Q&A Hero

Q: _______________ % of the variance is explained by this regression.A. 12B. 35C. 4.05D. 80

Q: Gains and losses incurred at liquidation are distributed to the partners using the residual profit and loss sharing ratios because A) using ownership percentages would permit solvent partners to not share profits with insolvent partners. B) the residual profit and loss ratios represent the ownership percentages. C) these amounts represent profits and losses from prior periods that would have been shared using the residual profit and loss ratios. D) using the established profit and loss sharing ratios is not permitted.

Q: The market structure of monopolistic competition exists when A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of differentiated products. D) there are many producers of a homogeneous product.

Q: The characteristic line for this stock is Rstock = ___ + ___ Rmarket.A. .35; .12B. 4.05; 1.32C. 15.44; .97D. 26; 1.36

Q: Which of the following procedures is acceptable when accounting for a deficit balance in a partner's capital account during partnership liquidation, if the partner with a negative capital balance is personally insolvent? A) The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the capital account to zero. B) The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to all the partners. C) The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to those partners having positive balances. D) The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the capital account to the same level of the other partners' capital accounts.

Q: There are 30 firms in an industry. What happens to that industryʹs four -firm concentration when the third- and fourth-largest firms merge?A) Nothing, because their shares are already included in the concentration calculation. B) The industryʹs concentration ratio will fall.C) The industryʹs concentration ratio will increase.D) It is impossible to know without more information.

Q: This stock has greater systematic risk than a stock with a beta of ___.A. .50B. 1.5C. 2D. 3

Q: Which statement is correct in describing the rank order of payments as specified by the Uniform Partnership Act? A) Payments to partners are ranked equally, regardless of underlying basis. B) Payment to partners with excess capital balances may be placed ahead of payments to creditors. C) Payments to creditors other than partners are ranked ahead of payments to partners. D) After payments are made to other creditors and partners with loans to the partnership, payment up to the same amount can be made to partners with capital interests.

Q: For the monopolistically competitive firm, in both the short run and the long run A) the demand curve is inelastic. B) price will exceed marginal cost. C) there will be no economic profit. D) production will be at minimum average cost.

Q: The beta of this stock is ____.A. .12B. .35C. 1.32D. 4.05

Q: The partners of the Minion, Nocti and Overly partnership share profits and losses in the ratio of 6:3:1, respectively. The partners have decided to liquidate and terminate the partnership. Prior to liquidation, the partnership balance sheet was as follows: Cash $ 20,000 Liabilities $ 120,000 Inventory 100,000 Minion, capital 60,000 Fixed assets - net 160,000 Nocti, capital 80,000 Overly, capital 20,000 Total assets $ 280,000 Total equity $ 280,000 Required: Prepare a schedule of liquidation, given that the partnership sold the inventory for $40,000 and the fixed assets for $120,000.

Q: A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit isA) also $10. B) $9.50. C) greater than $10. D) $7.25.

Q: You find that the annual Sharpe ratio for stock A returns is equal to 1.8. For a 3-year holding period, the Sharpe ratio would equal _______. A. 1.8 B. 2.48 C. 3.12 D. 5.49

Q: A cash distribution plan for the Jonah, Krispy, and Lemon partnership was as follows: Priority Creditors Jonah Krispy Lemon First $100,000 100% Next $180,000 44% 10% 46% Next $270,000 2/9 1/9 2/3 Remainder 11% 44% 45% Required: If $700,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Jonah, Krispy, and Lemon?

Q: In a perfectly competitive market, a firm in long-run equilibrium will be operatingA) to the right of the minimum of the long-run average cost curve. B) to the left of the minimum of the long -run average cost curve.C) at the minimum of the long-run average cost curve. D) at the minimum of the marginal cost curve.

Q: Which of the following statements is (are) true regarding time diversification? I. The standard deviation of the average annual rate of return over several years will be smaller than the 1-year standard deviation. II. For a longer time horizon, uncertainty compounds over a greater number of years. III. Time diversification does not reduce risk. A. I only B. II only C. II and III only D. I, II, and III

Q: Eve, Fig, Gus, and Hal are partners who share profits and losses 50%, 25%, 15%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: Debits Credits Cash $ 9,000 Accounts receivable 26,000 Inventory 78,000 Loan to Eve 16,000 Furniture 27,000 Equipment 59,000 Goodwill 10,000 Accounts payable $ 23,000 Note payable 70,000 Loan from Hal 7,000 Eve, capital (50%) 46,000 Fig, capital (25%) 38,000 Gus, capital (15%) 15,000 Hal, capital (10%) 26,000 Totals $ 225,000 $ 225,000 Required: Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.

