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ACC 410 Quiz Week 2– Strayer NEW

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Chapter 1

The Government and Not-For-Profit Environment

TRUE/FALSE (CHAPTER 1)

1. The main objective of a typical governmental entity is to earn a profit.

2. A government’s budget may be backed by the force of law.

3. Governmental entities have no need for an accounting system.

4. Governments and not-for-profits employ a system of accounting known as fund accounting.

5. Governments and not-for-profits may never engage in business-type activities.

6. Lenders use the financial statements of governments and not-for profits just as they would those of businesses, that is, to help assess the borrower’s credit-worthiness.

7. Financial statements, no matter how prepared, do not directly impact the economic worth of an entity.

8. Cash flow statements are governments’ paramount financial documents.

9. Most governments budget on an accrual basis.

10. The Governmental Accounting Standards Board established generally accepted accounting principles for all state and local government entities, as well as all nongovernment entities.

MULTIPLE CHOICE (CHAPTER 1)

1. A primary characteristic that distinguishes governmental entities from business entities is

a) the need to generate revenues equal to or in excess of expenditures/expenses.

b) the importance of the budget in the governing process.

c) the need to provide goods or services.

d) the correlation between revenues generated and demand for goods or services.

2. Which of the following characteristics is NOT a characteristic that may distinguish a governmental or not-for-profit entity from a business entity?

a) There is often no direct link between revenues generated and expenditures/expenses incurred.

b) Capital assets may neither produce revenues nor save costs.

c) Revenues may not be indicative of demand for goods and services.

d) The mission of the entity will determine the goods or services provided.

3. The most significant financial document provided by a governmental entity may be

a) the balance sheet.

b) the operating statement.

c) the operating budget.

d) the cash flow statement.

4. Which of the following statements is NOT true?

a) All governmental entities engage in similar activities.

b) There are many different types of governments.

c) Governments may engage in activities similar to activities engaged in by for-profit entities.

d) Managers may have a short-term focus and thereby sacrifice the long-term viability of the entity.

5. Which of the following activities is NOT an activity in which a governmental entity might engage?

a) Selling electric power.

b) Operating a golf course.

c) Operating a book store.

d) All of the above are activities that might be carried out by a government.

6. In which of the following activities is a not-for-profit entity least likely to engage?

a) Providing educational services.

b) Providing health-care services.

c) Providing for the national defense.

d) Retail sales of cookies.

7. To obtain a comprehensive understanding of a government’s fiscal health, a financial analyst should obtain an understanding of which of the following?

a) All of the resources owned by the governmental entity.

b) All of the resources which may be summoned by a governmental entity.

c) Demographic data about the residents served by the governmental entity.

d) All of the above.

8. Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

a) The budget is generally the most significant financial document.

b) Revenues are not necessarily indicative of demand for goods or services.

c) There is frequently no direct link between revenues and expenses.

d) All of the above are common to both governments and not-for-profit entities but distinguish them from for-profit entities.

9. Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to

a) Assess financial condition.

b) Compare actual results with the budget.

c) Assess the ability of elected officials to effectively manage people.

d) Evaluate efficiency and effectiveness.

10. Which of the following is NOT a reason that users of government and not-for-profit external financial statements need to have information to enable them to assess the financial condition of a government?

a) To determine the ability of the entity to meet its obligations.

b) To determine the ability of the entity to continue to provide services.

c) To predict future fiscal developments.

d) To evaluate the overall profitability of the entity.

11. Users of financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?

a) To determine if the entity has complied with bond covenants.

b) To determine if the entity has complied with taxing limitations.

c) To determine if the entity has complied with donor restrictions on the use of funds.

d) To determine all of the above.

12. Which of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?

a) Investors and creditors.

b) Taxpayers.

c) Donors.

d) Management.

13. Which of the following is NOT a probable use a donor would make of the external financial statements of a not-for-profit entity?

a) To determine the creditworthiness of the entity for investment purposes.

b) To determine the proportion of entity resources directed to programs as opposed to fund-raising.

c) To determine the salaries paid to the top officials of the entity.

d) To determine the allocation of resources within the entity.

14. A regulatory agency would use the external financial statements of a local government for which of the following purposes?

a) To assure that the entity is spending and receiving resources in accordance with laws, regulations or policies.

b) To help assess management’s performance.

c) To exercise general oversight responsibility.

d) To do all of the above.

15. Which of the following objectives is considered to be the cornerstone of financial reporting by a governmental entity?

a) Accountability.

b) Budgetary compliance.

c) Interperiod equity.

d) Service efforts and accomplishments.

16. Which of the following is NOT an objective of financial reporting by governmental entities as established by GASB?

a) Financial reporting should assist users in determining if current period revenues were sufficient to pay for current-period services.

b) Financial reporting should assist users in assessing the management skills of top management.

c) Financial reporting should assist users in evaluating the operating results of the governmental entity for the year.

d) Financial reporting should assist users in assessing the level of services that can be provided by the governmental entity and its ability to meet its obligations as they come due.

17. Which of the following is NOT an objective of financial reporting for not-for-profit entities as established by FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:

a) Making rational decisions about the allocation of resources to those organizations.

b) Assessing the services provided and the entity’s ability to continue to provide those services.

c) Assessing the types of services provided and the need for those services.

d) Assessing how managers have discharged their stewardship responsibilities.

18. As used by GASB, interperiod equity refers to which of the following? Financial reporting should:

a) Demonstrate compliance with finance-related contractual requirements.

b) Provide information to determine whether current-year revenues were sufficient to pay for current-year services.

c) Demonstrate whether resources were obtained and used in accordance with the entity’s legally adopted budget.

d) Provide information to assist users in assessing the government’s economy, efficiency, and effectiveness.

19. Given a specific set of data, the basis of accounting selected by or imposed on a governmental entity will least affect which of the following?

a) Determining whether or not the governmental entity has a balanced budget.

b) Determining whether or not the governmental entity has the ability to issue debt.

c) Determining whether or not certain events occurred.

d) Determining the annual payments to a government-sponsored pension plan.

20. The Governmental Accounting Standards Board is the primary standard-setting body for:

a) All governments.

b) All state and local governmental entities.

c) All governments and all not-for-profit entities.

d) All state and local governments and all not-for-profit entities.

21. Under certain circumstances a governmental entity might use standards established by which of the following standard-setting bodies?

a) GASB.

b) FASB.

c) AICPA.

d) All of the above.

22. The primary standard-setting body for accounting and financial reporting by a state-supported college or university is:

a) GASB.

b) FASB.

c) AICPA.

d) All of the above.

23. In descending order, the hierarchy of GAAP applicable to a church-owned college may be:

a) FASB Statements, AICPA Industry Audit Guides, FASB Implementation Guides, GASB Standards.

b) FASB Statements, FASB Technical Bulletins, FASB Implementation Guides, AICPA Practice Bulletins (if cleared by FASB).

c) GASB Statements, AICPA Industry Audit Guides, GASB Implementation Guides, FASB Standards.

d) GASB Statements, GASB Technical Bulletins, GASB Implementation Guides, AICPA Practice Bulletins (if cleared by GASB).

24. Governments and not-for-profits employ a system of accounting known as

a) budget accounting.

b) financial accounting.

c) fund accounting

d) tax accounting.

25. Which of the following rule-making authorities would establish accounting standards for all nongovernment not-for-profits?

a) AICPA.

b) FASB.

c) GASB.

d) APB.

PROBLEMS (CHAPTER 1)

1. Thorn County adopted a cash budget for FY2000 as follows. The City budget laws prohibit budgeting or operating at a deficit. During the year the County collected or spent the following amounts. Was the County in compliance with the budget? Did the County accomplish the goal of interperiod equity? Explain your answers in detail.

Budgeted Collected/Spent

Receipts from Property tax collections

From the 1999 levy $ 100,000 $ -0-

From the 2000 levy $1,000,000 $ 900,000

In advance for 2001 $ 50,000 $ -0-

Receipts from Bonds Issued $ 500,000 $ 500,000

Borrowed from Bank (due in 5 years) $ -0- $ 75,000

Disbursements

Salaries and Wages $ 500,000 $ 500,000

Operating Expenses $ 200,000 $ 275,000

City Hall Annex purchased $ 500,000 $ 500,000

Payments on Debt-Principal $ 150,000 $ 150,000

Payments on Interest $ 50,000 $ 50,000

Pension Contribution $ 80,000 $ -0-

Explanations provided by the City for the differences between budget and actual are as follows. Property tax collections are down because the major industry in the community closed and many citizens are currently unemployed. Operating expenses are up because the only bridge over a river bisecting the City sustained damages by an uninsured motorist and had to be repaired immediately. The repair was not budgeted.

2. Save-the-Birds (STB), a not-for-profit entity dedicated to acquiring and preserving habitat for upland birds, prepares financial statements in accordance with generally accepted accounting principles. Currently, standards require that a not-for-profit entity report as revenue in the year received virtually all contributions. During the current year STB received a donation of several hundred acres of prime habitat for upland birds. STB will require several hundred thousand dollars in additional donations in order to make the land completely suitable for the birds. Before embarking on its fund-raising campaign STB prepares financial statements which are summarized as follows.

Statement of Financial Position (Balance Sheet)

Cash $ 8,000

Supplies $ 2,000

Equipment (net of depreciation) $ 5,000

Land $1,000,000

Total Assets $1,015,000

Liabilities $ 1,000

Net Assets—Unrestricted $ 14,000

Net Assets—Restricted $1,000,000

Total Liabilities and Net Assets $1,015,000

Statement of Activities (Income Statement)

Revenues $1,030,000

Expenses:

Salaries $ 30,000

Change in Net Assets $1,000,000

What difficulties, if any, will Save-the-Birds encounter in their new fund-raising drive? Knowing that the donation of the land accounted for $1,000,000 of the revenue reported by Save-the-Birds, do you think the financial statements present fairly the financial position and results of operations of this not-for-profit entity?

3. Johnson City prepares its budget on the cash basis and prepares its external financial statements on the accrual basis. From the following data prepare statements of activity (income statements) on both the cash basis and the accrual basis. Which statement best represents the results of operation of the City? Which statement best demonstrates compliance with laws and regulations? Which statement would you rather see? Which conveys the best information to the citizens of Johnson City?

The City levies taxes in the current year of $1 million. Of this amount $.9 million is collected during the current year, $.05 will be collected next year, and $.04 will be collected in the future. $.01 will never be collected. During the current year the City pays bills from prior periods $.06 million, bills of the current period $.8 million, and defers payment until future periods bills that were received for services consumed during the current period $.1 million.

ESSAY (CHAPTER 1)

1. In the United States, educational services can be provided by federal governmental entities, by non-federal governmental entities, by not-for-profit entities, and by for-profit entities. Are the accounting and financial reporting standards the same for each of these entities? Should they be the same?

2. The Governmental Accounting Standards Board (GASB) stated that an objective of financial reporting should be to measure interperiod equity. “Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.” What is your understanding of ‘interperiod equity.’? What costs incurred in the current year should be paid for by the taxpayers of the current period? What costs incurred in the current year should be paid for by future taxpayers?

3. A not-for-profit entity raises funds to support specific programs, services, and activities. The recipients of the programs, services, and activities are frequently not the providers of the resources to deliver the programs, services, and activities. What information would donors to these not-for-profit entities be interested in seeing? What information would program beneficiaries be interested in seeing? Identify other users of the financial statements of a not-for-profit and the types of information in which they would be interested.

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CIS 210 Assignment 1 Week 2– Strayer NEW

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Assignment 1: Inventory Management Systems

Due Week 2 and worth 100 points

Your sister owns a small clothing store. During a conversation at a family dinner, she mentions her frustration with having to manually track and reorder high demand items. She would like an automated system but has a very small budget. .

Write a 4-5 page paper in which you create a plan for a low-cost automated inventory system in which you:

1. Describe all the necessary equipment.

2. Explain the costs involved in the creation of the system.

3. Describe the ongoing maintenance that will be required.

4. Provide a workflow diagram in Visio or equivalent software to illustrate how the system will work.

Your assignment must:

• Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

• Include charts or diagrams created in Excel, Visio, MS Project, or one of their equivalents such as Open Project, Dia, and OpenOffice. The completed diagrams/charts must be imported into the Word document before the paper is submitted.  The specific Course Learning Outcomes associated with this assignment are:

• Describe the types of business needs that can be addressed using information technology-based solutions.

