general business data bank

Question


1. Performance evaluation in most firms is
applied at:



A.
Many different levels from top
management down to individual production and sales employees. 

B.
All levels of
production, but only top levels of sales. 

C.
Top and mid-management
levels only. 

D.
Lower and mid-management
levels only. 

E.
The mid-management level
only. 



2. Risk aversion is by:



A.
Lack of a strategic emphasis in decision
making. 

B.
Use of non-strategic
performance measurement systems. 

C.
Presence of uncertainty
in a manager's environment. 

D.
A manager's inability to
deal with stress. 



3. The
process by which managers at all levels in the firm gain information about the
performance of tasks within the firm and judge that performance against
pre-established criteria is: 



A.
Performance measurement. 

B.
Employee inspection. 

C.
Goal congruence. 

D.
Managerial evaluation. 

E.
Management control. 



4. Operational control has a
management-by-exception approach in contrast to management control, which is
more consistent with:



A.
The management-by-incentives approach. 

B.
The
management-by-objectives approach. 

C.
The "hands
off" approach. 

D.
A non-quantitative set
of measures. 

E.
A non-qualitative set of
measures. 



5. A
strategic business unit (SBU) consists of a well-defined set of controllable
operating activities over/about which the SBU manager is: 



A.
Knowledgeable. 

B.
Responsible for
strategy. 

C.
Responsible for strategy
and execution. 

D.
Responsible for
strategy, execution, and performance. 



6. The objectives of management control of the
manager include:



A.
Cost, quality, and functionality. 

B.
Management by
objectives. 

C.
Management by exception.


D.
Motivation, incentive
and fairness. 

E.
Identification, response
and performance. 



7. The principal-agent economic model applied to
employment contracts deals primarily with the two management performance
aspects of:



A.
Rights and duties. 

B.
Uncertainty and lack of
observability. 

C.
Performance and reward. 

D.
Controllability and
responsibility. 

E.
Risk and motivation. 



8. The "risk-averse" manager will be
improperly biased to:



A.
Seek out decisions with uncertain
outcomes. 

B.
Make risky decisions. 

C.
Avoid decisions with
uncertain outcomes. 

D.
Maximize his or her own
risk and minimize the company's risk. 

E.
Use resources beyond
his/her control. 



9. In
properly developing formal systems at the team level that will have the desired
impact on employees' performance, the management accountant should recognize
any existing informal systems and: 



A.
Make plans to eliminate these informal
systems. 

B.
Simply formalize them
into the system being developed. 

C.
Try to eliminate them
prior to system development. 

D.
Not let these
"culture" aspects affect system development. 

E.
Try to capture valued
"culture" aspects in the formal system. 



10.
The common factor among control systems in hiring practices, promotion
policies, and strategic performance measurement is:



A.
Management sets expectations for desired
employee performance. 

B.
Employee-determined
expectations for desired employee performance. 









C.
Coordination of activities. 

D.
Communication of
results. 



11.
Among the benefits of centralized management in a firm is (are):



A.
Effective goal congruence. 

B.
Utilization of top
management expertise. 

C.
Effective participation
by all levels of management. 

D.
A higher level of
motivation for divisional managers. 



12.
The benefits of decentralized management in a firm include all the following except:



A.
Ability of SBU managers to use their
local knowledge effectively. 

B.
Ability of SBU managers
to make more timely decisions. 

C.
Motivation provided by
the freedom and responsibility of a decentralized environment. 

D.
Improved coordination
among divisional managers. 



13.
The need for coordination between the production and the selling function will
impact the choice of:



A.
Profit, cost or revenue center. 

B.
Manager for the firm. 

C.
Formal or informal
control systems. 

D.
Profitability goal for
the firm. 

E.
Control measures to
prevent fraud. 



14.
By not distinguishing between direct and indirect costs in their performance
reporting, many companies:



A.
Generate more useful control potential
for managers. 

B.
Can cause poor
decision-making. 

C.
Focus on long-term
results. 

D.
Focus on short-term
results. 

E.
Clearly distinguish
between controllable and non-controllable costs. 



15.
As a strategic issue, "budget slack" could represent a:



A.
Very minor issue in most firms. 

B.
Self-correcting problem
over several operating periods. 

C.
Problem only in a
decentralized management environment. 

D.
Lower overall level of
expected performance than is achievable. 

E.
Significant increase in
the relative risk aversion of managers. 



16.
"Outsourcing" a cost center is often done to:



