Business Decision Making
Question Bank
Course Introduction
Business Decision Making explores the processes and tools essential for making effective, evidence-based decisions within organizational settings. The course covers key concepts such as problem identification, data collection and analysis, risk assessment, and the evaluation of alternative solutions. Emphasizing both quantitative and qualitative techniques, students learn how to apply decision-making models, use statistical tools, and interpret financial and market data to support sound managerial choices. Case studies, simulations, and group projects are integrated to provide practical experience in addressing complex business scenarios, fostering critical thinking and strategic insight essential for future business leaders.
Recommended Textbook
Managerial Accounting 16th Edition by Ray
H Garrison
Available Study Resources on Quizplus
31 Chapters
4817 Verified Questions
4817 Flashcards
Source URL: https://quizplus.com/study-set/3111
Page 2
Chapter 1: Managerial Accounting and Cost Concepts
Available Study Resources on Quizplus for this Chatper
299 Verified Questions
299 Flashcards
Source URL: https://quizplus.com/quiz/61678
Sample Questions
Q1) The cost of the raw materials that will be used in manufacturing the computer board is:
A) a sunk cost
B) a fixed cost
C) a period cost
D) a variable cost
Answer: D
Q2) If 5,000 units are sold,the variable cost per unit sold is closest to:
A) $14.60
B) $11.50
C) $9.55
D) $11.55
Answer: B
Q3) The potential benefit that is given up when one alternative is selected over another is called a sunk cost.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Job-Order Costing: Calculating Unit Production Costs
Available Study Resources on Quizplus for this Chatper
292 Verified Questions
292 Flashcards
Source URL: https://quizplus.com/quiz/61675
Sample Questions
Q1) The predetermined overhead rate for the Casting Department is closest to:
A) $9.70 per machine-hour
B) $7.60 per machine-hour
C) $2.10 per machine-hour
D) $27.71 per machine-hour
Answer: A
Q2) The estimated total manufacturing overhead is closest to:
A) $416,003
B) $248,000
C) $664,000
D) $416,000
Answer: C
Q3) Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices.The calculated selling price for Job A is closest to:
A) $51,970
B) $72,758
C) $80,034
D) $20,788
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Job-Order Costing: Cost Flows and External Reporting
Available Study Resources on Quizplus for this Chatper
255 Verified Questions
255 Flashcards
Source URL: https://quizplus.com/quiz/61673
Sample Questions
Q1) The credits to the Work in Process account as a consequence of the raw materials transactions in November total:
A) $78,000
B) $92,000
C) $0
D) $95,000
Answer: C
Q2) The balance in the Finished Goods inventory account at the beginning of the year was:
A) $13,500
B) $36,700
C) $500
D) $13,000
Answer: A
Q3) The cost of goods manufactured for July is:
A) $203,000
B) $215,000
C) $204,000
D) $216,000
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Process Costing
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/61670
Sample Questions
Q1) In a process costing system,manufacturing overhead cost is also called conversion cost.
A)True
B)False
Q2) How many units are in ending work in process inventory in the first processing department at the end of the month?
A) 1,300
B) 900
C) 7,200
D) 700
Q3) In April,one of the processing departments at Terada Corporation had beginning work in process inventory of $21,000 and ending work in process inventory of $27,000.During the month,$244,000 of costs were added to production and the cost of units transferred out from the department was $238,000.In the department's cost reconciliation report for April,the total cost to be accounted for under the weighted-average method would be:
A) $48,000
B) $265,000
C) $530,000
D) $509,000
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/61668
Sample Questions
Q1) If the company sells 4,500 units,its total contribution margin should be closest to:
A) $85,500
B) $24,652
C) $87,400
D) $81,600
Q2) Which of the following statements is correct with regard to a CVP graph?
A) A CVP graph shows the maximum possible profit.
B) A CVP graph shows the break-even point as the intersection of the total sales revenue line and the total expense line.
C) A CVP graph assumes that total expense varies in direct proportion to unit sales.
D) A CVP graph shows the operating leverage as the gap between total sales revenue and total expense at the actual level of sales.