• Create requirements for a system through a formal technique that enables a productive change in a way the business is conducted.

• Use contemporary CASE tools in process and data modeling.

• Use technology and information resources to research issues in systems analysis and  development.

• Write clearly and concisely about Systems Analysis and Development topics using proper writing mechanics and technical style conventions.

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ACC 571 Assignment 1 Week 2– Strayer NEW

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Assignment 1: Corporate Fraud Schemes

Due Week 2 and worth 240 points

Identify an organization that was involved in corporate fraud. Explain how fraud can be detected and evaluate the importance of teamwork and leadership in a fraud investigation.

For this assignment, research the Internet or Strayer databases and identify an organization that was involved in corporate fraud.

Write a three to four (3-4) page paper in which you:

1. Based on your research, identify and assess the fraud that occurred in the organization and the impact it has had on the corporation’s investors and creditors. Provide support for your rationale.

2. Suggest how a financial forensic investigation could have detected fraud in the organization that you researched. Consider the risk factors, the elements of fraud, and the analysis of competing hypotheses.

3. Evaluate how teamwork and leadership is an effective tool for financial forensic investigations. Provide support for your evaluation.

4. Assess the role of research in fraud examinations and financial forensics professions. Give your opinion on whether or not fraud examinations and financial forensics professions can have long-term success without continuous research in the field. Provide support for your rationale.

5. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

· Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

· Examine the basic concepts related to fraud, including environment, impact, and the methodologies related to fraud examination.

· Use technology and information resources to research issues in forensic accounting.

· Write clearly and concisely about forensic accounting issues using proper writing mechanics.

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ACC 564 Assignment 1 Week 2 – Strayer NEW

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Assignment 1: Information Needs for the AIS

Due Week 2 and worth 200 points

In 1967, Russell Ackoff presented a classical analysis of misinformation in management (Ackoff’s Management Misinformation Systems, Case 1-2, located in your Blackboard course shell). Now, you need to fast-forward to the present. After reading the case, craft your own version of misinformation in management by developing five (5) key incorrect assumptions that management makes about its accounting information systems.

For this assignment, research the Internet or Strayer databases for information related to improper assumptions concerning accounting information systems.

Write a five to seven (5-7) page paper in which you:

Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale.

Suggest three to four (3-4) ways in which organizational performance may be improved when information is properly managed within a business system. Provide support for your rationale.

Evaluate the level of system security (i.e., high, medium, low) needed to ensure information integrity within automated business systems. Provide support for your evaluation.

Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Examine and use data flow diagrams and flowcharts to understand, evaluate, and design information systems.

Evaluate the approaches and techniques that are used to commit and prevent computer fraud.

· Use technology and information resources to research issues in accounting information systems.

Write clearly and concisely about accounting information systems using proper writing mechanics.

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LEG 320 Quiz Week 2– Strayer NEW

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CHAPTER 2

JURISDICTION

MULTIPLE CHOICE

1. As compared to the power of the states to enact criminal laws,

the federal government has identical authority

the federal government has no authority

the federal government has more authority

the federal government has less authority

2. In U.S. v. Lopez, the U.S. Supreme Court held that the federal law controlling guns in public schools was

a valid exercise of Congressional power to regulate commerce

beyond the power of Congress

a violation of due process

a valid exercise of Congressional power to regulate public schools

3. Under what system do the states have the primary responsibility of maintaining public order and safety within each state?

the American system of federalism

the American system of dualism

the American system of constitutionalism

the American system of commercialism

4. What gives the federal government power to regulate actions by use of criminal laws only if the actions involve or affect interstate commerce?

The Commerce Clause

International conventions

The federal domain

United States Treaties

5. Which of the following is not part of the federal domain?

all of these are part of the federal domain

Puerto Rico

sea approaches to the United States

air approaches to the United States

6. What law permits federal agencies to assist in locating state fugitives who may have fled from one state to another?

Unlawful Flight Statute

Federal Kidnapping

Interstate Transportation of Stolen Motor Vehicles

Uttering of U.S. Treasury Checks

7. What term means to surrender an accused criminal under the provisions of a treaty or statute by one authority to another having jurisdiction?

extradition

jurisdiction

posse comitatus

martial law

8. What is the name of an agreement between nations on a specific subject, such as piracy at sea?

United Nations Convention

United Nations Contract

United Nations Coercion

United Nations Comitatus

9. Where does the International Criminal Court sit?

The Hague

The United Nations

Washington DC

Rome

10. The process by which a person who has fled is forcibly brought back to the jurisdiction of the court is called

transportation

extradition

mandatory venue

compulsive jurisdiction

11. According to the Tokyo Convention Act of 1967, any nation may try persons for what crime even if no acts are committed within that country’s boundary or territorial waters?

terrorism

murder

treason

piracy

12. In 1983, the United States claimed sovereignty over waters extending how many nautical miles from the United States and its possessions?

50 nautical miles

100 nautical miles

200 nautical miles

400 nautical miles

13. International criminal law is also known as offenses against the

world

planet

law of nations

United Nations

14. The International Criminal Court at The Hague has the power to prosecute people accused of

murder

all violent crimes

offenses which occur in international waters

war crimes

15. Which of the following is one of the crimes the federal Mann Act addresses?

extortion

interstate prostitution

kidnapping

possession of stolen property

16. What is the name of the federal act that incorporates the state criminal law of the state surrounding the federal enclave as the law of the enclave if there is no relevant federal statute?

Incorporated Crimes Act

Included Crimes Act

Assimilative Crimes Act

Autonomous Crimes Act

17. Military installations and other federally owned and controlled lands within the boundaries of a state are called federal

islands

territories

protectorates

enclaves

18. Final authority on the scope of Indian tribal jurisdiction is held by

each individual tribe

the American Congress of Indian Tribes

Congress

the President

19. How many Indian tribes does the U.S. currently recognize with some attributes of sovereignty?

120

280

310

409

20. What is the name of jurisdiction of the United States over actions within territorial waters of the U.S., on U.S. ships, or stateless vessels on the high seas?

Maritime jurisdiction

Vessel jurisdiction

High Seas jurisdiction

Oceanic jurisdiction

21. International conventions and treaties between nations can confer power to what entity to make criminal laws?

the Federal Government

Indian Tribal Courts

Military Courts

individual states within the United States

22. Because the states have the primary responsibility to maintain public order and security in their state, they have what kind of authority to create criminal law under the police power of each state?

broad

narrow

ultimate

unlimited

23. Indian tribes are generally dependent upon the federal

Bureau of Indian Affairs

Indian Lands Commission

Native American Bureau

Sovereignty Commission

24. Persons in U.S. military service are subject to military jurisdiction and the Uniform

Military Criminal code

Penal Code

Code of Military Justice

Military Penal Law

25. Should a member of the U.S. military commit a crime off-base, jurisdiction will be with

the state

U.S. District Court

military court

United Nations

26. If a member of the U.S. military serving in another country commits an offense while off duty and off base, jurisdiction will be

only in that country

only in military court

only in the Supreme Court

with either the military or that country

27. What federal act forbids the use of federal military forces to enforce civilian laws unless there is other constitutional or congressional authorization?

Martial Law

Military Law

Posse Comitatus

Martial Jurisdiction

28. The U.S. Supreme Court stated that the term “martial law”

has no precise meaning

is clearly defined in common law

is clearly defined by the military

is clearly defined by the President

29. People who commit crimes on federal enclaves can be tried before

the state court

a federal court

tribal court

the Supreme Court

30. The federal government does not have inherent police power to create criminal law and is limited to the powers granted to the federal government in the

U.S. Constitution

Great Writ

Declaration of Independence

U.S. Supreme Court Guidelines

TRUE/FALSE

1. Under the American system of federalism, the congress has the primary responsibility of maintaining public order and safety within each state.

2. The Unlawful Flight Statute permits federal agencies to assist in locating state fugitives who may have fled from one state to another.

3. Federal enclaves are federally owned and controlled lands.

4. The Federal Government owns and controls up to 1/3 of all of the land in the United States in the form of territories and federal enclaves.

5. Under international law, more than one country could have jurisdiction over the same crime.

6. The International Criminal Court is the world’s first permanent war crimes court.

7. The federal government has no jurisdiction over offenses involving interstate commerce.

8. Tribal courts have no power to exercise criminal jurisdiction over Indians who are not members of that tribe.

9. Military courts have jurisdiction over members of the Armed Forces who commit crimes while off-base and off-duty.

10. Americans who commit crimes in foreign countries are subject to prosecution before U.S. or military courts, but not foreign courts.

41-42

COMPLETION

1. The government may pass laws only in situations authorized by the Constitution.

2. Americans who commit crimes in countries are subject to prosecution before foreign courts, whether they are military personnel or tourists.

3. Federal enclaves are federally owned and controlled .

4. The procedure by which a person who has fled to avoid criminal prosecution is brought back to the jurisdiction is called ___________.

5. Because of the statutes giving many nations jurisdictions over crimes, situations could exist in which a number of nations have _________ jurisdiction.

6. The United States claims jurisdiction extending __________ nautical miles beyond its shores.

7. When the crew of a ship or aircraft seizes control against lawful authority, this is the offense of __________.

8. Crimes committed in places beyond the of any state may be prosecuted on the federal level.

9. Persons in U.S. military service become subject to the Uniform Code of Military ______________.

10. Indian courts have jurisdiction for crimes punished for not more than one-year imprisonment and/or a $5,000 fine (25 U.S.C. § 1302 (7)).

CHAPTER 3

ESSENTIAL ELEMENTS OF A CRIME

MULTIPLE CHOICE

1. The Latin term actus reus means

strict liability

guilty act

guilty mind

elements of a crime

2. The Latin term mens rea refers to

strict liability

guilty act

guilty mind

elements of a crime

3. According to the Model Penal Code, a person who consciously disregards a substantial and unjustifiable risk that the material element exists or will result from his conduct, acts

purposely

knowingly

recklessly

negligently

4. According to the Model Penal Code, how is a person acting, with respect to a material element of an offense, when he should be aware of a substantial and unjustifiable risk that the material element exists or will result from his conduct?

purposely

knowingly

recklessly

negligently

5. Thinking of committing a crime without performing a criminal act is

never a crime

a crime in many states

a strict liability crime

difficult to prove beyond a reasonable doubt

6. Most crimes require the concurrence of which of the following?

act and proximate cause

guilty act and guilty mind

guilty mind and causation

act and omission

7. To obtain a conviction, the prosecution has the burden of proving every element of the crime

by a preponderance of the evidence

by clear and convincing evidence

beyond a reasonable doubt

beyond a shadow of a doubt

8. Which of the following terms refers to an individual’s mental state?

mens rea

actus reus

scienter

proximate cause

9. To find a defendant guilty of the crime of receiving stolen property, most states

do not require scienter

require proof the defendant knew the property was stolen

require proof the defendant committed the theft

require proof the defendant had a motive

10. In criminal law, motive refers to

criminal intent

the defendant’s mental state while committing the crime

the reason the defendant committed the crime

a necessary element of every crime

11. In a criminal trial, motive

is always relevant evidence

alone, is sufficient evidence for a conviction

is required for conviction

is the same as criminal intent

12. A strict liability offense is one without

motive

proximate cause

criminal intent

a guilty act

13. Strict liability statutes

generally provide for harsh penalties

do not require the prosecutor to prove criminal intent

require a particular state of mind at the time of the act

are considered true crimes

14. Which of the following areas include strict liability crimes?

traffic violations

narcotics laws

public health laws

all of these include strict liability crimes

15. In many states, when the age of a minor is an essential element of a crime, as in contributing to the delinquency of a child, the law

requires the defendant to testify

allows defendants to use the victim’s consent as a defense

contains a scienter element

does not allow mistake as to the age of the minor to be used as a

defense

16. For crimes in which a harm has occurred, the state must prove

the harm to the victim occurred immediately

the defendant’s act was the ordinary and proximate cause of the harm

both that harm to the victim occurred immediately, and that the defendant’s act was the ordinary and proximate cause of the harm

neither that harm to the victim occurred immediately, nor that the defendant’s act was the ordinary and proximate cause of the harm

