AC499PracticeQuiz.sd
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AC499PracticeQuiz.sd

Course Number: ACCOUNTING AC499, Spring 2013

College/University: Kaplan University

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MULTIPLE CHOICE 1. The balance sheet reports: a. the assets, liabilities, gains, and losses for a period of time b. the changes in assets, liabilities, and equity for a period of time c. the assets, expenses, and liabilities as of a certain date d. the probable future benefits, probable future sacrifices, and residual interest for a period of time e. the financial condition of an accounting entity as of a...

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CHOICE 1. MULTIPLE The balance sheet reports: a. the assets, liabilities, gains, and losses for a period of time b. the changes in assets, liabilities, and equity for a period of time c. the assets, expenses, and liabilities as of a certain date d. the probable future benefits, probable future sacrifices, and residual interest for a period of time e. the financial condition of an accounting entity as of a particular date Register to View Answer PTS: 1 2. Which of the following would not appear on a conventional balance sheet? a. income taxes payable b. funds from operations c. cash surrender value of life insurance d. appropriation for contingencies (restriction of retained earnings) e. patents Register to View Answer PTS: 1 3. At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000. At the end of the year, Execon Corporation had total liabilities of: a. $0 b. $45,000 c. $50,000 d. $165,000 e. none of the answers are correct Register to View Answer PTS: 1 4. Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: a. long-term investments b. cash c. marketable securities d. intangibles e. inventory of near-cash items Register to View Answer PTS: 1 5. Tangible assets on the balance sheet should include: a. equipment b. taxes payable c. trademarks d. bonds payable e. none of the answers are correct Register to View Answer PTS: 1 6. The current asset section of the balance sheet should include: a. land b. trademarks c. investment in C Company (for purposes of control) d. dividends payable e. work in process inventory Register to View Answer PTS: 1 7. The current liability section of the balance sheet should include: a. buildings b. goodwill c. land held for speculation purposes d. accounts payable e. none of the answers are correct Register to View Answer PTS: 1 8. Which of the following is not a current asset? a. marketable securities b. material inventory c. unearned rent income d. prepaid interest e. prepaid insurance Register to View Answer PTS: 1 9. If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as: a. a marketable security b. an investment c. a liability d. a fixed asset e. none of the answers are correct Register to View Answer PTS: 1 10. Which of the following is not a proper use of notes? a. To describe the nature and effect of a change in accounting principle, such as from FIFO to LIFO. b. To indicate the basis for asset valuation. c. To indicate the method of depreciation. d. To correct an improper financial statement presentation. e. To describe a firm's debt. Register to View Answer PTS: 1 11. Company A owns shares of Company B and Company C. The statements of Company B are consolidated with those of Company A. The statements of Company C are not consolidated. Company A reports "Minority Interest" on its balance sheet. This account represents: a. A's minority share of the stock of B b. A's minority share of the stock of C c. the minority share by outside owners of the stock of A d. the minority share by outside owners of the stock of B e. the minority share by outside owners of the stock of C Register to View Answer PTS: 1 12. Drama Products Inc. has issued redeemable preferred stock. For analysis purposes, these securities are best classified as: a. marketable securities b. long-term investments c. long-term debt d. paid-in capital e. retained earnings Register to View Answer PTS: 1 13. Treasury stock is best classified as: a. a current asset b. a long-term investment c. a contra liability d. a reduction of stockholders' equity e. a reduction of retained earnings Register to View Answer PTS: 1 14. Which of the following is not a common characteristic of preferred stock? a. voting rights b. preference as to dividends c. preference in liquidation d. callability by the corporation e. none of the answers are correct Register to View Answer PTS: 1 15. Which of the following is not a problem inherent in balance sheet presentation? a. Most assets are valued at cost. b. Varying methods are used for asset valuation. c. Not all items of value to the firm are included as assets. d. Liabilities related to contingencies may not appear on the balance sheet. e. The owners' interest will be indicated. Register to View Answer PTS: 1 16. Which of the following is not true relating to treasury stock? a. A firm creates treasury stock when it repurchases its own stock and does not retire it. b. Treasury stock lowers the stock outstanding. c. Treasury stock may be recorded at the cost of the stock. d. Treasury stock may be recorded at par or stated value. e. Treasury stock is, in essence, an increase in paid-in capital. Register to View Answer PTS: 1 17. Which of the following is not true about an ESOP? a. An ESOP will reduce the amount of voting stock in the hands of employees. b. An ESOP must be a permanent trusted plan for the exclusive benefit of the employees. c. The plan participants become eligible for favorable taxation of distributions from the plan. d. Commercial lending institutions, insurance companies, and mutual funds are permitted an exclusion from income for 50% of the interest received on loans used to finance an ESOP's acquisition of company stock. e. An ESOP may reduce the potential of an unfriendly takeover. Register to View Answer PTS: 1 18. The most popular depreciation method for financial reporting is the following: a. units-of-production b. sum-of-the-years-digits c. declining-balance d. straight-line e. other Register to View Answer PTS: 1 19. Which of the following is a current liability? a. prepaid insurance b. account receivable c. unearned rent revenue d. building e. common stock Register to View Answer PTS: 1 20. Which of the following accounts would not be classified as an intangible? a. franchises b. research and development c. patent d. trademarks e. goodwill Register to View Answer PTS: 1 1.Gross profit is the difference between: a. net income and operating income b. revenues and expenses c. sales and cost of goods sold d. income from continuing operations and discontinued operations e. gross sales and sales discounts Register to View Answer PTS: 1 2. Which of the following would be included in operating income? a. interest income for a manufacturing firm b. rent income for a leasing subsidiary c. gain from sale of marketable securities for a retailer d. dividend income for a service firm e. none of the answers are correct Register to View Answer PTS: 1 3. The following relate to Data Original in 2006. What is the ending inventory? Purchases Beginning Inventory Purchase Returns Sales Cost of Goods Sold a. b. c. d. e. $540,000 80,000 10,000 800,000 490,000 $120,000 $140,000 $210,000 $260,000 none of the answers are correct Register to View Answer PTS: 1 4. Changes in account balances of Multi-Plus Inc. during 2006 were: Increase Assets Liabilities Capital Stock Additional Paid-In Capital Retained Earnings $420,000 125,000 100,000 140,000 ? Assuming that there were no charges to retained earnings other than dividends of $62,000, the net income for 2006 was: a. ($7,000) b. $55,000 c. $117,000 d. $257,000 e. none of the answers are correct Register to View Answer PTS: 1 5. When a company discontinues and disposes of a component segment of its operations, the gain or loss from disposal should be reported as: a. an adjustment to retained earnings b. a sale of fixed assets in "other" expense c. an extraordinary item d. an accounting change e. a special item after continuing operations and before extraordinary items Register to View Answer PTS: 1 6. If the disposal of a segment meets the criteria of a disposal of a segment, then: a. the loss on disposal is an extraordinary item b. the loss on disposal is categorized as "other expense" c. the results of operations of the segment will be reported in conjunction with the gain or loss on disposal d. the disposal qualifies as a change in entity, and prior years' statements presented on comparative purposes must be restated e. the effects of the disposal are shown as part of operations Register to View Answer PTS: 1 7. Which of the following would be classified as an extraordinary item on the income statement? a. loss from a strike b. correction of an error related to a prior period c. write-off of obsolete inventory d. loss on disposal of a segment of business e. loss from prohibition of a product Register to View Answer PTS: 1 8. If a firm consolidates subsidiaries that are not wholly owned, an income statement item is created that is termed: a. dividend income b. minority share of earnings c. equity income d. extraordinary e. gain from sale of subsidiary Register to View Answer PTS: 1 9. Which of the following will not affect retained earnings? a. declaration of a stock dividend b. payment of a cash dividend previously disclosed c. adjustment for an error of a prior period d. net income e. net loss Register to View Answer PTS: 1 10. Anchor Company has 1,000,000 shares of common stock with a par value of $5. Additional paidin capital totals $5,000,000 and retained earnings is $8,000,000. The directors declare a 10% stock dividend when the market value is $15. The reduction of retained earnings as a result of the declaration will be: a. $0 b. $500,000 c. $800,000 d. $1,000,000 e. $1,500,000 Register to View Answer PTS: 1 11. The stockholders' equity of Anamanda Company at September 30, 2006, is presented below: Common Stock, par value $10, authorized 500,000 shares; 200,000 shares issued and outstanding Paid-In Capital in Excess of Par Retained Earnings $2,000,000 300,000 1,300,000 $3,600,000 On October 1, 2006, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10. The market price of the common stock was $15 on October 1 and $17 on November 10. What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend? a. $0 b. $200,000 c. $300,000 d. $340,000 e. $750,000 Register to View Answer PTS: 1 12. Andromeda Industries had 300,000 shares of common stock with a $3 par value and retained earnings of $180,000. In 2006, earnings per share were $1.80. In 2007, the stock was split 3 for 1. Which of the following would not result from the stock split? a. The new shares would total 900,000. b. The total amount in the capital stock account would remain the same. c. The par value would become $1. d. Retained earnings would be reduced. e. The earnings per share for 2006 would be restated at $0.60. Register to View Answer PTS: 1 13. Which of the following is not true about a stock dividend? a. With