A.
Reduce cost and obtain strategic focus. 

B.
Increase control over a
strategic resource. 

C.
Reduce the firm's
contractual relationships. 

D.
Shift costs within
remaining cost centers. 



17. Cost
allocation of service department costs to production departments make the
evaluation and control processes in the production departments: 



A.
Simpler. 

B.
More complex. 

C.
Forthright and fair. 

D.
Less efficient. 

E.
Counter productive. 



18.
From a strategic standpoint, profit centers tend to:



A.
Free the center manager from concerns
about markets. 

B.
Place more cost emphasis
on rush orders. 

C.
Provide incentive for
coordination among managers of different units. 

D.
Focus managers on cost
control rather than revenue generation. 

E.
All of the above answers
are correct. 



19.
The contribution by profit center (CPU) expands the contribution margin income
statement by distinguishing:



A.
Variable and fixed costs. 

B.
Short-term and long-term
fixed costs. 

C.
Controllable and
non-controllable fixed costs. 

D.
Noncontrollable and
untraceable fixed costs. 

E.
Net income and
contribution margin. 



20.
The main concept of the
balanced scorecard is that, to evaluate the SBU's progress to strategic
success, a business must use all of the following except: 



A.
Both financial and non-financial
measures. 

B.
Value chain analysis. 

C.
Attend to customer
satisfaction needs. 

D.
Multiple measures for a
comprehensive evaluation. 



21.
In a non-profit organization, you are more likely to see:







A.
Cost centers. 

B.
Revenue centers. 

C.
Profit centers. 

D.
Investment centers. 



22.
The evaluation by upper-level managers of the performance of mid-level managers
is:



A.
Performance evaluation. 

B.
Operational control. 

C.
Goal congruence. 

D.
Principal-agent model. 

E.
Management control. 



23.
The evaluation of operating level employees by mid-level managers is:



A.
Performance evaluation. 

B.
Operational control. 

C.
Goal congruence. 

D.
Principal-agent model. 

E.
Management control. 



24.
The manager acting independently in such a way as to simultaneously achieve top
management's objectives is:



A.
Performance evaluation. 

B.
Operational control. 

C.
Goal congruence. 

D.
Principal-agent model. 

E.
Management control. 



25.
A model that has been
used to better understand the key elements that contracts must have in order to
achieve the desired objectives is the: 



A.
Performance evaluation. 

B.
Operational control. 

C.
Goal congruence. 

D.
Principal-agent model. 

E.
Management control. 



26.
Order-filling costs:



A.
Include samples. 

B.
Cannot often be
effectively managed as an engineered-cost center. 

C.
Usually have a
relatively clear relationship to sales volume. 

D.
Include commissions. 



27.
Controllable margin is determined by subtracting short-term controllable fixed
costs from the:



A.
Long-term controllable fixed cost. 

B.
Contribution margin. 

C.
Variable costs. 

D.
Fixed costs. 

E.
Variable costs and fixed
costs. 



28.
An employment contract
is an agreement between the manager and top management designed to provide
incentives for the manager to act: 



A.
Independently to achieve top
management's objectives. 

B.
Consistently with that
of other managers. 

C.
Independently to achieve
the manager's objectives. 

D.
Independently to achieve
the customer's objectives. 



29.
The least common type of SBU in a retail firm is the:



A.
Profit center. 

B.
Cost center. 

C.
Revenue center. 

D.
Investment center. 



30.
Which one of the following is a drawback of decentralization?



A.
Uses local knowledge only. 

B.
May hinder coordination
among independent SBUs. 

C.
Provides better
management control. 

D.
Provides goal
congruence. 

E.
Offers an efficient
method of performance evaluation. 

	

Zamatia Ltd. is an Italian upscale maker of eyewear

Question
	
Zamatia Ltd. is an Italian upscale maker of eyewear. UV Inc. is one of their retailers in the US. Considering Zamatia's entry-level sunglasses for the coming season, the Bassano UV purchases each one of those pairs of sunglasses from Zamatia for $75 and retails them for $115. Zamatia's production and shipping costs per pair are $35. At the end of the season, UV generally needs to offer deep discounts to sell remaining inventory; UV estimates that it will only be able to fetch $25 pe leftover Bassano. UV believes this seasons demand for Bassano can be represented by a normal distribution with a mean of 250 and a standard deviation of 125.