17. While the classification system suggested by the Model Penal Code distinguishes between each level of mental state, the distinction

always makes a difference

does not always make a difference

is never important

is always important

18. The year-and-a-day murder rule

requires the victim die within a year and a day

has been abolished or amended in many states

requires the victim die within a year and a day, and has been abolished or amended in many states

does not require the victim die within a year and a day, and has not been abolished or amended in many states

19. The offense of carrying an unauthorized concealed weapon requires a showing of

actual possession

constructive possession

either actual or constructive possession

ownership of the weapon by the defendant

20. The mental element required in possession offenses is generally that of

intent or knowledge

recklessness

negligence

no mental element is required

21. The intent necessary for one or more elements of an offense is:

specific intent

global intent

mental intent

knowledgeable intent

22. The mental purpose or design to commit a specific act is called:

intent

motive

recklessness

negligence

23. The cause, inducement, or reason why an act is committed is called:

intent

motive

recklessness

negligence

24. Conclusive presumptions can be unconstitutional under the Due Process Clause because the presumption allows the prosecution to avoid proving:

an element of the crime charged

guilt beyond a reasonable doubt

motive

negligence

25. Which of the following is a name given to crimes which require no specific intent?

general intent crimes

conclusive intent crimes

substantive intent crimes

reasonable intent crimes

26. What is the highest degree of culpability according to the Model Penal Code?

purpose

knowledge

recklessness

negligence

27. Which of the following crimes includes the essential element of knowledge beyond a reasonable doubt that defendant knew the property was stolen?

receiving stolen property

robbery

possession of illegal substances

homicide

28. Which of the following is seldom made an essential element that must be proved beyond a reasonable doubt in many crimes?

motive

intent

guilt

all of these answers are essential elements

29. Motive can be important evidence in determining:

punishment

guilty

recklessness

negligence

30. Which of the following crimes require specific intent?

first-degree murder

selling alcohol to an underage person

distribution of illegal drugs

unregistered hand grenades

TRUE/FALSE

1. A party to a crime could be a person who aids and assists in the commission of the crime.

2. The term mens rea refers to the harm caused by the defendant’s forbidden act.

3. Not all crimes require proof that a defendant had a specific intent to achieve a specific end.

4. Motive is an essential element of most criminal offenses.

5. The motor vehicle codes of most states contain strict liability statutes.

6. According to the Model Penal Code, purposeful is a higher degree of culpability than negligent.

7. In the past, the year-and-a-day rule requires that criminal defendants be charged within that time frame following the unlawful act.

8. The use of presumptions in the prosecution’s case never present due process problems.

9. One cannot be guilty of possession of stolen property if one does not know property is stolen.

10. Presumptions and inferences enable a fact finder to conclude that because some facts have been proved, other facts may be presumed to be true.

COMPLETION

1. Mens rea is the criminal or state of mind.

2. The reason a person commits a crime is called _________.

3. An offense which requires no mens rea, such as speeding, is a strict __________ offense.

4. According to the Model Penal Code, a person acts __________ when she consciously disregards a substantial and unjustifiable risk.

5. The categories of culpability from the Model Penal Code include purpose, knowledge, recklessness, and .

6. Heroin found in an apartment will most likely be deemed to be in the __________ possession of the person controlling and occupying the apartment.

7. Only rarely is written evidence of the of a defendant available to the state.

8. A statement of substantive law that cannot be overcome with evidence showing otherwise is known as a ______________ presumption.

9. The penalties for liability offenses are usually lighter than “true” crimes.

10. Proximate cause is the ordinary and cause of a result.

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CIS 502 Assignment 1 Week 2– Strayer New

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Assignment 1: Web Server Application Attacks

Due Week 2 and worth 50 points

Web server application attacks are common in today’s digital information sharing age. Understanding their implications, vulnerabilities, and safeguards is paramount as our demands on e-Commerce and the Internet use have increased exponentially. The following document titled “Guidelines on Securing Public Web Servers”, located at http://csrc.nist.gov/publications/nistpubs/800-44-ver2/SP800-44v2.pdf, may be used to complete the assignment. Analyze the Justice Department Website article titled “How was the Justice Department Web site attacked?”, located at

http://www.washingtonpost.com/blogs/federal-eye/post/how-was-the-justice-department-web-site- attacked/2012/01/19/gIQA6EGHDQ_blog.html?wpisrc=nl_fedinsider.

Write a three to five (3-5) page paper in which you:

1. Examine three (3) common Web application vulnerabilities and attacks, and recommend mitigation strategies for each.

2. Describe an architectural design to protect Web servers from a commonly known Denial of Service (DOS) attack.

3. Based on your research from the Justice Department Website:

a. Examine the motivations of this type of attack.

b. Identify the tools and techniques that you would have used in this attack and why.

c. Determine if Web server application attacks are as easy to carry out as they seem.

4. Suggest the best mitigation or defense mechanisms against Web server application attacks on federal government Websites in the future.

5. Use at least three (3) quality resources outside of the suggested resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

 Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

 Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.  The specific course learning outcomes associated with this assignment are:

 Define common and emerging security issues and management responsibilities.

 Evaluate an organization’s security policies and risk management procedures, and its ability to provide security countermeasures.

 Use technology and information resources to research issues in security management.

 Write clearly and concisely about the theories of security management using proper writing  mechanics and technical style conventions.

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CIS 524 Case Study 1 Week 2– Strayer NEW

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Case Study 1: User Interfaces

Due Week 2 and worth 90 points

Early user interfaces were designed with little or no consideration for the end user. This was largely due to technical and hardware limitations. The poor interface design required a specific skill set for users and limited the mass appeal of computers. Modern interfaces are much more user friendly. Theo Mandel wrote about the five (5) golden rules of interface design. Read Mandel’s article located at http://www.theomandel.com/docs/Mandel-GoldenRules.pdf.

Write a four to five (4-5) page paper in which you:

1. Describe three (3) interfaces you interact with on a daily basis.

2. Analyze each interface you identified in Question one (1) and assess how it adheres to Mandel’s five (5) golden rules.

3. Suggest two (2) changes for each interface to achieve a more user-friendly design and justify your suggestion.

4. Provide three (3) screen shots for each interface. Note: These screen shots should be labeled and appear in the appendix of the case study. These pages are not included in the page requirement for the assignment.

5. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

 Describe the usability properties of interactive systems.

 Use technology and information resources to research issues in human-computer interaction.

 Write clearly and concisely about HCI topics using proper writing mechanics and technical style conventions.

#CIS 524 Case Study 1 Week 2– Strayer NEW

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ECO 305 Quiz Week 2 – Strayer NEW

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CHAPTER 1

THE INTERNATIONAL ECONOMY AND GLOBALIZATION

MULTIPLE CHOICE

1. A primary reason why nations conduct international trade is because:

a. Some nations prefer to produce one thing while others produce other things

b. Resources are not equally distributed among all trading nations

c. Trade enhances opportunities to accumulate profits

d. Interest rates are not identical in all trading nations

2. A main advantage of specialization results from:

a. Economies of large-scale production

b. The specializing country behaving as a monopoly

c. Smaller production runs resulting in lower unit costs

d. High wages paid to foreign workers

3. International trade in goods and services is sometimes used as a substitute for all of the following except:

a. International movements of capital

b. International movements of labor

c. Domestic production of the same goods and services

d. Domestic production of different goods and services

4. If a nation has an open economy, it means that the nation:

a. Allows private ownership of capital

b. Has flexible exchange rates

c. Has fixed exchange rates

d. Conducts trade with other countries

5. International trade forces domestic firms to become more competitive in terms of:

a. The introduction of new products

b. Product design and quality

c. Product price

d. All of the above

6. The movement to free international trade is most likely to generate short-term unemployment in which industries?

a. Industries in which there are neither imports nor exports

b. Import-competing industries

c. Industries that sell to domestic and foreign buyers

d. Industries that sell to only foreign buyers

7. International trade is based on the idea that:

a. Exports should exceed imports

b. Imports should exceed exports

c. Resources are more mobile internationally than are goods

d. Resources are less mobile internationally than are goods

8. Arguments for free trade are sometimes disregarded by politicians because:

a. Maximizing domestic efficiency is not considered important

b. Maximizing consumer welfare may not be a chief priority

c. There exist sound economic reasons for keeping one's economy isolated from other economies

d. Economists tend to favor highly protected domestic markets

9. How much physical output a worker producers in an hour's work depends on:

a. The worker's motivation and skill

b. The technology, plant, and equipment in use

c. How easy the product is to manufacture

d. All of the above

10. The largest amount of trade with the United States in recent years has been conducted by:

a. Canada

b. Germany

c. Chile

d. United Kingdom

11. Increased foreign competition tends to:

a. Intensify inflationary pressures at home

b. Induce falling output per worker-hour for domestic workers

c. Place constraints on the wages of domestic workers

d. Increase profits of domestic import-competing industries

12. ____ is the ability of a firm/industry, under free and fair market conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries.

a. Competitiveness

b. Protectionism

c. Comparative advantage

d. Absolute advantage

13. A firm's ____, relative to that of other firms, is generally regarded as the most important determinant of competitiveness.

a. Income level

b. Tastes and preferences

c. Governmental regulation

d. Productivity

14. Free traders maintain that an open economy is advantageous in that it provides all of the following except:

a. Increased competition for world producers

b. A wider selection of products for consumers

c. The utilization of the most efficient production methods

d. Relatively high wage levels for all domestic workers

15. Recent pressures for protectionism in the United States have been motivated by all of the following except:

a. U.S. firms shipping component production overseas

b. High profit levels for American corporations

c. Sluggish rates of productivity growth in the United States

d. High unemployment rates among American workers

16. International trade tends to cause welfare losses to at least some groups in a country:

a. The less mobile the country's resources

b. The more mobile the country's resources

c. The lower the country's initial living standard

d. The higher the country's initial living standard

17. For a nation to maximize its productivity in a global economy:

a. Only imports are necessary

b. Only exports are necessary

c. Both imports and exports are necessary

d. Neither imports nor exports are necessary

18. A feasible effect of international trade is that:

a. A monopoly in the home market becomes an oligopoly in the world market

b. An oligopoly in the home market becomes a monopoly in the world market

c. A purely competitive firm becomes an oligopolist

d. A purely competitive firm becomes a monopolist

19. International trade in goods and services tends to:

a. Increase all domestic costs and prices

b. Keep all domestic costs and prices at the same level

c. Lessen the amount of competition facing home manufacturers

d. Increase the amount of competition facing home manufacturers

20. The real income of domestic producers and consumers can be increased by:

a. Technological progress, but not international trade

b. International trade, but not technological progress

c. Technological progress and international trade

d. Neither technological progress nor international trade

21. In the United States, automobiles are

a. Imported, but not exported

b. Exported, but not imported

c. Imported and exported

d. Neither exported nor imported

22. Technological improvements are similar to international trade since they both:

a. Provide benefits for all producers and consumers

b. Increase the nation's aggregate income

c. Reduce unemployment for all domestic workers

d. Ensure that industries can operate at less than full capacity

23. A sudden shift from import tariffs to free trade may induce short-term unemployment in:

a. Import-competing industries

b. Industries that are only exporters

c. Industries that sell domestically as well as export

d. Industries that neither import nor export

24. Recent empirical studies indicate that productivity performance in industries is:

a. Directly related to globalization of industries

b. Inversely related to globalization of industries

c. Not related to globalization of industries

d. Any of the above

25. Empirical research indicates that ____ best enhances productivity gains for firms and industries.

a. Local competition

b. Regional competition

c. Global competition

d. No competition

26. Increased globalization is fostered by:

a. Increased tariffs and quotas

b. Restrictions on the migration of labor

c. Reduced transportation costs

d. Restrictions on investment flows

27. A reduced share of the world export market for the United States would be attributed to:

a. Decreased productivity in U.S. manufacturing

b. High incomes of American households

c. Relatively low interest rates in the United States

d. High levels of investment by American corporations

28. The dominant trading nation in the world market following World War II was:

a. United Kingdom

b. Germany

c. South Korea

d. United States

29. A closed economy is one in which:

a. Imports exactly equal exports, so that trade is balanced

b. Domestic firms invest in industries overseas

c. The home economy is isolated from foreign trade

d. Saving exactly equals investment at full employment

30. Relative to countries with low ratios of exports to gross domestic product, countries having high export to gross domestic product ratios are ____ vulnerable to changes in the world market.

a. Less

b. More

c. Equally

d. Any of the above

31. Which of the following is a fallacy of international trade?

a. Trade is a zero-sum activity

b. Exports increase employment in exporting industries

c. Import restrictions increase employment in import-competing industries

d. Tariffs and quotas reduce trade volume

32. Foreign ownership of U.S. financial assets

a. Has decreased since the 1960's

b. Has increased since the 1960's

c. Has made the U.S. a net borrower since the late 1980's

d. Both a and c

33. The first wave of globalization was brought to an end by

a. The Great Depression

b. The Second World War

c. The First World War

d. The Smoot-Hawley Act

34. Multilateral trade negotiations have led to

a. Continued trade liberalization

b. Financial liberalization

c. Increased investment

d. All of the above

TRUE/FALSE

1. Important trading partners of the United States include Canada, Mexico, Japan, and China.

2. The United States exports a larger percentage of its gross domestic product than Japan, Germany, and Canada.

3. Opening the economy to international trade tends to lessen inflationary pressures at home.

4. The benefits of international trade accrue in the forms of lower domestic prices, development of more efficient methods and new products, and a greater range of consumption choices.

