Search Answer Key

Sunday, January 29, 2012

CORRECT ANSWER Week 6 In the USER_CONSTRAINTS view, the value displayed in the CONSTRAINT_TYPE


True/False
Indicate whether the statement is true or false.

____    1.   A character is a basic unit of data and can consist of a number, letter, or special symbol. 

____    2.   Partial dependency can only exist if the data is uniquely identified by a composite primary key. 

____    3.   There are six editions available for Oracle10g. 

____    4.   The DESCRIBE command is used to view data in a table. 
____    5.   The asterisk symbol (*) can be used in a SELECT statement to indicate that all rows in the table should be displayed in the results. 
____    6.   The INTERVAL datatype can be used to identify a specific interval, or amount, of time. 
____    7.   When a column is deleted, the deletion is permanent. 

____    8.   You cannot delete the last column in a table. 

____    9.   The DELETE TABLE command can be used to remove a table from a database.  
____  10.   When two conditions are joined by the AND logical operator, both of the conditions must be evaluated as FALSE to be included in the query results. 
Multiple Choice
Identify the choice that best completes the statement or answers the question.

____  11.   Which of the following usually correlates to a primary key in another table?
a.
transitive dependency
c.
foreign key
b.
composite primary key
d.
partial dependency


____  12.   Which of the following types of constraints is used to enforce referential integrity?
a.
UNIQUE
c.
FOREIGN KEY
b.
REFERS
d.
CHECK


____  13.   In the USER_CONSTRAINTS view, the value displayed in the CONSTRAINT_TYPE column will be a(n) ____ for a CHECK constraint.
a.
C
c.
U
b.
K
d.
R


Structure of the PROMOTION table


____  14.   Which of the following commands will add a UNIQUE constraint to the MINRETAIL column of the PROMOTION table?
a.
ALTER TABLE promotion
ADD CONSTRAINT orderitems_minretail_uk UNIQUE (minretail);
b.
ALTER TABLE promotion
MODIFY UNIQUE (minretail);
c.
ALTER TABLE promotion
ADD UNIQUE minretail;
d.
ALTER TABLE promotion
MODIFY minretail;


____  15.   Which of the following statements about COMMIT and ROLLBACK commands is incorrect?
a.
All DML commands (INSERT, UPDATE, DELETE) are explicitly committed and cannot be rolled back.
b.
All DDL commands (CREATE, TRUNCATE, ALTER TABLE) are explicitly committed and cannot be rolled back.
c.
A ROLLBACK command will reverse all DML operations performed since the last COMMIT was performed.
d.
all of the above


____  16.   Which of the following is a correct statement?
a.
A PUBLIC synonym allows any user to access the specified table.
b.
A PUBLIC synonym can be referenced by any user.
c.
A PUBLIC synonym can only be deleted by the user that created the synonym.
d.
all of the above


____  17.   Which of the following operators would be most appropriate to determine whether or not the retail price of a book is at least $24.00?
a.
LIKE
c.
b.
BETWEEN
d.
>=


____  18.   Which of the following is a valid comparison operator?
a.
!=
c.
^=
b.
IN
d.
all of the above


____  19.   Which of the following search conditions can be used to identify records that do not have data stored in a column named ColB?
a.
ColB = NULL
c.
ColB IS NULL
b.
ColB IS NOT NULL
d.
ColB = ' '


Contents of the ORDERS table


____  20.   Which of the following SQL statements will display all orders contained in the ORDERS table that have been shipped to the customer?
a.
SELECT * FROM orders WHERE shipdate = 'NOT NULL';
b.
SELECT * FROM orders WHERE shipdate = NOT NULL;
c.
SELECT * FROM orders WHERE shipdate IS NULL;
d.
SELECT * FROM orders WHERE shipdate IS NOT NULL;
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CORRECT ANSWERS

(TCO A) The variable portion of advertising costs is a: (Points : 6) 
Conversion YES... Period NO
Conversion YES .... Period YES
Conversion NO.... Period YES 
Conversion NO.... Period NO


2. (TCO A) Fixed costs expressed on a per unit basis: (Points : 6) 
will increase with increases in activity. 
will decrease with increases in activity. 
are not affected by activity. 
should be ignored in making decisions since they cannot change. 


3. (TCO A) Depreciation of office buildings and equipment are also known as: (Points : 6) 
variable costs
conversion costs
product costs
period costs


4. (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? 
Fixed Cost Per Unit Variable Cost Per Unit
(Points : 6) 
Increase No Change
Increase Increase
decrease No Change
No Change Increase


5. (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labor cost a portion of indirect labor. The effect of this misclassification will be to: (Points : 6) 
understate the predetermined overhead rate
overstate the predetermined overhead rate
have no effect on the predetermined overhead rate
cannot be determined from the information given


6. (TCO F) Under a job-order costing system, the product being manufactured: (Points : 6) 
is homogeneous.
passes from one manufacturing department to the next before being completed. 
can be custom manufactured.
has a unit cost that is easy to calculate by dividing total production costs by the units produced.

