UGBA 10 Spring Exam questions with 100% correct answers graded A+ 2023/2024

UGBA 10 Spring ExamThose accountants who are hired by firms as salaried employees, and who specialize in areas such as financial planning, internal auditing, and taxation are called - correct answer private accountants. Which option A to D arranges the degrees of competition in order of the number of competitors, with the highest number of competitors first? - correct answer Perfect competition > Oligopoly > Monopoly. Which of the following statistics best measures the economic well-being of the average personin the US? - correct answer US GDP per capita What is the term for the first sale of a company's stock or common shares to the public? - correct answer Initial Public Offering All of the following items would be shown on a company balance sheet except? - correct answer expenses What is shown on the income statement? - correct answer revenue and expenses What type of loan is guaranteed by collateral? - correct answer secured loan collateral - correct answer Collateral is an asset or piece of property that a borrower offers to a lender as security for a loan. If the borrower fails to pay the loan, the lender has the right to take the asset used as collateral. Loans that are backed by collateral are secured business loans.A venture capital - correct answer Venture capital is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (not available to public) angel investment - correct answer An angel investment is a form of equity financing-the investor supplies funding in exchange for taking an equity position in the company. (not available to public) Equity financing is normally used by non-established businesses that do not have sufficient cash flow or collateral with which to secure business loans from financial institutions. secondary market - correct answer The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued (describes trading of shares after the Initial public offering ) assets - correct answer an asset is any resource owned by the business. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value is an asset (liabilities + equity) liabilities - correct answer company's legal financial debts or obligations that arise during the course of business operations. (total assets - total stock holder's equity) stock holders equity - correct answer It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued (Total assets - Total liabilities) Profitability - correct answer calculated as Contribution margin minus fixed costs, Which of the following suggestions would not be helpful in enhancing Instadash'sprofitability as measured by net income? - correct answer increasing the average order size Since Instadash does not charge a markup on items, but only a per delivery fee, suggestion d would notincrease profitability. In fact, it would decrease profitability by increasing the time taken per order. What have been the changes in retirement schemes in the last 20-30 years? - correct answer Increasing proportion of defined contribution schemes retirement schemes - correct answer arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment contribution schemes - correct answer are occupational pension schemes where your own contributions and your employer's contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement The Federal Reserve decides to decrease the reserve requirement from 9% to 7%. What is the most likely effect on the M-1 money supply? - correct answer The M-1 Money supply is likely to increase (the money supply increases because banks can lend a higher proportion of their checking deposits (93% instead of 91%) M-1 Money Supply - correct answer includes all currency plus checking accounts and traveler's checks All of the following are characteristics of money except? - correct answer Barterability (Barter is not necessary if money is the medium of exchange.) The current Chairman of the Board of Governors of the Federal Reserve was appointed by President Trump in February 2018. Who is he? - correct answer Jerome Powell At the start of 2017 a company had shareholders equity of $100,000. It recorded $40,000 of net income and paid $20,000 of dividends during 2017. What was the shareholders equity at the end of 2017?(Note: There are no new investments in equity) - correct answer $120,000 Net income increases shareholders equity by adding from retained earnings (aka earned capital). Dividends are deducted from earned capital. If the US dollar buys a high and increasing number of Euros (strong dollar), what is the effect on the business competitiveness of US importers and exporters? - correct answer positive effect on US importer of Euro zone goods negative effect on US exporters to Euro zone buyers (When the value of a country's currency is strong, there is usually a weaker international demand, because the item costs more in the country where it is shipped. However, imports seem cheap because one dollar buys a lot of foreign goods. This encourages consumers to purchase the imports.) The Tools of the Fed (Federal Reserve) include all of the following except - correct answer Control of Fiscal Policy (fiscal policy (taxation and spending) is controlled by Congress. The Fed controls monetary policy)