5. In an open trading system, a country will import those commodities that it produces at relatively low cost while exporting commodities that can be produced at relatively high cost.

6. Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation's security.

7. In the long run, competitiveness depends on an industry's natural resources, its stock of machinery and equipment, and the skill of its workers in creating goods that people want to buy.

8. If a nation has an open economy, it means that the nation allows private ownership of capital.

9. Increased foreign competition tends to increase profits of domestic import-competing companies.

10. Restrictive trade policies have resulted in U.S. producers of minerals and metals supplying all of the U.S. consumers' needs.

SHORT ANSWER

1. What is the most important factor which contributes to competitiveness?

2. What are the challenges of the international trading system?

ESSAY

1. Does exposure to competition with the world leader in a particular industry improve a firm's productivity?

2. What are the essential arguments in favor of free trade?

CHAPTER 2—FOUNDATIONS OF MODERN TRADE THEORY: COMPARATIVE ADVANTAGE

MULTIPLE CHOICE

1. The mercantilists would have objected to:

a. Export promotion policies initiated by the government

b. The use of tariffs or quotas to restrict imports

c. Trade policies designed to accumulate gold and other precious metals

d. International trade based on open markets

2. Unlike the mercantilists, Adam Smith maintained that:

a. Trade benefits one nation only at the expense of another nation

b. Government control of trade leads to maximum economic welfare

c. All nations can gain from free international trade

d. The world's output of goods must remain constant over time

3. The trading principle formulated by Adam Smith maintained that:

a. International prices are determined from the demand side of the market

b. Differences in resource endowments determine comparative advantage

c. Differences in income levels govern world trade patterns

d. Absolute cost differences determine the immediate basis for trade

4. Unlike Adam Smith, David Ricardo's trading principle emphasizes the:

a. Demand side of the market

b. Supply side of the market

c. Role of comparative costs

d. Role of absolute costs

5. When a nation requires fewer resources than another nation to produce a product, the nation is said to have a:

a. Absolute advantage in the production of the product

b. Comparative advantage in the production of the product

c. Lower marginal rate of transformation for the product

d. Lower opportunity cost of producing the product

6. According to the principle of comparative advantage, specialization and trade increase a nation's total output since:

a. Resources are directed to their highest productivity

b. The output of the nation's trading partner declines

c. The nation can produce outside of its production possibilities curve

d. The problem of unemployment is eliminated

7. In a two-product, two-country world, international trade can lead to increases in:

a. Consumer welfare only if output of both products is increased

b. Output of both products and consumer welfare in both countries

c. Total production of both products, but not consumer welfare in both countries

d. Consumer welfare in both countries, but not total production of both products

8. As a result of international trade, specialization in production tends to be:

a. Complete with constant costs--complete with increasing costs

b. Complete with constant costs--incomplete with increasing costs

c. Incomplete with constant costs--complete with increasing costs

d. Incomplete with constant costs--incomplete with increasing costs

9. A nation that gains from trade will find its consumption point being located:

a. Inside its production possibilities curve

b. Along its production possibilities curve

c. Outside its production possibilities curve

d. None of the above

Table 2.1. Output Possibilities of the U.S. and the U.K.

Output per Worker per day

Country Tons of Steel Televisions

United States 15 45

United Kingdom 10 20

10. Referring to Table 2.1, the United States has the absolute advantage in the production of:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

11. Referring to Table 2.1, the United Kingdom has a comparative advantage in the production of:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

12. Refer to Table 2.1. If trade opens up between the United States and the United Kingdom, American firms should specialize in producing:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

13. Referring to Table 2.1, the opportunity cost of producing one ton of steel in the United States is:

a. 3 televisions

b. 10 televisions

c. 20 televisions

d. 45 televisions

14. Refer to Table 2.1. Mutually advantageous trade will occur between the United States and the United Kingdom so long as one ton of steel trades for:

a. At least 1 television, but no more than 2 televisions

b. At least 2 televisions, but no more than 3 televisions

c. At least 3 televisions, but no more than 4 televisions

d. At least 4 televisions, but no more than 5 televisions

15. Referring to Table 2.1, the United Kingdom gains most from trade if:

a. 1 ton of steel trades for 2 televisions

b. 1 ton of steel trades for 3 televisions

c. 2 tons of steel trade for 4 televisions

d. 2 tons of steel trade for 5 televisions

16. Concerning international trade restrictions, which of the following is false? Trade restrictions:

a. Limit specialization and the division of labor

b. Reduce the volume of trade and the gains from trade

c. Cause nations to produce inside their production possibilities curves

d. May result in a country producing some of the product of its comparative disadvantage

17. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of:

a. Constant opportunity costs

b. Increasing opportunity costs

c. Decreasing opportunity costs

d. Zero opportunity costs

18. Increasing opportunity costs suggest that:

a. Resources are not perfectly shiftable between the production of two goods

b. Resources are fully shiftable between the production of two goods

c. A country's production possibilities curve appears as a straight line

d. A country's production possibilities curve is bowed inward (i.e., convex) in appearance

19. The trading-triangle concept is used to indicate a nation's:

a. Exports, marginal rate of transformation, terms of trade

b. Imports, terms of trade, marginal rate of transformation

c. Marginal rate of transformation, imports, exports

d. Terms of trade, exports, imports

20. Assuming increasing cost conditions, trade between two countries would not be likely if they have:

a. Identical demand conditions but different supply conditions

b. Identical supply conditions but different demand conditions

c. Different supply conditions and different demand conditions

d. Identical demand conditions and identical supply conditions

Table 2.2. Output possibilities for South Korea and Japan

Output per worker per day

Country Tons of steel VCRs

South Korea 80 40

Japan 20 20

21. Referring to Table 2.2, the opportunity cost of one VCR in Japan is:

a. 1 ton of steel

b. 2 tons of steel

c. 3 tons of steel

d. 4 tons of steel

22. Referring to Table 2.2, the opportunity cost of one VCR in South Korea is:

a. 1/2 ton of steel

b. 1 ton of steel

c. 1 1/2 tons of steel

d. 2 tons of steel

23. Refer to Table 2.2. According to the principle of absolute advantage, Japan should:

a. Export steel

b. Export VCRs

c. Export steel and VCRs

d. None of the above; there is no basis for gainful trade

24. Refer to Table 2.2. According to the principle of comparative advantage:

a. South Korea should export steel

b. South Korea should export steel and VCRs

c. Japan should export steel

d. Japan should export steel and VCRs

25. Refer to Table 2.2. With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each VCR?

a. 1/2 ton of steel

b. 1 ton of steel

c. 1-1/2 tons of steel

d. 2 tons of steel

26. Refer to Table 2.2. With international trade, what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for each ton of steel?

a. 1 VCR

b. 2 VCRs

c. 3 VCRs

d. 4 VCRs

27. The earliest statement of the principle of comparative advantage is associated with:

a. Adam Smith

b. David Ricardo

c. Eli Heckscher

d. Bertil Ohlin

28. If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:

a. Trade would depend on differences in demand conditions

b. Trade would depend on economies of large-scale production

c. Trade would depend on the use of different currencies

d. There would be no basis for gainful trade

29. If the international terms of trade settle at a level that is between each country's opportunity cost:

a. There is no basis for gainful trade for either country

b. Both countries gain from trade

c. Only one country gains from trade

d. One country gains and the other country loses from trade

30. International trade is based on the notion that:

a. Different currencies are an obstacle to international trade

b. Goods are more mobile internationally than are resources

c. Resources are more mobile internationally than are goods

d. A country's exports should always exceed its imports

Figure 2.1. Production Possibilities Schedule

31. Referring to Figure 2.1, the relative cost of steel in terms of aluminum is:

a. 4.0 tons

b. 2.0 tons

c. 0.5 tons

d. 0.25 tons

32. Referring to Figure 2.1, the relative cost of aluminum in terms of steel is:

a. 4.0 tons

b. 2.0 tons

c. 0.5 tons

d. 0.25 tons

33. Refer to Figure 2.1. If the relative cost of steel were to rise, then the production possibilities schedule would:

a. Become steeper

b. Become flatter

c. Shift inward in a parallel manner

d. Shift outward in a parallel manner

34. Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possibilities schedule would:

a. Become steeper

b. Become flatter

c. Shift inward in a parallel manner

d. Shift outward in a parallel manner

35. When a nation achieves autarky equilibrium:

a. Input price equals final product price

b. Labor productivity equals the wage rate

c. Imports equal exports

d. Production equals consumption

36. When a nation is in autarky and maximizes its living standard, its consumption and production points are:

a. Along the production possibilities schedule

b. Above the production possibilities schedule

c. Beneath the production possibilities schedule

d. Any of the above

37. If Canada experiences increasing opportunity costs, its supply schedule of steel will be:

a. Downward-sloping

b. Upward-sloping

c. Horizontal

d. Vertical

38. If Canada experiences constant opportunity costs, its supply schedule of steel will be:

a. Downward-sloping

b. Upward-sloping

c. Horizontal

d. Vertical

39. The gains from international trade increase as:

a. A nation consumes inside of its production possibilities schedule

b. A nation consumes along its production possibilities schedule

c. The international terms of trade rises above the nation's autarky price

d. The international terms of trade approaches the nation's autarky price

40. In a two-country, two-product world, the statement "Japan enjoys a comparative advantage over France in steel relative to bicycles" is equivalent to:

a. France having a comparative advantage over Japan in bicycles relative to steel

b. France having a comparative disadvantage against Japan in bicycles and steel

c. Japan having a comparative advantage over France in steel and bicycles

d. Japan having a comparative disadvantage against Japan in bicycles and steel

41. Ricardo's theory of comparative advantage was of limited real-world validity because it was founded on the:

a. Labor theory of value

b. Capital theory of value

c. Land theory of value

d. Entrepreneur theory of value

42. Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in the United Kingdom equal $10 per hour. Production costs would be lower in the United States than the United Kingdom if:

a. U.S. labor productivity equaled 40 units per hour while U.K. labor productivity equaled 15 units per hour

b. U.S. labor productivity equaled 30 units per hour while U.K. labor productivity equaled 20 units per hour

c. U.S. labor productivity equaled 20 units per hour while U.K. labor productivity equaled 30 units per hour

d. U.S. labor productivity equaled 15 units per hour while U.K. labor productivity equaled 25 units per hour

43. According to Ricardo, a country will have a comparative advantage in the product in which its:

a. Labor productivity is relatively low

b. Labor productivity is relatively high

c. Labor mobility is relatively low

d. Labor mobility is relatively high

44. The Ricardian model of comparative advantage is based on all of the following assumptions except:

a. Only two nations and two products

b. Product quality varies among nations

c. Labor is the only factor of production

d. Labor can move freely within a nation

45. The writings of G. MacDougall emphasized which of the following as an explanation of a country's competitive position?