7. (TCO F) Equivalent units for a process costing system using the FIFO method would be equal to: (Points : 6) 
units completed during the period, plus equivalent units in the ending work in process inventory
units started and completed during the period, plus equivalent units in the ending work in process inventory
units completed during the period and transferred out
units started and completed during the period, plus equivalent units in the ending work in process inventory, plus work needed to complete units in the beginning work in process inventory

8. (TCO B) The contribution margin ratio always decreases when the: (Points : 6) 
break-even point increases
break-even point decreases
variable expenses as a percentage of net sales increase
variable expenses as a percentage of net sales decrease


9. (TCO B) The unit sales needed to attain the target profit is found by: (Points : 6) 
dividing fixed costs by the contribution margin.
adding variable expenses to fixed expenses and dividing the total by the contribution margin.
adding target profit to the fixed expenses and then dividing the total by the unit contribution margin.
adding target profit to the fixed expenses and then dividing the total by the contribution margin.

10. (TCO E) Under variable costing: (Points : 6) 
net operating income will tend to move up and down in response to changes in levels of production
inventory costs will be lower than under absorption costing
net operating income will tend to vary inversely with production changes
net operating income will always be higher than under absorption costing
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CORRECT ANSWERS


1. PDF Corp. needs to replace an old lathe with a new, more efficient model. The old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000. (The old machine is being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs $100,000. It will cost the company $10,000 to get the new lathe to the factory and get it installed. The old machine will be sold as scrap metal for $2,000. The new machine is also being depreciated on a straight-line basis over ten years. Sales are expected to increase by $8,000 per year while operating expenses are expected to decrease by $12,000 per year. PDF's marginal tax rate is 40%. Additional working capital of $3,000 is required to maintain the new machine and higher sales level. The new lathe is expected to be sold for $5,000 at the end of the project's ten-year life. What is the incremental free cash flow during years 2 through 10 of the project?
$13,600
$14,400
$15,800
$16,400

2. Jones Company has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost of debt is 7%, its cost of preferred stock is 11%, its cost of retained earnings is 15%, and its cost of new common stock is 16%. The company stock has a beta of 1.5 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion?
11.20%
12.00%
13.80%
14.45%
3. Welltran Corp. can purchase a new machine for $1,875,000 that will provide an annual net cash flow of $650,000 per year for five years. The machine will be sold for $120,000 after taxes at the end of year five. What is the net present value of the machine if the required rate of return is 13.5%.
$558,378
$513,859
$473,498
$447,292
4. PDF Corp. needs to replace an old lathe with a new, more efficient model. The old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000. (The old machine is being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs $100,000. It will cost the company $10,000 to get the new lathe to the factory and get it installed. The old machine will be sold as scrap metal for $2,000. The new machine is also being depreciated on a straight-line basis over ten years. Sales are expected to increase by $8,000 per year while operating expenses are expected to decrease by $12,000 per year. PDF's marginal tax rate is 40%. Additional working capital of $3,000 is required to maintain the new machine and higher sales level. The new lathe is expected to be sold for $5,000 at the end of the project's ten-year life. What is the project's terminal cash flow?
$3,000
$5,000
$6,000
$8,000
5. Project XYZ requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $70,000. Net working capital requirements are increased by $50,000. What is the total cash outflow at time zero?
$720,000
$650,000
$530,000
$580,000
6. Five Rivers Casino is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Gamblers flotation expense on the new bonds will be $50 per bond. Gamblers marginal tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds?
8.76%
8.12%
7.49%
10.25%
7. The risk free rate of return is 2.5% and the market risk premium is 8%. Penn Trucking has a beta of 2.2 and a standard deviation of returns of 28%. Penn Trucking's marginal tax rate is 35%. Analysts expect Penn Trucking's dividends to grow by 6% per year for the foreseeable future. Using the capital asset pricing model, what is Penn Trucking's cost of retained earnings?
16.4%
17.7%
19.6%
20.1%
8. Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Zellars, Inc.'s required rate of return for these projects is 10%. The profitability index for Project B is:
1.55
1.48
1.39
1.33
9. Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Zellars, Inc.'s required rate of return for these projects is 10%. The internal rate of return for Project B is (Points : 1)
29.74%, 30.79%, 35.27%, or 36.77%
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Saturday, January 28, 2012

ANSWER KEY McCormick Corporation issued a 4-year, $64,000, 5% note to Greenbush Company on

McCormick Corporation issued a 4-year, $64,000, 5% note to Greenbush Company on 
January 1, 2011, and received a computer that normally sells for $50,392. The 
note requires annual interest payments each December 31. The market rate of 
interest for a note of similar risk is 12%. Prepare McCormick's journal entries 
for (a) the January 1 issuance and (b) the December 31 interest.
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ANSWER KEY Below are a number of transactions that took place in Seneca Company during the past year:


Below are a number of transactions that took place in Seneca Company during the past year:
a. Common stock was sold for cash
b. Interest was paid on a note, decreasing Interest Payable
c. Bonds were retired
d. A long-term loan was made to a subsidiary
e. Interest was received on the loan in (d) above, reducing Interest Receivable
f. A stock dividend was declared and issued on common stock
g. A building was acquired by issuing shares of common stock
h. Equipment was sold for cash
i. Short-term investments were sold
j. Cash dividends were declared and paid
k. Preferred stock was converted into common stock
l. Deferred Income Taxes, a long-term liability, was reduced
m. Dividends were received on stock of another company held as an investment
n. Equipment was purchased by giving a long-term note to the seller
Required:
Prepare an answer sheet with the following column headings:
Transaction
Source, Use or Neither
Activity/Operating Investing Financing
Reported in a Seperate Schedule
Not on Statement
*Enter the letter of the transaction in the left column and indicate whether the transaction would be a source, use or neither. Then place an X in the appropriate column to show the proper classification of the transaction on the statement of cash flows, or to show if it would be reported in a seperate schedule or not reported on the statement at all.
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ANSWER KEY Select one even problem from exercises 1 through 10 on page 686. Select one even problem from exercises

Answer the following two questions from “Chapter 12 Supplement” of Mathematics in Our World. Select one even problem from exercises 1 through 10 on page 686. Select one even problem from exercises 11 through 22 on pages 687-688. As you answer the questions above, identify what types of misrepresentation or misuse have been demonstrated by referring to the bold blue headings in the “Chapter 12 Supplement” (e.g., Suspect Samples, Asking Biased Questions, Misleading Graphs, etc.). The assignment must include (a) all math work required to answer the problems as well as (b) introduction and conclusion paragraphs. Your introduction should include three to five sentences of general information about the topic at hand. The body must contain a restatement of the problems and all math work, including the steps and formulas used to solve the problems. Your conclusion must comprise a summary of the problems and the reason you selected a particular method to solve them. It would also be appropriate to include a statement as to what you learned and how you will apply the knowledge gained in this exercise to real-world situations. The assignment must be formatted according the APA (6th edition) style, which includes a title page and reference page.
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A+ CORRECT ANSWERS

1. Which of the following statements is (are) true?
(A). Activity-based costs per unit are greater than volume-based costs per unit.
(B). Volume-based costing has typically resulted in lower gross margins for high volume products and higher gross margins for low volume products. 
a. Only A is true.
b. Only B is true.
c. Both A and B are true.
d. Neither A nor B are true.


2. Before prorating the manufacturing overhead costs at the end of 2008, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2008. During the year, manufacturing overhead costs of $74,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2008. If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be allocated to the Finished Goods Inventory? 
a. $903
b. $1,217
c. $1,283
d. $2,597 



3. Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for material are 
a. beginning inventory this period for this process.
b. units started this period in this process.
c. units started this period in this process plus the beginning inventory.
d. units started this period in this process plus 70% of the beginning inventory this period.


4. The Viva Company had 20,000 units in process on December 31, 2008 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2009. On January 31, 2009, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production for the conversion costs in January, assuming Viva uses first-in, first-out (FIFO)? 
a. 34,000
b. 35,000
c. 36,500
d. 41,500


5. If a company multiplies its predetermined overhead rate by the actual activity level of its allocation base, it is using 
a. standard costing.
b. normal costing.
c. actual costing.
d. budget costing.
e. ideal costing.


6. Which of the following statements regarding first-in, first-out (FIFO) process costing is/are true?
(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.
(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory. 
a. A only.
b. B only.
c. Both A and B.
d. Neither A nor B. 


7. Activity analysis is one of the first stages in implementing an activity-based costing system. Which of the following steps in "activity analysis" is usually performed first? 
a. Classify all activities as value added or nonvalue added.
b. Record, from start to finish, the activities used to complete the product or service.
c. Identify the process objectives that are defined by what the customer wants from the process.
d. Improve the efficiency of all activities and develop plans to eliminate any nonvalue-added activities.


8. Which of the following statements is (are) true regarding product costing?
(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.
(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units. 
a. Only A is true
b. Only B is true.
c. Both A and B are true.
d. Neither A nor B is true.


9. The predetermined overhead rate for manufacturing overhead for 2008 is $4.00 per direct labor hour. Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2008? 
a. $60,000
b. $75,000
c. $80,000
d. $93,750


10. The ALG Manufacturing Company has gathered the following information for the month of September: 
• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs)
• 60,000 units were started into production
• 50,000 units were completed and transferred to the next department
• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

What are the equivalent units of production (EUP) for materials in the month of September assuming ALG uses weighted-average process costing? 
a. 52,000
b. 64,500
c. 66,000
d. 61,500
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