Q: The perfectly competitive firm maximizes profits whenA) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest.B) it produces and sells the quantity at which marginal revenue and marginal cost are equal. C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest.D) it produces and sells the quantity at which the difference between price and average cost is the greatest.

Q: Which of the following provides the best example of a systematic-risk event? A. A strike by union workers hurts a firm's quarterly earnings. B. Mad Cow disease in Montana hurts local ranchers and buyers of beef. C. The Federal Reserve increases interest rates 50 basis points. D. A senior executive at a firm embezzles $10 million and escapes to South America.

Q: Alf, Bill, Cam, and Dot are partners who share profits and losses 30%, 20%, 35%, and 15%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: Debits Credits Cash $ 6,000 Accounts receivable 20,000 Inventory 50,000 Loan to Bill 8,000 Furniture 30,000 Equipment 36,000 Goodwill 20,000 Accounts payable $ 23,500 Note payable 60,000 Loan from Cam 12,400 Alf, capital (30%) 24,000 Bill, capital (20%) 18,000 Cam, capital (35%) 24,000 Dot, capital (15%) 8,100 Totals $ 170,000 $ 170,000 Required: Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.

Q: Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average variable costs of $50. The firmʹs total fixed costs areA) $50. B) $5,000. C) $150. D) $15,000.

Q: If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the ________. A. stock's standard deviation B. variance of the market C. stock's beta D. covariance with the market index

Q: The partners of Nelatyna Manufacturing have decided to dissolve their partnership as of the end of 2010. The partnership is going to liquidate during the first several months of 2011. The four partners of Nell, Ann, Tyler and Nadine, share profits and losses 35%, 30%, 25%, and 10%, respectively. The partnership trial balance at December 31, 2010 is as follows: Debits Credits Cash $ 60,000 Accounts receivable 150,000 Inventory 115,000 Loan to Tyler 20,000 Furniture 86,000 Equipment 147,000 Goodwill 63,000 Accounts payable $ 140,000 Note payable 200,000 Loan from Nell 30,000 Nell, capital (35%) 110,000 Ann, capital (30%) 60,000 Tyler, capital (25%) 73,000 Nadine, capital (10%) 28,000 Totals $ 641,000 $ 641,000 Required: Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.

Q: The time period during which all factors of production can be varied is theA) production time. B) calendar year.C) long run. D) short run.

Q: Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is _____________. A. 1 B. less than 1 C. between 0 and 1 D. less than or equal to 0

Q: Tye, Ula, Val, and Watt are partners who share profits and losses 40%, 30%, 20%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: Debits Credits Cash $ 3,000 Accounts receivable 19,000 Inventory 25,000 Loan to Val 5,000 Furniture 15,000 Equipment 10,000 Goodwill 12,000 Accounts payable $ 13,600 Note payable 30,000 Loan from Tye 5,000 Tye, capital (40%) 15,000 Ula, capital (30%) 9,000 Val, capital (20%) 12,400 Watt, capital (10%) 4,000 Totals $ 89,000 $ 89,000 Required: Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.

Q: To construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of ________. A. 1 B. .5 C. 0 D. -1

Q: When accounting profits are positive, economic profitsA) must be positive. B) will be negative.C) will equal zero. D) could be positive, negative or zero.

Q: At the end of 2010, the partnership of Piatta, Ragoo, and Sauss was dissolved. By February 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on February 1, 2011 (with partner residual profit and loss sharing percentages) was as follows: Cash $ 220,000 Piatta,capital (20%) $ 20,000 Ragoo, capital (40%) (180,000) Sauss, capital (40%) 380,000 Total assets $ 220,000 Total equity $ 220,000 The value of partners' personal assets and liabilities on February 1, 2011 were as follows: Piatta Ragoo Sauss Personal assets $ 86,000 $ 310,000 $ 210,000 Personal liabilities 79,000 250,000 250,000 Required: Prepare the final statement of partnership liquidation.