How many units of Bassano should UV order?


What order quanity would a firm choose if the firm owned both Zamatia and UV? I.e, what is the optimal order quantity to maximize the integrated supply chain's profit?


Suppose Zamatia agrees to buy back from UV all leftover sunglasses for partial refund of $65 per pair. UV must ship leftover inventory back to Zamatia, which it estimates cost about $1.50 per pair. How many units should UV order to maximize its expected profit given the buy-back offer?	

marketing quiz test bank

Question
	
31. Cost
analysis and performance analysis are the same thing.

 True

? False





 

32. Experience
shows that it doesn't make sense for marketing managers to allocate costs to
specific market segments or products.

 True

? False





 

33. In
general, the more products a company has the more difficult it will be to
allocate costs.

? True

 False





 

34. With
the full-cost approach to marketing cost analysis, all costs are allocated to
products, customers, or other categories.

? True

 False





 

35. With
the contribution-margin approach to marketing cost analysis, all costs are
allocated to products, customers, or other categories.

 True

? False





 

36. The
contribution-margin approach to marketing cost analysis focuses attention on
variable costs rather than total costs.

? True

 False





 

37. The
contribution-margin and the full-cost approaches to marketing cost analysis are
different, but they should lead to the same action implications.

 True

? False





 

38. The
full-cost approach to marketing cost analysis is likely to lead to arguments
among product managers about how costs are to be allocated.

? True

 False







 

39. When
it comes to marketing cost analysis, a sales rep is likely to favor the
full-cost approach over the contribution-margin approach.

 True

? False



 

40. A
marketing audit is a systematic procedure for allocating the full costs of
marketing to the appropriate functional accounts.

 True

? False





 

41. A
marketing audit is a systematic, critical, and unbiased review and appraisal of
the basic objectives and policies of the marketing function.

? True

 False





 

42. Marketing
audits consider future marketing plans, so they are not concerned with a
company's current marketing strategies.

 True

? False





 

43. In
a marketing audit, the auditor evaluates the plans being implemented, but not
the quality of the effort.

 True

? False





 

44. A
marketing audit evaluates the whole marketing program as well as individual
plans.

? True

 False





 

45. Control
helps marketing managers learn how:

 to
plan for the future.

 implementation
is working.

 ongoing
plans are working.

? All
of the above.

 None
of the above.





 

46. With
respect to marketing control,

 all
cost records should be kept in the marketing department.

? faster
feedback can often be the basis for a competitive advantage.

 many
advances have been made, but there is still no effective way for a manager to
be sure that a product is actually selling to the intended target market rather
than to some other group.

 All
of the above are true.

 None
of the above is true.





 

47. To
improve the effectiveness of the marketing control process, the marketing
manager should:

 realize
that most errors are made because managers react to detailed information too
quickly--instead of waiting to see what patterns show up in summary reports.

 be
the supervisor for the data-processing manager.

? have
all necessary data captured as it comes in and in a form that can be quickly
sorted and analyzed by computer.

 be
certain that all cost records are kept in a central location controlled by the
marketing department.

 All
of the above.





 

48. The
basic objectives of implementation are to do things:

 better.

 faster.

 at
lower cost.

? all
of the above.

 A
and C, but not B.





 

49. Which
of the following statements about customer complaints is FALSE?

? Customer
complaints that are handled well by the company usually help it win new
customers.

 In
business markets, customer complaints are usually handled by the sales force.

 In
consumer markets, customer complaints are usually handled by toll-free
telephone lines and via e-mail customer service reps.

 Customer
complaints that are handled well by the company usually help it keep its
customers.

 None
of the above is false.





 

50. A
marketing manager might use the total quality management approach to:

 reduce
defects in goods produced in factories.

 train
better salespeople.

 improve
customer service.

 make
delivery schedules more reliable.

? all
of the above.



	

Question_Doc13_15Dec

Question
	
1)The Lorenz curve shows A) the
demand for jobs. B) the supply of jobs.

C) the elasticity of jobs.

D) the distribution of income.



2)The graph which represents the
distribution of income in an economy is called the A) Laffer curve.

B) Lorenz curve.

C) distribution curve.

D) aggregate demand curve. 



3)According to the text, today's
Lorenz curve is

A)a straight line.

B)a vertical line.

C)more bowed than in 1929.

D)less bowed than in 1929.

