year (paid at the end of the year) she spent writing the book. Assume that she was able to write the book while simultaneously fulfilling her media commitments of appearing on TV news as a political commentator and give speeches. 7) Assuming that Palin's cost of capital is 10%, then the NPV of her book deal is closest to: A) $2.00 million B) $2.20 million C) $3.00 million D) $3.75 million 8) The IRR of Palin's book deal is closest to: A) -27.25% B) -37.50% C) 27.25% D) 37.50% Use the table for the question(s) below. Consider a project with the following cash flows: Year Cash Flow 0 -10,000 1 4,000 2 4,000 3 4,000 4 4,000 9) If the appropriate discount rate for this project is 15%, then the NPV is closest to: A) $6,000 B) -$867 C) $1,420 D) $867 10) The NPV of project A is closest to: A) 12.0 B) 12.6 C) 15.0 D) 42.9 11) The NPV of project B is closest to: A) 12.6 B) 23.3 C) 12.0 D) 15.0 12) The NPV for this project is closest to: A) $176,270 B) $123,420 C) $450,000 D) $179,590Use the table for the question(s) below.Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year 3 C/F Year 4 C/F Year 5 C/F Year 6 C/F Year 7 C/F Discount Rate Alpha -79 20 25 30 35 40 N/A N/A 15% Beta -80 25 25 25 25 25 25 25 16% 13) The NPV for project alpha is closest to:A) $20.96B) $16.92C) $24.01D) $14.4114) The NPV for project beta is closest to:A) $24.01B) $16.92C) $20.96D) $14.41: 15) The NPV of Larry's three movie Larry Boy offer is closest to:A) 3.5 millionB) -1.6 million AnswerC) 1.6 millionD) -1.0 million16) The NPV for Boulderado's snowboard project is closest to:A) $228,900B) $46,900C) $51,600D) $23,80017) The NPV profile graphsA) the project's NPV over a range of discount rates.B) the project's IRR over a range of discount rates.C) the project's cash flows over a range of NPVs.D) the project's IRR over a range of NPVs.18) The NPV profileA) shows the payback period - the point at which NPV is positive.B) shows the internal rate of return - the point at which NPV is zero.C) shows the NPV over a range of discount rates.D) B and C are correct.
stats data bank stats data bank Question · 1 out of 1 points In the following list of numbers 1, 4, 4, 6, 8 12 what is the median? Answer · Question 2 1 out of 1 points Which of the following would be an example of agency records that would be appropriate as a source of data for research? Answer · Question 3 1 out of 1 points Which type of question should be avoided on a questionnaire? Answer · Question 4 1 out of 1 points From this set of numbers the median is (5, 5, 10, 20, 20) Answer · Question 5 1 out of 1 points Agency records, secondary data and content analysis do not require interaction with research subjects. Answer · Question 6 1 out of 1 points The range is a measure of central tendency. Answer · Question 7 1 out of 1 points An example of an open ended question would be Answer · Question 8 1 out of 1 points From the list of numbers compute the mean (5, 5, 10, 20, 20) Answer · Question 9 1 out of 1 points What are the basic ways of administering questionnaires? Answer · Question 10 0 out of 1 points From the following list of numbers 1, 4, 4, 6, 8, 12, what is the range? Answer Selected Answer: · Question 11 1 out of 1 points As a general rule, the interviewer should dress appropriately when doing face to face interviews. Answer · Question 12 0 out of 1 points In calculating the rate of rapes within New York City, which of the following would appear to be the best data? Answer · Question 13 1 out of 1 points How many variables are measured in a univariate data table? Answer · Question 14 1 out of 1 points Measure of central tendency include all of the following except Answer · Question 15 1 out of 1 points Which of the following do not represent measures of dispersion? Answer · Question 16 1 out of 1 points If on a questionnaire, a respondent is asked "what do you feel is the most important crime problem facing your city today" they are being asked what type of question? Answer · Question 17 0 out of 1 points * Which of the following would not be an example of the data coming from the Census Bureau that have criminal justice applications? Answer · Question 18 1 out of 1 points A mock jury is an example of Answer · Question 19 1 out of 1 points From the following list of numbers 1, 4, 4, 6, 8, 12 what is the mode? Answer · Question 20 1 out of 1 points Questions that encourage respondents to answer in a particular way are called Answer
BUS 308 – Ashford University (User guide) BUS 308 – Ashford University (User guide) Question BUS 308 - Ashford University (User guide)