Q: Diversification can reduce or eliminate __________ risk. A. all B. systematic C. nonsystematic D. only an insignificant

Q: The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget lineA) shifts outward to the right and the vertical and horizontal intercepts will both rise. B) shifts inward to the left and both intercepts will decline.C) rotates, rising along the vertical axis but falling along the horizontal axis. D) none of the above

Q: The partnership of May, Novem, and Octo was dissolved. By August 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2011 (with partner residual profit and loss sharing percentages) was as follows: Cash $ 100,000 May, capital (30%) $ 8,000 Novem, capital (20%) (120,000) Octo, capital (50%) 212,000 Total assets $ 100,000 Total equity $ 100,000 The value of partners' personal assets and liabilities on August 1, 2011 were as follows: May Novem Octo Personal assets $ 148,000 $ 240,000 $ 112,000 Personal liabilities 144,000 160,000 120,000 Required: Prepare the final statement of partnership liquidation.

Q: The market value weighted-average beta of firms included in the market index will always be _____________. A. 0 B. between 0 and 1 C. 1 D. none of these options (There is no particular rule concerning the average beta of firms included in the market index.)

Q: After consuming what quantity of pizza does the consumer in the table below experience diminishing marginal utility?A) 1 B) 2 C) 3 D) 4

Q: The Justin, Kyle, and Lulu partnership was dissolved by the partners on May 1, 2011. Their balance sheet on that date is shown below: Cash $ 26,000 Liabilities $ 41,000 Other assets 96,000 Loan from Kyle 3,000 Loan to Justin 10,000 Justin,capital (20%) 19,000 Kyle, capital (20%) 26,000 Lulu, capital (60%) 43,000 Total assets $ 132,000 Total liab./equity $ 132,000 In May, other assets with a book value of $46,000 were sold for $50,000 in cash. Required: Determine how the available cash on May 31, 2011 will be distributed.

Q: A security's beta coefficient will be negative if ____________. A. its returns are negatively correlated with market-index returns B. its returns are positively correlated with market-index returns C. its stock price has historically been very stable D. market demand for the firm's shares is very low

Q: If the price of one good increases, and as a result the demand for another related good falls, the goods areA) substitutes. B) normal goods. C) complements. D) inferior goods.

Q: The balance sheet of the Flail, Gail, and Hale partnership on October 1, 2011 (the date of partnership dissolution) was as follows: Cash $ 3,000 Liabilities $ 9,000 Other assets 33,000 Loan from Flail 1,000 Loan to Gail 4,000 Flail,capital (20%) 3,000 Gail, capital (30%) 6,000 Hale, capital (50%) 21,000 Total assets $ 40,000 Total liab./equity $ 40,000 In October, other assets with a book value of $15,000 were sold for $17,000 in cash. Required: Determine how the available cash on October 31, 2011 will be distributed.

Q: The values of beta coefficients of securities are __________. A. always positive B. always negative C. always between positive 1 and negative 1 D. usually positive but are not restricted in any particular way

Q: PricePer Unit Quantity DemandedPer Week$10.00259.50309.00358.50408.00457.50507.00556.50606.00655.50705.0075Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?A) 1.60 B) 1.00 C) 0.65 D) 0.60

Q: The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011. On March 1, the partners prepared the following financial statement before commencement of final liquidation: Cash $ 80,000 Accounts payable $ 125,000 Accounts Receivable 160,000 Notes payable 70,000 Inventory 130,000 Loan from Dogg 5,000 Loan to Catt 10,000 Catt, capital (20%) 130,000 Loan to Eustus 15,000 Dogg, capital (20%) 95,000 Plant assets-net 210,000 Eustus, capital(60%) 180,000 Total assets $ 605,000 Total liab./equity $ 605,000 Liquidation events in March were as follows: - Receivables recorded at $120,000 were collected at $110,000; - Inventory recorded at cost of $80,000 was sold for $60,000; - Plant assets with a book value of $100,000 were sold for $140,000. Required: Determine how the available cash on March 31, 2011 should be distributed.

Q: A stock has a correlation with the market of .45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. What is the stock's beta? A. 1 B. .75 C. .60 D. .55

Q: Private property rights involveA) exclusive rights to use, transfer, and exchange the property.B) exclusive rights to use property, but not to exchange the property.C) rights to enjoy the property in any way desired but not to transfer or exchange the property.D) rights granted by the government for renewable terms of 100 years or more.