4) According to the text, the lower
half of U.S. households earn about what percentage of total income?

A)4 percent

B)9 percent

C)15 percent

D)28 percent 

5)The Lorenz curve shows what
portion of total money income is accounted for by A) different proportions of a
country's households.

B) only the wealthiest citizens. C)
only poor people.

D) taxpaying citizens only.

6)In a Lorenz curve, perfect income
equality is represented by

A)a vertical line.

B)a horizontal line.

C)a rectangular hyperbola.

D)a 45-degree line
originating from the origin.



7)The more bowed out the Lorenz
curve, the A) less equal the income distribution.

B) more equal the income
distribution.

C) greater the overall wealth in the
economy. D) less the overall wealth in the economy.



8)The less bowed the Lorenz Curve,
the

A)more equal the income
distribution.

B)less equal the income
distribution.

C)greater the number
of low-income people.

D)greater the number
of high-income people.

9) A straight-line Lorenz
curve shows

A)an equal distribution of money
income.

B)a greater than proportionate share
of income going to middle-income households.

C)a high incidence of absolute
poverty.

D)a highly unequal distribution of
income.



10)The more bowed (skewed) the
Lorenz curve, A) the more equal the distribution of income.

B) the greater the number of
households in the society. C) the more unequal the distribution of money
income. D) the greater the total income of the society.





11)The Lorenz curve is a geometric
representation of

A)the profile of earnings for a
"typical" family over time.

B)the standard of living experienced
by the poor in a country.

C)the difference
between pre-tax and post-tax income.

D)the distribution of income.



12) The more bowed the Lorenz curve,
the

A)richer the society.

B)more unequal the distribution of
money income.

C)poorer the society.

D)more equal the distribution of
income.



13) Suppose 10 percent of the
families receive 10 percent of the income, 20 percent of the families receive
20 percent of the income, and so forth. The Lorenz curve would be

A)a straight line at
a 45-degree angle from the origin.

B)a straight line at
a 30-degree angle from the origin.

C)the most bowed curve possible.

D)the horizontal axis.



14) The most unequal distribution of
income in the above figure exists in

A)country 4.

B)country 1.

C)country 5.

D)country 3.



15)The country reflecting perfect
income equality in the above figure is A) country 4.

B) country 1. C) country 5. D)
country 3. Answer: C Diff: 1

Topic: 30.1 Income AACSB: Analytic
skills

Question Status: Previous Edition

16)Which of the following would be
considered income in kind?

A)tax refunds

B)food stamps

C)yard sales

D)reduction in the tax rates



17)One reason some economists are
critical of the Lorenz curve is because A) it reflects income before taxes.

B) it reflects income after taxes.

C) it reflects only the top bracket
of taxpayers. D) it reflects only the poor in the country. Answer: A



18)Which of the following is NOT a
correct criticism of the Lorenz curve? A) It does not include payments in kind.

B) It does not deal with differences
in family size.

C) It ignores the impact of age
distribution on income distribution. D) It refers to money income after taxes.



19)In calculating income for the
Lorenz curve, one factor that is omitted, is A) capital gains income.

B) dividend payments.

C) in-kind transfer
payments from the government. D) pure economic rent.



20)Some economists criticize the
Lorenz curve because it

A)includes too many things in
measuring income, such as food stamps, housing aid, and other government
programs.

B)does not account for the effect of
age on a family's income.

C)measures unreported income earned
in the underground economy.

D)uses after-tax income
when pre-tax income is more appropriate.



21) Some economists criticize the
Lorenz curve because it

A)accounts for differences in the
size of households when it should not.

B)does not include
the cumulative percentage of households.

C)does not include unreported income
earned in the underground economy.

D)represents the inequality
of lifetime income when it should just look at a specific time
period.



22) Since World War II, the share of
total income going to the bottom 20 percent of U.S. households has

A)fallen by 20 percent.

B)increased by 10 percent.

C)remained constant.

D)more than doubled.



23)Compared to a sampling of other
developed nations, the U.S. income distribution is more unequal than many
others. What accounts for this?

A)
The lowest-income families in the United States earn much less than
the lowest-incomehouseholds in other nations.

B) Marginal income tax rates are
much higher in the United States than in any other nation. C)
Thehighest-income families in the United States earn much more than
the highest-income households in other nations.

D) Other nations manipulate their
data to look better.



24)When examining the financial
status of households, wealth is

A)synonymous with income.