Question_File5_9Dec_3rd Question_File5_9Dec_3rd Question 61. Sherri’s Exclusives wants to apply the PLC to the following list. Which one will not work?a. Styles.b. Fashions.c. Fads.d. Formal wear.e. Trends.62. Sherri’s Exclusives sells currently accepted and popular clothing items in given fields. Whatdoes she stock in her store?a. Styles.b. Fashions.c. Fads.d. Exclusives.e. Services.63. The PLC concept can be applied by marketers as a useful framework for describing how_____.a. to forecast product performanceb. to develop marketing strategiesc. products and markets workd. the PLC curve will shape upe. trends fade away64. Using the PLC concept to develop marketing strategy can be difficult because strategy isboth a _____ and a(n) _____ of the product’s life cycle.a. mirror image; cause235b. cause; resultc. result; mirror imaged. beginning; ende. purpose; effect65. During the introduction stage in the PLC a firm will incur high costs in all of the followingareas except which one?.a. Distribution.b. Promotion.c. Product development.d. Reminder advertising.e. Informative advertising.66. Why do profits increase during the growth stage of the PLC?a. Promotion costs are spread over a large volume.b. Unit manufacturing costs fall.c. Competition has not yet taken sales away.d. All of the above.e. None of the above.67. Which stage in the PLC normally lasts longer and poses strong challenges to the marketingmanagers?a. Introduction.b. Growth.c. Maturity.d. Decline.e. Phase-in68. What actually leads to greater competition in the maturity stage of the PLC?a. Overcapacity.b. Many competitors.c. Poor management.d. Inadequate promotion.e. A lack of money.69. At some point between maturity and decline, a company or business can attempt to raisethe PLC curve or give it new life by using which one of the following techniques?a. Find new global markets.b. Increase the advertising budget.c. Increase free samples as incentives to buy.d. Find new uses and new users.e. None of the above.70. At some point between maturity and decline, a company or store may lift the PLC by doingthe which of the following?a. Expand the product’s usefulness.236b. Expand the product’s safety.c. Expand the product’s convenience.d. Enhance the product’s packaging.e. All of the above.71. When a firm attempts to increase sales during the maturity stage of the PLC by changingone or more marketing mix elements, it is _____.a. modifying the marketing mixb. changing promotionc. improving advertisingd. increasing promotion budgete. altering publicity72. Sales decline in the decline stage of the PLC because of technological advances, increasedcompetition, and _____.a. shifts in the economyb. shifts in unemploymentc. shifts in consumer tastes and preferencesd. foreign importse. none of the above73. In general, which choice would a company make toward declining products?a. Maintain or harvest them.b. Harvest or drop them.c. Maintain, harvest, or drop them.d. Maintain or drop them.e. None of the above.74. All of the following are stages in the PLC, except which one?a. Introduction.b. Adoption.c. Growth.d. Decline.e. Maturity.True/False75. Given the rapid changes in consumer tastes, technology, and competition, companies mustdevelop a steady stream of new products and services.23776. Common reasons why so many new products fail in the marketplace include the marketsize may have been overestimated, the product was not well designed, the product wasincorrectly positioned in the market priced too low, or the product was advertised poorly.77. New product development begins with a systematic search for new product ideas throughidea generation.78.Malibu Beach Parties finds that the tastes and preferences of its customers changemore rapidly than in the past. The manager is constantly looking for external ideas fromcustomers, suppliers, competition, and the sales force.79. Companies rarely ever give their customers the tools and resources to design their ownproducts.80. To avoid too few new product ideas and the failure of many good ideas, top managementshould install an idea management system. This system directs the flow of new ideas toeach department where they can be collected, reviewed, and evaluated.81. Concept testing works best with people who are familiar with the new idea and the newproduct’s purpose. This generally includes top management, the sales force, and researchand development.82.GreenTree Lawn and Garden Products is engaged in marketing strategy development.Management must first create a statement outlining the product’s planned price,distribution, and marketing budget for the first year.(False;83.GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, andprofit projections for some new products to find out whether they satisfy the company’sobjectives. This activity is called business product development.(.84. To test the product concept of a new idea, a firm will develop a prototype that will satisfyand excite consumers and be produced quickly at budgeted costs.85. The stage at which new product and marketing programs are introduced into more realisticmarket settings is called concept test marketing.86. When a company determines that test marketing costs will become high, it is generallybetter to reconsider the proposal than make the mistake of spending too much.87. A company launching a new product into the market must first decide on where to launchthe product.88. A firm can obtain new products in two ways: acquisition or new-product development.23889. JumBo Games is launching a new set of game toys in the commercialization stage. The firstdecision to make is introduction timing and the second is where to launch the new product.90. Sequential product development has the advantage of not only being a team-orientedapproach, but it is faster in bringing products to market.