Q: You are recalculating the risk of ACE stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. You must also find that the ____________. A. covariance between ACE and the market has fallen B. correlation coefficient between ACE and the market has fallen C. correlation coefficient between ACE and the market has risen D. unsystematic risk of ACE has risen

Q: The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation) was as follows: Cash $ 108,000 Accounts payable $ 56,000 Inventory 120,000 Notes payable 120,000 Loan to Ama 20,000 Ama, capital (30%) 64,000 Loan to Calli 32,000 Bade, capital (50%) 180,000 Plant assets-net 220,000 Calli, capital (20%) 80,000 Total assets $ 500,000 Total liab./equity $ 500,000 Liquidation events in May were as follows: - The inventory was sold for $12,000 below book value; - Plant assets with a book value of $100,000 were sold for $120,000. Required: Determine how the available cash on May 31, 2011 should be distributed.

Q: Which of the following is not a reason for rising health care expenditures in the United States over the last 40 years? A) Aging of the population B) Technological change C) Third-party financing of health care expenditures D) Discovery of new diseases

Q: The Vera, Wade, and Xena partnership was dissolved, and a cash distribution plan was developed, as follows: Priority Creditors Vera Wade Xena First $462,000 100% Next $173,000 60% 40% Next $240,000 7/12 5/12 Remainder 20% 30% 50% Required: If $1,000,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Vera, Wade, and Xena?

Q: The term excess return refers to ______________. A. returns earned illegally by means of insider trading B. the difference between the rate of return earned and the risk-free rate C. the difference between the rate of return earned on a particular security and the rate of return earned on other securities of equivalent risk D. the portion of the return on a security that represents tax liability and therefore cannot be reinvested

Q: Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.

Q: A cash distribution plan for the Sammi, Tammy, and Udd partnership was as follows: Priority Creditors Sammi Tammy Udd First $250,000 100% Next $100,000 70% 30% Next $150,000 11/15 4/15 Remainder 20% 35% 45% Required: If $850,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Sammi, Tammy, and Udd?

Q: You are constructing a scatter plot of excess returns for stock A versus the market index. If the correlation coefficient between stock A and the index is -1, you will find that the points of the scatter diagram ___________ and the line of best fit has a ______________. A. all fall on the line of best fit; positive slope B. all fall on the line of best fit; negative slope C. are widely scattered around the line; positive slope D. are widely scattered around the line; negative slope

Q: A disagreement involving two or more unions over which should have control over a particular firm or industry isA) a closed shop. B) a union shop.C) a jurisdictional dispute. D) an industrial union.

Q: The balance sheet of the Park, Quid, and Reggie partnership on November 1, 2011 (before commencement of partnership liquidation) was as follows: Cash $ 60,000 Accounts payable $ 110,000 Accounts Receivable 130,000 Loan from Quid 40,000 Loan to Park 16,000 Park, capital (20%) 60,000 Loan to Reggie 22,000 Quid, capital (40%) 52,000 Plant assets-net 120,000 Reggie, capital (40%) 86,000 Total assets $ 348,000 Total liab./equity $ 348,000 Liquidation events in November were as follows: - All receivables were settled for $110,000; - Plant assets with a book value of $90,000 were sold for $52,000. Required: Determine how the available cash on November 31, 2011 should be distributed.

Q: According to Tobin's separation property, portfolio choice can be separated into two independent tasks consisting of __________ and __________. A. identifying all investor imposed constraints; identifying the set of securities that conform to the investor's constraints and offer the best risk-return trade-offs B. identifying the investor's degree of risk aversion; choosing securities from industry groups that are consistent with the investor's risk profile C. identifying the optimal risky portfolio; constructing a complete portfolio from T-bills and the optimal risky portfolio based on the investor's degree of risk aversion D. choosing which risky assets an investor prefers according to the investor's risk-aversion level; minimizing the CAL by lending at the risk-free rate

Q: We would expect that a fall in labor supply will have a proportionately smaller effect on the market wage rate whenA) workers can easily be replaced by capital goods.B) the product produced in the industry has very few substitutes. C) the product is produced in a perfectly competitive industry.D) labor represents a relatively small portion of total costs.

