Golf Guide is seeking new customers through both direct mail and magazine ads. In a recent period, Golf Guide spent $25,277 on direct mail and spent $34,173 on golf magazine ads. The company gained 548 new customers through its direct mail and gained 805 new customers through its magazine ads. Calculate the overall cost per customer acquired for the combined program of direct mail and magazine ads. (Rounding: nearest penny.)

show step by step how you got the answer.

1- Clever Computers has a five-day work week and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjusting entry will credit Wages Payable for

a.$610.

b.$3,050.

c.$1,220.

d.$2,440.

2-

A month-end review of work performed during the month at an accounting firm for tax clients indicates there are a total of 50 tax returns completed for which customers owe $196 each. They remain unbilled at the end of the period. The adjusting journal entry should include a

a.credit to Cash for $9,800.

b.debit to Cash for $9,800.

c.credit to Tax Preparation Revenue for $9,800.

d.debit to Tax Preparation Revenue for $9,800.

3- The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue.

a.before

b.after

c.at the same time

d.concurrently with

4- Barry Company received $8,000 full payment in advance for services that are 60% complete at the end of the period. The adjusting entry will

a.debit Service Revenue for $4,800 and credit Unearned Revenue for $4,800.

b.debit Unearned Revenue for $4,800 and credit Service Revenue for $4,800.

c.debit Unearned Revenue for $8,000 and credit Service Revenue for $8,000.

d.debit Cash for $4,800 and credit Service Revenue for $4,800.

5- When recording an adjusting entry for a prepaid expense,

a.an asset account is debited.

b.a liability account is debited.

c.an expense account is credited.

d.an asset account is credited.

6-

If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, Rent Revenue and Net Income on the income statement will be

a.understated.

b.overstated.

c.unaffected because these items are not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out.

7-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

8-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

9-

If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be

a.understated.

b.overstated.

c.unaffected because Depreciation Expense is reported on the balance sheet, not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out

10 -

If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry for depreciation on the equipment for $2,500 is omitted at the end of the period, Accumulated Depreciation on the income statement will

a.be understated by $2,500.

b.be overstated by $2,500.

c.be overstated by $10,000.

d.not be impacted because Accumulated Depreciation is reported on the balance sheet.

11-

If an adjustment for $7,500 in accrued revenues is omitted, how will this affect the financial statements?

a.Net income will be understated by $7,500.

b.Net income will be overstated by $7,500.

c.There will be no effect on the financial statements.

d.Accounts Receivable will be overstated by $7,500.

12-

If the following adjusting entry is omitted, what effect will it have on the financial statements?

a.Revenues will be overstated by $1,900.

b.Revenues will be understated by $1,900.

c.There will be no effect on liabilities.

d.There will be no effect on net income.

13-

An adjusting entry debiting Supplies Expense and crediting Supplies is an example of adjusting a(n)

a.prepaid expense.

b.accrued expense.

c.deferred revenue.

d.prepaid revenue.

14-

The adjusted trial balance is prepared

a.to determine the net income or loss.

b.to verify the equality of total debit and credit balances.

c.to determine whether the balance sheet is in balance.

d.for all of these reasons.

15 -

Once the adjusted trial balance is balanced, it can be used to prepare

a.the income statement, the statement of owner's equity, and the classified balance sheet.

b.the classified balance sheet only.

c.the classified balance sheet and the income statement only.

d.None of these financial statements are prepared with the adjusted trial balance.

16 -

The adjusted trial balance

a.does not have a date.

b.is at a specific date.

c.is for a period of time.

d.None of these choices are correct.

Equity Multiplier

Accounts Receivable Days

ROE (in decimal form, not %)

EPS

P/E

Fixed Asset Turnover:

Operating Margin (in decimal form, not %)

Inventory Turnover

Interest Coverage Ratio (TIE)

Quick Ratio

The following are categories of accounts reported in the financial statements:

A.Current Assets                                                E. Long-Term Liabilities

B.Fixed Assets                                                   F. Stockholders’ Equity

C.Intangible Assets                                            G. Revenue

D.Current Liabilities                                           H. Expense

Indicate where each of the following accounts would be reported (classified) in the financial statement categories noted above (categories may be used more than once or not at all). Identify only one category for each account listed below.

_______Retained Earnings                              ________Accounts Receivable

_______Cash                                                    ________Machinery & Equipment

_______Accounts Payable                              ________Subscription Revenue

_______Wages Expense                                  ________Notes Payable, Long-term

2. i. What is total Stockholders’ Equity based on the following account balances?   _____________

          Paid in Capital:

ii.____Treasury stock represents

Cash

The cost of company shares repurchased by the company

A reduction of stockholders’ equity

b and c are both correct

a and c are both correct

____3. The time it takes McDonald’s to purchase beef patties, cook and sell burgers, and collect cash from customers is known as the:

Accy 306 Quiz #3, page 2 of 2

4. The following information has been provided about the restaurant building:              

                        Original Cost              $160,000

                        Residual Value            $    2,000

                        Estimated Life            40 years

                        Depreciation Method = Straight-line

      i. ____The depreciation expense for year 2 equals:

      a. $3,000

      b. $4,000

      c. $3,950

      d. none of the above

ii.       T or F: The building is classified as an Intangible Asset because of its long life and it is held for use in the business. (If false, correct the error.)