a stock dividend, the firm issues a percentage of outstanding stock as new shares to existing shareholders. b. The overall effect of a stock dividend is to leave total stockholders' equity and each owner's share of stockholders' equity unchanged. c. In theory, with a stock dividend, total market value considering all outstanding shares should not change. d. Since the number of shares changes under a stock dividend, any ratio based on the number of shares must be restated. e. The accounting for a stock dividend, assuming the distribution is relatively small, requires that the par value of the stock be removed from retained earnings. Register to View Answer PTS: 1 14. Which of the following is not a category within accumulated other comprehensive income? a. post retirement commitments on health plans b. foreign currency translation adjustments c. unrealized holding gains and losses on available-for-sale marketable securities d. changes to stockholders equity resulting from additional minimum pension liability adjustments e. unrealized gains and losses from derivative instruments Register to View Answer PTS: 1 15. Which of the following is a recurring item? a. equity in earnings of nonconsolidated subsidiaries b. error of a prior period c. discontinued operations d. extraordinary gain e. cumulative effect of change in accounting principle Register to View Answer PTS: 1 16. If Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of: a. $80,000 b. $20,000 c. $40,000 d. $60,000 e. none of the answers are correct Register to View Answer PTS: 1 17. a. b. c. d. e. Which of the following items on the income statement is not disclosed net of tax? unusual or infrequent item disclosed separately discontinued operations extraordinary loss cumulative effect of change in accounting principle unusual or infrequent item disclosed separately and discontinued operations are both not disclosed net of tax Register to View Answer PTS: 1 18. Which of the following will be disclosed in retained earnings? a. adjustment for an error of a prior period b. net income c. net loss d. dividends e. all of the answers are correct Register to View Answer PTS: 1 19. Fisher Company has 1,000,000 share of common stock with a par value of $10. Additional paidin capital totals $10,000,000 and retained earnings is $12,000,000. The directors declare a 6% stock dividend when the market value is $5. The reduction of retained earnings as a result of the declaration will be: a. $0 b. $300,000 c. $600,000 d. $500,000 e. none of the answers are correct Register to View Answer PTS: 1 20. Which of the following would be classified as an extraordinary item on the income statement? a. loss on disposal of a segment of business b. cumulative effect of a change in accounting principle c. a sale of land d. an error correction that relates to a prior year e. a loss from a flood in a location that would not be expected to flood Register to View Answer PTS: 1 1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed: a. Vertical Statements b. Horizontal Statements c. Funds Statements d. Common-Size Statements e. none of the answers are correct Register to View Answer PTS: 1 2. In financial statement analysis, ratios are: a. the only type of analysis where industry data are available b. absolute numbers converted to a common base c. fractions usually expressed in percent or times d. the only indication of the financial position of the firm e. none of the answers are correct Register to View Answer PTS: 1 3. Denver Dynamics has net income of $2,000,000. Oakland Enterprises has net income of $2,500,000. Which of the following best compares the profitability of Denver and Oakland? a. Oakland Enterprises is 25% more profitable than Denver Dynamics. b. Oakland Enterprises is more profitable than Denver Dynamics, but the comparison can't be quantified. c. Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics. d. Further information is needed for a reasonable comparison. e. Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics. Register to View Answer PTS: 1 4. Which of the following can offer a type of comparison in financial statement analysis? a. past ratios and figures b. industry averages c. statistics of competitors d. all of the answers are correct e. none of the answers are correct Register to View Answer PTS: 1 5. Which of the following is not a source of industry statistics? a. Annual Statement Studies b. Mergent Dividend Record c. Value Line d. Standard and Poor's Industry Surveys e. The FTC Quarterly Report Register to View Answer PTS: 1 6. Annual Statement Studies reported the following figures for manufacturers of screw machine products for the ratio of current assets to current debt. The following figures are for a particular industry's current ratio: 1.6; 1.3; 1.2. Which best describes these three numbers? a. One third of each of the companies experienced each of the ratios. b. The average ratio was 1.3. The best firm had 1.6; The worst had 1.2. c. The median was 1.3. 1.6 is the figure for the upper quartile; 1.2 is the figure for the lower quartile. d. The median was 1.3. 1.6 is the figure for the lower quartile; 1.2 is the figure for the upper quartile. e. None of the answers are correct. Register to View Answer PTS: 1 7. A manufacturing firm will most likely have the heaviest investment in which type of assets? a. cash b. inventory c. accounts receivable d. investments e. plant, property, and equipment Register to View Answer PTS: 1 8. A retailing firm has which type of inventory? a. raw materials b. work in process c. merchandise d. raw materials and merchandise e. raw materials, work in process, and merchandise Register to View Answer PTS: 1 9. Which of the following would not be a user of financial statements? a. management b. bankers c. employee unions d. investment analysts e. all of the answers are correct Register to View Answer PTS: 1 10. Which of the following is a government document that provides industry statistics? a. The Wall Street Journal b. Business Week c. Dun's d. The Department of Commerce Financial Report e. Standard and Poor's Industry Survey Register to View Answer PTS: 1 11. Suppose you are comparing two firms in the steel industry. One firm is large and the other is small. Which type of numbers would be most meaningful for statement analysis? a. Absolute numbers would be most meaningful for both the large and small firm. b. Absolute numbers would be most meaningful in the large firm; relative numbers would be most meaningful in the small firm. c. Relative numbers would be most meaningful for the large firm; absolute numbers would be most meaningful for the small firm. d. Relative numbers would be most meaningful for both the large and small firm, especially for interfirm comparisons. e. It is not meaningful to compare a large firm with a small firm. Register to View Answer PTS: 1 12. Various techniques are used in the analysis of financial data to emphasize the comparative and relative importance of the data presented and to evaluate the position of the firm. Which of the following is not one of the techniques used in analysis? a. ratio analysis b. common-size analysis c. theory consistency d. examination of relative size among firms e. review of descriptive material Register to View Answer PTS: 1 13. Liquidity ratios can be used: a. to measure the degree of protection of long-term suppliers of funds b. to measure borrowing capacity c. to measure the earning ability of a firm d. to measure the firm's ability to meet its current obligations e. to measure the worth of the firm Register to View Answer PTS: 1 14. Which of these statements is false? a. A ratio can be computed from any pair of numbers. b. Given the large quantity of variables included in financial statements, a very long list of meaningful ratios can be derived. c. Comparing ratios computed from income statement and balance sheet numbers can create difficulties due to the timing of the financial statements. d. Financial ratios are usually expressed in percent or times. e. In vertical analysis, a figure from the year's statement is compared with a base selected from the prior statement. Register to View Answer PTS: 1 15. Which of these statements is false? a. Many companies will not clearly fit into any one industry. b. A financial service uses its best judgment as to which industry the firm best fits. c. The analysis of an entity's financial statements can be more meaningful if the results are compared with industry averages and with results of competitors. d. When using industry averages, it is often necessary to use an industry that the firm best fits. e. A company comparison should not be made with industry averages if the company does not clearly fit into any one industry. Register to View Answer PTS: 1 16. Which of the following does not represent a problem with financial analysis? a. Financial statement analysis is an art; it requires judgment decisions on the part of the analyst. b. Financial analysis can be used to detect apparent liquidity problems. c. There are as many ratios for financial analysis as there are pairs of figures. d. Some industry ratio formulas vary from source to source. e. Adequate detailed disclosure of how the industry ratios are computed is often lacking. Register to View Answer PTS: 1 17. Which of the following is a false statement as it relates to analysis? a. Profitability may not be a major consideration as long as the resources for repayment can be projected. b. Equity capital provides creditors with a cushion against loss. c. There is a difference between the objectives that are sought by short-term grantors of credit and those sought by long-term grantors of credit. d. If merchandise with a 20% markup is sold on credit, it would take ten successful sales of the same amount to make up for one sale not collected. e. The financial structure of the entity is of interest to creditors. Register to View Answer PTS: 1 18. Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? a. Management is interested in the view of investors. b. Management is interested in the view of creditors. c. Management is interested in the financial structure of the entity. d. Management is interested in the asset structure of the entity. e. Management is always interested in maximum profitability. Register to View Answer PTS: 1 19. Which of the following statements is incorrect? a. The North American Industry Classification System (NAICS) was created jointly by the United States, Canada, and Mexico. b. For the NAICS, economic units with similar production processes are classified in the same industry, and the lines drawn between industries demarcate differences in production processes. c. NAICS provides enhanced industry comparability among the three NAFTA trading partners. d. NAICS divides the economy into twenty sectors. e. In most sectors, NAICS provides for compatibility at the industry (six-digit) level. Register to View Answer PTS: 1 1.Company A uses lifo and Company B uses fifo for inventory valuation. Otherwise, the firms are of similar size and have the same revenue and expense. Assume inflation. In analyzing liquidity and profitability of the two firms, which of the following will hold true? a. It is impossible to compare two firms with different inventory methods. b. Company B will have relatively higher profit and higher inventory turnover. c. Company B will have relatively higher profit and lower inventory turnover. d. Company A will have a higher current ratio and acid test ratio, with the same profit. e. Company B will have relatively higher profit and a higher current ratio. Register to View Answer PTS: 1 2. Which of the following would best indicate that the firm is carrying excess inventory? a. a decline in sales b. a decline in the current ratio c. a decline in days' sales in inventory d. stable current ratio with declining quick ratios e. a rise in total asset turnover Register to View Answer PTS: 1 3. Which of the following types of businesses would normally have the shortest operating cycle? a. a retail clothing store b. a grocery store c. a wholesale furniture store d. a car manufacturer e. a car dealer Register to View Answer PTS: 1 4. Jones Company presents the following data for 2006. Receivables, less allowance for losses and discounts of $12,196 Net Sales Cost of Goods Sold The days' sales in receivables is a. 53.1 b. 48.2 $ 266,700 $2,360,108 $1,580,360 c. 43.1 d. 38.1 e. none of the answers are correct Register to View Answer PTS: 1 5. Abbott Company presents the following data for 2006. Receivables, end of year, less allowances for losses and discounts of $115,960 Receivables, beginning of year, less allowance for losses and discounts of $102,330 Net Sales $ 2,370,100 $ 2,443,140 $24,417,090 The accounts receivable turnover in times per year is: a. 6.9 b. 7.9 c. 10.7 d. 9.7 e. none of the answers are correct Register to View Answer PTS: 1 6. Smith Company presents the following data for 2006. Inventories, beginning of year Inventories, end of year Cost of Goods Sold Net Sales $ 310,150 $ 340,469 $2,103,696 $8,690,150 The number of days' sales in inventory is: a. 65.8 b. 60.8 c. 59.1 d. 58.1 e. none of the answers are correct Register to View Answer PTS: 1 7. Shaffer Company presents the following data for 2006. Net Sales, 2006 Net Sales, 2005 Cost of Goods Sold, 2006 Cost of Goods Sold, 2005 Inventory, beginning of 2006 Inventory, end of 2006 The merchandise inventory turnover for 2006 is: a. 5.6 b. 15.6 c. 7.5 d. 7.7 e. none of the answers are correct Register to View Answer PTS: 1 $3,007,124 $ 93,247 $2,000,326 $1,000,120 $ 341,169 $ 376,526 8. Szabo Company computed the following data for 2006. Days' sales in receivables Accounts receivable turnover Accounts receivable turnover in days Days' sales in inventory Merchandise inventory turnover Inventory turnover in days 38.7 days 9.6 times 35.1 days 68.5 days 5.9 times 58.7 days The estimated operating cycle for 2006 is: a. 97.4 days b. 107.2 days c. 93.8 days d. 108.0 days e. none of the answers are correct Register to View Answer PTS: 1 9. Typically, which of the following would be considered to be the most indicative of a firm's shortterm debt paying ability? a. working capital b. current ratio c. acid test d. cash ratio e. days' sales in receivables Register to View Answer PTS: 1 10. If a firm has pledged its receivables and its inventory, then the best indicator of its short-term liquidity may be indicated by: a. working capital b. current ratio c. acid-test d. cash ratio e. days' sales in receivables Register to View Answer PTS: 1 11. Which of the following would not be classified as a current asset? a. cash b. marketable securities c. receivables d. inventories e. investments Register to View Answer PTS: 1 12. Which of the following types of business would normally have the longest operating cycle? a. a seller of resort property b. a car dealer c. a car manufacturer d. a grocery store e. a record store Register to View Answer PTS: 1 13. Which of the following accounts would not be classified as a current asset? a. cash restricted for retirement of bonds b. cash and equivalents c. cash and certificates of deposit d. time deposits e. cash Register to View Answer PTS: 1 14. Unrealized losses for long-term investments should usually be reported in the: a. stockholders' equity section of the balance sheet b. income statement c. current assets section of the balance sheet d. current liabilities section of the balance sheet e. long-term liabilities section of the balance sheet Register to View Answer PTS: 1 15. Which of the following does not bear on the quality of receivables? a. shortening the credit terms b. lengthening the credit terms c. right of return privilege d. lengthening the outstanding period e. all of the answers bear on the quality of receivables Register to View Answer PTS: 1 16. Which of the following reasons should not be considered in order to explain why the receivables appear to be abnormally high? a. Sales volume expanded materially late in the year. b. Receivables have collectibility problems and possibly some should have been written off. c. The company seasonally dates invoices. d. Material amount of receivables are on the installment basis. e. Sales volume decreases materially late in the year. Register to View Answer PTS: 1 17. Which of the following is not an acceptable inventory costing method? a. specific identification b. last-in, first-out (lifo) c. first-in, first-out (fifo) d. average cost e. next-in, first-out (nifo) Register to View Answer PTS: 1 18. Which of the following would not be a reasonable conclusion when comparing lifofifo under an inflationary condition? a. Lifo generally results in a lower profit than does fifo. b. Fifo reports a higher inventory ending balance. c. Lifo results in a lower profit figure than does fifo. d. Lifo would probably be used for inventory that has a high turnover rate because there would be an immaterial difference in the results between lifo and fifo. e. The cash flow under lifo is greater than the cash flow under fifo by the difference in the resulting tax between the two methods. Register to View Answer PTS: 1 19. Which of the following current assets will not generate cash in the future? a. prepayments b. accounts receivable c. inventory d. marketable securities e. notes receivable Register to View Answer PTS: 1 20. Which of the following ratios does not represent some form of comparison between accounts in current assets and accounts in current liabilities? a. working capital b. current ratio c. acid-test ratio d. cash ratio e. merchandise inventory turnover Register to View Answer PTS: 1 21. Which of the following ratios would generally be used to evaluate a firm's overall liquidity position? a. working capital b. current ratio c. acid-test ratio d. cash ratio e. inventory turnover in days Register to View Answer PTS: 1 1. Jones Company has long-term debt of $1,000,000, while Smith Company, Jones' competitor, has long-term debt of $200,000. Which of the following statements best represents an analysis of the long-term debt position of these two firms? a. Smith Company's times interest earned should be lower than Jones. b. Jones obviously has too much debt when compared to its competitor. c. Jones should sell more stock and use less debt. d. Smith has five times better long-term borrowing ability than Jones. e. Not enough information to determine if any of the answers are correct. Register to View Answer PTS: 1 2. Ingram Dog Kennels had the following financial statistics for 2006: Long-term debt (average rate of interest is 8%) Interest expense Net income Income tax Operating income $400,000 35,000 48,000 46,000 107,000 What is the times interest earned for 2006? a. 11.4 times b. 3.3 times c. 3.1 times d. 3.7 times e. none of the answers are correct Register to View Answer PTS: 1 3. A times interest earned ratio of 0.90 to 1 means: a. that the firm will default on its interest payment b. that net income is less than the interest expense c. that the cash flow is less than the net income d. that the cash flow exceeds the net income e. none of the answers are correct Register to View Answer PTS: 1 4. Which of the following will not cause times interest earned to drop? Assume no other changes than those listed. a. An increase in bonds payable with no change in operating income. b. An increase in interest rates. c. A rise in preferred stock dividends. d. A rise in cost of goods sold with no change in interest expense. e. A drop in sales with no change in interest expense. Register to View Answer PTS: 1 5. A times interest earned ratio indicates that: a. preferred stock has no maturity date b. the debt will never become due c. the firm will be able to repay the principal when due d. the principal can be refinanced e. none of the answers are correct Register to View Answer PTS: 1 6. Jordan Manufacturing reports the following capital structure: Current liabilities Long-term debt Deferred income taxes Preferred stock Common stock Premium on common stock Retained earnings $100,000 400,000 10,000 80,000 100,000 180,000 170,000 What is the debt ratio? a. 0.48 b. 0.49 c. 0.93 d. 0.96 e. none of the answers are correct Register to View Answer PTS: 1 7. The debt ratio indicates: a. the ability of the firm to pay its current obligations b. the efficiency of the use of total assets c. the magnification of earnings caused by leverage d. a comparison of liabilities with total assets e. none of the answers are correct Register to View Answer PTS: 1 8. Joseph and John, Inc., had the following balance sheet results for 2006: (in millions) Current liabilities Bonds payable Lease obligations Minority interest Common stock Retained earnings $12.6 18.6 2.7 1.4 8.6 22.9 $66.8 Compute the debt-equity ratio. a. 112.1% b. 87.6% c. 67.6% d. 46.7% e. none of the answers are correct Register to View Answer PTS: 1 9. Which of the following statements best compares long-term borrowing capacity ratios? a. The debt/equity ratio is more conservative than the debt ratio. b. The debt ratio is more conservative than the debt/equity ratio. c. The debt/equity ratio is more conservative than the debt to tangible net worth ratio. d. The debt to tangible net worth ratio is more conservative than the debt/equity ratio. e. The debt ratio is more conservative than the debt to tangible net worth ratio. Register to View Answer PTS: 1 10. In computing debt to tangible net worth, which of the following is not subtracted in the denominator? a. copyrights b. goodwill c. patents d. investments e. trademarks Register to View Answer PTS: 1 11. A fixed charge coverage: a. is a balance sheet indication of debt carrying ability b. is an income statement indication of debt carrying ability c. is a liquidity ratio d. frequently includes research and development e. computation is standard from firm to firm Register to View Answer PTS: 1 12. The following financial statement data are taken from Xeron Company's 2006 annual report: (in millions) Current assets Investments Intangibles Tangible assets (net) Current liabilities Long-term debt Stockholders' equity $12.6 9.4 6.8 58.1 6.4 39.7 40.8 Compute the debt ratio. a. 196.9% b. 113.0% c. 53.0% d. 45.7% e. none of the answers are correct Register to View Answer PTS: 1 13. The following financial statement data are taken from Xeron Company's 2006 annual report: (in millions) Current assets Investments Intangibles Tangible assets (net) Current liabilities Long-term debt Stockholders' equity $12.6 9.4 6.8 58.1 6.4 39.7 40.8 Compute the debt to tangible net worth ratio. a. 146.8% b. 135.6% c. 53.0% d. 45.7% e. none of the answers are correct Register to View Answer PTS: 1 14. If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then: a. the times interest earned ratio will be overstated, based upon the financial statements b. the fixed charge ratio will be overstated, based upon the financial statements c. the debt ratio will be understated d. the working capital will be understated e. none of the answers are correct Register to View Answer PTS: 1 15. Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to: a. 30 percent of its total assets b. 30 percent of its net worth c. 40 percent of its total assets d. 40 percent of its net worth e. 50 percent of its total assets Register to View Answer PTS: 1 16. Included in the Employee Retirement Income Security Act are the following: a. provisions requiring minimum funding of pension plans b. minimum rights to employees upon termination of their employment c. creation of the Pension Benefit Guaranty Corporation d. provisions requiring minimum funding of pension plans and minimum rights to employees upon termination of their employment e. provisions requiring minimum funding of pension plans, minimum rights to employees upon termination of their employment, and creation of the Pension Benefit Guaranty Corporation Register to View Answer PTS: 1 17. What significant in improvement the financial reporting of pensions have pension accounting rules provided? a. determination of the expense for the income statement b. limited balance sheet recognition of pension liabilities c. improved disclosure d. determination of the expense for the income statement and limited balance sheet recognition of pension liabilities e. determination of the expense for the income statement, limited balance sheet recognition of pension liabilities, and improved disclosure Register to View Answer PTS: 1 18. There are a number of assumptions about future events that must be made regarding a defined benefit plan. An assumption that does not need to be made is: a. interest rates b. employee turnover c. mortality rates d. compensation e. how long the firm will continue Register to View Answer PTS: 1 19. Which of the following statements is not correct? a. A ratio that indicates a firm's long-term, debt-paying ability from the income statement view is the times interest earned. b. Some of the items on the income statement that are excluded in order to compute times interest earned are interest expense, income taxes, and unusual or infrequent items. c. Capitalized interest should be included with interest expense when computing times interest earned. d. Usually, the highest times interest coverage in the most recent five-year period is used as the primary indication of the interest coverage. e. In the short run, a firm can often meet its interest obligations, even when the times interest earned is less than 1.00. Register to View Answer PTS: 1 20. Which of these items represents a definite commitment to pay out funds in the future? a. bonds payable b. reserves for rebuilding furnaces c. deferred taxes d. minority shareholders' interests e. redeemable preferred stock Register to View Answer PTS: 1 21. Which of the following statements is not true relating to a capitalized (capital) lease? a. A capital lease is handled as if the lessee bought the asset. b. The leased asset is in the fixed assets and the related obligation is included in liabilities. c. On the balance sheet, the capitalized asset amount will not usually agree with the capitalized liability amount because the liability is reduced by payments, and the asset is reduced by depreciation taken. d. Usually, a company depreciates capitalized leases faster than payments are made. e. On the balance sheet, the capitalized asset amount will usually be higher than the capitalized liability amount. Register to View Answer PTS: 1 22. Which of the following statements is not true relating to a defined contribution pension plan? a. A defined contribution plan defines the contributions of the company to the pension plan. b. Once the defined contribution is paid, the company has no further obligation to the pension plan. c. This type of plan shifts the risk to the employee as to whether the pension plan will grow to provide for a reasonable pension payment upon retirement. d. There is no problem estimating the company's pension expense. e. This type of plan presents substantial problems in estimating the pension liability. Register to View Answer PTS: 1 23. A number of assumptions about future events must be made regarding a defined benefit plan. Which of the following does not represent one of the assumptions? a. interest rates b. termination date for the firm c. employee turnover d. mortality rates e. compensation Register to View Answer PTS: 1 1. Which of the following is not a base against which profits are measured? a. owners' equity b. owners' and creditors' funds provided c. intangibles d. revenues e. productive assets Register to View Answer PTS: 1 2. Net profit margin measures return on: a. sales b. owners' equity c. productive assets d. total assets e. inventory Register to View Answer PTS: 1 3. Total asset turnover measures the ability of a firm to: a. generate profits on sales b. generate sales through the use of assets c. buy new assets d. move inventory e. cover long-term debt Register to View Answer PTS: 1 4. The DuPont method return on assets uses two component ratios. What are they? a. inventory turnover gross profit margin b. times interest earned debt ratio c. return on equity dividend payout d. net profit margin total asset turnover e. return on investment total investment turnover Register to View Answer PTS: 1 5. Return on assets cannot fall under which of the following circumstances? Net Profit Margin a. b. c. d. e. Total Asset Turnover decline rise rise decline rise rise decline decline The ratio could fall under all of the answers. Register to View Answer PTS: 1 6. A reason that equity earnings create a problem in analyzing profitability is that equity earnings are: a. usually greater than the related cash flow b. less than dividends declared c. more than dividends declared d. extraordinary e. nonrecurring Register to View Answer PTS: 1 7. In the analysis of profitability, if equity earnings are substantial, it is advisable to: a. consider them as extraordinary b. consider them as nonrecurring c. investigate the earning power of the parent outside of the related investing activities d. recompute the debt ratio and times interest earned to remove the impact of equity earnings e. use the DuPont method to lessen the impact of equity earnings Register to View Answer PTS: 1 8. Which of the following is not a type of operating asset? a. inventory b. cash c. land d. investments e. equipment Register to View Answer PTS: 1 9. Operating income is: a. net sales less cost of goods sold b. earnings before interest and tax c. earnings before tax and nonrecurring items d. gross profit less operating expenses e. net income plus interest Register to View Answer PTS: 1 10. Which of the following circumstances will cause sales to fixed assets to be abnormally high? a. A recent purchase of land. b. A labor-intensive industry. c. A highly mechanized facility. d. High direct labor costs from a new union contract. e. The use of units-of-production depreciation. Register to View Answer PTS: 1 11. Which of the following ratios will usually have the lowest percent? a. return on investment b. return on total equity c. return on common equity d. return on total assets e. there is not enough information to tell Register to View Answer PTS: 1 12. Which suppliers of funds bear the greatest risk and should therefore earn the greatest return? a. bondholders b. suppliers c. general creditors such as banks d. preferred shareholders e. common shareholders Register to View Answer PTS: 1 13. Gross profit margin is an important ratio of merchandising firms because: a. their investments in real property are high b. cost of goods sold is usually the largest expense c. selling expenses, like advertising, are usually quite high d. it measures their ability to collect receivables e. it measures their ability to use total assets Register to View Answer PTS: 1 14. Which of the following is not a reporting requirement on interim reports? a. seasonal information b. major changes in income tax provision c. full, although condensed, balance sheet d. earnings per share e. significant changes in financial position Register to View Answer PTS: 1 15. Income tax expense in interim reporting should: a. be based on the quarterly income only b. contain a judgment estimation of the annual effective tax rate c. be based on the income year-to-date d. exclude extraordinary items in earlier quarters of the year e. disregard year-end adjustments Register to View Answer PTS: 1 16. Minority share of earnings is: a. the total earnings of unconsolidated subsidiaries b. earnings based on the percent of holdings by parent company of unconsolidated subsidiaries c. the total earnings of consolidated subsidiaries d. earnings based on the percent of holdings by outside owners of consolidated subsidiaries e. none of the answers are correct Register to View Answer PTS: 1 17. Net earnings before deducting minority share of earnings is utilized in the following ratios, since minority interests are included in the base. Which ratio is an exception to this statement? a. net profit margin b. return on assets c. return on equity d. return on investment e. none of the answers are correct Register to View Answer PTS: 1 18. Which of the following would most likely cause a rise in net profit margin? a. increased sales b. decreased preferred dividends c. increased cost of sales d. decreased operating expenses e. decreased earnings per share Register to View Answer PTS: 1 19. Which of the following could cause return on assets to decline when net profit margin is increasing? a. sale of investments at year-end b. increased turnover of operating assets c. decline in book value d. a stock split e. purchase of a new building at year-end Register to View Answer PTS: 1 20. Which of the following expresses DuPont analysis? a. net profit margin = total asset turnover times return on assets b. total asset turnover = operating asset turnover times financial leverage c. return on assets = net profit margin times total asset turnover d. return on investment = return on equity (1 - tax rate) e. dividend yield = dividend payout times earnings per share Register to View Answer PTS: 1 21. Operating assets equals: a. cash, accounts receivable, and equipment b. current assets plus tangible assets c. total assets minus intangible assets d. only long-term