a. National income levels

b. Relative endowments of natural resources

c. Domestic tastes and preferences

d. Labor compensation and productivity levels

46. The introduction of community indifference curves into our trading example focuses attention on the nation's:

a. Income level

b. Resource prices

c. Tastes and preferences

d. Productivity level

47. Introducing indifference curves into our trade model permits us to determine:

a. Where a nation chooses to locate along its production possibilities curve in autarky

b. The precise location of a nation's production possibilities curve

c. Whether absolute cost or comparative cost conditions exist

d. The currency price of one product in terms of another product

48. In the absence of trade, a nation is in equilibrium where a community indifference curve:

a. Lies above its production possibilities curve

b. Is tangent to its production possibilities curve

c. Intersects its production possibilities curve

d. Lies below its production possibilities curve

49. The use of indifference curves helps us determine the point:

a. Along the terms-of-trade line a country will choose

b. Where a country maximizes its resource productivity

c. At which a country ceases to become competitive

d. Where the marginal rate of transformation approaches zero

50. With trade, a country will maximize its satisfaction when it:

a. Moves to the highest possible indifference curve

b. Forces the marginal rate of substitution to its lowest possible value

c. Consumes more of both goods than it does in autarky

d. Finds its marginal rate of substitution exceeding its marginal rate of transformation

51. Trade between two nations would not be possible if they have:

a. Identical community indifference curves but different production possibilities curves

b. Identical production possibilities curves but different community indifference curves

c. Different production possibilities curves and different community indifference curves

d. Identical production possibilities curves and identical community indifference curves

52. Given a two-country and two-product world, the United States would enjoy all the attainable gains from free trade with Canada if it:

a. Trades at the U.S. rate of transformation

b. Trades at the Canadian rate of transformation

c. Specializes completely in the production of both goods

d. Specializes partially in the production of both goods

53. John Stuart Mill's theory of reciprocal demand best applies when trading partners:

a. Are of equal size and importance in the market

b. Produce under increasing cost conditions

c. Partially specialize in the production of commodities

d. Have similar taste and preference levels

54. The equilibrium prices and quantities established after trade are fully determinate if we know:

a. The location of all countries' indifference curves

b. The shape of each country's production possibilities curve

c. The comparative costs of each trading partner

d. The strength of world supply and demand for each good

55. "The equilibrium relative commodity price at which trade takes place is determined by the conditions of demand and supply for each commodity in both nations. Other things being equal, the nation with the more intense demand for the other nation's exported good will gain less from trade than the nation with the less intense demand." This statement was first proposed by:

a. Alfred Marshall with offer curve analysis

b. John Stuart Mill with the theory of reciprocal demand

c. Adam Smith with the theory of absolute advantage

d. David Ricardo with the theory of comparative advantage

56. Which of the following terms-of-trade concepts is calculated by dividing the change in a country's export price index by the change in its import price index between two points in time, multiplied by 100 to express the terms of trade in percentages?

a. Commodity terms of trade

b. Marginal rate of transformation

c. Marginal rate of substitution

d. Autarky price ratio

57. The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall. This is because Ricardo's theory did not recognize how market prices are influenced by:

a. Demand conditions

b. Supply conditions

c. Business expectations

d. Profit patterns

58. Under free trade, Sweden enjoys all of the gains from trade with Holland if Sweden:

a. Trades at Holland's rate of transformation

b. Trades at Sweden's rate of transformation

c. Specializes completely in the production of its export good

d. Specializes partially in the production of its export good

59. Because the Ricardian trade theory recognized only how supply conditions influence international prices, it could determine:

a. The equilibrium terms of trade

b. The outer limits for the terms of trade

c. Where a country chooses to locate along its production possibilities curve

d. Where a country chooses to locate along its trade triangle

60. The terms of trade is given by the prices:

a. Paid for all goods imported by the home country

b. Received for all goods exported by the home country

c. Received for exports and paid for imports

d. Of primary products as opposed to manufactured products

Table 2.3. Terms of Trade

Export Price Index Import Price Index

Country 1990 2004 1990 2004

Mexico 100 220 100 200

Sweden 100 160 100 150

Spain 100 155 100 155

France 100 170 100 230

Denmark 100 120 100 125

61. Referring to Table 2.3, which countries' terms of trade improved between 1990 and 2004?

a. Mexico and Denmark

b. Sweden and Denmark

c. Sweden and Spain

d. Mexico and Sweden

62. Referring to Table 2.3, which countries' terms of trade worsened between 1990 and 2004?

a. Spain and Mexico

b. Mexico and France

c. France and Denmark

d. Denmark and Sweden

63. Referring to Table 2.3, which country's terms of trade did not change between 1990 and 2004?

a. Spain

b. Sweden

c. France

d. Denmark

64. Given free trade, small nations tend to benefit the most from trade since they:

a. Are more productive than their large trading partners

b. Are less productive than their large trading partners

c. Have demand preferences and income levels lower than their large trading partners

d. Enjoy terms of trade lying near the opportunity costs of their large trading partners

65. A terms-of-trade index that equals 150 indicates that compared to the base year:

a. It requires a greater output of domestic goods to obtain the same amount of foreign goods

b. It requires a lesser amount of domestic goods to obtain the same amount of foreign goods

c. The price of exports has risen from $100 to $150

d. The price of imports has risen from $100 to $150

66. A term-of-trade index that equals 90 indicates that compared to the base year:

a. It requires a greater output of domestic goods to obtain the same amount of foreign goods

b. It requires a lesser amount of domestic goods to obtain the same amount of foreign goods

c. The price of exports has fallen from $100 to $90

d. The price of imports has fallen from $100 to $90

67. The theory of reciprocal demand does not well apply when one country:

a. Produces under constant cost conditions

b. Produces along its production possibilities curve

c. Is of minor economic importance in the world marketplace

d. Partially specializes the production of its export good

68. The terms of trade is given by:

a. (Price of exports/price of imports)  100

b. (Price of exports/price of imports) + 100

c. (Price of exports/price of imports)  100

d. (Price of exports/price of imports)  100

69. If Japan and France have identical production possibilities curves and identical community indifference curves:

a. Japan will enjoy all the gains from trade

b. France will enjoy all the gains from trade

c. Japan and France share equally in the gains from trade

d. Gainful specialization and trade are not possible

70. A rise in the price of imports or a fall in the price of exports will:

a. Improve the terms of trade

b. Worsen the terms of trade

c. Expand the production possibilities curve

d. Contract the production possibilities curve

71. A fall in the price of imports or a rise in the price of exports will:

a. Improve the terms of trade

b. Worsen the terms of trade

c. Expand the production possibilities curve

d. Contract the production possibilities curve

72. Under free trade, Canada would not enjoy any gains from trade with Sweden if Canada:

a. Trades at the Canadian rate of transformation

b. Trades at Sweden's rate of transformation

c. Specializes completely in the production of its export good

d. Specializes partially in the production of its export good

Figure 2.2 illustrates trade data for Canada. The figure assumes that Canada attains international trade equilibrium at point C.

Figure 2.2. Canadian Trade Possibilities

73. Consider Figure 2.2. In the absence of trade, Canada would produce and consume:

a. 8 televisions and 16 refrigerators

b. 12 televisions and 16 refrigerators

c. 8 televisions and 12 refrigerators

d. 12 televisions and 8 refrigerators

74. Referring to Figure 2.2, Canada has a comparative advantage in:

a. Televisions

b. Refrigerators

c. Televisions and refrigerators

d. Neither televisions nor refrigerators

75. Consider Figure 2.2. With specialization, Canada produces:

a. 16 televisions

b. 12 televisions and 8 refrigerators

c. 8 televisions and 16 refrigerators

d. 24 refrigerators

76. Consider Figure 2.2. With trade, Canada consumes:

a. 12 televisions and 8 refrigerators

b. 12 televisions and 16 refrigerators

c. 8 televisions and 16 refrigerators

d. 24 refrigerators

77. According to Figure 2.2, exports for Canada total:

a. 16 refrigerators

b. 8 refrigerators

c. 12 refrigerators

d. 16 refrigerators

78. According to Figure 2.2, imports for Canada total:

a. 6 televisions

b. 8 televisions

c. 12 televisions

d. 16 televisions

79. Concerning possible determinants of international trade, which are sources of comparative advantage? Differences in:

a. Methods of production

b. Tastes and preferences

c. Technological know-how

d. All of the above

80. Ricardo's model of comparative advantage assumed all of the following except:

a. In each nation, labor is the only input

b. Costs do not vary with the level of production

c. Perfect competition prevails in all markets

d. Transportation costs rise as distance increases between countries

81. Ricardo's model of comparative advantage assumed all of the following except:

a. Trade is balanced, thus ruling out flows of money between nations

b. Firms make production decisions in an attempt to maximize profits

c. Free trade occurs between nations

d. Labor is immobile within a country, but is incapable of moving between countries

82. The dynamic gains from trade include all of the following except:

a. Economies of large-scale production resulting in decreasing unit cost

b. Increased saving and investment resulting in economic growth

c. Increased competition resulting in lower prices and wider range of output

d. Increasing comparative advantage leading to specialization

83. All of the following may be exit barriers except

a. Employee health benefit costs

b. Treatment, storage and disposal costs

c. Penalties for terminating contracts with raw material suppliers

d. Increasing opportunity cost of production

84. Incomplete specialization may be caused by

a. Increasing opportunity cost

b. Unrestricted trade

c. Constant opportunity cost

d. Decreasing opportunity cost

85. Improvements in productivity may lead to decreasing comparative costs if

a. The assumption of fixed technologies under constant costs is relaxed

b. Technologies available to each nation is allowed to differ

c. Resource endowments are allowed to vary

d. All of the above

86. Adam Smith

a. Was a leading advocate of free trade

b. Developed the concept of absolute advantage

c. Maintained that labor costs represent the major determinant of production cost

d. All of the above

87. Modern trade theory contends that the pattern of world trade is governed by

a. Differences in supply conditions and demand conditions

b. Supply conditions only

c. Demand conditions only

d. None of the above

88. When nations are of similar size, and have similar taste patterns, the gains from trade

a. Are shared equally between them

b. Are impossible to determine

c. Are too small, so that trading is not beneficial

d. Are determined by the nation that has comparative advantage in the more essential product

89. The commodity terms of trade measures

a. The rate at which exports exchange for imports

b. The influence trade has on productivity levels

c. The effect on income of the trading nation

d. The improvement in a nation's welfare

TRUE/FALSE

1. According to the mercantilists, a nation's welfare would improve if it maintained a surplus of exports over imports.

2. The mercantilists maintained that a free-trade policy best enhances a nation's welfare.

3. The mercantilists contended that because one nation's gains from trade come the expense of its trading partners, not all nations could simultaneously realize gains from trade.

4. According to the price-specie-flow-doctrine, a trade-surplus nation would experience gold outflows, a decrease in its money supply, and a fall in its price level.

5. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market.

6. According to the principle of absolute advantage, international trade is beneficial to the world if one nation has an absolute cost advantage in the production of one good while the other nation has an absolute cost advantage in the other good.

7. The principle of absolute advantage asserts that mutually beneficial trade can occur even if one nation is absolutely more efficient in the production of all goods.

8. The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam Smith.

9. The principle of comparative advantage contends that a nation should specialize in and export the good in which its absolute advantage is smallest or its absolute disadvantage is greatest.

10. The Ricardian theory of comparative advantage assumes only two nations and two products, labor can move freely within a nation, and perfect competition exists in all markets.

11. Assume that the United States is more efficient than the United Kingdom in the production of all goods. Mutually beneficial trade is possible according to the principle of absolute advantage, but is impossible according to the principle of comparative advantage.

12. It is possible for a nation not to have an absolute advantage in anything; but it is not possible for one nation to have a comparative advantage in everything and the other nation to have a comparative advantage in nothing.

13. Ricardo's theory of comparative advantage was of limited relevance to the real world since it assumed that labor was only one of several factors of production.

14. Compared to Ricardian trade theory, modern trade theory provides a more general view of comparative advantage since it is based on all factors of production rather than just labor.

15. Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to locate on its production-possibilities schedule.

16. There are two explanations of constant opportunity costs: (1) factors of production are imperfect substitutes for each other; (2) all units of a given factor have different qualities.

17. With increasing opportunity costs, a nation totally specializes in the production of the commodity of its comparative advantage; with constant opportunity costs, a nation partially specializes in the production of the commodity of its comparative advantage.

