Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment AB of the demand curve, the demand is

A) elastic.
B) unit elastic.
C) inelastic.
D) either elastic or inelastic, depending on whether price increases or decreases.

Since the mid-1970s our merchandise balance of trade has been ________ and our services balance of trade has been ______.

Statement I: Sometimes land (as a factor of production) is confused with what is built on it.
Statement II: There is a finite amount of land.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. $$\begin{array}{lccccc}\text{ Number of breakdowns per week }& 0& 1& 2& 3& 4\\ \begin{array}{l}\text{ Frequency (Number of weeks that }\\ \text{ breakdowns occurred) }\end{array}& 8& 3& 5& 9& 5\end{array}$$ What is the expected number of breakdowns per week?

A) 1
B) 2
C) 6
D) 10
E) 30

All the inputs in the Black-Scholes option pricing model are directly observable except

A) the price of the underlying security.
B) the risk-free rate of interest.
C) the time to expiration.
D) the variance of returns of the underlying asset return.

On January 1, 2010, a creditor has a $200, 000 note receivable with an impaired value of $178, 571.43.The contract interest rate is 12%, and the current market rate is 10%.The principal is due on December 31, 2013.Interest payments will only be made on December 31 of 2011, 2012, and 2013.
Required:
a. Prepare the journal entry to record the 2010 interest revenue.
b. Prepare the journal entry to record the 2011 interest revenue and cash received.
c. Prepare the joumal entry to record the 2012 interest revenue and cash received.
d. Prepare the journal entry to record receipt of the final interest and principal.

A job consists of a series of three tasks. Task 1 is performed correctly 98% of the time, task 2 is performed correctly 99% of the time, and task 3 is performed correctly 97% of the time. The reliability of this job is

A) 91.27%.
B) 94.11%.
C) 97.00%.
D) 98.00%.
E) 99.00%.

On January 1, 2010, Leffler, Inc.sold $200, 000 of its convertible bonds at par.Conversion terms allow each $1, 000 bond to be converted into 40 common shares.On April 1, 2012, the company increases the conversion terms to 55 shares per bond if conversion takes place within 180 days.The conversion of all of the bonds took place on May 1, 2012.Fair market values of the common stock were as follows: January 1, $20; April 1, $30; and May 1, $25.The bond conversion expense would be recorded at

A) $ 60, 000
B) $ 75, 000
C) $ 90, 000
D) $105, 000

At expiration, the time value of an in-the-money put option is always

A) equal to zero.
B) negative.
C) positive.
D) equal to the stock price minus the exercise price.
E) None of the options are correct.

In 2010, Tame Co.took advantage of market conditions to refund its outstanding debt.Wild should report the excess of the carrying amount of the old debt over the amount paid to extinguish it as a(n)

A) deferred credit to be amortized over life of new debt
B) part of continuing operations
C) extraordinary item, net of income taxes
D) prior period adjustment

Customer-oriented salespeople are more likely to adopt a solution-centric approach to the sale-one that is better in the end for both the seller and the buyer.

Describe how accounts receivable arise and how they accounted for,including the use of a subsidiary ledger and an allowance account.

A qualified person or organization that has the potential to buy your goods or services is a:

A) suspect.
B) volunteer.
C) lead.
D) partner.
E) prospect.

________ is stealing someone else's words or work.

A) Plagiarism
B) An ethical lapse
C) Distorting the truth
D) An error of omission

A marketing manager should develop segments for a market that meet five principal criteria. List these important factors in forming market segments.

Which conceptual distinction is most relevant to understanding social facilitation?

A) task vs.socioemotional
B) dominant vs.nondominant
C) internal vs.external
D) unitary vs.discretionary

What is the percentage of income received by the upper two quintiles on line L?

Perquisites are special benefits given to executive employees.

Creamery Inc. makes and sells dairy products. Creamery's product packages must include

A) the company owner's identity.
B) the contents' net quantity.
C) the restaurants and stores in which the product is sold.
D) the type of consumer most likely interested in the product.

Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash.Northern Bank charges a 5% factoring fee.What entry should Jervis make to record the transaction?

A) Debit Cash $71,250; debit Factoring Fee Expense $3,750; credit Accounts Receivable $75,000
B) Debit Accounts Receivable $71,250; debit Factoring Fee Expense $3,750; credit Cash $75,000
C) Debit Cash $75,000; credit Factoring Fee Expense $3,750; credit Accounts Receivable $75,000
D) Debit Cash $71,250; credit Accounts Receivable $71,250
E) Debit Accounts Receivable $75,000; credit Factoring Fee Expense $3,750; credit Cash $71,250