[2023] Use Valid New Free CORe Exam Dumps & Answers [Q85-Q108] : Actual Test Materials : http://blog.actualtests4sure.com

NO.85 Changing accounting assumptions from year to year without having justifiable reasons for the changes is a departure from the accounting principle of:

Verifiability

Conservatism

Historical cost

Consistency

NO.86 A computer software company with market power is about to release two new products. The company knows that there is high variability in consumers’ willingness to pay (WTP) for each individual product, but a customer with a low WTP for one good is likely to have a high WTPfor the other. If the marginal cost of software is $0, what pricing structure is MOST likely to maximize profits for the computer software firm?

Sell each product for a minimal price, since the marginal costs of software are extremely low

Sell each product at consumers’ average willingness to pay

Sell the products together as a bundle

Sell the products at a high price but offer a discount to students

NO.87 A journalist believes that it is possible to predict the number of Winter Olympic medals a country will win by analyzing the country’s gross domestic product (GDP) per capita in the year prior to the Olympics. The journalist collects data on the 26 countries that won medals at the 2010 Winter Olympics and performs a regression analysis. The results for this regression are provided below.

Based on the model’s coefficients, by how many thousands of dollars does GDP per capita in a country need to increase on average in order for the country to win one more Winter Olympic medal?

0.22

0.31

3.25

4.55

NO.88 What is the main difference between the US Generally Accepted Accounting Principles (US GAAP) and the International Financial Reporting Standards (IFRS)?

IFRS is used globally and follows a principles-based approach.

US GAAP follows a principles-based approach.

IFRS is based on a rules-based approach.

IFRS provides fewer accounting choices to companies compared to US GAAP.

NO.89 A researcher wants to predict an individual’s starting monthly salary based on the number of years of education the individual has received.

Based on the Excel output below, what is the predicted starting monthly salary for a person with 17 years of education?

$1,438.71

$3,870.21

$6,032.45

$8,194.69

NO.90 A new technological improvement is invented for the production of coffee. At the same time, the price of tea (a substitute for coffee) decreases, and the price of sugar (a complement to both coffee and tea) increases. What is the known result for the new equilibrium for coffee?

Price increases

Price decreases

Quantity and price both increase

Quantity and price both decrease

NO.91 Which of the following options BEST exemplifies an unbiased question?

What is the best way to reduce inner-city crime?

Should stricter gun control be enforced to reduce inner city crime?

Inner city crime is so high right now; what can be done to reduce it?

Rampant drug use has been shown to be a cause of inner city crime; what can be done to prevent it?

NO.92 A chain of coffee stores recently released a new product priced at $3.00. After a few weeks of sales data, management noticed that the new product sold out in a majority of its stores. Which of the following strategies should management use to determine an ideal price?

Adjust the price for the product until it no longer sells out anywhere

Gradually increase the price until profits begin to fall

Survey customers who recently purchased the product

Maintain current prices and increase supply of the product

NO.93 In a two-sided hypothesis test for a population mean, which of the following statements provides sufficient evidence to reject the null hypothesis at the 5% significance level?

The 95% range around the historical population mean includes the sample mean.

The one-sided p-value is 0.035.

The 95% range around the historical population mean does not include the sample mean.

The sample size is large.

NO.94 A heavily populated town with many gas stations has an average price of $3.25 for a gallon of gasoline. However, one gas station charges $3.60 for a gallon of gasoline and remains very competitive in the market. Which of the following situations could NOT explain this gas station’s success?

The gas station is in a convenient location for its customers.

The gas station entered the market earlier than any of its competitors.

The gas station offers a free car wash if customers purchase 10 or more gallons of gas.

The gas station offers a loyalty program through which customers can earn points toward future purchases.

NO.95 An individual surveys 15 people under the age of 40 and asks for their current salary. The resulting histogram is shown below.

How many of those surveyed earn less than or equal to $50,000 a year?

NO.96 Which of the following items can be found in the “Operating Section” of an indirect method cash flow statement? (Select all that apply.)