18. A nation's trade triangle denotes its exports, imports, and terms of trade.

19. International trade leads to increased welfare if a nation can achieve a post-trade consumption point lying inside of its production-possibilities schedule.

20. If the U.S. post-trade consumption point lies along its production possibilities schedule, the United States achieves a higher level of welfare with trade than without trade.

21. If productivity in the German computer industry grows faster than it does in the Japanese computer industry, the opportunity cost of each computer produced in Japan increases relative to the opportunity cost of a computer produced in Germany.

22. If Japan loses competitiveness in computers, Japanese computer workers lose jobs to foreign computer workers and the wages of Japanese computer workers tend to fall relative to the wages of foreign computer workers.

23. With constant opportunity costs, a nation will achieve the greatest possible gains from trade if it partially specializes in the production of the commodity of its comparative disadvantage.

24. By reducing the overall volume of trade, import restrictions tend to reduce a nation's gains from trade.

25. With increasing opportunity costs, comparative advantage depends on a nation's supply conditions and demand conditions; with constant opportunity costs, comparative advantage depends only on demand conditions.

26. According to the principle of comparative advantage, an open trading system results in resources being channeled from uses of low productivity to those of high productivity.

27. The existence of exit barriers tends to delay the closing of inefficient firms that face international competitive disadvantages.

28. MacDougall's empirical study of comparative advantage was based on the notion that a product's labor cost is underlaid by labor productivity and the wage rate.

29. The MacDougall study of comparative advantage hypothesized that in those industries in which U.S. labor productivity was relatively high, U.S. exports to the world should be lower than U.K. exports to the world, after adjusting for wage differentials.

30. The basic idea of mercantilism was that wealth consisted of the goods and services produced by a nation.

31. According to Adam Smith, international trade was a "win-win" situation since all nations could enjoy gains from trade.

32. The price-specie-flow mechanism illustrated why one nation's gains from trade were accompanied by another country's losses.

33. Complete specialization usually occurs under the assumption of increasing opportunity costs.

34. Adam Smith contended that gold, silver, and other precious metals constituted the wealth of a nation.

35. The price-specie-flow mechanism illustrated why nations could not maintain trade surpluses or trade deficits over the long run.

36. The marginal rate of transformation equals the absolute slope of a country's production possibilities schedule.

37. Assume that Germany has higher labor productivity and higher wage levels than France. Germany can produce a commodity more cheaply than France if its productivity differential more than offsets its wage differential.

38. Ricardo's theory of comparative advantage does not take into account demand conditions when determining relative commodity prices.

39. If Canada has a higher wage level and higher labor productivity than Mexico, Canada will necessarily produce a good at a higher labor cost than Mexico.

40. If Argentina has a comparative advantage over Brazil in beef relative to coffee, Argentina will specialize in beef production.

41. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions.

42. A nation achieves autarky equilibrium at the point where its community indifference curve is tangent to its production possibilities schedule.

43. In autarky equilibrium, a nation realizes the lowest possible level of satisfaction given the constraint of its production possibilities schedule.

44. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky.

45. A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.

46. The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.

47. Because the Ricardian theory of comparative advantage was based only on a nation's demand conditions, it could not fully explain the distribution of the gains from trade among trading partners.

48. Because the Ricardian theory of comparative advantage was based only on a nation's supply conditions, it could only determine the outer limits within which the equilibrium terms of trade would lie.

49. The domestic cost ratios of nations set the outer limits to the equilibrium terms of trade.

50. Mutually beneficial trade for two countries occurs if the equilibrium terms of trade lies between the two countries' domestic cost ratios.

51. Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the U.S. cost ratio, the United States realizes all of the gains from trade with Canada.

52. Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the Canadian cost ratio, the United States realizes all of the gains from trade with Canada.

53. If the international terms of trade lies beneath (inside) the Mexican cost ratio, Mexico is worse off with trade than without trade.

54. Although J. S. Mill recognized that the region of mutually beneficial trade is bounded by the cost ratios of two countries, it was not until David Ricardo developed the theory of reciprocal demand that the equilibrium terms of trade could be determined.

55. According to J. S. Mill, if we know the domestic demand expressed by both trading partners for both products, the equilibrium terms of trade can be defined.

56. The theory of reciprocal demand asserts that as the U.S. demand for Canadian wheat rises, the equilibrium terms of trade improve for the United States.

57. Assume that Canada has a comparative advantage in wheat and a comparative disadvantage in autos. As the Canadian demand for wheat increases, Canada's equilibrium terms of trade improves.

58. The theory of reciprocal demand best applies when two countries are of equal economic size, so that the demand conditions of each nation have a noticeable impact on market prices.

59. The theory of reciprocal demand best applies when one country has a "large" economy and the other country has a "small" economy.

60. If two nations of approximately the same size and with similar taste patterns participate in international trade, the gains from trade tend to be shared about equally between them.

61. The expression "importance of being unimportant" suggests that if one nation is much larger than the other, the larger nation realizes most of the gains from trade while the smaller nation realizes fewer gains from trade.

62. An improvement in a nation's terms of trade occurs if the prices of its exports rise relative to the prices of its imports over a given time period.

63. If a country's terms of trade worsen, it must exchange fewer exports for a given amount of imports.

64. If a country's terms of trade improve, it must exchange more exports for a given amount of imports.

65. The terms of trade represents the rate of exchange between a country's exports and imports.

66. Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 130 while its import price index rose from 100 to 115, its terms of trade would equal 113.

67. Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 140 while its import price index rose from 100 to 160, its terms of trade would equal 120.

68. Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 125 while its import price index rose from 100 to 125, its terms of trade would equal 100.

69. The commodity terms of trade are found by dividing a country's import price index by its export price index.

70. For the commodity terms of trade to improve, a country's export price index must rise relative to its import price index over a given time period.

71. For the commodity terms of trade to improve, a country's import price index must rise relative to its export price index over a given time period.

SHORT ANSWER

1. Is it possible to add up the preferences of all consumers in an entire nation?

2. Who gains more from trade, when nations are of unequal economic size?

3. Is it possible for comparative advantage to change, thus changing the direction of trade?

4. Do national security concerns lead to incomplete specialization?

ESSAY

1. Will it be impossible to keep low-skilled jobs in the U.S.?

2. Is it possible to estimate the gains from trade?

#ECO 305 Quiz Week 2 – Strayer NEW

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CIS 515 Assignment 2 Week 2– Strayer NEW

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Assignment 2: Database Systems and Database Models

Due Week 2 and worth 90 points

The Strayer Oracle Server may be used to test and compile the SQL Queries developed for this assignment. Your instructor will provide you with login credentials to a Strayer University maintained Oracle server.

Imagine that you have been hired as a consultant to assist in streamlining the data processing of an international based organization that sells high-end electronics. The organization has various departments such as payroll, human resources, finance, marketing, sales, and operations. The sales department is the only department where employees are paid a commission in addition to their yearly salary and benefits. All other departments compensate their employees with a yearly salary and benefits only. Commission is paid by multiplying the employee’s commission rate by the total amount of product units sold. You have access to the following data sets:

 Employee (EmpNumber, EmpFirstName, EmpLastName, CommissionRate, YrlySalary, DepartmentID, JobID)

 Invoice (InvNumber, InvDate, EmpNumber, InvAmount)

 InvoiceLine (InvLineNumber, InvNumber, ProductNumber, Quantity)

 Product (ProductNumber, ProductDescription, ProductCost)

 Department (DepartmentID, DepartmentDescription)

 Job (JobID, JobDescription)  Write a two to three (2-3) page paper in which you:

1. Design a query that will allow the finance department to determine the commissions paid to specific employees of the sales department for the month of December. Note: You will need to generate the tables described above (Employee, Invoice, InvoiceLine, Product, Department, and Job) in order to compare and validate your code. Validated query code must be part of your paper.

2. Compare the code of the query you designed in Question one (1) to one that would show how much total compensation is paid to each employee for the same month.

3. Determine and explain the factors necessary to ensure referential integrity.

4. Create an object-oriented model to show how the tables are interrelated through the use of graphical tools such as Microsoft Visio, or an open source alternative such as Dia. Make sure that you are able to show the relationship types such as 1:M, 1:1, or M:1. Additionally, remember to include the determined factors from the previous assignment requirement. Note: The graphically depicted solution is not included in the required page length.

5. Identify which data components are the entities and attributes, and the relationship between each using an object representation diagram through the use of graphical tools such as Microsoft Visio, or an open source alternative such as Dia. Note: The graphically depicted solution is not included in the required page length.

6. Describe how Big Data could be used to assist in the productivity and forecasting of the organization’s products and resources.

Your assignment must follow these formatting requirements:

 Include charts or diagrams created in Excel, Visio, MS Project, or one of their equivalents such as Open Project, Dia, and OpenOffice. The completed diagrams / charts must be imported into the Word document before the paper is submitted.  The specific course learning outcomes associated with this assignment are:

7.  Describe the role of databases and database management systems in managing organizational data and information.

8.  Design and implement a database solution to solve a proposed business problem.

9.  Use technology and information resources to research issues in the strategic implications and  management of database systems.

10.  Write clearly and concisely about topics related to the strategic planning for database systems using proper writing mechanics and technical style conventions.

#CIS 515 Assignment 2 Week 2– Strayer NEW

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ACC 557 Quiz Week 2 – Strayer NEW

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All possible questions with answers

ACC 557 Quiz 1 Chapter 1 Week 2 perfect Solution

Owners of business firms are the only people who need accounting information.

LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Transactions that can be measured in dollars and cents are recorded in the financial information system.

Ans: LO1 BT: K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The hiring of a new company president is an economic event recorded by the financial information system.

LO1 BT: C Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Management of a business enterprise is the major external user of information.

LO2 BT: K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accounting communicates financial information about a business enterprise to both internal and external users.

Ans: LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accounting information is used only by external users with a financial interest in a business enterprise.

LO2 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Financial statements are the major means of communicating accounting information to interested parties.

Ans: LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

LO2 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The origins of accounting are attributed to Luca Pacioli, a famous mathematician.

Ans: LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The study of accounting will be useful only if a student is interested in working for a profit-oriented business firm.

LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Private accountants are accountants who are not employees of business enterprises.

LO2 BT:K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The study of accounting is not useful for a business career unless your career objective is to become an accountant.

LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A working knowledge of accounting is not relevant to a lawyer or an architect.

LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

Ans: LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accountants rely on a fundamental business concept—ethical behavior—in reporting financial information.

Ans: LO3 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The primary accounting standard-setting body in the United States is the International Accounting Standards Board.

LO4 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

LO4 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The Securities and Exchange Commission oversees U.S. financial markets and accounting standard-setting bodies.

Ans: LO4 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The cost and fair value of an asset are the same at the time of acquisition and in all subsequent periods.

LO4 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Even though a partnership is not a separate legal entity, for accounting purposes the partnership affairs should be kept separate from the personal activities of the owners.

Ans: LO5 BT: C Difficulty; Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A partnership must have more than one owner.

Ans: LO5 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

Ans: LO5 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The monetary unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records.

Ans: LO5 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

In order to possess future service potential, an asset must have physical substance.

LO6 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses.

LO6 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The basic accounting equation states that Assets = Liabilities.

LO6 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accountants record both internal and external transactions.

Ans: LO7 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company.

LO7 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The purchase of store equipment for cash reduces stockholders’ equity by an equal amount.

LO7 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The purchase of office equipment on credit increases total assets and total liabilities.

Ans: LO7 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company during a period.

Ans: LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Net income for the period is determined by subtracting total expenses and drawings from total revenues.

LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The income statement is sometimes referred to as the statement of operations.

Ans: LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A balance sheet reports the assets and liabilities of a company for a specific period of time.

LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

Ans: LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Identifying is the process of keeping a chronological diary of events measured in dollars and cents.

LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Management consulting includes examining the financial statements of companies and expressing an opinion as to the fairness of their presentation.

LO2 BT: K Difficulty; Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accountants do not have to worry about issues of ethics.

LO3 BT: K Difficulty: Easy TOT: .5 min. AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Reporting

At the time an asset is acquired, cost and fair value should be the same.

Ans: LO4 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar.

LO5 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

Ans: LO6 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

External transactions involve economic events between the company and some other enterprise or party.

Ans: LO7 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

In the retained earnings statement, revenues are listed first, followed by expenses, and net income (or net loss).

