21.The following statements describing net income are all correct except that ______.% I% c8 X+ ]% n# ?
A.net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheet- d5 J3 K7 [3 m0 A f, Q
B.net income is equal to revenues minus expenses- _) e# j! v" V: E, H1 l# ]
C.net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheet6 a* F2 d# J; h4 X; e [
D.net income can be determined using the account balances appearing in an adjusted trial balance$ t8 ]8 t, l6 E7 v- c0 M" n* S
22.A strong dollar encourages ______.% y2 y9 \ Y, V& @- p( a
A.travel to the United States by foreigners
. `" h2 B$ y+ q2 D B.purchase of American goods by foreigners
9 O: C+ T# |8 {0 m C.Americans to travel abroad4 k& S2 Q" ^ w7 \4 J i
D.Americans to save dollars3 Y% U+ k# A& l& z0 K+ P# n! g
23.In what circumstances would the beneficiary of a confirmed documentary credit not receive payment? ______.3 d" q/ x, ^/ G X! H# h
A.Failure of the applicant
& M/ F( D2 h N: v q* N5 D% \. M B.Failure of the issuing bank9 ?0 x) Q- |2 {; @
C.Failure to fulfil the credit terms
3 y* Z% d1 E* a/ w0 [4 ~8 v D.Failure to fulfil the commercial contract) d1 ?( \1 n- A: P8 v
24.The balance in the owner's capital account of ABC Co.Ltd.at the beginning of the year was $65 000.During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increased by $10 000.At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively ______.$ X! [( E$ Q) k( R2 M
A.$20 000 and $95 000
( V1 i% W$ n5 M$ t& c B.$70 000 and $95 0006 M3 w. O* y5 L* `, p/ n
C.$70 000 and $85 000. s6 |8 Z* U2 V1 h5 }
D.$60 000 and $75 000
8 c9 S- U9 i1 o3 C( c5 D 25.Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent.If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of ______.: `# a6 p4 ]( X" c- u4 r5 O: T5 `
A.3 percent
1 J/ T1 @7 I$ p- |3 v( i: {. H& E B.5 percent' { p3 K( `% A- H+ K/ m$ Y) F
C.7 percent
& Q. d$ |% X+ \ D.13 percent% d1 l0 t+ r( [" J
26.Which statement about portfolio diversification is correct? ______.
! P0 Q7 [) n5 c) T6 @ A.Proper diversification can reduce or eliminate systematic risk! y" x1 T) a% y8 l: e9 `
B.As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate
+ C) |. O U7 n/ y' C% a C.The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolio6 W0 Y; _' r& J! z; q* C) g
D.Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk' R; b: F4 N) V2 K: ]4 H
27.Your customer is the applicant for a documentary credit.Which of the following points would appear to be illogical if they appeared on the application form? ______.
9 t) S# `; p6 D( W# C A.Invoice price shown as FOB, bills of lading to be marked freight paid
1 i( w( T5 ~3 [! I% t B.Last date for shipment one week before expiry date
0 P1 t" |. T% J5 f C.Invoice price shown as C&F, but no insurance document requested2 q( B4 _0 O8 ^5 S- ?+ a1 r8 f
D.No mention of the latest date of shipment
: X+ i8 j9 ?* s9 j/ d3 N( b# Q# \ 28.Portfolio theory as described by Markowitz is most concerned with ______.
6 ^) q) N' H# z% a: @( V A.the effect of diversification on portfolio risk* o' ^6 K; B3 S: e$ k. X( u
B.the elimination of systematic risk" z% B+ c8 Y' R2 D3 t
C.active portfolio management to enhance return2 |! k5 S& X, `
D.the identification of unsystematic risk. D+ F1 p; F6 q( [) u+ F0 h
29.Commercial bank deposits with the central bank are part of the bank's ______.5 M+ L5 w [% y& Z: u) [2 o+ b
A.net worth
$ ~( \! M4 a/ {; l) N B.demand deposits
( D3 L6 z$ k3 n8 f9 ~3 w C.loan portfolio& }% G D; o3 L# w2 @/ @4 s# b
D.reserves
+ @! x3 l" B# v* \ 30.Foreign trade can be conducted on the following terms except for ______.; B" g: I) T# w# Y
A.open account! f. a5 s& k; D" ^& W
B.documentary collection, ]% `$ G! ]$ g, Q: F
C.documentary credits
# R* D4 O6 P0 Y# R D.public bonds |