...in the short run D) All of these answers are correct. Answer: D Diff: 1 Terms: quality Objective: 1 AACSB: Ethical reasoning 2) Quality of design measures how closely the characteristics of products or services match the needs and wants of customers. Conformance quality: A) measures the same things B) is the performance of a product or service according to design and product specifications C) is making the product according to design, engineering, and manufacturing specifications D) focuses on fitness of uses from a customer perspective Answer: B Diff: 1 Terms: design quality Objective: 1 AACSB: Ethical reasoning 3) Which of the following FAIL to satisfy conformance quality? A) machines that fail to meet the needs of customers B) machines that break down C) depositing a customer's check into the correct account D) All of these answers are correct. Answer: B Diff: 2 Terms: conformance quality Objective: 1 AACSB: Reflective thinking 4) Costs incurred in precluding the production of products that do NOT conform to specifications are: A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs Answer: A Diff: 2 Terms: conformance quality, prevention costs Objective: 1 AACSB: Reflective thinking 5) Costs incurred in detecting which of the individual units of products do NOT conform to specifications are: A) prevention costs B) appraisal costs C) internal failure costs D) external failure...
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...heard the word ecology. b) The term, environment, meant little as a political or social issue. 2) Silent Spring by Rachel Carson a) Rachel Carson published Silent Spring in 1960. b) At about the time the book was published, several environmental events were occurring. c) Examples of these environmental events are oil spills and highly publicized threats of extinction of many species. d) Environment became a popular issue. 3) Early Days of Modern Environmentalism a) Environmentalism was dominated by confrontations between those labeled environmentalist and those labeled anti-environmentalists. b) Environmentalists believed that the world was in peril. c) The anti-environmentalists believed that social and economic heath and progress were necessary. 4) Today a) The situation has changed from the early days of modern environmentalism. b) Public opinion polls show that people around the world rank the environment among the most important social and political issues. c) No longer is there a need to verify that the environmental problems are severe. 2. Complete the rest of the worksheet based on the example above. Remember to be thorough in your answers and write in complete sentences. a. Water Management 1) Describe Water Management and Use a) Freshwater sources b) Water supply problems c) Water conservation d) Water use 2) Effects of Water Use and Management Practices on the Environment a) Short-term effects b) Long-term effects b. Three Major Types of Environmental...
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...the word ecology. b) The term, environment, meant little as a political or social issue. 2) Silent Spring by Rachel Carson a) Rachel Carson published Silent Spring in 1960. b) At about the time the book was published, several environmental events were occurring. c) Examples of these environmental events are oil spills and highly publicized threats of extinction of many species. d) Environment became a popular issue. 3) Early Days of Modern Environmentalism a) Environmentalism was dominated by confrontations between those labeled environmentalist and those labeled anti-environmentalists. b) Environmentalists believed that the world was in peril. c) The anti-environmentalists believed that social and economic heath and progress were necessary. 4) Today a) The situation has changed from the early days of modern environmentalism. b) Public opinion polls show that people around the world rank the environment among the most important social and political issues. c) No longer is there a need to verify that the environmental problems are severe. 2. Complete the rest of the worksheet based on the example above. Remember to be thorough in your answers and write in complete sentences. a. Water Management 1) Describe Water Management and Use a) Freshwater sources b) Water supply problems c) Water conservation d) Water use 2) Effects of Water Use and Management Practices on the Environment a) Short-term effects b) Long-term effects b. Three Major Types of Environmental...
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...goods and services produced in an economy. (d) do all of the above. (e) do only (a) and (b) of the above. Answer: D 2. Financial market activities affect (a) personal wealth. (b) spending decisions by individuals and business firms. (c) the economy’s location in the business cycle. (d) all of the above. Answer: D 3. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called (a) commodity markets. (b) funds markets. (c) derivative exchange markets. (d) financial markets. Answer: D 4. The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the (a) inflation rate. (b) exchange rate. (c) interest rate. (d) aggregate price level. Answer: C 5. The bond markets are important because (a) they are easily the most widely followed financial markets in the United States. (b) they are the markets where interest rates are determined. (c) they are the markets where foreign exchange rates are determined. (d) all of the above. Answer: B 6. Interest rates are important to financial institutions since an interest rate increase _________ the cost of acquiring funds and _________ the income from assets. (a) decreases; decreases (b) increases; increases (c) decreases; increases (d) increases; decreases Answer: B 7. Typically...