_____5. Which of the following is a current liability?

_____ 6. The Notes to the financial statements indicate the types of sales included in the receivables accounts along with the uncollectible amounts balance (Allowance for Doubtful Accounts). If gross receivables are $200,000 and the allowance for doubtful accounts is 25,000, the Balance Sheet will indicate a line item for “Receivables, net” = $175,000.

____The valuation method for receivables is called:

Net realizable value

Lower of cost or net realizable value (LCNRV)

Fair value

Historical cost

Net present value

_____7. Bonds are popular source of financing because:

Financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issue of stock.

A company having cash flow problems can postpone payment of interest to bondholders.

Bond interest expense is deductible for tax purposes, while dividends paid on stock are not.

The bondholders can always convert their bonds into stock if they choose.

None of the above is correct.

Is there a difference between the means of occupancy rates in May and August? Answer your question by calculating an approximate and appropriate symmetric 95% confidence interval using a Z statistic. Explain your findings

1a. Construct (draw) an E-R diagram representing the conceptual design of the database. Be sure to identify primary keys, relationship cardinalities, etc. State any assumptions you make.

1b. Convert your E-R diagram to the relational schema. Identify the primary keys of ever relation.

Consider the following application: An electronics vendor operates both a Web site and a chain of many physical stores. Examples include Best Buy and Circuit City. To find out more about this application, think about any experiences you may have had making purchases both online and in-store of a store like Best Buy (you can browse their website).

In our hypothetical company, it has been decided to redesign a major part of the database that underlies company operations. Unfortunately, the manager assigned to solicit database design proposals is not very computer literate and is unable to provide a very detailed specification at the technical level. Fortunately, you are able to do that.

Here are a few points to consider:

• There are different products, grouped into a variety of (possibly overlapping)

categories. Groupings can be done --> by type of product (cameras, phones, etc.), by manufacturer

(Sony, Apple, etc.), or by other means (for example, a Gateway PC might be packaged

with a Sony monitor and an HP printer and marketed as a package).

• Some customers have a contract with the company and bill their purchases to an account number. They are billed monthly. Other customers are infrequent customers and

pay with a credit or debit card. Card information may be stored for online customers,

but not for in-store customers.

• Online sales must be sent to a shipper. The company needs to store the tracking

number for the shipping company so it can respond to customer inquiries.

• Inventory must be accurate both in stores and in warehouses used to replenish stores

and to ship to online customers. When inventory is low, a reorder should be sent to

the manufacturer and listed in the database. When goods arrive, inventory should be

updated and reorders marked as having been filled.

• Sales data are important for corporate planning. Marketers may want to look at sales

data by time period, product, product grouping, season, region (for stores), etc.

Long term securities (matures over one year) are traded in:

A. demand market B. primary market C. money market D. capital market

A bond with a face value of $1,000 matures in 9 years and has a 7% semiannual coupon. The bond currently is traded at $920. Which of the following statements is CORRECT?

What can we do to understand the change in the fair value of the securities?

Why would it be important to know whether any securities are traded on a foreign exchange?

Recent trends in globalization have forced businesses around the world to more keenly focus on profitability. This trend is also present in Japan, where historical links between banks and businesses have traditionally blurred the goals of firms. For example, the Japanese business engineering firm, Mitsui & Co. Ltd., recently launched “Challenge 21”. A plan directed at helping the company emerge as Japan’s leading business engineering group. According to a spokesperson for the company.” [ This plan permits us to] create new value and maximize profitability by taking steps such as renewing our management framework and prioritizing the allocation of our resources into strategic areas. We are committed to maximizing shareholder value through business conduct that balances the pursuit of earnings with socially responsible behavior.” Ultimately, the goal of any continuing company must be to maximize the value of the firm. This goal is often achieved by trying to hit intermediate targets, such as minimizing costs or increasing market share. If you as a manager- do not maximize your firm’s value over time, you will be in danger of either going out of business, being taken over by other owners (as in a leveraged buyout), or having stockholders elect to replace you and other managers. Source: “Mitsui & Co., Ltd. UK Regulatory Announcement: Final Results.” Business Wire, May 13, 2004.

Questions

1. What is (Challenge 21 ) plan of Mitsui & Co., Ltd.

2. What were the objectives of the management of Mitsui & Co., Ltd

. 3. What are the threats of not maximizing a firm’s value.