Q3) The company's unit contribution margin is closest to:
A) $4.50 per unit
B) $6.90 per unit
C) $3.60 per unit
D) $4.20 per unit
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Variable Costing and Segment Reporting: Tools for Management
Available Study Resources on Quizplus for this Chatper
291 Verified Questions
291 Flashcards
Source URL: https://quizplus.com/quiz/61666
Sample Questions
Q1) The company's overall break-even sales is closest to:
A) $449,317
B) $134,827
C) $470,663
D) $335,836
Q2) What was the absorption costing net operating income last year?
A) $113,800
B) $88,600
C) $94,400
D) $76,700
Q3) Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:
A) units sold exceed units produced.
B) units sold are less than units produced.
C) units sold equal units produced.
D) the average fixed cost per unit is zero.
Q4) Segmented statements for internal use should not be prepared using the contribution format.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Super-Variable Costing
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/61667
Sample Questions
Q1) Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A) $105 per unit
B) $180 per unit
C) $94 per unit
D) $210 per unit
Q2) The net operating income for the year under super-variable costing is:
A) $799,000
B) $229,000
C) $714,000
D) $1,184,000
Q3) Super-variable costing is most appropriate where:
A) direct labor is a fixed cost.
B) it is easy to accurately separate the variable and fixed components of manufacturing overhead.
C) direct labor is a variable cost.
D) manufacturing overhead consists entirely of variable cost.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Master Budgeting
Available Study Resources on Quizplus for this Chatper
234 Verified Questions
234 Flashcards
Source URL: https://quizplus.com/quiz/61664
Sample Questions
Q1) The estimated direct labor cost for May is closest to:
A) $558,000
B) $33,480
C) $837,000
D) $279,000
Q2) When preparing a direct materials budget,beginning inventory for raw materials should be added to production needs,and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased.
A)True
B)False
Q3) Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month.If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050,then in August the total budgeted cash disbursements for raw materials purchases is closest to:
A) $265,150
B) $153,930
C) $166,830
D) $111,220
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: Flexible Budgets and Performance Analysis
Available Study Resources on Quizplus for this Chatper
417 Verified Questions
417 Flashcards
Source URL: https://quizplus.com/quiz/61663
Sample Questions
Q1) Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame.For the month of June,the company planned for activity of 716 frames,but the actual level of activity was 713 frames.The actual supplies cost for the month was $14,820.The supplies cost in the flexible budget for June would be closest to:
A) $14,820
B) $14,184
C) $14,178
D) $14,238
Q2) The activity variance for selling and administrative expenses in March would be closest to:
A) $600 F
B) $20 U
C) $600 U
D) $20 F
Q3) The facility expenses in the flexible budget for May would be closest to:
A) $19,425
B) $19,600
C) $19,674
D) $19,684
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Standard Costs and Variances
Available Study Resources on Quizplus for this Chatper
247 Verified Questions
247 Flashcards
Source URL: https://quizplus.com/quiz/61660
Sample Questions
Q1) The labor rate variance for August is:
A) $464 F
B) $512 U
C) $464 U
D) $512 F
Q2) The materials quantity variance for April is:
A) $891 U
B) $810 U
C) $891 F
D) $810 F
Q3) If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay,this will result in a favorable labor rate variance.
A)True
B)False
Q4) The variable overhead efficiency variance for the month is closest to:
A) $1,003 U
B) $935 U
C) $1,003 F
D) $935 F
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Measurement in Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/61657
Sample Questions
Q1) If the MCE is equal to 0.6,then 60% of the time a unit is in process is spent on activities that add value to the product.
A)True
B)False
Q2) A manufacturing cycle efficiency (MCE)of less than one is impossible.