Changes in inventory and accounts payable

Purchases of property and equipment

Cash paid in business combination

Issuance of common stock

Depreciation and amortization amounts

NO.97 A high school teacher believes that the poverty rate in each U.S. state can be explained by the percentage of the population who do not have a high school diploma or equivalent. The teacher collects data from each of the 50 U.S. states; a portion of the data is given below.

Which of the following Excel dialog boxes correctly runs the regression described? A)

B)

C)

D)

Option A

Option B

Option C

Option D

NO.98 An organization focused on decreasing HIV in developing countries wishes to investigate the relationship between the prevalence of HIV and various education and economic factors. The organization collects data from 2011 for 98 different countries on the prevalence of HIV, as well as average years of schooling, gross domestic product (GDP) per capita, and health expenditures per capita, which they believe all have an impact on HIV prevalence. Which of the following options correctly runs the regression specified above?
A)

B)

C)

D)

Option A

Option B

Option C

Option D

NO.99 A student conducts a two-sided hypothesis test and is looking for a confidence level of 65%. For which of the p-values below would the student reject the null hypothesis? (Select all that apply.)

0.13

0.27

0.41

0.63

0.72

NO.100 A nutritional study is released that touts the benefits of eating cereal for breakfast. Concurrently, a new type of grain is invented that reduces the input costs in producing cereal. What will happen to the equilibrium price and the quantity consumed of bananas, a complement to breakfast cereal?

The price and quantity consumed of bananas will not change.

Both the price of bananas and the quantity consumed will decrease.

The price of bananas will increase, and the quantity consumed will decrease.

The quantity consumed of bananas will increase, and the effect on price cannot be determined.

NO.101 Company A is a large passenger airline. As part of their annual internal budget process they do a sensitivity analysis of their revenue forecast over their existing routes and schedules. The analysis evaluates the impact of a three percent decline in passenger revenue compared to a three percent increase. Which of the following expenses would show the largest change in the analysis?

Aircraft maintenance expense

Salary expenses for flight crew

Depreciation and amortization expense

Income tax expense

NO.102 Which of the following statements is NOT true regarding Company A? Exhibit:

The solvency of Company A increased in 2013.

The profitability of Company A increased in 2013.

The efficiency in collecting receivables of Company A increased in 2013.

The efficiency in using inventory of Company A increased in 2013.

NO.103 The graph below reflects which of the following situations in the market for apples?

A new disease kills apple trees.

New equipment decreases the costs of harvesting apples.

There is a shortage of apples.

The government introduces a tax on oranges.

NO.104 A technology company normally sees increased revenues for its cell phones when it raises
prices. However, when the company released an updated version of the phone and charged a higher price, revenues fell. What MOST likely happened to the cell phone market?

The price of land line phones increased significantly.

There was an increase in the number of substitute phones.

The price for cell phone plans decreased.

Profits earned by the company’s suppliers rose.

NO.105 A coal burning power plant in upstate New York has been the only provider of power in the region for many years. Recently, a plant that uses wind to create energy was built nearby. The wind plant produces less energy than the coal plant but at a lower cost. Will the coal plant be able to remain competitive in this new market environment?

Yes, if the coal plant sells energy at a price below its marginal cost.

Yes, if the coal plant’s decreased output is still sufficient to recover costs.

No, the coal plant’s customers will switch to the wind powered plant.

No, the coal plant will be forced to cut prices and operate at a loss.

NO.106 Which of the following activities will NOT cause total assets to increase?

Purchasing a piece of equipment for $100,000 on credit

Borrowing $200,000 from a local bank

Raising $200,000 by issuing new shares of common stock

Paying a $300,000 insurance expense for the next three years

NO.107 Which of the following pieces of information can be determined by looking at an income statement?

The increase or decrease in owner’s equity for the accounting period

The change in cash position during the accounting period

The amount of pretax profit or loss during the accounting period

The amount of tax paid during the accounting period

NO.108 Which of the following transactions is presented in the above journal entry?

A sale on credit of fixed assets at a gain

An extraordinary disposal of machinery paid in kind

A sale of fix assets with a loss

A change of depreciation method during the year