QUESTION 45
Which of the following options is an example of revenue?

QUESTION 46
Assuming the confidence level remains constant, what happens to the width of the confidence interval as the sample size increases?

QUESTION 47
Company A owns properties that it leases for use as plant and office space. Company A received $120,000 on June 25 from Company B as a lease payment for use of a building for six months beginning July 1. What entry would Company A make on July 31?

QUESTION 48
A government agency is interested in developing the most accurate forecast for the poverty rate in the United States and decides to perform regression analyses using a combination of the following independent variables: the percent of women in the labor force and the percent of the population that is uninsured. The agency collects data from all 50 U.S. states but is unsure whether both variables should be in the model. The agency runs three regressions:
Regression A. Poverty Rate = a + b1*(Percent of women in the labor force) + b2*(Percent uninsured)
Regression B. Poverty Rate = a + b*(Percent of women in the labor force)
Regression C. Poverty Rate = a + b*(Percent uninsured)

The regression statistics for all three regressions are given below. Based on these statistics, which model should the agency use to obtain the MOST accurate forecast?

QUESTION 49
Why would an entrepreneur want to operate a mobile food truck instead of a restaurant?

QUESTION 50
A recent recession greatly reduced income for many people. Which of the following goods likely saw the greatest reduction in willingness to pay (WTP)? (Select all that apply.)

QUESTION 51
During 2013, a company’s prepaid expense decreased by $40,000, while its unearned revenue increased by $60,000. The company reported a pretax income under accrual basis of $250,000 on its 2013 income statement. What is the company’s pretax income under
cash basis of 2013?

QUESTION 52
An individual surveys 15 people under the age of 40 and asks for their current salary. The resulting histogram is shown below.

How many of those surveyed earn less than or equal to $50,000 a year?

QUESTION 53
A weight loss clinic had 1,000 clients last year. The distribution of the changes in clients’ weights is shown below.

Which of the following Excel formulas would correctly calculate the 95% confidence interval for the true average change in weight? Please note that the formula for calculating confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).

QUESTION 54
An individual has an extremely rare item and intends to sell it via an English (open outcry) auction. In which situation should the seller forgo the auction and sell the item for a fixed price?

QUESTION 55
In determining free cash flows, how is the change in net working capital calculated?

QUESTION 56
During a prolonged recession, a hotel chain sees reservations at one of its locations decline by five percent. The chain soon decides to close that location. Why would a small change in capacity utilization have this effect?

QUESTION 57
On an income statement, net sales minus cost of goods sold equals:

QUESTION 58
Accounting standards establish that companies should depreciate a long-lived physical asset, because:

QUESTION 59
A company manager commissions a report to study the relationship between sales volume (in thousands of units) and the number of computers in each of the company’s offices.

When the manager receives the report, however, the p-value for the independent variable is missing. Based on the rest of the regression output, which of the following numbers is the correct p-value?

QUESTION 60
Which of the following figures does an analyst need to calculate from the income statement in order to calculate free cash flows?

QUESTION 61
A manager wants to examine the effect of season (Spring, Summer, Autumn or Winter) and time of the game (Morning, Afternoon or Evening) on the number of television viewers for a National Basketball Association game. How many dummy variables should be included in the multipleregression?