general business data bank general business data bank Question 81. For a toddler, what is one of the consequences of having strong feelings of shame and doubt? a. realistic expectations about performance b. extreme sensitivity to the feelings of others c. seeking out new information d. avoiding new activities 82. In toddlerhood, shame is a result of two different types of experiences. One is failing to live up to standards for ideal behavior. What is the other? a. social ridicule b. too much praise c. being overly indulged d. spending too much time watching television 83. The prototype for the conflict between autonomy and social demands for conformity in toddlerhood is _________________. a. eating with a spoon b. toilet training c. wearing lace-up shoes d. answering the telephone 84. The central process through which toddlers achieve a sense of autonomy is ________. a. imitation b. envy c. caring d. hope 85. The primary motivation for imitation in toddlerhood is the drive for________. a. affiliation b. mastery and competence c. power d. generativity 86. Which of the following leads people to a positive belief that they are someone who can make things happen? a. will b. hope c. care d. fidelity to others 87. What are the two characteristics of neuroses that are linked to the stage of toddlerhood? a. withdrawal and depression b. hysteria and phobia c. regression and denial d. obsessions and compulsions 88. How is poverty related to discipline practices? a. Poor families are more likely to reward and recognize their children's achievements. b. Poverty is associated with more frequent use of spanking as a discipline technique. c. There is no consistent relationship between poverty and discipline. d. Poverty is associated with a greater emphasis on explanations about why a behavior was wrong or bad. 89. What is the impact of quality child care on measured IQ? a. the impact is negative b. the impact is positive c. there is a positive impact only for middle income children d. no impact has been found in research so far 90. Findings from the NICHD study of the effects of early childcare indicate _____. a. family variables were more important predictors of cognitive development than quality of childcare b. the impact on children who have been in church-operated centers is high c. the impact on children of poverty is low d. quality childcare was a more important predictor of cognitive development than family variables 91. Children who have participated in quality child care show higher levels of ____________. a. conceptualization b. hospitalizations c. social competence d. altruism 92. Some studies have found that children who have had daycare experience are ____ than those who have not. a. less able to empathize with peers b. less compliant with parents’ wishes c. more depressed d. more lonely 93. In addition to the intellectual and social benefits of quality child care participation, studies of Head Start Programs have shown benefits in which of the following areas? a. higher daily nutritional intake b. better muscle tone and endurance c. higher levels of risk taking behavior d. greater artistic creativity 94. What is the greatest problem we face in the United States with respect to child care? a. how to provide affordable, quality care to all who want it b. lack of knowledge about how to train child care professionals c. lack of need for these services d. not enough physical accommodations that will meet licensing codes
Assume that Sunshine Products Inc has an agreement with Shady Finance Company Assume that Sunshine Products Inc has an agreement with Shady Finance Company Question Assume that Sunshine Products Inc has an agreement with Shady Finance Company to factor its receivables. Shady charges a flat commission of 2 percent of the receivables factored, plus 6 percent a year interest on the outstanding balance. It also deducts a reserve of 10 percent for returned and damaged materials. Interest and commission are paid in advance. No interest is charged on the reserve or the commission. If the average level of outstanding receivables is $700,000 and if they are turned over 4 a year, then what is the effective quarterly interest rate charged by Shady for this arrangement?
