Semester Exam

Question - 1

Since financial information is communicated in accounting terms, accounting is said to be:

not worth the cost of the system.

private.

the language of business.

the mission of business.

 

Question - 2

A partnership is a business owned by:

one person.

two or more persons.

three or more persons.

stockholders.

 

Question - 3

An increase to which one of the following accounts will decrease owner's equity?

Accounts Payable

Accounts Receivable

Delivery fees revenue

Drawing

 

Question - 4

An example of an asset account is which one of the following?

Advertising expense

Delivery fees revenue

Supplies

Unearned fees revenue

 

Question – 5

Which one of the following steps is not part of the journalizing process?

Enter the date

Enter the debit

Enter the credit

Enter the balance

 

 

Question - 6

When delivery equipment is purchased on account, the transaction to be recorded by the purchaser includes debiting:

Delivery Equipment and crediting Accounts Payable.

Delivery Equipment and crediting Cash.

Delivery Expense and crediting Accounts Payable.

Delivery Expense and crediting Cash.

 

 

Question - 7

The amount of supplies used by the business during an accounting period is a/an __________ to the business.

asset.

expense.

liability.

revenue.

 

Question - 8

If the book value of an asset is $12,300 and the accumulated depreciation is $2,700, the original cost of the asset was __________.

9600

12300

15000

17700

 

Question - 9

In completing the work sheet, what is the reason for adding the net income for the year to the balance sheet credit column total?

Cash is not up-to-date

Owner's drawing is not up-to-date

Owner's equity is not up-to-date

Sales is not up-to-date

 

Question - 10

Owner's equity at the beginning of the accounting period is $38,000. Net income for the period is $40,000. Investments by the owner during the period total $15,000. Withdrawals by the owner during the period total $20,000. The owner's equity at the end of the accounting period is __________.

73000

78000

93000

113000

 

 

Question - 11

Which one of the following was NOT an element of Franklin D. Roosevelt's New Deal?

Relief, recovery, and reform

A massive employment program

A balanced budget

Bank deposit insurance

 

Question - 12

The main reason that the United States' standard of living is so much higher than that of India and China is that the U.S. has more:

land.

labor.

capital.

money.

 

Question - 13

When the price floor is higher than the equilibrium price, there is:

 

a surplus.

a shortage.

both a shortage and a surplus.

neither a shortage nor a surplus.

 

Question - 14

The largest component of Gross Domestic Product (GDP) is:

net exports (Xn).

investment (I).

consumption (C).

government purchases (G).

 

 

Question - 15

Which one of the following is a transfer payment?

The president's salary

Social Security benefits

School teachers' salaries

Provision of national parks

 

Question - 16

GDP is $7 trillion. If consumption (C) is $5 trillion, investment (I) is $2 trillion, and government purchases (G) are $1 trillion; then:

exports exceed imports by $1 trillion.

exports exceed imports by $2 trillion.

imports exceed exports by $2 trillion.

imports exceed exports by $1 trillion.

 

Question - 17

If the nominal interest rate is 8% and prices generally increase 3%, the real rate of interest is __________.

 

0.03

0.04

0.05

0.06

 

Question - 18

Fiscal policy deals with each of the following except:

the money supply.

government spending.

taxation.

the federal budget.

 

Question - 19

If First Interstate Bankcorp has demand deposits of $8 billion, actual reserves of $1.4 billion, and the reserve requirement is 15 percent, the bank's excess reserves are:

 

$100 million.

$200 million.

$400 million.

$800 million.

 

Question - 20

The conventional monetary policy to fight inflation would be to:

 

decrease the rate of monetary growth.

increase the rate of monetary growth and run budget deficits.

run budget deficits.

increase the rate of monetary growth and run budget surpluses

 

Question - 21

Which of the following is NOT demonstrated by a production possibility curve?

 

Scarcity

Opportunity cost

Necessity for choice due to scarcity

Price

 

Question - 22

The market price __________ the equilibrium price.

 

can be higher than, but never lower than

can be lower than, but never higher than

can be higher than, or lower than

is always equal to

 

Question - 23

The poverty line is set:

 

by the U.S. Bureau of the Census (based on family food budgets).

at the same income level right now as it's been since 1982.

so high that over 30% of all Americans are officially poor.

by the United Nations for every country in the world.

 

Question - 24

If a monopolist has a straight-line demand curve, then its marginal revenue curve will:

 

be the same as the demand curve.

fall twice as quickly as the demand curve.

lie below the demand curve at all points.

cross the demand curve.

 

Question - 25

As long as total utility is increasing, we know that marginal utility is:

 

positive.

decreasing.

increasing.

negative.

 

Question - 26

A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:

 

tight global supplies and high prices.

the war in the Middle East.

greed by oil exporting countries.

inflation.

 

Question - 27

In order for real wages to grow:

 

productivity must grow.

productivity must fall.

money wages must grow.

money wages must fall.

 

Question - 28

The substitution effect and the output effect work in the:

 

same direction some of the time.

same direction all of the time.

opposite direction some of the time.

opposite direction all of the time.

 

Question - 29

The law of demand holds for:

 

individuals, but not for markets.

markets, but not for individuals.

both individuals and for markets.

neither individuals nor for markets

 

Question - 30

A firm will maximize its profits or minimize its loss at the output where:

the difference between price and marginal cost is at its maximum.

total cost equals total revenue.

marginal cost equals marginal revenue.

total revenue equals variable cost.