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...prohibited and caused fail from this course; 4. ------------------------------------------------- Cheating student will not be allowed to take this course in the next semester. 1) The ________ is a weighted average of the cost of funds which reflects the interrelationship of financing decisions. A) risk premium B) nominal cost C) cost of capital D) risk-free rate Answer: C 2) The cost to a corporation of each type of capital is dependent upon A) the risk-free rate of bonds plus the business risk of the firm. B) the risk-free rate of each type of capital plus the business risk of the firm. C) the risk-free rate of each type of capital plus the financial risk of the firm. D) the risk-free rate of each type of capital plus the business risk and the financial risk of the firm. Answer: D 3) A tax adjustment must be made in determining the cost of A) long-term debt. B) common stock. C) preferred stock. D) retained earnings. Answer: A 4) The approximate before-tax cost of debt for a 15-year, 10 percent, $1,000 par value bond selling at $950 is A) 10 percent. B) 10.6 percent. C) 12 percent. D) 15.4 percent. Answer: B 5) If a corporation has an average tax rate of 40...
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...produced in an economy. (d) do all of the above. (e) do only (a) and (b) of the above. Answer: D 2. Financial market activities affect (a) personal wealth. (b) spending decisions by individuals and business firms. (c) the economy’s location in the business cycle. (d) all of the above. Answer: D 3. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called (a) commodity markets. (b) funds markets. (c) derivative exchange markets. (d) financial markets. Answer: D 4. The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the (a) inflation rate. (b) exchange rate. (c) interest rate. (d) aggregate price level. Answer: C 5. The bond markets are important because (a) they are easily the most widely followed financial markets in the United States. (b) they are the markets where interest rates are determined. (c) they are the markets where foreign exchange rates are determined. (d) all of the above. Answer: B 6. Interest rates are important to financial institutions since an interest rate increase _________ the cost of acquiring funds and _________ the income from assets. (a) decreases; decreases (b) increases; increases (c) decreases; increases (d) increases; decreases ...
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...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 | ANS: E 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 | ANS: B PTS: 1 3. At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110...
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...25% gain, and $6,000 0%/15%/20% gain. Which of the following is correct: a. The net capital gain is composed of $5,000 28% gain and $2,000 0%/15%/20% gain. | | | b. The net capital gain is composed of $1,000 28% gain and $6,000 0%/15%/20% gain. | | | c. The net capital gain is composed of $3,000 28% gain, $2,000 25% gain, and $2,000 0%/15%/20% gain. | | | d. The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain. | | | e. None of these choices are correct. | | | | Incorrect. The $6,000 STCL first offsets the highest tax rate gain, then any remaining loss offsets the next highest tax rate gain. Thus, $6,000 STCL – $5,000 28% gain – $1,000 25% gain leaves $1,000 25% gain and $6,000 0%/15%/20% gain. | 2. Which of the following assets held by an accrual basis accounting firm is a § 1231 asset? a. A desk used in the business and held more than one year. | | | b. A computer used in the business, held more than one year, but fully depreciated under § 179 when acquired. | | | c. An investment in Orange Company common stock. | | | d. An account receivable from a client. | | | e. "A desk used in the business and held more than one year" and "A computer used in the business, held more than one year, but fully depreciated under § 179 when acquired". | | | | Incorrect. An account receivable is an ordinary asset "An account receivable from a client". A stock investment is a capital asset "An investment...