BEH 225 Week 8 CheckPoint Psychological Disorders Presentation BEH 225 Week 8 CheckPoint Psychological Disorders Presentation Question Consider the following scenario: The local community college that you work for is planning a seminar on common psychological disorders and has asked you to organize a presentation.Create a 10- to 12-slide presentation in Microsoft® PowerPoint® in which you address the following:• o The various types of disorders (include each of the following)• Mood Disorders• Anxiety Disorders• Psychosomatic Disorders• Somatoform Disorders• Dissociative Disorders• Sexual & Gender-Identity Disorders• Personality Disorders• Schizophrenic Disorders• Childhood DisordersAt least one example of each disorder; A brief explanation of the symptoms, causes, and treatment for each of your examples.Format citations of original works within the presentation consistent with APA guidelines.
business managment data bank business managment data bank Question 26. Small businesses have grown over the last decade. This growth may be attributed to a number of factors, including: a) minorities breaking the glass ceiling. b) the increase in “intrapreneurship” in large corporations. c) large corporations becoming less attractive places to work, due to layoffs and fewer management opportunities. d) the growth and development of organizational cultures because of extensive restructuring in American corporations. e) the globalization of the marketplace. 27. New businesses start every year. These start-ups are risky ventures, as nearly ____ fail in their first year of operation. a) 10% b) 25% c) 35% d) 40% e) 50% 28. Out of the number of small businesses that start every year, only _______ will survive a decade. a) 5% b) 10% c) 15% d) 20% e) 25% 29. Organizational culture: a) is often shaped by HRM practices. b) can be defined in terms of the right or wrong culture. c) is made up of a number of elements such as norms, behaviors, values, etc. d) refers to basic assumptions and beliefs shared by members of an organization. e) is the non-pervasive climate or atmosphere within which people work. 30. An organization’s culture consists of a number of separate elements, such as: a) technology use. b) ethical dilemmas. c) labor unions. d) employee work habits. e) the working environment climate or feel. 31. A company’s organization culture does NOT manifest in: a) the relationships among the employees. b) worker safety. c) the employees’ uniforms, or lack thereof. d) organizational challenges. e) pay for performance. 32. The increased use of technology for telecommuting raises a number of issues for human resources, such as: a) privacy rights regarding the data used by telecommuters. b) more layers of management to watch/monitor telecommuters. c) monitoring performance and overtime pay. d) outsourcing work rather than using fulltime employees. e) labor costs, as telecommuting is quite expensive. 33. A critical ethical issue for HR managers related to technology use in work environments is: a) the increase in authoritarian management due to organizational restructuring. b) the improper use of proprietary data. c) self-managed work teams misusing technology to their own personal ends. d) overly close supervision of technology users. e) “window sitting.” 34. The impact of technology on organizational structure can be seen in the: a) return of pyramidal structure due to the ease of transferring information between levels. b) increase in authoritarian management in order to control access to technology and information. c) changing nature of labor relations. d) decrease in employees working at home. e) ability of top management to bypass middle managers and deal directly with first- line managers. 35. Since companies can now monitor their employees’ use of the Internet and e-mail, which of the following is a legislative concern? a) The decrease in employee productivity. b) Privacy issues regarding individuals. c) The “fuzzy line” between what could be seen as obscene to some people but harmless slang to others. d) The use of this information to plan surprise birthday parties for employees. e) The potential for the information to be used to compile mailing lists for different corporations. 36. Knott’s Construction builds one house every month. Mr. Knotts and Scott perform all the structural work themselves while they subcontract the plumbing and electrical work. This subcontracting is an example of: a) organizational restructuring. b) the rise of the service sector. c) the growth of the small business. d) time efficiency. e) outsourcing. 