assets e. only current assets Register to View Answer PTS: 1 22. Return on investment measures: a. return to all suppliers of funds b. return to all long-term creditors c. return to all long-term suppliers of funds d. return to stockholders e. return to all short-term suppliers of funds Register to View Answer PTS: 1 23. In the formula for return on investment, interest expense is multiplied by (1 - tax rate). Why is this adjustment made? a. Interest is not tax deductible. b. Debt is excluded from the denominator. c. Net income in the formula is after tax. d. Dividends are not deductible for tax purposes. e. None of the answers are correct. Register to View Answer PTS: 1 1. The ratio percentage of earnings retained is the same as that termed: a. dividend yield b. dividend payout c. this year's retained earnings to income d. return on common equity e. book value Register to View Answer PTS: 1 2. The earnings per share is computed for: a. common stock b. non-redeemable preferred c. redeemable preferred d. common stock and non-redeemable preferred stock e. common stock and fully diluted preferred stock Register to View Answer PTS: 1 3. In 2006, ABC Company reported earnings per share of $2.00 for 10,000 shares. In 2007, there was a 2-for-1 stock split, for which 2007 earnings per share were reported at $2.10. The appropriate earnings per share presentation for a 2-year comparative analysis would be: 2007 a. b. c. d. e. 2006 $2.10 $2.00 $1.05 $2.00 $1.05 $2.00 $2.10 $1.00 none of the answers are correct Register to View Answer PTS: 1 4. Interest expense creates magnification of earnings through financial leverage because: a. the interest rate is variable b. interest accompanies debt financing c. the use of interest causes higher earnings d. interest costs are cheaper than the required rate of return to equity owners e. while earnings available to pay interest rise, earnings to residual owners rise faster Register to View Answer PTS: 1 5. What is the effect of the exercise of stock options? a. They generate cash to the issuing firm and therefore increase profit per share. b. They are an expense at the time of exercise. This lowers net income. c. They increase debt and lower borrowing capacity but have no effect on profit. d. They increase the number of shares outstanding. e. They have no immediate effect on profitability. Register to View Answer PTS: 1 6. A summarized income statement for Leveraged Inc. is presented below. Sales Cost of Sales Gross Profit Operating Expenses Operating Income Interest Expense Earnings Before Tax Income Tax Net Income $ $ $ $ $1,000,000 600,000 400,000 250,000 150,000 30,000 120,000 40,000 80,000 The degree of financial leverage is: a. $150,000/$30,000 b. $150,000/$120,000 c. $1,000,000/$400,000 d. $150,000/$80,000 e. $400,000/$120,000 Register to View Answer PTS: 1 7. Dawn Alive reported the following for 2006. $40.75 Ending market price Earnings per share: 2.50 Basic 2.08 Diluted 1.10 Dividends per share The price/earnings ratio and dividend payout were: a. 19.59 and 52.88% b. 16.30 and 52.88% c. 16.30 and 44.00% d. 19.59 and 44.00% e. 37.04 and 52.88% Register to View Answer PTS: 1 8. The best dividend payout ratio: a. approximates 50% b. continues at the same level as was historically paid c. is similar to the industry average d. is higher than that of competitors e. does not follow any rule of thumb for dividend payout Register to View Answer PTS: 1 9. The following data were gathered from the annual report of Desk Products. Market price per share Number of common shares Preferred stock, 5% $100 par Common equity $30.00 10,000 $10,000 $140,000 The book value per share is: a. $30.00 b. $15.00 c. $14.00 d. $13.75 e. none of the answers are correct Register to View Answer PTS: 1 10. Which of the following is not a reason to interpret book value with caution? a. Land may be worth more than it cost. b. Depreciable assets may be held. c. Investments may be worth more than their purchase price. d. Patents may have a high market value. e. All of the answers are correct. Register to View Answer PTS: 1 11. Which of the following is not a true statement regarding stock options? a. They may cause dilution of earnings per share. b. They generally allow the purchase of common stock at favorable terms. c. They involve a compensation expense. d. Exercise improves the short-term liquidity and debt position of the issuing firm. e. The potential dilution can be disregarded in financial analysis. Register to View Answer PTS: 1 12. Good Boss Inc. had the following pattern of results related to stock appreciation rights. Shares in the plan Option price Market price end year 1 end year 2 end year 3 20,000 $15.00 $20.00 $18.00 $22.00 The compensation expense would be: Year 1 a. $100,000 b. 100,000 c. 100,000 d. 400,000 Year 2 Year 3 $ -060,000 (40,000) -0- $40,000 40,000 80,000 40,000 e. none of the answers are correct Register to View Answer PTS: 1 13. Using financial leverage is a good financial strategy from the viewpoint of stockholders of companies having: a. a high debt ratio b. cyclical highs and lows c. steady or rising profits d. a steadily declining current ratio e. none of the answers are correct Register to View Answer PTS: 1 14. A firm has a degree of financial leverage of 1.20. If earnings before interest and tax increase by 20%, then net income: a. will not necessarily change b. will increase by 20% c. will decrease by 24% d. will decrease by 20% e. none of the answers are correct Register to View Answer PTS: 1 15. The price/earnings ratio: a. measures the past earning ability of the firm b. is a gauge of future earning power as seen by investors c. relates price to dividends d. relates price to total net income e. all of the answers are correct Register to View Answer PTS: 1 16. Stable dividend policy would most commonly imply: a. a high price/earnings ratio b. a stable dividend yield c. stable dividends per share d. stable earnings per share e. increasing dividends per share Register to View Answer PTS: 1 17. Book value per share may not approximate market value per share because: a. the book value is after tax b. book values are based on replacement costs rather than market values c. book value is related to book figures and market value is related to the future potential as seen by investors d. investors do not understand book value e. book value is not related to dividends Register to View Answer PTS: 1 18. Which of the following ratios represents dividends per common share in relation to market price per common share? a. dividend payout b. dividend yield c. price/earnings d. book value per share e. percentage of earnings retained Register to View Answer PTS: 1 19. Which of the following ratios usually reflects investors opinions of the future prospects for the firm? a. dividend yield b. book value per share c. price/earnings ratio d. earnings per share e. dividend payout Register to View Answer PTS: 1 20. Smith reported the following for 2006. Beginning market price Average market price Ending market price Earnings per share: Basic Diluted Cash dividends per share $20.00 24.00 26.00 1.80 1.60 1.00 The price earnings ratio and dividend payout were: a. 16.25 and 62.50% b. 16.25 and 65.00% c. 17.00 and 62.50% d. 15.00 and 62.50% e. 15.00 and 60.00% Register to View Answer PTS: 1 1. Which of the following is not a purpose of the statement of cash flows? a. To show cash flow from operations. b. To show cash flow from financing activities. c. To show cash flow from investing activities. d. To show all investing and financing transactions. e. To show operating expenses for a period of time. Register to View Answer PTS: 1 2. Which of the following is not a typical cash flow under operating activities? a. cash inflows from sale of goods or services b. cash inflows from interest c. cash outflows to employees d. cash outflows to suppliers e. cash inflows from sale of property, plant, and equipment Register to View Answer PTS: 1 3. Which of the following is not a typical cash flow under investing activities? a. cash inflow from receipt of loans b. cash inflow from sale of property, plant, and equipment c. cash outflow for payment of amounts borrowed d. cash outflow for loans to other entities e. cash outflow for purchase of property, plant, and equipment Register to View Answer PTS: 1 4. Which of the following is not a typical cash flow under financing activities? a. cash inflow from sale of equity securities b. cash inflow from sale of bonds c. cash outflow for payment of dividends d. cash outflow for loans to other entities e. cash outflow for payment of amounts borrowed Register to View Answer PTS: 1 5. Working capital is defined as: a. total assets less intangible assets b. current assets divided by current liabilities c. current assets less current liabilities d. total assets less current assets e. current assets less liabilities Register to View Answer PTS: 1 6. Amortization of patents can be added to income in the operations section of the statement of cash flows because: a. it is not a tax deductible expense b. it results in a cash inflow c. it does not require the outlay of cash d. patent amortization is not an expense e. it represents an inflow of cash Register to View Answer PTS: 1 7. Which of the following is not an item added back to income in the operations section of the statement of cash flows when using the indirect presentation? a. depreciation b. amortization of goodwill c. increase in deferred income taxes d. amortization of bond premium e. amortization of patents Register to View Answer PTS: 1 8. Which of the following transactions is not reflected in a statement of cash flows? a. sale of treasury stock b. declaration of a stock dividend c. purchase of foreign subsidiary with cash d. issuance of convertible bonds e. purchase of equipment with cash Register to View Answer PTS: 1 9. Management should not use the statement of cash flows for which of the following purposes? a. To determine dividend policy. b. To determine cash flow from operations. c. To determine cash flow from investing activities. d. To determine cash flow from financing activities. e. To determine the balance in accounts receivable. Register to View Answer PTS: 1 10. Tim Company had sales of $30,000, increase in accounts payable of $5,000, decrease in accounts receivable of $1,000, increase in inventories of $4,000, and depreciation expense of $4,000. What was the cash collected from customers? a. $31,000 b. $35,000 c. $34,000 d. $25,000 e. $26,000 Register to View Answer PTS: 1 11. Conroy Company had sales of $50,000, increase in accounts payable of $4,000, decrease in accounts receivable of $3,000, tax expense of $5,000, and an increase in taxes payable of $1,000. What was the cash outflow for taxes? a. $54,000 b. $4,000 c. $6,000 d. $53,000 e. $45,000 Register to View Answer PTS: 1 12. Francis Company had operating expenses of $20,000 and depreciation expenses of $4,000. What was the cash paid for operating expenses? a. $24,000 b. $22,000 c. $16,000 d. $20,400 e. $23,000 Register to View Answer PTS: 1 13. In a statement of cash flows (indirect method), depreciation expense should be presented as: a. a cash flow from financing activities b. a cash flow from investing activities c. a deduction from net income d. an addition to net income e. a financial activity Register to View Answer PTS: 1 14. The retirement of debt by the issuance of common stock should be presented in a statement of cash flows in which of the following sections? a. supplemental schedule of noncash investing and financing activities b. cash flows from operating activities c. cash flows from investing activities d. cash flows from financing activities e. supplemental schedule to reconcile net income to net cash provided by operations Register to View Answer PTS: 1 15. The statement of cash flows became a required statement in which year? a. 1995 b. 1978 c. 1971 d. 1987 e. 1993 Register to View Answer PTS: 1 16. Which of the following should not be considered as part of "cash and cash equivalents"? a. cash on hand b. cash on deposit c. highly liquid investments d. investments in short-term securities (<90 day maturity) e. cash restricted for retirement of bonds Register to View Answer PTS: 1 17. Which of the following accounts will not be considered when computing cash flow from operations? a. accounts receivable b. inventories c. equipment d. accounts payable e. taxes payable Register to View Answer PTS: 1 18. Which of the following accounts is not part of working capital? a. cash b. accounts receivable c. inventory d. accounts payable e. investments Register to View Answer PTS: 1 19. Which of the following is the focus for the statement of cash flows? a. cash b. cash and cash equivalents c. current assets d. working capital e. none of the answers are correct Register to View Answer PTS: 1 1. Which of the following ratios is given the highest significance rating by commercial loan officers? a. Inventory Turnover In Days b. Degree of Financial Leverage c. Times Interest Earned d. Fixed Charge Coverage e. Debt/Equity Register to View Answer PTS: 1 2. Which financial ratio appears most frequently in loan agreements according to commercial loan officers? a. Quick Ratio b. Cash Flow/Total Debt c. Debt/Equity d. Times Interest Earned e. Cash ratio Register to View Answer PTS: 1 3. Which of the following ratios is given the highest significance rating by controllers? a. Current Ratio b. Earning Per Share c. Return on Equity - After Tax d. Return on Assets - After Tax e. Price/Earnings Ratio Register to View Answer PTS: 1 4. Which of the following ratios appears most frequently in annual reports? a. Earnings per Share b. Return on Equity c. Profit Margin d. Effective Tax Rate e. Debt/Equity Register to View Answer PTS: 1 5. Which of the following ratios is given the highest significance rating by Certified Public Accountants? a. Quick Ratio b. Debt/Equity c. Net Profit Margin d. Current Ratio e. Times Interest Earned Register to View Answer PTS: 1 6. Which of the following ratios is rated to be a primary measure of liquidity and the highest significance rating of the liquidity ratios according to commercial loan departments? a. Debt/Equity b. Current Ratio c. Degree of Financial Leverage d. Inventory Turnover in Days e. Accounts Receivable Turnover in Days Register to View Answer PTS: 1 7. Which of the following ratios is a primary measure of liquidity according to the corporate controller survey? a. Earnings per Share b. Debt/Equity Ratio c. Return on Equity after Tax d. Current Ratio e. None of the answers are correct Register to View Answer PTS: 1 8. Which of the following depreciation methods is considered to be the least conservative? a. Sum-of-the-Years' Digits b. Declining-Balance Method c. Straight-Line d. each method is equally conservative e. Sum-of-the-Years Digits and Declining-Balance Method are equally conservative Register to View Answer PTS: 1 9. There are many definitions or descriptions given to financial failure. Which of the following does not appear to be a reasonable definition or description. a. refinancing of bonds payable b. liquidation c. deferment of payments to short-term creditors d. deferment of payments of interest on bonds e. deferment of payments of principal on bonds Register to View Answer PTS: 1 10. Edward I. Altman developed a multivariate model to predict bankruptcy. The model produces an overall discriminant score called a Z value. Which of the following statements is probably an unreasonable statement relating to the Z value? a. The sales generating ability of the firm's assets is one of the important considerations in the Z value. b. The lack of a market value for a company's stock will reduce the significance of the Z value approach. c. Total assets is an important consideration in the Z value computation. d. Cumulative profitability over time is considered in the Z value computation. e. A Z score of 2.00 or below indicates a very healthy company. Register to View Answer PTS: 1 11. Which of the following statements is not true? a. The depreciation method and the period of time selected to depreciate an asset can have a significant influence on income. b. There are many depreciation methods. c. The depreciation methods that recognize a large amount of depreciation in the later years of an asset's life are conservative. d. The straight-line depreciation method recognizes depreciation in equal amounts over each year of the life of the asset. e. There is sometimes a material difference in the lives used for depreciation between firms. Register to View Answer PTS: 1 12. In financial accounting, which of the following assets is not considered to be an intangible asset? a. goodwill b. patents c. copyrights d. trademarks e. accounts receivable Register to View Answer PTS: 1 13. Which of the following statements is not true? a. A review of financial statements, including the notes, will indicate how conservative the statements are in regard to accounting policies. b. Accounting policies that result in the slowest reporting of income are the most conservative. c. When a firm has conservative accounting policies, it is said that its earnings are of high quality. d. Under inflationary conditions, the least conservative inventory method is fifo. e. Conservative accounting policies always result in the lowest reported income for any given period of time. Register to View Answer PTS: 1 14. The Beaver Study indicated the following ratio (ratios) to be the best for forecasting financial failure. a. cash flow/total debt b. net income/total assets c. total debt/total assets d. cash flow/total debt and net income/total assets e. all of the answers are correct Register to View Answer PTS: 1 15. Which of the following is not a reasonable matching? Item a. b. c. d. inventory fixed assets intangible assets pensions Related Conservative Policy LIFO accelerated depreciation short period of time for amortization short period of time to amortize prior service cost e. receivables Register to View Answer direct write-off method PTS: 1 16. Which of the following variables indicates a measure of cumulative profitability over time? a. retained earnings (balance sheet)/total assets b. earnings before interest and taxes/total assets c. working capital/total assets d. market value of equity/book value of total debt e. sales/total assets Register to View Answer PTS: 1 17. Which of the following is not a multiple approach to valuation? a. discounted cash flow b. price-to-earnings (PE) c. price-to-book d. price-to-operating cash flow e. price-to-sales Register to View Answer PTS: 1 18. Which of the following is not a discounted cash flow model for valuation? a. free cash flow b. dividend discount model c. discounted cash d. discounted abnormal earnings e. all of the answers are discounted cash flow models Register to View Answer PTS: 1 19. Tom Copeland, Tim Keller, and Jack Morrin, on their book Valuation, Measuring and Managing the Value of Companies, observed that acquires paid too much for companies because of all but one of the following reasons: a. market potential greater than estimated b. overoptimistic appraisal of market potential c. overestimation of synergies d. poor due diligence e. overbidding Register to View Answer PTS: 1 MULTIPLE CHOICE 1. A characteristic common to banks, utilities, and transportation is that they: a. are all government owned b. are not subject to the rules of the FASB c. are monopolies d. each have a uniform system of accounts established by a federal regulatory agency e. never go bankrupt Register to View Answer PTS: 1 2. Which of the following is not an asset of a bank? a. bank building b. accrued interest receivable c. savings deposits d. loans e. investment securities Register to View Answer PTS: 1 3. Which of the following is most likely the largest expense of a bank? a. income taxes b. occupancy expense c. salaries d. interest on loans e. interest on deposits Register to View Answer PTS: 1 4. Total deposits times capital is: a. a type of interest coverage ratio b. a profit measure c. a type of debt to equity ratio d. similar to net working capital e. a type of asset to liability ratio Register to View Answer PTS: 1 5. Which of the following organizations does not require that banks report to it? a. Internal Revenue Service b. Federal Reserve System c. Comptroller of the Currency d. Federal Deposit Insurance Corporation e. Interstate Commerce Commission Register to View Answer PTS: 1 6. On the balance sheet of a bank, what is the best description of the nature of checking accounts of customers ? a. short-term asset b. long-term asset c. short-term liability d. long-term liability e. owners' equity Register to View Answer PTS: 1 7. The principal revenue source for a bank typically is: a. gain on sale of real estate b. sales c. dividend income d. interest income e. interest expense Register to View Answer PTS: 1 8. Which of the following is not a type of earning asset for a bank? a. cash b. loans c. leases d. investment securities e. money market assets Register to View Answer PTS: 1 9. Interest margin to average total assets measures: a. the balance between earning and nonearning assets b. management's ability to control the spread between interest income and interest expense c. the ability to borrow successfully d. the proportion of debt to equity e. the return on owner's investment Register to View Answer PTS: 1 10. Which of the following is not true for a regulated electric utility that has construction work in progress? a. The political climate of the utility commission that will be ruling on the construction work in progress costs is not an issue to be considered. b. Most utility commissions allow no construction work in progress or only a small amount in the rate base. c. In the long run, everybody pays for inefficiency and excess capacity because disallowed costs are a risk that can drive the stock price down and interest rates up for the utility. d. Costs related to construction work in progress that are disallowed are, in effect, charged to the stockholders. e. Future income will not include a return on disallowed costs. Register to View Answer PTS: 1 11. The