LO8 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

MULTIPLE CHOICE QUESTIONS

Accountants refer to an economic event as a

purchase.

sale.

transaction.

change in ownership.

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The process of recording transactions has become more efficient because

fewer events can be quantified in financial terms.

computers are used in processing business events.

more people have been hired to record business transactions.

business events are recorded only at the end of the year.

LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Communication of economic events is the part of the accounting process that involves

identifying economic events.

quantifying transactions into dollars and cents.

preparing accounting reports.

recording and classifying information.

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

The appointment of a new CPA firm to perform an audit.

The purchase of a new computer.

The sale of store equipment.

Payment of income taxes.

LO1 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The use of computers in recording business events

has made the recording process more efficient.

does not use the same principles as manual accounting systems.

has greatly impacted the identification stage of the accounting process.

is economical only for large businesses.

LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The accounting process involves all of the following except

identifying economic transactions that are relevant to the business.

communicating financial information to users by preparing financial reports.

recording nonquantifiable economic events.

analyzing and interpreting financial reports.

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The accounting process is correctly sequenced as

identification, communication, recording.

recording, communication, identification.

identification, recording, communication.

communication, recording, identification.

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following techniques are not used by accountants to interpret and report financial information?

Graphs.

Special memos for each class of external users.

Charts.

Ratios.

LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Accounting consists of three basic activities which are related to economic events of an organization. These include

identifying, recording, and communicating

identifying, calculating, and responding

classifying, numbering, and reporting

issuing, reporting, and classifying

LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

All of the following statements are correct except

Good decision-making depends on good information.

A vital element in communicating economic events is the accountant's ability to analyze and interpret reported information.

The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract.

The information that a user of financial information needs depends upon the kinds of decisions the user makes.

Ans: LO2 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following would not be considered an internal user of accounting data for the GHI Company?

President of the company.

Production manager.

Merchandise inventory clerk.

President of the employees' labor union.

Ans: LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following would not be considered an external user of accounting data for the GHI Company?

Internal Revenue Service Agent.

Management.

Creditors.

Customers.

LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following would not be considered internal users of accounting data for a company?

The president of a company.

The controller of a company.

Creditors of a company.

Salesmen of the company.

Ans: LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following is an external user of accounting information?

Labor unions.

Finance directors.

Company officers.

Managers.

LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which one of the following is not an external user of accounting information?

Regulatory agencies.

Customers.

Investors.

All of these are external users.

Ans: LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?

Identification.

Communication.

Recording.

Analysis.

Ans: LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The origins of accounting are generally attributed to the work of

Christopher Columbus.

Abner Doubleday.

Luca Pacioli.

Leonardo da Vinci.

Ans: LO2 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Financial accounting provides economic and financial information for all of the following except

creditors.

investors.

managers.

other external users.

Ans: LO2 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The final step in solving an ethical dilemma is to

identify and analyze the principal elements in the situation.

recognize an ethical situation.

identify the alternatives and weigh the impact of each alternative on stakeholders.

recognize the ethical issues involved.

Ans: LO2 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The first step in solving an ethical dilemma is to

identify and analyze the principal elements in the situation.

identify the alternatives.

recognize an ethical situation and the ethical issues involved.

weigh the impact of each alternative on various stakeholders.

Ans: LO3 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Reporting

Ethics are the standards of conduct by which one's actions are judged as

right or wrong.

honest or dishonest.

fair or unfair.

all of these.

Ans: LO3 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Reporting

All of the following are steps in analyzing ethics cases in financial reporting except

identify and analyze the principle elements in the situation.

contact law enforcement regarding any violations of corporate ethics codes

identify the alternatives and weigh the impact of each alternative on various stakeholders.

recognize an ethical situation and the ethical issues involved.

LO3 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as

convergence

monetary unit assumption

the cost principle

the fair value principle

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Martin Corporation purchased land in 2007 for $290,000. In 2013, it purchased a nearly identical parcel of land for $460,000. In its 2013 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the

cost principle

convergence

economic entity assumption

monetary unit assumption

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Andre Dickinson, owner of Andre's Fine Wines, also owns a personal residence that costs $475,000. The market value of his residence is $625,000. During preparation of the financial statements for Andre's Fine Wines, the accounting concept most relevant to the presentation of Andre's home is

the economic entity assumption.

the fair value principle.

the monetary unit assumption.

convergence.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Generally accepted accounting principles are

income tax regulations of the Internal Revenue Service.

standards that indicate how to report economic events.

theories that are based on physical laws of the universe.

principles that have been proven correct by academic researchers.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The cost principle requires that when assets are acquired, they be recorded at

appraisal value.

cost.

market price.

book value.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The cost of an asset and its fair value are

never the same.

the same when the asset is sold.

irrelevant when the asset is used by the business in its operations.

the same on the date of acquisition.

Ans: LO4 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The body of theory underlying accounting is not based on

physical laws of nature.

concepts.

principles.

definitions.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The private sector organization involved in developing accounting principles is the

Feasible Accounting Standards Body.

Financial Accounting Studies Board.

Financial Accounting Standards Board.

Financial Auditors' Standards Body.

Ans: LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

they are both governmental agencies.

the SEC is a private organization of accountants.

the SEC often mandates guidelines when no accounting principles exist.

the SEC and FASB rarely cooperate in developing accounting standards.

Ans: LO4 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

GAAP stands for

Generally Accepted Auditing Procedures.

Generally Accepted Accounting Principles.

Generally Accepted Auditing Principles.

Generally Accepted Accounting Procedures.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Financial information that is capable of making a difference in a decision is

faithfully representative.

relevant.

convergent.

generally accepted.

LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at

$100 million.

$600 million.

$400 million.

$500 million.

LO4 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The fair value principle is applied for

all assets.

current assets.

buildings.

investment securities.

Ans: LO4 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The proprietorship form of business organization

must have at least three owners in most states.

represents the largest number of businesses in the United States.

combines the records of the business with the personal records of the owner.

is characterized by a legal distinction between the business as an economic unit and the owner.

LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The economic entity assumption requires that the activities

of different entities can be combined if all the entities are corporations.

must be reported to the Securities and Exchange Commission.

of a sole proprietorship cannot be distinguished from the personal economic events of its owners.

of an entity be kept separate from the activities of its owner.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A business organized as a corporation

is not a separate legal entity in most states.

requires that stockholders be personally liable for the debts of the business.

is owned by its stockholders.

terminates when one of its original stockholders dies.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The partnership form of business organization

is a separate legal entity.

is a common form of organization for service-type businesses.

enjoys an unlimited life.

has limited liability.

LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following is not an advantage of the corporate form of business organization?

Limited liability of stockholders

Transferability of ownership

Unlimited personal liability for stockholders

Unlimited life

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A small neighborhood barber shop that is operated by its owner would likely be organized as a

joint venture.

partnership.

corporation.

proprietorship.

Ans: LO5 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

John and Sam met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a

joint venture.

partnership.

corporation.

proprietorship.

LO5 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following is true regarding the corporate form of business organization?

Corporations are the most prevalent form of business organization.

Corporate businesses are generally smaller in size than partnerships and proprietor-ships.

The revenues of corporations are greater than the combined revenues of partnerships and proprietorships.

Corporations are separate legal entities organized exclusively under federal law.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the

stand alone concept.

monetary unit assumption.

corporate form of ownership.

economic entity assumption.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Ted Leo is the proprietor (owner) of Ted's, a retailer of golf apparel. When recording the financial transactions of Ted's, Ted does not record an entry for a car he purchased for personal use. Ted took out a personal loan to pay for the car. What accounting concept guides Ted's behavior in this situation?

Pay back concept

Economic entity assumption

Cash basis concept

Monetary unit assumption

LO5 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A basic assumption of accounting assumes that the dollar is

unrelated to business transactions.

a poor measure of economic activities.

the common unit of measure for all business transactions.

useless in measuring an economic event.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The assumption that the unit of measure remains sufficiently constant over time is part of the

economic entity assumption.

cost principle.

historical cost principle.

monetary unit assumption.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Owners enjoy limited liability in a

proprietorship.

partnership.

corporation.

sole proprietorship.

Ans: LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A problem with the monetary unit assumption is that

the dollar has not been stable over time.

the dollar has been stable over time.

the dollar is a common medium of exchange.

it is impossible to account for international transactions.

LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The common characteristic possessed by all assets is

long life.

great monetary value.

tangible nature.

future economic benefit.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Owner's equity is best depicted by the following:

Assets = Liabilities.

Liabilities + Assets.

Residual equity + Assets.

Assets – Liabilities.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The basic accounting equation may be expressed as

Assets = Equities.

Assets – Liabilities = Stockholders' Equity.

Assets = Liabilities + Stockholders' Equity.

all of these.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Liabilities

are future economic benefits.

are existing debts and obligations.

possess service potential.

are things of value used by the business in its operation.

LO6 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Liabilities of a company would not include

notes payable.

accounts payable.

salaries and wages payable.

cash.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Liabilities of a company are owed to

debtors.

benefactors.

creditors.

underwriters.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stockholders' equity can be described as

creditorship claim on total assets.

ownership claim on total assets.

benefactor's claim on total assets.

debtor claim on total assets.

LO6 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stockholders' equity is often referred to as

residual equity.

leftovers.

spoils.

second equity.

LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

When assets are distributed to the owners of a corporation, these distributions are termed

depletions.

consumptions.

dividends.

a credit line.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A dividend is

a distribution of the company's earnings to its stockholders.

equal to liabilities minus stockholders' equity.

equal to assets minus stockholders' equity.

equal to revenues less expenses

LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Revenues would not result from

sale of merchandise.

issuance of common stock.

performance of services.

rental of property.

LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Sources of increases to stockholder's equity are

additional investments by owners.

purchases of merchandise.

dividends.

expenses.

LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The basic accounting equation cannot be restated as

Assets – Liabilities = Stockholders' Equity.

Assets – Stockholders' Equity = Liabilities.

Stockholders' Equity + Liabilities = Assets.

Assets + Liabilities = Stockholders' Equity.

Ans: LO6 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stockholders' equity is decreased by all of the following except

sales of stock.

net losses.

expenses.

dividends.

LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A net loss will result during a time period when

liabilities exceed assets.

dividends exceed investments.

expenses exceed revenues.

revenues exceed expenses.

Ans: LO6 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities increased by $15,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

$25,000 decrease

$5,000 decrease

$5,000 increase

$25,000 increase

Ans: LO6 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities decreased by $15,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

$25,000 decrease

$5,000 decrease

$5,000 increase

$25,000 increase

LO6 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities decreased by $25,000 and stockholders' equity increased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?

$40,000 decrease

$10,000 decrease

$10,000 increase

$40,000 increase

LO6 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities decreased by $15,000 and stockholders' equity decreased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

$25,000 decrease

$5,000 decrease

$5,000 increase

$25,000 increase

LO6 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities increased by $17,000 during a period of time and stockholders' equity decreased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total assets is a(n)

$23,000 decrease.

$11,000 decrease.

$11,000 increase.

$23,000 increase.

Ans: LO6 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total assets equal $345,000 and total stockholders' equity equal $120,000, then total liabilities must equal

$465,000.

$225,000.

$120,000.

There is not enough information given to determine this.

LO6 BT: k Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following will not cause a change in the stockholders' equity of a business?

An increase in prepaid expenses.

An increase in retained earnings.

The sale of common stock.

The declaration and payment of dividends.

LO6 BT: k Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The amount of stockholders' equity in a business is not affected by

The percentage of total assets held in cash.

Assets consumed in the process of earning revenues.

The profitability of the business.

The amount of dividends declared and paid to stockholders.

LO6 BT: k Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If the transaction causes an asset account to decrease, which of the following related effects may occur?

An increase of equal amount in the common stock account.

An increase in a liability account.

An increase of equal amount in another asset account.

An increase in the combined total of liabilities and stockholders' equity.

Ans: LO6 BT: k Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The accounting equation for Quattro Enterprises is as follows:

Assets Liabilities Stockholders' Equity

$120,000 = $60,000 + $60,000

If Quattro purchases office equipment on account for $15,000, the accounting equation will change to

Assets Liabilties Stockholders' Equity

$120,000 = $60,000 + $60,000

$135,000 = $60,000 + $75,000

$135,000 = $67,500 + $67,500

$135,000 = $75,000 + $60,000

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

As of June 30, 2013, Actual Tigers Company has assets of $100,000 and stockholders' equity of $30,000. What are the liabilities for Actual Tigers Company as of June 30, 2013?

