BBA Program Assessment

The common stock of the Paper & Printing Co. is selling for $22 a share and has a dividend yield of 4.5 percent. What is the dividend amount?

$0.99

Andreas is a political consultant with his own firm. He travels the country and provides campaign advice for political candidates. Last year he earned $250,000 in revenue for his services. He pays one employee $50,000 to manage the small office back home and pays $25,000 on rent and utilities for that office. Andreas owns computing and office equipment that depreciated by $5,000 last year. His accountant tells him that if he were to sell all of the equipment, he could put that money in the bank and earn $3,000 in interest next year. Bill also has received an offer to teach political science at a college at a salary of $100,000. Bill's accounting profit is equal to ________ and his economic profit is equal to ________.

$170,000; $67,000

Amber Manufacturing provided the following information for last month: Sales $20,000 Variable costs 6,000 Fixed costs 9,000 Operating income $5,000If sales double next month, what is the projected operating income?

$19,000

(Table: Costs for Birthday Cakes) Annie has a bakery that specializes in birthday cakes,and her variable costs of producing cakes are shown in the table Costs of BirthdayCakes. Assume that her fixed costs are $10. What is the average fixed cost of 5 cakes?

$2

The following credit sales are budgeted by Terra Co.:January $204,000February 300,000March 420,000April 360,000The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is

$360,000

If the planned aggregate spending rises by $10 billion and the MPC is 0.75, then equilibrium GDP changes by:

$40 billion

Sawyer, Inc. consistently estimated its bad debt expense at 1 percent of credit sales. In 2014, however, Sawyer determines that it must revise upward the estimate of bad debts for the current year's credit sales to 2 percent, or double the prior years' percentage. Sawyer uses the revised estimate of 2% and calculates bad debt expense of $500,000. How is the change in the estimated bad debt expense reported in Sawyer's 2014 financial statements?

$500,000 of expense in the income statement as an ordinary item.

The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9,500 variable and $6,050 fixed, and standard hours allowed for the product produced in June was 3,000 hours. The total overhead variance is

$550 U

The Undergrounds Coffee Shop has total assets of $85,300 and an equity multiplier of 1.53. What is the debt-equity ratio?

0.53

Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

40%

Which of the following is not one of the classifications in owners' equity?

Accumulated capital.

An effective process of capital allocation is critical to a healthy economy, which promotes productivity. encourages innovation. provides an efficient and liquid market for buying and selling securities.

All of the above

John Jones decides to use his personal name for a line of clothing he is developing. Whether or not the name John Jones acquires a secondary meaning will depend on

All of the choices are correct

A multiple-step income statement highlights certain components of income that analysts use to compute ratios for assessing the financial performance of companies. separates operating transactions from nonoperating transactions. matches costs and expenses with related revenues. All of these answer choices are correct.

All of these answer choices are correct

Cost objects include: products customers departments all of these answers are correct.

All of these answers are correct

Which of the following criteria must be met before an event or item should be recorded for accounting purposes?

All of these must be met

Which of the following is an example of an observable artifact of organizational culture?

Awards ceremonies

Which one of the following is the annuity present value formula?

C x {{1 - [1/(1 + r)t]}/r}

Gains and losses that bypass net income but affect stockholders' equity are referred to as:

Comprehensive income

Which of the following is an intangible asset? Restricted cash. Prepaid pension costs. Deferred income taxes. Customer lists.

Customer lists

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

Delivery costs are mixed and utilities are variable.

Which of the following elements of financial statements describes amounts of resources and claims to resources at a moment in time?

Equity

The security market line is a linear function that is graphed by plotting data points based on the relationship between which two of the following variables?

Expected return and beta

Which of the following is one of the challenges of planning?

Finding the time to plan.

Which of the following are extraordinary losses?

Flood damage losses to property when flooding is rare

Linking rewards to performance:

Helps to motivate managers

Which of the following is true of the trends for imports and exports (as measuredby a percentage of the entire economy) in the United States?

Imports and exports have been both increasing

Sara is investing $1,000 today. Which one of the following will increase the future value of that amount?

Increasing the interest rate

Which one of the following is most likely the fastest method of collecting cash?

Initiating a financial electronic data interchange at the time of sale

Game theory is commonly used to explain behavior in oligopolies, because oligopoliesare characterized by:

Interdependance

Which one of the following will decrease the net working capital of a firm?

Making a payment on a long-term debt

Which of the following features is an advantage of the dividend growth model?

