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NEW QUESTION 50
Company A is projecting a 10 percent increase in revenue for the next quarter with no significant changes to their operations. Which of the following accounting elements is the LEAST likely to mirror that increase?

• A. Inventory
• B. Accounts receivable
• C. Cost of goods sold
• D. Capital expenditures

Answer: D

NEW QUESTION 51
A student is interested in which factors affect the U.S. poverty rate and develops a linear regression model. The student uses poverty rate in all 50
U.S. states and Washington D.C. as the dependent variable and wants to relate it to the following variables:
The unemployment rate
The percent of the adult (over 25) population with at least a bachelor's degree
The percent of the population without health insurance
The percent of the adult (over 25) population without a high school diploma or equivalent
The percent of households with children under 18 run by a single mother
The student collects data from each state and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below.

Based on these results, select the independent variables that have a coefficient that is statistically significant at the 5% level. (Select all that apply.)

• A. Percent of Population Uninsured
• B. Bachelor's Degree or Higher
• C. Percent of High School Dropouts
• D. Percent of Single Mother Households
• E. Unemployment Rate

Answer: B,C

NEW QUESTION 52
A recent recession greatly reduced income for many people. Which of the following goods likely saw the greatest reduction in willingness to pay (WTP)? (Select all that apply.)

• A. Computers
• B. Healthcare
• C. Vacations
• D. Charitable donations
• E. Clothing

Answer: C,D

NEW QUESTION 53
Which of the following situations is an example of materiality in accounting?

• A. Company A wants to purchase $100,000 worth of fabric to use in its upholstery business. However, the supplier will not grant credit for a purchase that large, so Company A reduces the order to $20,000.
• B. Company A initiates a relatively small new advertising campaign. Company A decides to include these costs as part of selling, general, and administrative expenses on the income statement rather than disclose them separately.
• C. Company A receives an order from its largest customer, but it is a relatively small order. Company A does not make any entry into the accounts at the time it receives the order.
• D. Company A owns land that it purchased for $100,000 twenty years ago. The land is now appraised at $250,000, but Company A does not adjust the value of the land in its accounts.

Answer: B

NEW QUESTION 54
......

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