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April 21, 2014

Homework Help: Business HELP!!!

Posted by anon on Friday, May 25, 2012 at 3:35am.

This is a 100 question hw sheet and I have answered all but i am unsure about a few please help!!!


8. Which of the following statements about when the Fed increases the reserve requirement
is correct?
A. Interest rates go down.
B. Banks have more money to lend.
C. Inflation tends to go up.
D. Banks have less money to lend.

I said A

9. Gross profit (gross margin) is equal to
A. gross sales minus net sales.
B. operating expenses minus taxes.
C. revenue minus cost of goods sold.
D. cost of goods sold minus operating expenses.

I said D

10. The first public offering of a corporationís stock is called a/an _______, and itís
handled by the _______ market.
A. IPO; primary C. PSO: secondary
B. IPO; secondary D. PSO; primary

I said A

11. The primary function of the Fedís Board of Directors is to
A. supervise banks. C. regulate credit.
B. set monetary policy. D. buy government bonds.

I said C

13. An index fund is a mutual fund that
A. guarantees dividends.
B. offers a minimum return.
C. invests in stocks that follow Moodyís or other rating indexes.
D. invests only in certain kinds of stock, such as those related to transportation.

I said D

14. In referring to the money supply, which of the following can be accessed quickly and
easily and includes coins and paper money as well as checks?
A. M-1 C. M-3
B. M-2 D. e-cash

I said A

15. Daddy Warbucks bought Annie some stock for her birthday. The stock provides a fixed
dividend, and, if the dividend isnít paid when itís due, the missed dividend will accumulate
to be paid later. Daddy bought Annie _______ stock.
A. common C. convertible
B. preferred D. preemptive right

I said B

16. When a European coffee maker becomes less expensive to buy in the United States,
you could probably say that weíre experiencing a _______ dollar.
A. falling C. rising
B. inflated D. stable

I said B

17. Earnings per share, return on sales, and return on equity are all _______ ratios.
A. activity C. liquidity
B. profitability D. debt138

I said C

18. Regarding bonds, which statement is most accurate?
A. Bond holders are creditors, not owners.
B. Bond holdings are nearly always converted to common stock.
C. Bonds are a primary source for a companyís long-term funding.
D. Itís illegal for a firm to offer bonds with a floating dividend rate.

I said B

19. The first step in taking control of your finances is
A. keeping track of all your expenses.
B. preparing a budget.
C. paying off your debts.
D. taking an inventory of your assets.

I said D

20. The first step in the accounting cycle is
A. putting information into journals.
B. preparing a trial balance.
C. analyzing and categorizing documents.
D. posting transactions to ledgers.

I said C

22. A specialized accounting book in which information is posted into specific categories so
managers can find information about one account in the same place is called a
A. ledger. C. trial balance sheet.
B. journal. D. double-entry book.

I said D

23. When planning for your future, an investment in a college education will, above all,
A. provide you with new ideas.
B. give you a chance to learn about different ways of life.
C. improve your earning potential.
D. guarantee a certain desired job.

I said C

24. The type of accounting concerned with providing information and analyses to managers
within the organization is referred to as
A. financial accounting. C. auditing.
B. managerial accounting. D. tax accounting.

I said A

25. With respect to the Federal Reserve, the discount rate is the
A. interest rate charged for loans to member banks.
B. amount of money member banks must keep on hand at the Fed.
C. rate the Fed charges for selling bonds.
D. interest rate banks charge other banks

I said B

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