Question #11 of 50
Question ID: 542553
A broker is monitoring the effectiveness of the company'slisting procedures. Which is NOT a relevant question to ask?
A)
How many listings expired last year?
B)
Were there defects in the way sales contracts were prepared?
C)
How long are the listings on the market?
D)
Where were the listings located?
Question #11 of 50
Question ID: 542553
A broker is monitoring the effectiveness of the company'slisting procedures. Which is NOT a relevant question to ask?
A)
How many listings expired last year?
B)
Were there defects in the way sales contracts were prepared?
C)
How long are the listings on the market?
D)
Where were the listings located?
Related questions
(TCO 6) Hyde Inc. is comparing several alternative capitalbudgeting projects as shown below.
Projects | A | B | C |
Initial Investment | $110,000 | $90,000 | $50,000 |
Present value of cash inflows | $100,000 | $100,000 | $60,000 |
Using the profitability index, rank the projects, starting with themost attractive. (Points : 5) A, C, B
A, B, C
C, A, B
C, B, A
$1,387 $65,375 $5,161 |
Budgeted raw materials Beginning finished goodsunits Ending finished goodsunits |
102,000 units 96,600 units 138,000 units |
Planning variance Economic variance Material variance |
direct materials costs fixed overhead costs None of the above |
increase by more than10% decrease by less than10% increase 10% |
$36,000 $14,000 $50,000 |
Budget reports are used forplanning, control, and information. Reports prepared for uppermanagement typically have fewer details than reports prepared forlower level managers. Reports are prepared morefrequently for upper management than for lower level managers. |
The following are Silver Corporation's unit costs of making andselling an item at a volume of 8,000 units per month (whichrepresents the company's capacity):
| Manufacturing: | |||
| Direct materials | $ | 4 | |
| Direct labor | $ | 5 | |
| Variable overhead | $ | 2 | |
| Fixed overhead | $ | 8 | |
| Selling and administrative: | |||
| Variable | $ | 1 | |
| Fixed | $ | 6 | |
Present sales amount to 7,000 units per month. An order has beenreceived from a customer in a foreign market for 1,000 units. Theorder would not affect regular sales. Total fixed costs, bothmanufacturing and selling and administrative, would not be affectedby this order. The variable selling and administrative costs wouldhave to be incurred for this special order as well as all othersales. Assume that direct labor is a variable cost.
Assume the company has 50 units left over from last year whichhave small defects and which will have to be sold at a reducedprice for scrap. The sale of these defective units will have noeffect on the company's other sales. Which of the following costsis relevant in this decision?
Multiple Choice
$19 unit product cost
$11 variable manufacturing cost
$26 full cost
$1 variable selling and administrative cost
Question 39
Carte Company reported cost of goods sold for $100,000 anddepreciation expense totaling $7,000. On January 1, Carte hadinventory and accounts payable of $21,000 and $24,000,respectively. On December 31, inventory and accounts payable were$28,000 and $20,000, respectively. Net income is $60,000. Beginningaccounts receivable was $13,000 and ending was $12,000. How muchare the cash flows from operating activities using the indirectmethod?
| A. | $57,000 | |
| B. | $77,000 | |
| C. | $50,000 | |
| D. | $65,000 |
2 points
Question 40
The Washington Company had the following results in 2012:
Account Balances |
End of | Beginning of | |
Year | Year |
| Property, plant, and equipment | $358,000 | $347,000 |
| Accumulated depreciation | (256,000) | (220,000) |
| Net Property, plant, and equipment | $102,000 | $127,000 |
During the year the company sold an asset which had an originalcost of $55,000 and accumulated depreciation of $31,000. How muchdepreciation expense for 2012 will be reported on the statement ofcash flows?
| A. | $67,000 | |
| B. | Not enough information is provided. | |
| C. | $36,000 | |
| D. | $5,000 |
Question 43
Cinema Theatre had a current ratio of 2.5 to 1 on December 31 ofthe current year. On that date, the company's assets were asfollows:
| Cash | $ 100,000 |
| Accounts receivable (net) | 600,000 |
| Inventory | 960,000 |
| Prepaid expenses | 25,000 |
| Equipment (net) | 2,200,000 |
| Total assets | 3,885,000 |
What impact would collecting $55,000 due from customers have on itsinventory turnover ratio?
| A. | Decrease. | |
| B. | Not enough information is given. | |
| C. | Increase. | |
| D. | Stay the same. |
2 points
Question 45
Axilrode Company reported earnings per share of common stock $12in 2012 and paid dividends of $3 per share. The current marketprice per share is $102 and the book value per share is $54. Howmuch is the company's price-earnings ratio?
| A. | $11.80 | |
| B. | $11.30 | |
| C. | $1.90 | |
| D. | $8.50 |
2 points
Question 46
Which is the most stringent test of a company's ability to meetits current obligations?
| A. | Times interest earned. | |
| B. | Debt-equity ratio. | |
| C. | Current ratio. | |
| D. | Quick ratio. |
2 points
Question 47
Cost of goods sold in 2011 for the Cego Tire Company totaled$4,670,000. If gross profit was 64%, how much would sales be?
| A. | $2,988,800 | |
| B. | $8,302,080 | |
| C. | $12,972,222 | |
| D. | $1,681,200 |
2 points
Question 48
Blackstone Company has total assets of $550,000 and owners'equity of $220,000, of which $65,000 of the equity is common stock.To which of the following is the company's debt-to-equity ratioclosest?
| A. | 0.60 | |
| B. | 1.50 | |
| C. | 5.08 | |
| D. | 0.67 |
2 points
Question 49
Inventory turnover is
| A. | sales divided by inventory. | |
| B. | sales divided by accounts receivable. | |
| C. | sales divided by cost of goods sold. | |
| D. | cost of goods sold divided by inventory. |
2 points
Question 50
Selling an old piece of machinery is a(n)
| A. | financing activity. | |
| B. | operating activity. | |
| C. | investing activity. | |
| D. | general activity. |