Model simplicity

Each of the following is a limitation of activity-based costing except that

Most cost pools are used

Assets include all of the following subclassifications except

Noncontrolling interest

A prepaid expense can best be described as an amount

Paid and not currently matched with the revenue

When research indicated that Bluetooth's products were not reaching the correct target market,marketers of Bluetooth decided to change from demographic segmentation to psychographicsegmentation. Which group of new segmentation variables will Bluetooth now be using?

Personality characteristics, motives, and lifestyles

The process of transferring figures from the book of original entry to the ledger accounts is called

Posting

If a university raises the price of tickets to football games to collect more revenue, it isassuming that the demand for tickets is:

Price-inelastic

Which of the following is not a correct match?1. Incurs costs2. Generates revenue3. Controls investment funds

Profit center 1,2,3

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest.When Precision Brake sells to the individual dealers, they would be considered which of the following business types?

Reseller

The financial statement which summarizes the operating, investing, and financing activities of an entity for a period of time is the

Statement of cash flows

Sweetwater Café orders five gallons of transfat-free cooking oil from Restaurant Supply, Inc. The seller mistakenly ships the wrong oil, which the buyer keeps, despite the nonconformity. The oil is destroyed in a kitchen fire. The loss is suffered by

Sweetwater

Boland Manufacturing prepared a 2013 budget for 120,000 units of product. Actual production in 2013 was 130,000 units. To be most useful, what amounts should a performance report for this company compare?

The actual results for 130,000 units with a new budget for 130,000 units.

In the short run, a monopolistically competitive firm produces at the optimal level ofoutput and is earning positive economic profits. Which of the following describes how thisfirm will adjust in the long run?

The entry of new firms shifts the firm's demand and marginal revenue curvesleftward, decreasing the firm's level of output and the price the firm can charge untilprice equals average total cost.

Which of the following is not a disadvantage of e-mail?

The greater the use of e-mail, the less connected coworkers feel.

Which one of the following statements is correct? The risk-free rate of return has a risk premium of 1.0. The reward for bearing risk is called the standard deviation. Risks and expected return are inversely related. The higher the expected rate of return, the wider the distribution of returns

The higher the expected rate of return, the wider the distribution of returns.

What are the Statements of Financial Accounting Concepts intended to establish?

The objectives and concepts for use in developing standards of financial accounting and reporting.

Public policies toward monopoly in the United States often consist of:

The regulation of natural monopolies

From a population that is not normally distributed and whose standard deviation is not known, a sample of 50 items is selected to develop an interval estimate for µ. Which of the following statements is true?

The t distribution with 49 degrees of freedom must be used.

Why are budgets useful in the planning process?

They help communicate goals and provide a basis for evaluation.

Which of the following is not a major disclosure technique for the balance sheet?

Worksheets

Customers who purchase computer laptops from manufacturer websites are acquiring products through

a direct-marketing channel.

According to the text, a market is defined as

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products

A business partnership between a domestic firm and a foreign firm is known as

a joint venture

A numerical measure from a sample, such as a sample mean, is known as

a statistic

Long-run economic growth is best measured by:

a sustained rise in the quantity of goods and services produced by the country.

A product mix is best described as all products offered by a firm. product, distribution, promotion, and price. many products sold by one firm. all products of a particular type. a group of closely related products that are considered a unit because of market, technical, or end-use considerations

all products offered by a firm.

A shift to the left of a supply curve is caused by:

an increase in the cost of an input.

______ is a formal verification of an organization's financial and operational systems.

auditing

he proportion of the variation in the dependent variable y that is explained by the estimated regressionequation is measured by the

coefficient of determination

If the market for grapefruit is in equilibrium without any outside intervention to changethe equilibrium price:

consumer and producer surplus are maximized.

Which one of the following is an implication of M&M Proposition II, without taxes?

cost of equity increases as the level of debt increases

Trust is based on _______, which can be enhanced by showing professionalism, technical ability, and good business sense.

credibility

Customer relationship management initiatives use technology to coordinate all:

customer-facing activities

Lopez Company received $14,400 on April 1, 2014 for one year's rent in advance and recorded the transaction with a credit to a Unearned Rent revenue. The December 31, 2014 adjusting entry is

debit Rent Revenue and credit Unearned Rent Revenue, $3,600.