Q: Which risk can be partially or fully diversified away as additional securities are added to a portfolio? I. Total risk II. Systematic risk III. Firm-specific risk A. I only B. I and II only C. I, II, and III D. I and III

Q: The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2011 (before commencement of partnership liquidation) was as follows: Cash $ 12,000 Georgia, capital (40%) $ 36,000 Holly, capital (30%) 6,000 Festus, capital (50%) 31,000 Total assets $ 90,000 Total liab./equity $ 90,000 Cash $ 70,000 Accounts payable $ 42,000 Inventory 60,000 Notes payable 68,000 Loan to Maude 10,000 Maude, capital(20%) 30,000 Loan to Oscar 18,000 Ned, capital(20%) 32,000 Plant assets-net 80,000 Oscar, capital(60%) 66,000 Total assets $ 238,000 Total liab./equity $ 238,000 Liquidation events in November were as follows: - All the inventory was sold for $10,000 above book value; - Plant assets with a book value of $60,000 were sold for $34,000. Required: Determine how the available cash on November 31, 2011 should be distributed.

Q: The first antitrust law in the United States was theA) Clayton Act. B) Contestable Markets Act.C) the Federal Trade Commission Act. D) Sherman Antitrust Act.

Q: Stock A has a beta of 1.2, and stock B has a beta of 1. The returns of stock A are ______ sensitive to changes in the market than are the returns of stock B. A. 20% more B. slightly more C. 20% less D. slightly less

Q: The market structure of monopoly exists when A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of differentiated products. D) there are many producers of a homogeneous product.

Q: The balance sheet of the partnership of Jim, Kim, and Larry is shown below as of September 1, 2011. The partners had decided to dissolve the partnership earlier in the year, and all assets were converted into cash and all partnership liabilities were paid. The remains of the partnership (with partner residual profit and loss sharing percentages) was as follows: Cash $ 150,000 Jim, capital (20%) $ (300,000) Kim, capital (40%) (150,000) Larry, capital (40%) 600,000 Total assets $ 150,000 Total liab./equity $ 150,000 The value of partners' personal assets and liabilities on July 1, 2011 were as follows: Jim Kim Larry Personal assets $ 450,000 $ 370,000 $ 400,000 Personal liabilities 200,000 210,000 195,000 Required: Prepare the final statement of partnership liquidation.

Q: The partnership of Georgia, Holly, and Izzy was dissolved, and by July 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2011 (with partner residual profit and loss sharing percentages) was as follows: Cash $ 10,000 Georgia, capital (40%) $ (20,000) Holly, capital (30%) (10,000) Izzy, capital (30%) 40,000 Total assets $ 10,000 Total liab./equity $ 10,000 The value of the partners' personal assets and liabilities on July 1, 2011 were as follows: Georgia Holly Izzy Personal assets $ 45,000 $ 30,000 $ 25,000 Personal liabilities 30,000 20,000 10,000 Required: Prepare the final statement of partnership liquidation.

Q: The part of a stock's return that is systematic is a function of which of the following variables? I. Volatility in excess returns of the stock market II. The sensitivity of the stock's returns to changes in the stock market III. The variance in the stock's returns that is unrelated to the overall stock market A. I only B. I and II only C. II and III only D. I, II, and III

Q: FirmAnnual SalesFirmAnnual SalesA$1000G$800B900H1200C120I1050D75J90E50K75F40L600According to the above table, the eight -firm concentration ratio of this industry isA) 94.5 percent. B) 96.0 percent. C) 92.5 percent. D) 82.5 percent.

Q: The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2011. The balance sheet at that date is shown below: Cash $ 12,000 Liabilities $ 36,000 Other assets 70,000 Loan from Dolla 1,000 Loan to Clara 8,000 Dolla, capital (20%) 6,000 Earl, capital (30%) 16,000 Festus, capital (50%) 31,000 Total assets $ 90,000 Total liab./equity $ 90,000 In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined to be uncollectible. The remaining receivables are still expected to be collected. Required: Determine how the available cash on January 31, 2011 will be distributed. (Use a safe payments schedule.)

Q: Semitool Corp. has an expected excess return of 6% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 1.2. Suppose it turns out that the economy and the stock market do better than expected by 1.5% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 1%. Based on this information, what was Semitool's actual excess return? A. 7% B. 8.5% C. 8.8% D. 9.25%

Q: The demand curve for a monopolistically competitive firm isA) the same as the industry demand curve.B) more elastic than the demand curve of the perfectly competitive firm.C) less elastic than the demand curve of the perfectly competitive firm. D) horizontal.