$30,000

$70,000

$100,000

$130,000

LO7 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stockholders' equity is increased by

dividends.

revenues.

expenses.

liabilities.

LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stockholders' equity is decreased by

assets.

revenues.

expenses.

liabilities.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If total liabilities increased by $8,000, then

assets must have decreased by $8,000.

stockholders' equity must have increased by $8,000.

assets must have increased by $8,000, or stockholders' equity must have decreased by $8,000.

assets and stockholders' equity each increased by $4,000.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Collection of a $1,000 Accounts Receivable

increases an asset $1,000; decreases an asset $1,000.

increases an asset $1,000; decreases a liability $1,000.

decreases a liability $1,000; increases stockholders' equity $1,000.

decreases an asset $1,000; decreases a liability $1,000.

LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Revenues are

the cost of assets consumed during the period.

gross increases in stockholders' equity resulting from business activities.

the cost of services used during the period.

actual or expected cash outflows.

LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If an individual asset is increased, then

there must be an equal decrease in a specific liability.

there must be an equal decrease in stockholders' equity.

there must be an equal decrease in another asset.

any of these is possible.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If services are rendered for credit, then

assets will decrease.

liabilities will increase.

stockholders' equity will increase.

liabilities will decrease.

Ans: LO7 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If expenses are paid in cash, then

assets will increase.

liabilities will decrease.

stockholders' equity will increase.

assets will decrease.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If a corporation distributes cash to its stockholders', then

there has been a violation of accounting principles.

stockholders' equity will increase.

stockholders' equity will decrease.

there will be a new liability showing the stockholders owes money to the business.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If supplies that have been purchased are used in the course of business, then

a liability will increase.

an asset will increase.

stockholders' equity will decrease.

stockholders' equity will increase.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

As of December 31, 2013, Calexico Company has assets of $37,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2013?

$17,000.

$20,000.

$37,000.

$57,000.

LO7 BT: AN Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following events is not a business transaction?

Issuance of stock in exchange for cash.

Hired employees.

Incurred utility expenses for the month.

Earned revenue for services provided.

LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Net income results when

Assets > Liabilities.

Revenues = Expenses.

Revenues > Expenses.

Revenues < Expenses.

Ans: LO8 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Retained earnings at the end of the period is equal to

retained earnings at the beginning of the period plus net income minus liabilities.

retained earnings at the beginning of the period plus net income minus dividends.

net income.

assets plus liabilities.

LO8 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A balance sheet shows

revenues, liabilities, and stockholders' equity.

expenses, dividends, and stockholders' equity.

revenues, expenses, and dividends.

assets, liabilities, and stockholders' equity.

Ans: LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

An income statement

summarizes the changes in retained earnings for a specific period of time.

reports the changes in assets, liabilities, and stockholders' equity over a period of time.

reports the assets, liabilities, and stockholders' equity at a specific date.

presents the revenues and expenses for a specific period of time.

Ans: LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

If the retained earnings account increases from the beginning of the year to the end of the year, then

net income is less than dividends.

a net loss is less than dividends.

the company must have sold stock.

net income is greater than dividends.

Ans: LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Mofro’s Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $270,000 in expenses, and Mofro paid dividends of $45,000. Stockholders' equity at the end of the year was

$180,000.

$210,000.

$225,000.

$270,000.

Ans: LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

$90,000.

$135,000.

$180,000.

$225,000.

Ans: LO8 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

$90,000.

$135,000.

$180,000.

$225,000.

LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The balance sheet is frequently referred to as

an operating statement.

the statement of financial position.

the statement of cash flows.

the statement of retained earnings.

LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The primary purpose of the statement of cash flows is to report

a company's investing transactions.

a company's financing transactions.

information about cash receipts and cash payments of a company.

the net increase or decrease in cash.

Ans: LO8 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

All of the financial statements are for a period of time except the

income statement.

retained earnings statement.

balance sheet.

statement of cash flows.

Ans: LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The ending retained earnings amount is shown on

the balance sheet only.

the retained earnings statement only.

both the income statement and the retained earnings statement.

both the balance sheet and the retained earnings statement.

Ans: LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Black Keys Company began the year with stockholders' equity of $185,000. During the year, the company recorded revenues of $250,000, expenses of $190,000, and paid dividends of $20,000. What was Black Keys’ stockholders' equity at the end of the year?

$185,000.

$225,000.

$245,000.

$265,000.

LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $25,000 cash in the business. The company recorded revenues of $185,000, expenses of $140,000, and had paid dividends of $10,000. What was Kennedy's net income for the year?

$35,000.

$45,000.

$55,000.

$60,000.

LO8 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Centro-matic Company began the year with stockholders' equity of $15,000. During the year, Centro-matic issued additional shares of stock in exchange for cash of $21,000, recorded expenses of $60,000, and paid dividends of $4,000. If Centro-matic’s ending stockholders' equity was $56,000, what was the company’s revenue for the year?

$80,000.

$84,000.

$101,000.

$105,000.

LO8 BT: AP Difficulty: Medium TOT: 2.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Barsuk Company began the year with stockholders' equity of $217,000. During the year, Barsuk issued stock for $294,000, recorded expenses of $840,000, and paid dividends of $56,000. If Barsuk’s ending stockholders' equity was $581,000, what was the company’s revenue for the year?

$910,000.

$966,000.

$1,204,000.

$1,260,000.

LO8 BT: AP Difficulty: Medium TOT: 2.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Use the following information for questions 147–148.

Fat Possum’s Service Shop started the year with total assets of $110,000 and total liabilities of $80,000. During the year, the business recorded $210,000 in revenues, $140,000 in expenses, and paid dividends of $20,000.

Stockholders' equity at the end of the year was

$30,000.

$80,000.

$100,000.

$120,000.

LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The net income reported by Fat Possum’s Service Shop for the year was

$50,000.

$70,000.

$80,000.

$90,000.

LO8 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Misra Company compiled the following financial information as of December 31, 2013:

Revenues $170,000

Retained earnings (1/1/13) 30,000

Equipment 40,000

Expenses 125,000

Cash 45,000

Dividends 10,000

Supplies 5,000

Accounts payable 20,000

Accounts receivable 35,000

Common stock 40,000

Misra’s assets on December 31, 2013 are

$90,000.

$125,000.

$180,000.

d $245,000.

LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Misra Company compiled the following financial information as of December 31, 2013:

Revenues $170,000

Retained earnings (1/1/13) 30,000

Equipment 40,000

Expenses 125,000

Cash 45,000

Dividends 10,000

Supplies 5,000

Accounts payable 20,000

Accounts receivable 35,000

Common stock 40,000

Misra’s stockholders' equity on December 31, 2011 is

$45,000.

$70,000.

$105,000.

$125,000.

Ans: LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Teamboo Company’s stockholders' equity at the beginning of August 2013 was $300,000. During the month, the company earned net income of $70,000 and paid dividends of $30,000. At the end of August 2013, what is the amount of stockholders' equity?

$270,000

$300,000

$330,000

$340,000

Ans: LO8 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

On January 1, 2013, Cat Power Company reported stockholders' equity of $470,000. During the year, the company paid dividends of $20,000. At December 31, 2013, the amount of stockholders' equity was $550,000. What amount of net income or net loss would the company report for 2013?

Net loss of $20,000

Net income of $60,000

Net income of $80,000

Net income of $100,000

Ans: LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $10,000 in expenses. Stahl issued stock of $3,000 and paid dividends of $5,000 during the year. The stockholders' equity at the end of the year was

$11,000.

$18,000.

$19,000.

$21,000.

Ans: LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

$1,000.

$4,000.

$6,000.

$9,000.

Ans: LO8 BT: AP Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $10,000 in expenses. Stahl issued stock of $3,000 and paid dividends of $5,000 during the year. Stockholders' equity changed by what amount from the beginning of the year to the end of the year?

$1,000.

$3,000.

$4,000.

$15,000.

Ans: LO8 BT: AP Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

During the year 2013, Dilego Company earned revenues of $45,000, had expenses of $28,000, purchased assets with a cost of $5,000 and paid dividends of $3,000. Net income for the year is

$9,000.

$12,000.

$14,000.

$17,000.

Ans: LO8 BT: AN Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, no stock was issued and the company earned net income of $9,000. If stockholders' equity at October 31 totals $39,000, what amount of dividends were paid during the month?

$4,000

$5,000

$13,000

Ans: LO8 BT: AN Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

At October 1, Arcade Fire Enterprises reported stockholders' equity of $36,000. During October, no stock was issued and the company posted a net loss of $4,000. If stockholders' equity at October 31 totals $32,000, what amount of dividends were paid during the month?

$2,000

$4,000

$8,000

LO8 BT: AN Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, common stock of $2,000 was issued and the company earned net income of $7,000. If stockholders' equity at October 31 totals $40,000, what amount of dividends were paid during the month?

$2,000

$4,000

$5,000

Ans: LO8 BT: AN Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, common stock of $5,000 was issued and the company posted a net loss of $2,000. If stockholders' equity at October 31 totals $35,000, what amount of dividends were paid during the month?

$2,000

$3,000

$5,000

Ans: LO8 BT: AN Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

All of the following are services offered by public accountants except

budgeting.

auditing.

tax planning.

consulting.

LO9 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which list below best describes the major services performed by public accountants?

Bookkeeping, mergers, budgets.

Employee training, auditing, bookkeeping.

Auditing, taxation, management consulting.

Cost accounting, production scheduling, recruiting.

Ans: LO9 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Preparing tax returns and engaging in tax planning is performed by

public accountants only.

private accountants only.

both public and private accountants.

IRS accountants only.

Ans: LO9 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A private accountant can perform many activities in a business organization but would not work in

budgeting.

accounting information systems.

external auditing.

tax accounting.

Ans: LO9 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Which of the following is not part of the accounting process?

Recording

Identifying

Financial decision making

Communicating

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The first part of the accounting process is

communicating.

identifying.

processing.

recording.

LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Keeping a systematic, chronological diary of events that are measured in dollars and cents is called

communicating.

identifying.

processing.

recording.

Ans: LO1 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Auditing is

the examination of financial statements by a CPA in order to express an opinion on their fairness.

a part of accounting that involves only recording of economic events.

an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems.

conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly.

LO2 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Internal users of accounting information include all of the following except

company officers.

investors.

marketing managers.

production supervisors.

LO2 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the

FASB SEC

no no

yes no

no yes

yes yes

Ans: S04 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The primary accounting standard-setting body in the United States is the

Financial Accounting Standards Board.

International Accounting Standards Board.

Internal Revenue Service.

Securities and Exchange Commission.

LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A proprietorship is a business

owned by one person.

owned by two or more persons.

organized as a separate legal entity under state corporation law.

owned by a governmental agency.

LO5 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

A net loss will result during a time period when

assets exceed liabilities.

assets exceed stockholders' equity.

expenses exceed revenues.

revenues exceed expenses.

Ans: LO6 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Bright Eyes Downtown Diner received a bill of $600 from the Jronand Wine

Advertising Agency. The owner, A. A. Bondy, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

a decrease in Cash and an increase in Accounts Payable.

a decrease in Cash and an increase in Retained Earnings.

an increase in Accounts Payable and a decrease in Retained Earnings.

a decrease in Accounts Payable and an increase in Retained Earnings.

Ans: LO7 BT: C Difficulty: Medium TOT: 1.5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Matador Company purchases $1,300 of equipment from Danger Mouse Inc. for cash. The effect on the components of the basic accounting equation of Matador Company is

an increase in assets and liabilities.

a decrease in assets and liabilities.

no change in total assets.

an increase in assets and a decrease in liabilities.

Ans: LO7 BT: C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

Druganaut Company buys a $21,000 van on credit. The transaction will affect the

income statement only.

balance sheet only.

income statement and retained earnings statement only.

income statement, retained earnings statement, and balance sheet.

LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

The financial statement that summarizes the financial position of a company is the

income statement.

balance sheet.

operating statement.

retained earnings statement.

LO8 BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

#ACC 557 Quiz Week 2 – Strayer NEW

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