A)True
B)False
Q3) If the company pursues the investment opportunity and otherwise performs the same as last year,the combined margin for the entire company will be closest to:
A) 9.9%
B) 1.9%
C) 7.8%
D) 6.3%
Q4) Financial measures tend to be lag indicators that report on the results of past actions.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Differential Analysis: The Key to Decision Making
Available Study Resources on Quizplus for this Chatper
203 Verified Questions
203 Flashcards
Source URL: https://quizplus.com/quiz/61655
Sample Questions
Q1) Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs.Of the fixed costs,$90,000 cannot be avoided.The annual financial advantage (disadvantage)for the company of eliminating this department would be:
A) $10,000
B) ($10,000)
C) $80,000
D) ($80,000)
Q2) If machine hours are the constraint,then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
A) A, B, C
B) B, C, A
C) A, C, B
D) C, A, B
Q3) When a company has a production constraint,the product with the lowest contribution margin per unit of the constrained resource should usually be given highest priority.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Capital Budgeting Decisions
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/61652
Sample Questions
Q1) (Ignore income taxes in this problem.)Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by $79,000 per year and cash operating expenses by $27,000 per year.The equipment would cost $150,000 and have a 6 year life with no salvage value.The annual depreciation would be $25,000.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent.Show your work!
Q2) (Ignore income taxes in this problem.)Orbit Airlines is considering the purchase of a new $275,000 maintenance hangar.The new hangar has an estimated useful life of 5 years with an expected salvage value of $50,000.The new hangar is expected to generate cost savings of $90,000 per year in each of the 5 years.A $20,000 increase in working capital will also be needed for this new hangar.The working capital will be released at the end of the 5 years.Orbit's discount rate is 18%.What is the net present value of the new hangar?
A) $8,280
B) $9,440
C) $17,020
D) $28,280
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/61650
Sample Questions
Q1) In a statement of cash flows,which of the following would be classified as an investing activity?
A) The sale of the company's own common stock for cash.
B) The sale of equipment.
C) Interest paid to a lender.
D) The issuance of bonds payable.
Q2) Beacham Corporation's net cash provided by operating activities was $115; its net income was $95; its capital expenditures were $65; and its cash dividends were $17.The company's free cash flow was:
A) $292
B) $13
C) $33
D) $128
Q3) The net cash provided by (used in)investing activities last year was:
A) $115,000
B) $(115,000)
C) $135,000
D) $(135,000)
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
289 Verified Questions
289 Flashcards
Source URL: https://quizplus.com/quiz/61649
Sample Questions
Q1) The company's gross margin percentage for Year 2 is closest to:
A) 4.9%
B) 61.4%
C) 38.1%
D) 2031.9%
Q2) Rawe Corporation's accounts receivable at the end of Year 2 was $329,000 and its accounts receivable at the end of Year 1 was $280,000.Sales,all on account,amounted to $1,350,000 in Year 2.The company's average collection period for Year 2 is closest to:
A) 1.2 days
B) 1.0 days
C) 82.4 days
D) 89.0 days
Q3) The working capital at the end of Year 2 is:
A) $270
B) $500
C) $770
D) $740
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Cost of Quality
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/61679
Sample Questions
Q1) Which of the following would be classified as an appraisal cost on a quality cost report?
A) Final product testing and inspection.
B) Net cost of spoilage.
C) Repairs and replacements beyond the warranty period.
D) Rework labor and overhead.
Q2) What would be the total internal failure cost appearing on the quality cost report?
A) $119,000
B) $149,000
C) $156,000
D) $140,000
Q3) Which of the following would be classified as a prevention cost on a quality cost report?
A) Technical support provided to suppliers.
B) Net cost of spoilage.
C) Disposal of defective products.
D) Debugging software errors.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Activity-Based Absorption Costing
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/61677
Sample Questions
Q1) The unit product cost of product R78S under the company's traditional costing system is closest to:
A) $36.00
B) $59.83
C) $47.20
D) $59.78
Q2) The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to:
A) $28.78
B) $10.00
C) $63.31
D) $34.53
Q3) In comparing the traditional system with the activity-based costing system,which of Njombe's Models had higher unit product costs under the traditional system?
A) #19
B) #58
C) #19 and #58
D) #36 and #58
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: The Predetermined Overhead Rate and Capacity
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/61676
Sample Questions
Q1) When the predetermined overhead rate is based on the level of activity at capacity,an item called the Cost of Unused Capacity may appear be treated as a period expense on income statements prepared for internal management use.