37. Outsourcing presents a number of challenges to Human Resources in that: a) it raises labor costs while lowering production costs. b) a firm is still accountable for the actions of its subcontractors, but it exercises less control over them. c) employees require close monitoring by HRM, as subcontractors tend to take on less work than they can handle, meaning more subcontractors doing less work. d) it increases customer use of service centers because customers tend to be more satisfied with subcontractors than with regular employee service representatives. e) all of the above 38. Rudy is writing a report about the individual challenges his firm is facing. Which of the following would Rudy NOT include in his report? a) use of an employee’s credit history in determining her competency. b) whether to increase fit between employees and their jobs. c) whether to discipline an employee for excessive use of the Internet. d) whether to outsource a specific job to a firm with more employees. e) how to determine individuals’ performance in their respective jobs. 39. The relationship of the individual challenges HRM faces to the organizational challenges HRM faces: a) is one of little, if any, importance. b) is one of reciprocity. Each affects the other. c) is relevant in only a few challenges. d) is similar to the relationship of labor relations to the use of technology. e) poses a significant ethical dilemma to HR managers. 40. The matching of people to the organization, not just to a job, is: a) important, but not the critical task it was once thought to be since studies show that personality has little to do with success. b) creating ethical dilemmas for corporations in today’s legal environment. c) a significant part of an organization’s social responsibility. d) getting easier through the use of technology. e) increasingly important as studies show executive personalities as well as their competencies can affect company performance. 41. A study of small high-technology firms shows that they should hire people who are: a) very well organized and structured. b) experienced in administration and organization since the company will probably lack these skills. c) able to handle high uncertainty and rapid change in exchange for the satisfaction of possible future payoffs. d) experienced in working with large corporations, preparing the company for its transition to be a major player in its market. e) technically competent and should disregard personality issues. 42. Creating and implementing ethics codes has generally: a) significantly decreased the number of ethical issues being raised in companies. b) made decision making for managers much more clear cut. c) increased employee satisfaction with management. d) caused an actual increase in ethical violations within companies. e) caused employees to see their managers as acting in ways inconsistent with these ethical codes. 43. When it comes to managers dealing with ethical issues, it is safe to say that: a) what is ethical or unethical is seldom clear cut. b) issues clearly resolve themselves into right and wrong choices. c) the implementation of ethical codes has significantly helped managers with their ethical struggles. d) employee expectations are on the decline. e) business, unlike other areas of life, generally has clear choices about what to do or not to do in ethical situations. 44. Karl is trying to improve company productivity by focusing on employee competence. Karl is focusing on the _____ factor of productivity. a) motivation b) ethical c) quality of work life d) empowerment e) ability 45. You are talking with a manager about one of his employees, Tom. The manager describes Tom as a person who has a strong desire to do the best possible job and put in the maximum effort to perform his assigned tasks. The manager is describing Tom’s: a) abilities. b) capabilities. c) motivation. d) career path. e) productivity level. 46. One goal of empowerment is: a) to decrease employee dependence on superiors. b) to let managers create distance from the employees. c) to encourage employees to take more responsibility for their own work. d) to emphasize external control in the function of the company. e) a and c 47. One of your best MIS people left to work for a competitor. When she left, she took with her a partially completed proposal for an enhanced MIS system that would reduce costs and increase the speed of handling information. You’ve just experienced: a) empowerment. b) an organizational restructuring. c) a competitive advantage. d) brain drain. e) the results of the glass ceiling. 48. Many profitable American companies eliminate jobs ever year. This trend can be attributed to which of the following factors? a) The need for fewer service and production workers in a more technological society. b) The increasing dissatisfaction of firms with long-term employees. c) Increasing competition in industry. d) Companies’ need for more diverse work communities. e) Increasing union membership. 49. Strategic Human Resource Planning is: a) the process of responding appropriately to HRM problems as they arise. b) the process of winning the commitment of line management to support HRM practices. c) the process of formulating HR strategies and establishing programs to implement them. d) largely the responsibility of HRM professionals with minimal input by line management. e) a dying practice as more companies move to TQM. 50. Strategic Human Resource Planning provides a number of benefits to a company, such as: a) providing strategies for responding to problems and crises as they arise. b) relieving middle managers of their HRM responsibilities. c) blurring the difference between line and staff management. d) reducing costs by diversifying the company’s goals and objectives. e) helping to identify the gap between a company’s current situation and vision.
