1. A company purchased a machine that was installed and placed in service on Jan
ID: 2493717 • Letter: 1
Question
1. A company purchased a machine that was installed and placed in service on January 2, 2004, at a total cost of $120,000. Residual value was estimated at $20,000. The machine is being depreciated over ten years using the straight-line method. After the financial statements are prepared for 2006, the total amount of accumulated depreciation on this machine would be:
a. $10,000
b. $20,000
c. $30,000
d. $90,000
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2. The number of shares of stock a corporation has sold to its stockholders is referred to as the number of shares:
a. issued
b. callable
c. authorized
d. outstanding
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3. Which of the following is an example of a liability?
a. The amount contributed to the business by your partner
b. The obligation to transfer the net assets of the business to its owners
c. Equipment purchased by the business on a long-term payment plan
d. An amount which must be paid to a business that sold you some supplies
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4. The roll of a die has 6 distinct outcomes, {1,2,3,4,5,6}. If the die is fair, what is the probability that the number you get on a given roll of the die will be even?
a. 1/6
b. 1/3
c. ½
d. 0
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5. Demand shows the
a. quantity that buyers will buy at a given price.
b. quantities that buyers will buy at all possible prices.
c. quantity that sellers will sell at a given price.
d. quantities that sellers will sell at all possible prices.
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6. ___________ are financial securities that represent partial ownership of a firm.
a. Treasury bills
b. Bonds
c. Stocks
d. Certificates of deposit
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7. What is outsourcing?
a. Importing a manufactured good made by a foreign firm.
b. Exporting a good or service to buyers in other countries.
c. Foreign workers are hired by a domestic firm to produce something sold domestically.
d. None of these correctly describes outsourcing.
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8. If the federal government’s expenditures are less than its tax revenues, then
a. a budget surplus results.
b. a budget deficit results.
c. the budget is balanced.
d. the government is deficit spending.
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9. ______________ is the least complex form of global corporate expansion.
a. Importing-exporting
b. Licensing
c. franchising
d. foreign direct investment
e. strategic alliances
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10. Marketing discovers consumer needs by
a. Using the marketing program.
b. Using the 4 Ps.
c. Using extensive research.
d. Advertising.
e. Promotion.
Explanation / Answer
Cost 120000 Salvage Value 20000 Valye after Salvage 100000 Depreciation per year 100000/10 10000 Depreciation for 3 years 10000*3 30000 The correct answer is C. $ 30000 2 d. Outstanding 7 Foreign workers are hired by a domestic firm to produce something sold domestically.
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