B)a flow variable whereas income is
a stock variable.

C)a stock variable and includes both
tangible assets and human capital.

D)not as important as income because
wealth does not change over time.



25)The way income is allocated among
the population is called the A) income curve.

B) income spread.

C) distribution of income. D) Gini
allocation.



26)Which of the following is the
best definition of what economists define as total income? A) Payment
for labor services.

B) Payment for labor services and
for ownership of other factors of production.

C) Payment for labor services, for
use of other factors of production, and gifts and government transfers.

D) Inheritance.



27) The Lorenz curve

A)shows what portion of the
population are living in poverty and what portion are living in wealth.

B)shows what portion of total money
income is accounted for by different proportions of the nation's households.

C)shows what portion of the
population is working as professionals, white- and blue-collar,workers and
workers at menial tasks.

D)breaks down the income levels of
each group in the economy.



28)The more bowed out the Lorenz
curve is, the A) more equal the distribution of income.

B) less equal the distribution of
income. C) richer the society.

D) poorer the society.



29)A Lorenz curve that represents an
unequal income distribution is A) a straight line starting at the origin.

B) a straight line starting at 100%
C) a bowed curved.

D) a line that has a kink in the
middle of it.



30)A Lorenz curve that is perfectly
straight indicates

A)that society is very rich.

B)that a small portion of the
population accounts for most of the income.

C)that a large portion of the
population accounts for most of the income.

D)complete income equality.





31) If everyone earned the same
income, the Lorenz curve would be

A)a rectangular hyperbola.

B)a straight line from the origin at
a 45-degree angle.

C)the horizontal axis.

D)very bowed from the diagonal.



32) The above figure displays

A)income-inequality curves.

B)Gini Coefficients.

C)Lorenz curves.

D)Laffer curves.





33)Refer to the above figure. Which
curve shows the most unequal distribution of income? A) A

B) B C) C D) D

Answer: D Diff: 2

Topic: 30.1 Income AACSB: Analytic
skills

Question Status: Previous Edition

34)Refer to the above figure. Which curve
shows the second most unequal distribution of income?

A) A B) B C) C D) D





35)Refer to the above figure. For
which Lorenz curve does the richest 25 percent make 50 percent of the nation's
money income?

A) A B) B C) C D) D





36)Refer to the above figure. For
which Lorenz curve does the richest 40 percent make 50 percent of the nation's
money income?

A) A B) B C) C D) D



37)Refer to the above figure.
Perfect income equality is shown by A) the horizontal axis.

B) the vertical axis. C) curve A.

D) curve D.



38)Refer to the above figure. Where
are the poorest households represented on the graph? A) The poorest households
are to the left along the horizontal axis.

B) The poorest households are to the
right along the horizontal axis. C) The poorest households are all along the
horizontal axis.

D) The poorest households are
concentrated in the middle. Answer: A



39)Refer to the above figure. Which
of the above panels represents complete income equality? A) Panel A

B) Panel B C) Panel C D) Panel D 

40)Refer to the above figure. Which
of the above graphs represents an unequal income distribution?

A) Panel A B) Panel B C) Panel C D) Panel D	

1) When evaluating whether to lease or sell equipment, the

Question
	
1) When evaluating whether to lease or sell equipment, the
1) When evaluating whether to lease or sell equipment, the book value of the equipment is considered to be a sunk cost and not a differential cost.
a. True
b. False

2) Paul’s Delivery Service is considering selling one of its smaller trucks that is no longer needed in the business. The truck originally cost $23,000 and has accumulated depreciation of $10,000. The truck can be sold for $14,000. Another option is for Paul's Delivery Service to lease the truck to another company. The lessee will pay $4,800 per year for three years. Paul’s Delivery Service will continue to pay the taxes and license fees for the truck, but all other expenses will be paid by the lessee. Management assumes the expenses for the taxes and license will be $300 per year. Which of the following statements is correct?

a. Paul’s Delivery Service should sell the truck because the differential loss from leasing is $500.
b. Paul’s Delivery Service should lease the truck because the differential income from leasing is $12,200.
c. Paul’s Delivery Service is indifferent as to whether the company should lease or sell the truck because there is no differential income or loss between the alternatives.
d. Paul’s Delivery Service should lease the truck because the differential income from leasing is $300.