Given a recessionary gap, the Federal Reserve will use monetary policy to _______ interest rates and _______ aggregate demand.

decrease;increase

Ronny agrees to ship to Louise one thousand handmade paper weights for $5,000. Ronny initials his notes of the deal, which include the terms, and files the notes in his office. Louise initials her own notes of the deal, which include the terms, and files the notes in her office. Ronny fails to ship the fans. Against Ronny, as a contract, the deal is

enforceable, because Ronny's initialed notes are a sufficient writing.

An adjusting entry to record an accrued expense involves a debit to a(an)

expense account and a credit to a liability account.

It has been seven quarters since any employee has received a bonus at R & G Mills, so now the possibility of getting one does not seem to be motivating the workers any longer. In this case, management has inadvertently applied

extinction

People who are in the process of changing jobs are counted in which category?

frictional unemployment

Demographic forces are part of the __________ environment of organizations.

general

The trend of the world economy toward becoming a more interdependent system is called

globalization

Which of the following will NOT increase labor's productivity?

growth in the population

An economy is said to have a comparative advantage if it:

has the lowest cost for producing a particular good.

A cut in taxes ________, therefore shifting the aggregate demand curve to the ________.

increases disposable income and consumption; right

If FedEx-Kinko's decided to outsource all of its marketing efforts to the MaxPro Company, whichspecializes in advertising, sales promotion activities, and public relations, FedEx-Kinko's would likely bestriving to practice

integrated marketing communications.

People with ______ exhibit less anxiety, greater motivation, and stronger expectations that effort leads to performance.

internal locus of control

________refers to making people already employed by the organization aware of job openings

internal recruiting

As compared to a high-volume product, a low-volume product

is usually responsible for more overhead costs per unit.

When a consumer purchases products occasionally or needs information about an unfamiliarbrand in a familiar product category, he or she will most likely engage in

limited problem solving

The Treasury yield curve plots the yields on Treasury notes and bonds relative to the ____ of those securities.

maturity

The highest point of a normal curve occurs at

mean

The 50th percentile is the

median

Earnings per share is computed as net income:

minus preferred dividends divided by the weighted average of common shares outstanding.

If by accepting one investment you eliminate the option of another investment, you are dealing with:

mutually exclusive investments

Roger (the boss) wants his assistant Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at the office and work on the project. Andy feels obligated to stay and work late due to the moral pressure from Roger. Andy stays late at the office, even though he does not want to. Andy can sue Roger for

no tort

Lyla is a common shareholder in Norman's Nutty Nuts Corporation. As a common shareholder, Lyla is

not guaranteed any payments of dividends.

The American automobile industry used to be dominated by "The Big Three," includingGeneral Motors, Ford, and Chrysler. However, as many more foreign competitors beganinfluencing this market, the American companies had to modify and differentiate theirproducts. The automobile industry moved from a(n) ______ structure to a(n) _______structure.

oligopolistic; monopolistic competition

Which one of the following should be considered as a relevant cash flow?

opportunity cost

Airlines overbook flights because many passengers simply don't show up for their reservations. When more passengers than expected show up for a flight, however, this strategy results in some travelers being "bumped" and forced to take a later flight. Bumped passengers are typically compensated with a free ticket. Airlines overbook flights because of which characteristic of services?

perishability

A judge decides that the precedent for the case he is hearing is no longer correct due to sociocultural changes. He overturns the precedent when he decides the case. It is most likely that the case will

receive a great deal of publicity

The level of significance in hypothesis testing is the probability of

rejecting a true null hypothesis

The major elements of the income statement are

revenues, expenses, gains, and losses.

The local chapter of the American Red Cross has expressed concern because blood donationsare down. It has received a report from the national American Red Cross, which shows whypeople are reluctant to donate blood. This report is an example of _____ data.

secondary

At the breakeven point, the money a company brings in from selling products equals the amount spent producing the products. the total fixed costs are exactly equal to the total variable costs. profits are exactly equal to the difference between revenue and total variable costs. the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. the marginal cost curve and the average cost curve will be identical for a particular product.

the money a company brings in from selling products equals the amount spent producing the products.

Which of the following is not a property of a binomial experiment?

the probabilities of the two outcomes can change from one trial to the next

If two companies have a long-standing business relationship that they would like to maintain, they may prefer to settle their dispute through mediation because

the process is not adversarial

In a multiple regression model, the variance of the error term is assumed to be

the same for all values of the independent variable

Which of the following is a behavioral leadership approach?

university of michigan leadership model

Jody owns KuppaJava Kiosks, a sole proprietorship. Jody's liability is

unlimited