Midterm exam Midterm exam Question 1.(TCO D) The basis for classifying assets as current or noncurrent is conversion to cash within (Points : 5)Question 2. 2. (TCO A) Why are some of the major differences between iGAAP and U.S. GAAP? Explain in detail. (Points : 25)Question 3. 3.(TCO C) Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2010, included the following expense accounts. Accounting and legal fees $140,000 Advertising $120,000 Freight-out $75,000 Interest $60,000 Loss on sale of long-term investments $30,000 Officers' salaries $180,000 Rent for office space $180,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry's selling expenses for 2010? (Points : 15)395Question 4. 4. (TCO C) For the year ended December 31, 2010, Transformers Inc. reported the following. Net income $60,000 Preferred dividends declared $10,000 Common dividend declared$2,000 Unrealized holding loss, net of tax $1,000 Retained earnings, beginning balance $80,000 Common stock $40,000 Accumulated Other Comprehensive Income, Beginning Balance $5,000 What would Transformers report as the ending balance of retained earnings? (Points : 20)5.(TCO C) For the year ended December 31, 2010, Transformers Inc. reported the following. Net income $60,000 Preferred dividends declared, $10,000 Common dividend declared, $2,000 Unrealized holding loss, net of tax; – Available-For-Sale-Securities $1,000 Retained earnings $80,000 Common stock, $40,000 Accumulated Other Comprehensive Income, Beginning Balance 5,000 What would Transformers report as its ending balance of accumulated other comprehensive income? (Points : 20)Question 6. 6. (TCO B) Prepaid rent at 1/1/10 was $30,000. During 2010, rent payments of $120,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $125,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment (Points : 10)Question 7. 7. (TCO B) Retained earnings at 1/1/10 was $170,000 and at 12/31/10 it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10) Question 8. 8. (TCO B) Retained earnings at 1/1/10 was $150,000 and at 12/31/10 it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10)Question 9. 9. (TCO B) Allowance for doubtful accounts on 1/1/10 was $60,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $55,000, and during 2010, bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment. (Points : 10)
Finance accounting Finance accounting Question 1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (15 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry. (10 points) (Points : 25)2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how information from the journal entries get into the ledger accounts (15 points) and (2) provide an example of information that would be transferred. (10 points) (Points : 25)3 . (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how separation of duties can satisfy the purpose of internal control (15 points) and (2) provide an example of how this control could be implemented. (10 points) (Points : 25)4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the First in First out (FIFO) method is applied (15 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit. (10 points) (Points : 25)5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Acid-test (or Quick) Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. (15 points) (Points : 25)6. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.1. Calculate depreciation expense for the truck for each year (2010-2013) using the:a. Straight-line method.b. Double-declining balance method.c. Units of Production method. (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)2. Which method best tracks the wear and tear on the van?3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. (Points : 25)7. (TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock:Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares.The following transactions occurred during the year:1/19/12 – Issued 100,000 shares of common stock for $17 cash per share.1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share.11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share.12/1/12 – Declared and paid a total dividend of $95,000.Required:1. Prepare the journal entry for each transaction listed above.2. In your own words, explain the main differences between common and preferred stock. (Points : 25)8. (TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description) (Points : 25)9. (TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.Account BalanceCommon stock $5,100Accounts payable $4,400Service revenue $17,100Land $28,800Note payable $9,500Cash $5,200Dividends $6,100Utilities expense $2,100Accounts receivable $10,600Delivery expense $700Retained earnings $25,600Salary expense $8,200Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.10. Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:Journals - Jan. 2001PurchasesSupplier Date Received Quantity Unit Cost AmountDonna 01/10/01 110 12.00 1320.00Thomas 01/15/01 160 14.00 2240.00Cindy 01/18/01 150 15.00 2250.00SalesCustomer Date shipped Quantity Sel. Price AmountNorilene 01/16/01 200 25.00 5000.001. Calculate the ending inventory, using the perpetual inventory method:A. Using FIFOB. Using LIFOC. Using Average Cost2. Prepare the following statementUsingFIFO LIFO Average CostSalesCost of SalesGross Profit