3) In deciding whether to accept business at a special price when the company is operating below full capacity, the special price should be set high enough to cover both the fixed and variable costs.
a. True
b. False

4) Variable costs are costs that remain constant in total with changes in the activity level.
a. True
b. False

5) Venus Co. can further process Product X to produce Product Y. Product X is currently selling for $18 per pound and costs $12.50 per pound to produce. Product Y would sell for $32 per pound and would require an additional cost of $8.75 per pound to produce.
Based on the information provided for Venus Co., what is the differential revenue of producing Product Y?
a. $8.75 per pound
b. $14 per pound
c. $5.25 per pound
d. $7 per pound

6) A business is considering a cash outlay of $250,000 for the purchase of land, which it intends to lease for $40,000 per year. If alternative investments are available that yield an 15% return, the opportunity cost of the purchase of the land is
a. $37,800.
b. $47,200.
c. $37,500.
d. $45,000.

7) Direct materials cost is an example of a fixed cost of production.
a. True
b. False

8) If the total unit cost of manufacturing Product Y is currently $40 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $8.
a. True
b. False

9) Total fixed costs remain constant as the level of activity changes within the relevant range.
a. True
b. False

10) When a product or segment of a business is determined to be generating a loss, the total income from operations for the company will always increase if management eliminates the product or segment.
a. True
b. False	

accounts data bank

Question
	
30. Tyler Company incurred an inventory loss due to a
decline in market prices during its first quarter of operations in 2008. At the
end of the first quarter, management of the company believed the decline in
market prices to be permanent. In the second quarter, the market prices of
Tyler's inventories increased above their acquisition cost. Market prices
remained higher than acquisition cost during the remainder of 2008. How should
Tyler report the facts above on its first and second quarter income statements?

  

A. Option A

B. Option B

C. Option C

D. Option D

 

31. Denver Company, a calendar-year corporation, had
the following actual income before income tax expense and estimated effective
annual income tax rates for the first three quarters in 2008:

  

Denver's income tax expense in its interim income statement for the third
quarter should be: 

A. $126,000.

B. $68,400.

C. $62,400.

D. $54,000.

 





32. APB Opinion 28 uses which view of interim
reporting? 

A. Integral

B. Discrete

C. Segmental

D. Comprehensive

 

33. Which of the following observations is true of the
discrete view of interim reporting? 

A. An interim period is viewed as an installment of an annual period.

B. Recognition and adjustment of certain income or expense items may be
affected by judgments about the expected results of the entire year's
operations.

C. Each interim period is considered as a basic accounting period to be
evaluated as if it were an annual accounting period.

D. One interim period would not bear the entire expense that benefits more
than one interim period.

 

34. Mason Company paid its annual property taxes of
$240,000 on February 15, 2009. Mason also anticipates that its annual repairs
expense for 2009 will be $1,200,000. This amount is usually incurred and paid
in July and August when operations are shut down so that machinery and
equipment can be repaired. What amount should Mason deduct for property taxes
and repairs in each quarter for 2009?

  

A. Option A

B. Option B

C. Option C

D. Option D

 





35. Toledo Imports, a calendar-year corporation, had
the following income before tax expense and estimated effective annual income
tax rates for the first three quarters in 2008:

  

Toledo's income tax expense in its interim income statement for the nine months
ended September 30 and for the third quarter, respectively, are: 

A. $250,800 and $103,200.

B. $252,000 and $108,000.

C. $252,000 and $103,200.

D. $250,800 and $108,000.

 
	

Interest Area Enhancement Project

Question
	

Interest Area Enhancement Project: Choose an interest area in your current learning environment and analyze its effectiveness. Develop a plan forthe area and implement your ideas. Upon completion, submit a 2-3 page summary of your enhancement project. The summary should include:

Introduction, including: Age or grade level; Interest area and rationale for choosing this area; Where this center be located in your classroom; What equipment/furniture will already be available
List three Early Learning Standards that can be addressed through this center
Describe what you did to enhance the interest area. Include before/after photos.
How did the children react to this enhancement? Your analysis of the effectiveness of this enhancement project
Describe how you will assess learning through this center
	

Evergreen Company sells lawn and garden products to wholesalers.

Question
	
Week Three Assignment Intermediate I

P7-10
Miscellaneous receivable transactions

Evergreen Company sells lawn and garden
products to wholesalers. The company’s
fiscal year-end is December 31. During
2011, the following transactions related to receivables occurred:

Feb. 28
Sold merchandise to Lennox, Inc. for 10,000 and accepted a 10%, 7-month
note. 10% is an appropriate rate for
this type of note.