 

Question - 31

Instructions are:

the same as outcomes.

always a list of sequential steps that must be taken in order.

sometimes options that can be applied in any order.

impossible to understand.

 

Question - 32

Plans:

cause people to become too restrained.

cannot be changed.

can only be achieved in one specific way.

do not ensure accomplishment, but they boost the odds of success.

 

 

Question - 33

Many of the memory glitches in everyday life result from failure to concentrate. Which of the following techniques are recommended by the textbook authors for improving attention?

 

Reducing interferences, thinking out loud, and dealing with distraction

Depending on others, asking questions, and remembering names

Limiting groups, watching for negatives, and writing legibly

Creating a plan, writing freely, and sending an e-mail promptly

 

Question - 34

Which of the following are examples of mnemonic devices?

 

Memory traps, remembering names, and using your brain

Creative sentences, the loci system, and the peg system

Reciting, repeating, and writing it down

The scrutinize method, the summarize method, and the restatement method

 

Question - 35

Muscle Reading is a specific three-phase technique for extracting ideas and information from a textbook; the three phases:

 

are seeking new experiences, taking care of your health, and engaging fully.

include developing a routine, considering learning styles, and organizing workspace.

occur before you read, while you read, and after you read.

require using mnemonics, reading quickly, and analyzing mistakes.

 

Question - 36

In preparing successfully before taking an exam, you should:

 

use a piece of scratch paper, apply your predictions, and remember the obvious.

set the stage, watch for clues, and relate the class to your goals.

listen without judgment, check your work for accuracy, and make choices.

manage review time, create review materials, and plan a test-taking strategy.

 

Question - 37

In the critical thinking process, what strategies are parts of the process of seeking out different points of view?

Learning more about yourself, asking other people, and appealing to authority

Defining terms, looking for assertions, and practicing tolerance

Basing arguments on emotion, clarifying your values, and being willing to be uncertain

Using graphic symbols, taking notes, and writing a summary

 

Question - 38

According to the textbook, the four ways to solve problems critically are:

 

ask questions, get answers, create strategies, and select the best strategy.

state the obvious, listen beyond words, clarify your feelings, and go with what your heart tells you.

define the problem, generate possibilities, create a plan, and perform the plan.

observe the situation, eliminate your feelings, clarify your wants, and state your intentions.

 

Question - 39

One problem encountered in the communication process is that:

 

certain things are real because we can see them.

the message sent is not often the message received.

there are no variables in the process.

we need to develop 3X5 cards for all of our communications.

 

Question - 40

The effective writing process includes the phases of:

 

getting ready to write, writing a first draft, and revising the draft.

defining the problem, generating possibilities, and performing the plan.

using the first-step technique, creating visualizations, and practicing.

observing, stepping back to get the big picture, and staying alert.

 

Question - 41

Solve the following equation. Determine whether the equation is an identity, conditional equation, or an inconsistent equation: 7(x - 4) = x + 2

{-7 ,conditional}

{7, Identity}

{5, conditional}

{2, inconsistent equation}

 

Question - 42

Solve the following equation. Determine whether the equation is an identity, conditional equation, or an inconsistent equation: 7x + 13 = 2(2x - 5) + 3x + 23

Ø; conditional equation

Ø; Inconsistent equation

Ø; identity equation

{-1}; Inconsistent equation

 

Question - 43

Determine the value of A so that the line whose equation is Ax + y - 2 = 0 is perpendicular to the line containing the points (1, -3) and (-2, 4).

– 3/7

5/9

–2/5

3/8

 

Question - 44

Find the horizontal asymptote as x --> 8 and then describe what this means in practical terms. F(x) = 150x + 120/0.05x + 1; the number of bass, f(x), after x months in a lake that was stocked with 120 bass.

 

the number of bass, f(x), after y months in a lake that was stocked with 130 bass

the number of bass, f(x), after x months in a lake that was stocked with 120 bass

the number of bass, f(x), after x months in a lake that was stocked with 140 bass

the number of bass, f(x), after x months in a lake that was stocked with 150 bass

 

Question - 45

Solve the following logarithmic equation. Be sure to reject any value of x that is not in the domain of the original logarithmic expressions. Give the exact answer. Then, where necessary, use a calculator to obtain a decimal approximation, to two decimal places, for the solution:

 

{16/2}

{62/3}

{9/3}

{11/5}

 

 

Question - 46

Solve the following system:

 

{(4, -1)}

{(1, -3)}

{(4, -2)}

{(1, -5)}

 

 

Question - 47

Solve the following system of equations using matrices:

{(t, t 1, t)}

{(t, t 0, t)}

{(t, t - 2, t)}

{(t, t - 1, t)}

Question – 48

 

Solve for x only using Cramer's Rule.

 

x = 7

x = 9

x = 2

x = -3

 

Question - 49

For the following ellipses determine location of its foci.

 

foci at (0, 2 + v11), (0, 2 - v11)

foci at (0, 5 + v21), (0, 5 - v21)

foci at (0, 3 + v25), (0, 3 - v25)

foci at (0, 1 + v36), (0, 1 - v36)

 

Question - 50

You are taking a multiple-choice test that has five questions. Each of the questions has three answer choices, with one correct answer per question. If you select one of these three choices for each question and leave nothing blank, in how many ways can you answer the questions?

 

198 ways

290 ways

243 ways

364 ways