A)True
B)False
Q2) The manufacturing overhead applied is closest to:
A) $9,900
B) $5,832
C) $7,748
D) $7,452
Q3) If the company bases its predetermined overhead rate on capacity,then the predetermined overhead rate is closest to:
A) $1.54 per machine-hour
B) $1.32 per machine-hour
C) $1.49 per machine-hour
D) $0.99 per machine-hour
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Job-Order Costing: a Microsoft Excel-Based Approach
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/61674
Sample Questions
Q1) In the Excel,or spreadsheet,approach to recording financial transactions,indirect labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.
A)True
B)False
Q2) In the Excel,or spreadsheet,approach to recording financial transactions,cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
A)True
B)False
Q3) In the Excel,or spreadsheet,approach to recording financial transactions,manufacturing overhead applied is recorded as an increase in the Work in Process column and as a decrease in the Manufacturing Overhead column. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: Fifo Method
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/61672
Sample Questions
Q1) The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A) $15.20
B) $18.33
C) $15.96
D) $16.14
Q2) When comparing the two process costing methods for the same company,equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under the weighted-average method.
A)True
B)False
Q3) Using the FIFO method,the equivalent units for conversion for March would be:
A) 66,250
B) 67,000
C) 64,250
D) 67,750
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Service Department Allocations
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/61671
Sample Questions
Q1) The total Corporate Law Department cost after allocations is closest to:
A) $254,137
B) $246,630
C) $254,301
D) $209,149
Q2) Suppose the company uses the direct method of allocation.The amount of Personnel Department cost that would be allocated to Operating Department 2 would be closest to:
A) $0
B) $84,141.50
C) $79,934.43
D) $94,040.50
Q3) The step-down method of cost allocation is more accurate than the direct method because the step-down method takes into account the services that service departments provide to each other.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Analyzing Mixed Costs
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/61669
Sample Questions
Q1) A soft drink bottler incurred the following factory utility cost: $9,246 for 5,200 cases bottled and $8,997 for 4,900 cases bottled.Factory utility cost is a mixed cost containing both fixed and variable components.The variable factory utility cost per case bottled is closest to:
A) $1.81
B) $1.78
C) $1.84
D) $0.83
Q2) What is the company's contribution margin for this year?
A) $315,000
B) $(667,500)
C) $375,000
D) $213,000
Q3) Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to:
A) $1.50
B) $1.25
C) $0.67
D) $1.40
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/61665
Sample Questions
Q1) Time-based activity-based costing does not require extensive interviews with employees to perform stage one allocations.
A)True
B)False
Q2) On the Customer Cost Analysis report in time-driven activity-based costing,the time-driven activity rate for Resolving Problems would be closest to:
A) $11.76 per problem resolved
B) $28.00 per problem resolved
C) $0.42 per problem resolved
D) $1.50 per problem resolved
Q3) On the Customer Cost Analysis report in time-driven activity-based costing,the time-driven activity rate for Routing Calls would be closest to:
A) $0.42 per call routed
B) $6.72 per call routed
C) $3.63 per call routed
D) $16.00 per call routed
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Predetermined Overhead Rates and Overhead
Analysis in a Standard Costing System
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/61662
Sample Questions
Q1) The higher the denominator activity level used to compute the predetermined overhead rate,the higher the predetermined overhead rate.
A)True
B)False
Q2) A fixed manufacturing overhead budget variance occurs as the result of a difference between the denominator level of activity (in hours)and the standard hours allowed for the actual output of the period.
A)True
B)False
Q3) The variable overhead rate variance is:
A) $18,955 F
B) $19,125 F
C) $19,125 U
D) $18,955 U
Q4) The total amount of manufacturing overhead applied is closest to:
A) $484,972
B) $490,504
C) $499,720
D) $505,400
Chapter 25: Standard Cost Systems: a Financial Reporting
Perspective Using Microsoft Excel
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/61661
Sample Questions
Q1) Bialas Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit.During the year,the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the purchase of raw materials is recorded,which of the following entries will be made?