Mar. 31
Sold merchandise to Maddox Co. and accepted a noninterest-bearing note
with a discount rate of 10%. The 8,000
payment is due on March 31,2012.

Apr. 3
Sold merchandise to Carr Co. for 7,000 with terms 2/10, n/30. Evergreen uses the gross method to account
for cash discounts.


11 Collected the entire amount
due from Carr Co.

 17
A customer returned merchandise costing 3,200. Evergreen reduced the customer’s receivable balance by 5,000, the
sales price of the merchandise. Sales
returns are recorded by the company as they occur.


30 Transferred receivables of
50,000 to a factor without recourse. The
factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met. 

June 30
Discounted the Lennox, Inc. note at the bank. The bank’s discount rate is 12%. The note was discounted without recourse.

Aug. 31
Lennox, Inc. paid the note amount plus interest to the bank. 

Required:

1. Prepare
the necessary journal entries for Evergreen for each of the above dates. The transaction involving the sale of
merchandise, ignore the entry for the cost of goods sold (round all
calculations to the nearest dollars).

2. Prepare
any necessary adjusting entries at December 31, 2011. Adjusting entries are only recorded at
year-end (round all calculations to the nearest dollar). 

3. Prepare
a schedule showing the effect of the journal entries in requirements 1 and 2 on
2011 income before taxes.



P
7-14 Bank Reconciliation and adjusting entries

El Gato Painting Company maintains a
checking account at American Bank. Bank
statements are prepared at the end of each month. The November 30, 2011, reconciliation of the
bank balance is as follows: 

Balance per
bank, November 30

Add: Deposits
outstanding
3,231

Less: Checks
outstanding
1,200 

#363
123

#365
201 

#380 56


#381
86

#382
 340 

Adjusted balance
per bank, November 30
(806)


3,625

The company’s
general ledger checking account showed the following for December: 

 Balance,
December 1
3,625

 Receipts 42,650


Disbursements
(41,853) 

 Balance,
December 31 4,422

The December
bank statement contained the following information:

 Balance, December
1
3,231 

 Deposits 43,000

 Checks
processed
(41,918) 

 Service
charges (22)

 NSF checks
(440)  

 Balance, December
31 3,851

The checks that
were processed by the bank in December include all of the outstanding checks at
the end of November except for check #365.
In addition, there are some December checks that had not been processed by
the bank by the end of the month. Also,
you discover that check #411 for $320.00 was correctly recorded by the bank but
was incorrectly recorded on the books as a $230 disbursement for advertising
expense. Included in the bank’s deposit
is a $1,300 deposit incorrectly credited to the company’s account. The deposit should have been posted to the
credit of the Los Gatos Company. The NSF
checks have no ben redeposited and the company will seek payment from the
customers involved. 

Required:

1.
Prepare a bank reconciliation for the El
Gato checking account at December 31, 2011.

2.
Prepare any necessary adjusting journal
entries indicated.

 



	

Fianancial Ratios

Question
	
Over the past year,
good old SVF has realized an increase in our current ratio and a drop in total
assets turnover ratio. Conversely, SVF’s sales, quick ratio, and fixed assets
turnover ratio have remained constant. We are arguing about what could cause
this. What do you think?

The
second part of the question is this: We will obviously want to know how to
correct these downturns. How do we do it?
	