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...Psychological Effects of Street Drugs Krystal Colosimo Mohawk Valley Community College Abstract This paper explores the psychological effects of street drugs, classified as legal, illegal and controlled substances. The legal drugs that I cover are caffeine, alcohol and nicotine. The illegal are marijuana, cocaine, ecstasy and heroin. I will also discuss controlled substances, but mainly in reference to prescription pills. I discuss the short-term and long-term effects of all the drugs I cover as well as withdrawal symptoms. I will close with drug abuse treatment help and support and follow with my conclusion. Psychological Effects of Street Drugs A street drug is defined as any substance taken for nonmedical purposes. They can be legal or illegal and are comprised of amphetamines, barbiturates, opiates, psychoactive drugs and as well as natural sources. A drug is a chemical substance that has known biological effects on humans. For this paper I will be discussing drugs under the three categories of being legal, illegal and controlled substances. The most common legal drugs I will discuss are caffeine, alcohol and nicotine. The more common illegal drugs that I will discuss are marijuana, cocaine, ecstasy and heroin. There are numerous controlled substances as well and it is defined as a drug or chemical that is regulated by the government. For controlled substances I will only be covering prescription pills. Legal Drugs ...
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...BY: Feng Xiao Ma Xiaoxuan Shi Ruohan Table of contents Executive Summary………………………………………………………………………………. 3 1. Introduction ……………………………………………………………………….. 3 2. Ratio Analysis……………………………………………………………………… 4 2.1 Short-term Solvency Ratio ……………………………………………….. 4 i. Current Ratio……………………………………………………………… 5 ii. Quick Ratio……………………………………………………………….. 6 2.2 Profitability Ratio…………………………………………………………… 6 i. Net profit margin………………………………………………………….. 6 ii. Gross profit margin………………………………………………………. 7 iii. Assets turnover…………………………………………………………… 8 iv. Turn on assets……………………………………………………………. 8 v. Return on ordinary shareholders’ equity…………………………………9 vi. Earning per share…………………………………………………………10 2.3 Efficiency Ratio……………………………………………………………….10 i. Debtors’ turnover…………………………………………………………...10 ii. Average days’ sale uncollected……………………………………………11 iii. Inventory turnover……………………………………………………….....11 iv. Inventory turnover in days………………………………………………. 12 2.4 Long-term Solvency Ratio…………………………………………………. 13 i. Debt to equity……………………………………………………………… 13 ii. Debt to Assets…………………………………………………………….. 14 iii. Leverage Ratio…………………………………………………………… 14 iv. Interest coverage………………………………………………………….15 3. Conclusion…………………………………………………………………………. 15 4. Recommendation…………………………………………………………………...
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...Chapter 14 Working Capital and Current Assets Management LearningGoals 1. 2. 3. 4. 5. 6. Understand short-term financial management, net working capital, and the related tradeoff between profitability and risk. Describe the cash conversion cycle, its funding requirements, and the key strategies for managing it. Discuss inventory management: differing views, common techniques, and international concerns. Explain the credit selection process and the quantitative procedure for evaluating changes in credit standards. Review the procedures for quantitatively considering cash discount changes, other aspects of credit terms, and credit monitoring. Understand the management of receipts and disbursements, including floats, speeding collections, slowing payments, cash concentration, zero-balance accounts, and investing in marketable securities. True/False 1. A firm that is unable to pay its bills as they come due is technically insolvent. Answer: TRUE Level of Difficulty: 1 Learning Goal: 1 Topic: Basics of Short-Term Financial Management 2. The short-term financial management is concerned with management of the firm’s current assets and current liabilities. Answer: TRUE Level of Difficulty: 1 Learning Goal: 1 Topic: Basics of Short-Term Financial Management 45 Gitman • Principles of Finance, Eleventh Edition 3. In the short-term financial management, the goal is to manage each of the firm’s current assets and current liabilities in order to achieve a balance between...