Q: The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2011 (the date of partnership dissolution) was as follows: Cash $ 4,000 Liabilities $ 8,000 Other assets 26,000 Loan from Addy 1,000 Loan to Clara 2,000 Addy, capital (20%) 2,000 Bess, capital (40%) 9,000 Clara, capital (40%) 12,000 Total assets $ 32,000 Total liab./equity $ 32,000 In January, other assets with a book value of $16,000 were sold for $10,000 in cash. Required: Determine how the available cash on January 31, 2011 will be distributed. (Use a safe payments schedule.)

Q: A measure of the riskiness of an asset held in isolation is ____________. A. beta B. standard deviation C. covariance D. alpha

Q: A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit isA) $10. B) $11. C) greater than $12. D) $4.

Q: An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns on A and B is 0%. The standard deviation of return on the minimum-variance portfolio is _________.A. 0%B. 6%C. 12%D. 17%

Q: Creditors of the partnership may seek the personal assets of the partners to satisfy amounts owed. When this happens A) creditors may only file against partnership assets. B) creditors must file against all partners and recover their claims based on the individual partner's profit and loss distribution percentage. C) creditors must file against all partners and recover their claims based on the individual partner's percentage ownership. D) creditors may file against an individual partner to recover their claims, or against any combination of partners.

Q: When a perfectly competitive firm is in long-run equilibrium, economic profits A) are positive. B) are zero. C) are negative. D) may be positive, zero or negative depending upon costs.

Q: Which partner is considered the most vulnerable as a result of a computation of vulnerability rankings? A) The partner who has the lowest loss absorption potential B) The partner who has the highest loss absorption potential C) The partner with the highest capital account balance D) The partner with the lowest capital account balance

Q: Refer to the above figure. Line C in Panel B does not representA) the equilibrium price. B) average revenue.C) total revenue. D) marginal revenue.

Q: In a schedule of assumed loss absorptions A) the partner with lowest loss absorption is eliminated last. B) it is necessary to have a cash distribution plan first. C) the least vulnerable partner is eliminated first. D) the most vulnerable partner is eliminated first.

Q: Which of the following statements regarding the relationship between average and marginal costs is INCORRECT?A) There is always a definite relationship between average and marginal cost. B) When marginal costs are less than average costs, the latter must fall.C) When marginal costs are greater than average costs, the latter must rise.D) There is no way for average variable costs to fall when marginal costs are falling.

Q: The Leo, Mark and Natalie Partnership had the following capital balances and profit/loss sharing percentages: Balance Sharing % Leo $200,000 50% Mark $160,000 40% Natalie $140,000 10% Newsome is going to buy into the partnership by paying $200,000 for a 20% ownership in the partnership. Required: 1. If Newsome pays the partnership directly, what are the four partner capital balances immediately following Newsome's admission to the partnership using the bonus method? Assume the partnership assets are not revalued. 2. If Newsome pays the partnership directly, what are the four partner capital balances immediately following Newsome's admission to the partnership using the goodwill method? Assume the partnership assets are revalued. The $200,000 amount paid by Newsome is fair value for a 20% share of the partnership.

Q: The time period during at least one input cannot be changed is theA) production time. B) calendar year. C) long run. D) short run.

Q: A summary balance sheet for the Akerly, Baskin, and Crow partnership on December 31, 2011 is shown below. Partners Akerly, Baskin, and Crow allocate profit and loss in their respective ratios of 3:2:1. The partnership agreed to pay partner Baskin $500,000 for his partnership interest upon his retirement from the partnership on January 1, 2012. The partnership financials on January 1, 2012 are: Assets Cash $ 70,000 Marketable securities 190,000 Inventory 360,000 Land 110,000 Building-net 570,000 Total assets $1,300,000 Equities Akerly, capital $630,000 Baskin, capital 420,000 Crow, capital 250,000 Total equities $1,300,000 Required: Prepare the journal entry to reflect Baskin's retirement from the partnership: 1. Assuming a bonus to Baskin. 2. Assuming a revaluation of total partnership capital based on excess payment. 3. Assuming goodwill equal to the excess payment is recorded.