The Case For, or Against, New Orleans

Question
	The Case For, or Against, New Orleans
Sometimes one’s choices may involve catastrophic decisions and bear great risk and yet there can be no clear answer. For example, if a person gets a divorce, shutters a plant, sells a losing investment, or closes their business, will he or she be better off? The following case incorporates nearly all of the material you have covered this far and presents an example of one such choice where nearly all of the alternatives have a significant downside risk.
Review the following information from the article “A Cost-Benefit Analysis of the New Orleans Flood Protection System” by Stéphane Hallegatte (2005):
• Hallegatte, an environmentalist, assigns a probability (p) of a Katrina-like hurricane of 1/130 in his cost-benefit analysis for flood protection. However, the levees that protect New Orleans also put other regions at greater risk. You may assume the frequency of other floods is greater than Katrina-like events (Vastag & Rein, 2011). 
• The new levees that were built in response to Katrina cost approximately fourteen billion dollars (in 2010). This is in addition to the direct costs of Katrina (eighty-one billion dollars in 2005). 
• 50 percent of New Orleans is at or below sea level. 
• A 100-year event means that there is a 63 percent chance that such an event will occur within a 100-year period. 
• The following are the interested (anchored and/or biased) constituencies: 
o Residents of New Orleans—both those that can move and those who cannot move 
o Residents of the surrounding floodplains at risk from New Orleans levees 
o The Mayor of New Orleans 
o The federal government—specifically taxpayers and the Federal Emergency Management Agency (FEMA) 
Assume that the availability heuristics makes people more risk averse (populations drop, at least in the short term). Consider how this would affect the local economy.
You are an analyst at FEMA and are in charge of developing a recommendation for both the state and the local governments on whether or not to redevelop New Orleans. 
Write a report with your recommendation. Address the following in your report: 
Part A
• Analyze the economics of New Orleans in light of the above parameters and develop your own Cost-Benefit Analysis (CBA) for rebuilding. 
(1. Analysis of New Orleans’ economics is insightful and thorough. It includes a soundly estimated cash flow/CBA with a variety of likely outcomes and several possible scenarios. 
(2. All constituencies and their interdependencies are represented. 
(3. CBA for rebuilding is thoughtful in regards to scope, resources, and objectives. CBA provides specific, astute details and resources needed to achieve objectives. Research and evidence from the case study are used to support ideas.

• Evaluate the value of the CBA for each constituency and integrate these estimates into a scenario model and/or decision tree. Analyze the results. 
(1. Evaluation presents specific, acute benefits of the CBA for each constituency, and each constituency is completely described and insightfully apt to the situation. 
(2. Scenario model and/or decision tree completely, concisely, and insightfully integrates the estimates. 
(3. Integrates of constituencies is acutely addressed and specific examples of how the decisions are conditional upon each other are thoughtfully presented.
(4. Analysis of the results is specific and provides a scenario model and explains interrelation of constituencies’ decision in detail.

• Clearly each of these constituencies may both overlap and be prey to a variety of group dynamics internally. For one of these options, discuss the decision pitfalls to which they may be susceptible and make a recommendation on how to alleviate these pressures. 
(1. Decision problems to which the constituencies may be susceptible are astutely identified and appropriate to situation.
(2. Recommendations are thoughtful and grounded in theory or research.

• Starting with your CBA, estimate the relevant expected utility for the interested constituencies. 
(1. Estimation of the relevant expected utility for these parties is thoughtful, proportional to one another, and grounded in insightful evidence. 
(2. Estimation clearly reflects and relates to the CBA proposed.
Note: You need not have absolute amounts but your relevant utilities should be proportional to one another.
Hint: If you assume that your total CBA for New Orleans is fixed for each constituency (do not forget the overlaps), then each constituency will have a piece of the utility pie.
Part B
• Make a case for or against rebuilding the city of New Orleans. This should be an executive summary; be concise and brief. Include exhibits. 
(1. Executive summary insightfully takes a stance on whether to rebuild New Orleans or not. 
(2. Specific, astute evidence and research are provided to support ideas.
(3. Stance is reasonable and unbiased.

• Whether you are for or against, discuss how social heuristics could be used to your advantage, both ethically and unethically, in making your case. You may choose to fill the role of one of the constituents, if you prefer. 
(1. Discussion of how social heuristics can be used to gain advantage is thoughtful, complete, and provides specific examples to support its ideas.
(2. Ethical and unethical advantages are precisely identified and insightfully discussed.
• Estimate what percentage of the class was for versus against, rebuilding and provide a confidence interval for the estimate.
(1. Estimation is insightful and grounded in evidence from the case study.
(2. Confidence interval is precise, detailed clear, and accurate.

Write an 8–10-page report in Word format. Apply APA standards to citation of sources. 
Hallegatte, S. (2006). A cost-benefit analysis of the New Orleans flood protection system. Center for Environmental Sciences and Policy. Stanford University. Retrieved from 
http://hal.cirad.fr/docs/00/16/46/28/PDF/Hallegatte_NewOrleans_CBA9.pdf
Vastag, B., & Rein, L. (2011, May 11). In Louisiana, a choice between two floods. The Washington Post. Retrieved from 
http://www.washingtonpost.com/national/in-louisiana-a-choice-between-two-
floods/2011/05/11/AFrjFotG_story.html