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...is declared and paid. c. Merchandise is sold at a profit, but the sale is on credit. d. Long-term bonds are retired with the proceeds of a preferred stock issue. e. Missing inventory is written off against retained earnings. Working capital Answer: d Diff: E N [ii]. Which of the following statements is most correct? a. The current ratio is calculated as net working capital divided by current liabilities. b. Gross working capital represents current assets used in operations. c. Net working capital is defined as current assets minus current liabilities. d. Statements b and c are correct. e. Statements a, b, and c are correct. Cash conversion cycle Answer: b Diff: E [iii]. Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of the following steps would reduce its cash conversion cycle? a. The company increases its average inventory without increasing its sales. b. The company reduces its DSO. c. The company starts paying its bills sooner, which reduces its average accounts payable without reducing its sales. d. Statements a and b are correct. e. All of the statements above are correct. Cash budget Answer: e Diff: E [iv]. Which of the following is typically part of the cash budget? a. Payments lag. b. Payment for plant construction. c. Cumulative cash. d. Statements a and c are correct. e. All of the above statements are correct. Cash budget Answer:...
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...Learning that lasts through AGES Dr. Lila Davachi, Dr. Tobias Kiefer, Dr. David Rock and Lisa Rock NeuroLeadershipjournal issue THREE 2010 The attached copy is furnished to the author for non-commercial research and education use, including for instruction at the author’s institution, sharing with colleagues and providing to institutional administration. Other uses, including reproduction and distribution, or selling or licensing copies, or posting to personal, institutional or thirdparty websites are prohibited. In most cases authors are permitted to post a version of the article to their personal website or institutional repository. Authors requiring further information regarding the NeuroLeadership journal’s archiving and management policies are encouraged to send inquiries to: support@neuroleadership.org www.NeuroLeadership.org © NeuroLeadership Institute 2010 For Permissions, email support@neuroleadership.org This article was published in the © NeuroLeadership Institute 2010 For Permissions, email support@neuroleadership.org This article was published in the NeuroLeadership journal. The attached copy is furnished to the author for non-commercial research and education use, including for instruction at the author’s institution, sharing with colleagues and providing to institutional administration. Other uses, including reproduction and distribution, or selling or licensing copies, or posting to personal, institutional or thirdparty websites...
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...CHAPTER 4 ------------------------------------------------- ANALYSIS OF FINANCIAL STATEMENTS 1. A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio? a. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable. b. Issue new common stock and use the proceeds to increase inventories. c. Speed up the collection of receivables and use the cash generated to increase inventories. d. Use some of its cash to purchase additional inventories. e. Issue new common stock and use the proceeds to acquire additional fixed assets. Answer: a 2. Amram Company’s current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio? a. Borrow using short-term notes payable and use the proceeds to reduce accruals. b. Borrow using short-term notes payable and use the proceeds to reduce long-term debt. c. Use cash to reduce accruals. d. Use cash to reduce short-term notes payable. e. Use cash to reduce accounts payable. Answer: b A quick scan of the alternatives would indicate that b is obviously correct—it would lower the CR. Since there is only one correct answer, b must be the right answer. The following equation can also be used. If you add equal amounts to the numerator and denominator, then if Orig CR = or > 1.0, CR will decline, but...
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...CHAPTER 4 ------------------------------------------------- ANALYSIS OF FINANCIAL STATEMENTS 1. A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio? a. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable. b. Issue new common stock and use the proceeds to increase inventories. c. Speed up the collection of receivables and use the cash generated to increase inventories. d. Use some of its cash to purchase additional inventories. e. Issue new common stock and use the proceeds to acquire additional fixed assets. Answer: a 2. Amram Company’s current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio? a. Borrow using short-term notes payable and use the proceeds to reduce accruals. b. Borrow using short-term notes payable and use the proceeds to reduce long-term debt. c. Use cash to reduce accruals. d. Use cash to reduce short-term notes payable. e. Use cash to reduce accounts payable. Answer: b A quick scan of the alternatives would indicate that b is obviously correct—it would lower the CR. Since there is only one correct answer, b must be the right answer. The following equation can also be used. If you add equal amounts to the numerator and denominator, then if Orig CR = or > 1.0, CR will decline, but if Orig CR < 1...
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