Principles of Accounting II
Midterm Exam (Ch13-18)
Name: Alex Springhorn
The stockholders equity section of Linton Corporation at December 31 is as
Balance Sheet (partial)
Preferred stock, cumu
28.) Respond to the questions in Consumer Insight 7-1.
a.) How do online social media change marketers from controlling communications to participating in
and observing it?
Social media allows users to form, join and communicate with
Applied Problems Module 5 (Chapter 8)
1. Answer the following questions about the costs for Exquisite Portraits Inc.:
a. What are the monthly fixed costs, quasi-fixed costs, and variable costs for Exquisite
Portraits Inc? See chart
b. If the owner of Exqu
Applied Problems, Chapter 11
1.) The MidNight Hour, a local nightclub, earned $100k in accounting profit last year. This year,
the owner, who had invested $1M in the club, decided to close the club. What can you say
about economic profit (and rate of retu
3.) Visit www.adsam.com. Go to the Take a Sample Survey section, read the
instructions, and take a survey that involves ratings using the AdSAM approach.
Evaluate AdSAM compared with more cognitive approaches that utilize verbal scales.
Applied Problems Module 2 (Chapter 3)
1.) Using optimization theory, analyze the following quotations:
a. The optimal number of traffic deaths in the US is zero
If no one drove then there would be zero traffic deaths, however this is not feasible.
Applied Problems Chapter 1
1. Chapter 1, Question 1
a. What are the total explicit, total implicit and total economic costs for the year?
Total explicit costs = Total operating costs + interest expense + legal expenses +
income tax = $555k + $45k + $28k
2.) Search for a newsgroup that is relevant for understanding the following. Report on the insights
that it can provide.
a.) American values in general
Americanvalues.org is a newsgroup that provides source information for traditional c
1.) Using the data in table 1A, examine which of the following vary the most by household size.
Why is this the case?
a. Heavier user (general, consumption, and shopping): Visiting a fast food restaurant has
the largest variance between small and larg
Applied Problems Module 4 (Chapter 6)
1. What implicit assumptions are the publisher and the analyst making about price elasticity?
The analyst is assuming that the paper has an inelastic demand (price effect dominates),
which would result in increased to
Internet Exercise (pg 506)
2.) Visit several company websites. Find and describe one that attempts to trigger
problem recognition. How does it do this?
Problem recognition utilizes the difference between what a consumer would like
and what the consumer pe
Applied problems, Chapter 14
1.) STIHL, Inc. manufactures gasoline-powered chain saws for professional, commercial, farm and
consumer markets. To better serve their customers, STIHL offers its chain saws in four
different quality lines and associated pric
3.) Evaluate the following three websites in terms of their ability to create/support a good brand
image and product position.
MINIs brand image permeates the entirety of their website. You are hit with this branding