first balance sheet asset for a regulated utility is: a. cash b. receivables c. inventory d. plant e. investments Register to View Answer PTS: 1 12. Accounting for regulated utilities, banks, and transportation firms is similar in that: a. all are monopolies b. all report property, plant, and equipment first on the balance sheet c. all are controlled by the Interstate Commerce Commission d. all carry heavy inventory e. all utilize some form of uniform accounting system Register to View Answer PTS: 1 13. In analyzing the borrowing position of a utility, which of the following is primary? a. liquidity b. ability to earn a profit c. return to shareholders d. long-term debt capacity e. utilization of current assets Register to View Answer PTS: 1 14. For a utility, funded debt to operating property is a measure of: a. profitability b. return to shareholders c. debt coverage d. liquidity e. asset turnover Register to View Answer PTS: 1 15. Which of the following will not cause the percent earned on operating property of a utility to fall? a. sale of a fully depreciated asset at a loss b. building a new plant c. increase in operating expenses d. decrease in borrowing and interest expense e. decrease in revenue Register to View Answer PTS: 1 16. Which of the following have a balance sheet similar in format to a manufacturing firm? a. transportation b. banks c. utilities d. transportation and utilities e. transportation and banks Register to View Answer PTS: 1 17. The operating ratio of Cross America Airlines has increased. Which of the following could not explain this rise? a. Operating revenues have increased more slowly than expenses. b. Salary costs have risen substantially. c. Operating revenues have increased with stable operating expenses. d. Dues costs have risen substantially. e. None of the answers are correct. Register to View Answer PTS: 1 18. The largest asset for airlines will usually be: a. accounts receivable b. inventory of spare parts c. investment in subsidiaries d. flight equipment e. ground equipment Register to View Answer PTS: 1 19. The operating ratio for a railroad is a measure of: a. cost control b. liquidity c. earnings to investors d. borrowing ability e. liquidity Register to View Answer PTS: 1 20. Data per passenger-mile is often used by transportation companies to analyze: a. capacity b. revenue c. borrowing ability d. earnings per share e. leverage Register to View Answer PTS: 1 21. Under the full-cost approach to oil and gas accounting: a. costs related to successful efforts are expensed and others capitalized b. cost related to successful efforts are capitalized and others expensed c. all costs are expensed as incurred d. all costs are capitalized as incurred e. only the cost of buildings and equipment are capitalized Register to View Answer PTS: 1 22. Which of the following will cause operating revenues for a transportation firm to vary? a. difference in rates b. classification of traffic c. volume of traffic carried d. distance traffic is transported e. all of the answers are correct Register to View Answer PTS: 1 23. There are basically four types of insurance organizations. Which of the following is not one of these four types? a. group b. stock companies c. mutual companies d. fraternal benefit societies e. assessment companies Register to View Answer PTS: 1 24. Insurance companies tend to have a stock market price at a discount to the average market price (price/earnings ratio). Which of the following is not a likely reason for this relatively low market value? a. Insurance is a highly regulated industry. b. The insurance industry has substantial competition. c. The accounting environment likely contributes to the relatively low market price for insurance company stocks. d. The nature of the industry leads to standards that provide for much judgment and possible manipulation of reported profit. e. Insurance companies typically have a high return on common equity. Register to View Answer PTS: 1

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University of Michigan - EECS - 560
Matrix Representations of Linear Transformations andChanges of Coordinates0.10.1.1Subspaces and BasesDenitionsA subspace V of Rn is a subset of Rn that contains the zero element and is closed under additionand scalar multiplication:(1) 0 V(2) u,
Hofstra - LEGL - 020 - 03
SourcesofLawI. Valuesa. safetyb. goodhealthc. equalityd. educatione. justicef. libertyetcII. Philosophiesa. naturallawa.i. moralcompasstypethingsa.ii. lawcannotexistwithoutamoralbasisa.iii. inalienablerightsofmana.iv. alsoenvironmentalthingsb
King Fahd University of Petroleum & Minerals - ARE - 541
performance criteria that include:Weathering.Fading.Moisture content.Wind infiltration.Spalling.Buckling.Cracking, cleanability and corrosion.RoofsRoofs represent the most frequent building failures.The
Kaplan University - ACCOUNTING - AC499
1. Question :The following are examples of internal stakeholders EXCEPT:Student Answer:managers.creditors.employees.All of these areinternal stakeholders.Points Received:2 of 2Comments:2. Question :Motel 6 is an example of a business using whi
Kaplan University - ACCOUNTING - AC499
Prepare journal entries to record the June transactions in the General Journal below.DateDescription(Account Name)DebitCredit1-Jun Cash10,0001,500Accounts Receivable1,250Supplies7,500Office Equipment20,250Dustin Larkin, CapitalOwner investe
Kaplan University - ACCOUNTING - AC499
1.Question :The last step in the accounting cycle is toStudent Answer:prepare a post-closingtrial balance.journalize and postclosing entries.prepare financialstatements.journalize and postadjusting entries.Points Received:2 of 2Comments:2. Q
Kaplan University - ACCOUNTING - AC499
Prepare journal entries to record the June transactions in the General Journal below.DateDescription(Account Name)DebitCreditAC 499 Unit 2 Rubric:1-Jun Cash10,000CategoryYour score Possible PointsInstructor Co1,5001-Prepare Journal Entries (Ju
Kaplan University - ACCOUNTING - AC499
Question Type:Multiple ChoiceGrade Details - All Questions# Of Questions:10# Correct:91. Question :Which of the following is true?Student Answer:Prepaid expenses areincreased by a credit.Gains are increasedby a debit.Losses are increasedby
Kaplan University - ACCOUNTING - AC499
The Unit 4 Assignment is worth 40 Points.Notes:1) Some of the ratios do NOT have sufficient data to compute a ratio.In those ratios, simply type &quot;Insufficient data to Compute&quot;.The objective is to provide you an opportunity to employ critical thinking.
Kaplan University - ACCOUNTING - AC499
1. Question :The inventory turnover ratioStudent Answer:measuresmanagements ability toproductively employ all ofits resources.measures the efficientuse of assets held forresale.is a stringent measureof liquidity.provides a measure ofthe stren
Kaplan University - ACCOUNTING - AC499
Grading SummaryThese are the automatically computed results ofyour exam. Grades for essay questions, andcomments from your instructor, are in the &quot;Details&quot;section below.Date and Time Started:Time Spent:Points Received:Question Type:Multiple Choic
Kaplan University - ACCOUNTING - AC499
Grading SummaryThese are the automatically computed results ofyour exam. Grades for essay questions, andcomments from your instructor, are in the &quot;Details&quot;section below.Date and Time Started:Time Spent:Points Received:Question Type:Multiple Choic
Kaplan University - ACCOUNTING - AC499
1. Question :Every system has a single goal.Student Answer:TrueFalseComments:2. Question :Transaction processing systems (TPSs) are the most widely usedinformation systems.Student Answer:TrueFalseComments:3. Question :Input is the informatio
Kaplan University - ACCOUNTING - AC499
1.Question :The most important metric in the airline industry is _, which is howmuch it costs to fly a passenger one mile of the journey.Student Answer:cost per available seat-mile(CASM)cost per available seat (CAS)cost per mile (CM)cost per seat
Kaplan University - ACCOUNTING - AC499
1.Question :Coaxial cable connects to network devices with RJ-45 plug-in connectors,which resemble the RJ-11 connectors used on telephone wire, but areslightly larger.Student Answer:TrueFalseComments:2. Question :Some experts see the future of t
Kaplan University - ACCOUNTING - AC499
Unit 4 AssignmentUnit 4 Assignment: Cloud ComputingMT300: Management of Information SystemsUnit 4 AssignmentAfter doing some research on this topic of cloud computing I was able to learn alot of interesting information about what it really is and the
Kaplan University - ACCOUNTING - AC499
Kaplan University - ACC - 300
1. Question : Which organization has the most legal authority?Financial Accounting Standards BoardAccounting Standards Executive CommitteeGovernmental Accounting Standards BoardSecurities and Exchange Commission2. Question : Concerning FASB membershi
Kaplan University - ACC - 300
According to GAAP, verifiability is an ingredient ofcomparabilityreliabilityrepresentational faithfulnessrelevance2. Question : Accrual accounting relates the financial effects of a companys transactionsso that the costs of non-operating events are
Kaplan University - ACC - 300
1. At the beginning of 2011, the Loretta Company issued 10-year bonds with a face value of$4,000,000 due on December 31, 2020. The company will accumulate a fund to retire thesebonds at maturity. It will make 10 annual deposits to the fund beginning on
Kaplan University - ACC - 300
1. Question : Which organization has the most legal authority?Financial Accounting Standards BoardAccounting Standards Executive CommitteeGovernmental Accounting Standards BoardSecurities and Exchange Commission2. Question : Concerning FASB membershi
Kaplan University - ACC - 300
Question : If the credit subtotal is greater than the debit subtotal in the Income Statementcolumns of a worksheet, the differenceindicates that the company incurred an operating loss during the periodcould represent payment of dividends by the entity
Kaplan University - MANAGEMENT - 300
1. Question :_, which is any form of advertising through an online search site, isregarded by businesses as highly effective.Student Answer:Search advertisingNewsgroup advertisingSpam advertisingUsenet advertisingComments:2. Question :Electronic
Kaplan University - MANAGEMENT - 300
MT300: Unit 2 AssignmentUsing an Information System to Gain a Competitive AdvantageThe company I decided to research that has used a strategic information system togain a competitive advantage is L.L Bean. L.L. Bean is approaching their 100thAnniversa
CUNY Baruch - MGT - 3120
Baruch College Department of Management Mgt 3120 ETRA TAKE HOME ASSIGNMENT #1.Prof. Booke Spring 2013This assignment is worth 4% of your term grade. Read each of the scenarios carefully and answer each to the best of your ability. Each scenario should b
CUNY Baruch - ANT - 3153
Tenesha SamuelHED 4400 Essentials of Global HealthQuiz #2- Chapter 22/2/101.) What are three determinates of health?Three determinates of health are physical and social environment, individual, and healthbehaviors and access to health services.2.)