A) ($14,560) in the Materials Quantity Variance column
B) ($14,560) in the Materials Price Variance column
C) $14,560 in the Materials Price Variance column
D) $14,560 in the Materials Quantity Variance column
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Transfer Pricing
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/61659
Sample Questions
Q1) Assume that the Connector Division is selling all of the connectors it can produce to outside customers.What should be the minimum acceptable transfer price for the connectors from the standpoint of the Connector Division?
A) $56 per unit
B) $65 per unit
C) $69 per unit
D) $21 per unit
Q2) What is the total contribution margin on sales to outside customers that the Sensor Division would give up if it were to make the special sensors for the Safety Products Division?
A) $720,000
B) $353,280
C) $220,800
D) $138,000
Q3) Setting transfer prices at full cost can lead to bad decisions because,among other reasons,full cost does not take into account opportunity costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: Service Department Charges
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/61658
Sample Questions
Q1) Which of the following companies is following a policy with respect to the costs of service departments that is not recommended?
A) To charge operating departments with the depreciation of forklifts used at its central warehouse, Shalimar Electronics charges predetermined lump-sum amounts calculated on the basis of the long-term average use of the services provided by the warehouse to the various segments.
B) Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building.
C) Rainier Industrial does not allow its service departments to pass on the costs of their inefficiencies to the operating departments.
D) Golkonda Refinery separately allocates fixed and variable costs incurred by its service departments to its operating departments.
Q2) In service department cost allocations,sales dollars should be used as an allocation base whenever possible.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 28: Pricing Decisions
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/61656
Sample Questions
Q1) From a value-based pricing standpoint what is the differentiation value offered by model IA-05 relative to the competitor's offering for each 2,000 hours of usage?
A) $68,000
B) $60,000
C) $6,000
D) $108,000
Q2) The target costing approach was developed in recognition of two important characteristics of markets and costs.First,many companies have less control over price than they like to think.Second,most of a product's cost is determined when it is designed.
A)True
B)False
Q3) From a value-based pricing standpoint what range of possible prices should Tavis consider when setting a price for FI-73?
A) $187,000 Value-based price $278,000
B) $109,000 Value-based price $187,000
C) $109,000 Value-based price $387,000
D) $278,000 Value-based price $387,000
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: The Concept of Present Value
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/61654
Sample Questions
Q1) (Ignore income taxes in this problem.)A company wants to have $40,000 at the end of a five-year period through investment of a single sum now.How much needs to be invested in order to have the desired sum in five years,if the money can be invested at 10%:
A) $10,551
B) $8,000
C) $24,840
D) $12,882
Q2) The present value of a given future cash flow will decrease as the discount rate decreases.
A)True
B)False
Q3) (Ignore income taxes in this problem.)How much would you have to invest today in the bank at an interest rate of 8% to have an annuity of $4,800 per year for 7 years,with nothing left in the bank at the end of the 7 years? Select the amount below that is closest to your answer.
A) $33,600
B) $2,798
C) $24,989
D) $31,111
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Income Taxes and the Present Value Method
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/61653
Sample Questions
Q1) The total cash flow net of income taxes in year 2 is:
A) $80,000
B) $28,000
C) $102,000
D) $130,000
Q2) The total cash flow net of income taxes in year 2 is:
A) $128,500
B) $160,000
C) $90,000
D) $76,500
Q3) The total cash flow net of income taxes in year 2 is:
A) $80,000
B) $96,000
C) $24,000
D) $120,000
Q4) The net present value of the entire project is closest to:
A) $91,861
B) $157,650
C) $85,271
D) $156,000
To view all questions and flashcards with answers, click on the resource link above. Page 32
Chapter 31: the Direct Method of Determining the Net Cash
Provided by Operating Activities
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/61651
Sample Questions
Q1) The net cash provided by (used in)investing activities would be:
A) $15,000
B) $(10,000)
C) $(8,000)
D) $5,000
Q2) On the statement of cash flows,the income tax expense adjusted to a cash basis would be:
A) $39,000
B) $69,000
C) $9,000
D) $25,000
Q3) The net cash provided by (used in)investing activities for the year was:
A) $19
B) $(118)
C) $(137)
D) $118
To view all questions and flashcards with answers, click on the resource link above. Page 33