CUNY Baruch - ANT - 3153
ANTHTake Home Exam #211/25/111. The evidence that our text presents to support its contention that the speeches of GreatBlack Orators are an internationally recognized aspect of American culture is as followson page 250 of the text it states, Based i
Johns Hopkins - PSYCHOLOGY - 200.333
SchemasTypesofSchemas:PersonRoommate,bestfriend,RhiannaAllthingsassociatedwithpersonConceptSelfOneofthemostcomplexschemaHowwedescribeourselvesDependsonroleyouareWorkself,socialself,homeself,HopkinsselfGroupStereotypesThingsassociatedwithgroup
Johns Hopkins - PSYCHOLOGY - 200.333
ResearchMethods5)ExperienceSampling:rollingsnapshotofsubjectsbehaviorasitshappeninginrealworldtheyrecordtheirbehavior,sothatwegetsnapshotofwhatwereinterestedin measuringrealtime,overaperiodoftimeEx:lookatnatureofsocialinteractionsamongcollegestudent
Johns Hopkins - PSYCHOLOGY - 200.333
AttributionDimensionsAttributionsarethingsthatcauseustodothings.4typesofattributionsStableInternalegpersonality,traitsIamsmart=IdowellStableexternalegreoccurringsituationDobadontest=testwastoohard,teachersucksUnstableinternalegmood,motivationsIdid
Johns Hopkins - PSYCHOLOGY - 200.333
InfluenceofSchemas:ContinuedDecisionMakingProcessingControlledvs.AutomaticProcessiingControlled:performance/thoughtconcentrationex.Firstlearningtodrive(gasvs.brake,mirrors)performmoreslowly,moreeffortconcentratedbehaviorsingletaskorientedputinto
Johns Hopkins - PSYCHOLOGY - 200.333
SocialCognition:ThestudyofSchemasOrganizedknowledgestructuresthatinfluenceperception,memory&amp;behaviorCulebranooneknowswhatitis,soithasnoschemaSchemas:OurNeuralNetworksseediagramSchemaGeneration:ExperiencelivingyourlifeModelingOperantConditioningane
Johns Hopkins - PSYCHOLOGY - 200.333
FromlasttimeBackgroundIssuesforResearchMethods1)design:Experimentalvs.Correlational2)Validity:Internalvs.External3)MeasurementIssues:1)operationalizationhowwechoosetogoaboutmanipulatinganindep.variablehowtomeasuredependentvariablesweneedtoknowwear
Johns Hopkins - PSYCHOLOGY - 200.333
FinishingfromLasttimeTheoryDefinition:Theoryvs.PhenomenonTheoryDevelopment:Inductive:specifictogeneralDeductive:generaltospecificTheoryEvaluation:Testable/FalsifiableFitsdataParsimonyGeneratesresearchBackgroundIssuesforResearchMethods:1)Design
Johns Hopkins - PSYCHOLOGY - 200.333
PsychologyasaScience:TheoryBased16:00NumberOne:FormulatingaTheorySeeslideonBB(diagram)TheoryDefinitionTheorywhysomethingoccursPhenomenondemonstratingsomethingoccursTheoryDevelopment:Inductive:specifictogeneral(e.g.KittyGeno.)Specificexampleofhuma
CUNY Baruch - BIO - 2010
BIO 2010 Quiz 1I.SensitivityA. Measuring water in beaker is less accurate than measuring water in a graduatedcylinder due to sensitivityII.AdhesionA. joining of two different substances due to attractive forces that hold themi. E.g. adhesion keeps
CUNY Baruch - BIO - 2010
Lab #1 Measurementkilodecicentimillimicronanoangstrompicokdcmnp1000 = 103.1 = 1-1.01 = 10-2.001 = 10-3.000001 = 10-6.000000001 = 10-9.0000000001 = 10-10.000000000001 = 10-12A meniscus forms because of adhesion. The surface water in
CUNY Baruch - BIO - 2010
I.Animal Cell and Plant CellA. Cell has a variety of componentsi. Including organelles (little organs) bounded by membranesB. Nucleus - membrane bound structure that contains the cell's hereditaryinformation and controls the cell's growth and reprodu
CUNY Baruch - BIO - 2010
I. Diffusion (fundamental principle) the net movement of solute and/or solvent from anarea of high concentration to an area of low concentration to equilibriuma. Assimilation the ability to integrate nonliving materials into the livingmaterial or proto
CUNY Baruch - BIO - 2010
I.pH - measure of the hydrogen ion concentration of a solutionA. Acid substance that increases the hydrogen ion [H+] concentration of asolutioni. Has a pH solution of under 7ii. Lower the pH = Higher the [H+]iii. Compound that gives up protonsB. Ba
CUNY Baruch - BIO - 2010
Acid and Base Quiz BIO 20101.A test that could be safely used to distinguish a strong base from a weak base isA.tasteB.touchC.litmus paperD.electrical conductivity2.Identify the two substances that act as Bronsted-Lowry bases in the equationA
CUNY Baruch - BIO - 2010
Titration curvesA titration is a procedure for carrying out a chemical reaction between two solutions by thecontrolled addition from a buret of one solution (the titrant) to the other, allowingmeasurements to be made throughout the reaction. For a reac
CUNY Baruch - BIO - 2010
Diffusion, Osmosis, Active TransportThere are two ways in whichsubstances can enter or leave acell:1) Passivea) Simple Diffusionb) Facilitated Diffusionc) Osmosis (water only)2) Activea) Moleculesb) ParticlesDiffusionDiffusion is the net passi
CUNY Baruch - BIO - 2010
Factors Affecting DissolutionPoxygen as a Function of Altitude pressure for gases, as pressure , solubility see Henrys Law in section 8.6Cgas = kH Pgas. its all about partial pressure high altitudes have roughly thesame concentration of oxygen i
CUNY Baruch - BIO - 2010
How to Interpret Titration CurvesHow to Interpret Titration Curves find the equivalence point things to do first it is the steepest part of the curve where the pHrises the fastest the equivalence point can be used to determinethe equivalent weight
Auburn - PSYCH - 3560
Substance Use Disorders and Impulse Control DisordersPerspectives on Substance Related DisordersSubstance-Related DisordersUse and abuse of psychoactive substancesWide-ranging effectsPsychophysiologicalBehavioralSignificant impairmentCostsLevels
Auburn - CMDS - 3560
Neuroanatomy Test 1 Study GuidePART 2Neurons PartsDendrites- receiversCell bodyNucleusAxon- the conducting fiber; carry info. Out of the cellMyelin Sheath- Insulating fatty layer that speeds transmissionNodes of RanvierTerminals/Terminal button- tra
Auburn - CMDS - 3560
I Olfactory (s)II Optic (s)III Occulomotor (m)Somatic MotorVisceral MotorIV Trochlear (m)V Trigeminal (b)Motor DivisionSensory DivisionVI Abducens (m)VII Facial (b)Motor DivisionSensory/Parasympathetic DivisionVIII Vestibulocochlear (s)Audit
Auburn - CMDS - 4560
InterventionPurpose-To change/eliminate the underlying problemTo change the disorderCompensatory strategiesTo optimize the environmentFacilitation: The outcome will be achieved at a faster rateMaintenance: Preserves a behavior that will otherwise
Auburn - PSYC - 3530
HOW DO WE HEAR?ANATOMY AND MECHANISMS OF THE EAROUTER EARPINNA: THE EARFLAP PART OF THE OUTER EAR OF MOST MAMMALS, WHICH IS USEFUL FOR SOUND LOCALIZATIONEXTERNAL AUDITORY CANAL: THE CYLINDRICAL CANAL THAT CREATES THE PATHWAY FOR SOUND WAVES TO THE EAR
Auburn - CMDS - 4510
1. Compare the developmental data of Wellman, Poole, Templin, Sander, and Prather.- Wellman204 Children age 2-675% in 3 positions- Poole140 Children age 2:6-8:5100% in 3 positions- Templin480 children age 3-875% in 3 positions- SanderUsed data
Auburn - CMDS - 4510
CMDS 4510 Exam 3 Study GuideSensitivity: The proportion of affected individuals who are identified as having the problem. (reflects the true positive rate)Specificity: The proportion of unaffected individuals who are not identified as having the problem
Auburn - CMDS - 4510
Phonetic Placement: Cueing as to where to place their articulatorsFacilitating Context: Finding the proper context the child can produce the sound in; Phonetic context that allows for betterproduction of target sounds (deep test)Nonce (Nonsense word):
Auburn - CMDS - 4510
Test 1Motor speech activity is controlled in which love ob the cerebrum?A. Occipital B. Parietal C. Frontal D. Temporal E. InsularThe area of the cerebral cortex which is involved in planning the motor speech isA. Wenuckes Area B. Brocas Area C. Hershe
Johns Hopkins - PSYCHOLOGY - 200.101
PsychologicalDisordersCriteriaforAssessment(3)o ABNORMALITYQualitativeBehaviordeviatesfromculturalnorm(examplesomeonetalkstothemselves)QuantitativeoBehaviordeviatesfromstatisticalaverage(examplewashinghands60timesaday;however, mustconsiderCONTEXT,
Johns Hopkins - PSYCHOLOGY - 200.101
PersonalityTheory Basicissueso Naturevs.nurtureNature:howmuchofourpersonalityisdrivenbyourgeneticpredispositionforcertaintypesoftraitExampleintelligencehasstronggeneticpredisposition,alsoextroversion,neuroticismo Identicaltwinscomparedtofraternaltw
Johns Hopkins - PSYCHOLOGY - 200.101
SocialPsychologySocialPsychology:howweareinfluencedbythereal,imagined,orimpliedpresenceofotherso Waywethinkaboutothers/selfBystandereffect:ifpeoplearoundwhocanpotentiallyhelp,yourethuslesslikelytogivehelp,feellessresponsible;moreconfusedaboutwhatsho
Johns Hopkins - PSYCHOLOGY - 200.101
StressStressandHealthoStress:responsetothreateningstimuliintheenvironmentChronicvs.acuteChronic(i.e.constantphysicalpain)o ThingsthatyouarefacedwitheverydayAcute(i.e.daytodayhassles/deadline)o Isolatedeventsordaytodayhassleso SeylesGeneralModelof
Johns Hopkins - PSYCHOLOGY - 200.101
Development Languagebuildingblockso Languagesystemisincrediblycomplex,usedincomplexwaysforcommunicationtheonethingthatisremarkablydifferentfromotherspeciesPhonemes:basicsoundscontainedwithinanyonelanguageo Englishhasabout37phonemes,otherlanguagesh
Johns Hopkins - PSYCHOLOGY - 200.101
Cognition StatesofconsciousnessoCircadianrhythms:dailycyclicalchanges(wetendtorunona24hoursystem)Studyofhumansputintosituationwherethereisnonaturallight,nowayofkeepingtime;after5or6weeksoflivinginthisfashion,livedon25hoursystemTheHYPOTHALAMUSisvit
Johns Hopkins - PSYCHOLOGY - 200.101
SensationandPerceptionSensation:thestimulationofsensoryreceptorcellsandtheirrelaytohighercentersinbrain forprocessingo NeuronsfiringbasedonstimulusPerception:interpretationofthatsensoryinformationsothatithasmeaningo Differencebetweensensationandperce