ACC 570 - Chapter 11 Questions and answer correct

ACC 570 - Chapter 11 Questions and
answer correct
Most antitrust cases deal with allegations of nationwide monopolies like the US case
against the Microsoft Corp. True/False - answer False

The US Justice Department is the only entity that can bring antitrust cases against a
business. True/False - answer False

A private corporation can sue another corporation for alleged violations of federal
antitrust laws. True/False - answer True

Forensic accountants are often retained in antitrust cases to determine if predatory
pricing is present in a case. True/False - answer True

A company is clearly engaged in predatory pricing if the company experiences a long
period of losses. True/False - answer False

Predatory pricing occurs if a company prices its products or services below its average
variable cost. True/False - answer True

Antitrust cases usually identify some specific geographic area in which the alleged
antitrust activities have occurred. True/False - answer True

The least-square regression line is also called the line of best fit. True/False - answer
True

The standard error of the estimate shows that because actual accounting data are used
in the calculations all regression lines have some mistakes in them. True/False - answer
False

The coefficient of determination has possible values that range from +1 to -1.
True/False - answer False

The coefficient of determination describes the amount of variance that is explained by
the linear relationship between the independent variable and the dependent variable.
True/False - answer True

If the sign of the "b" value in the regression line is negative, then the coefficient of
correlation must be negative as well. True/False - answer True

,If a company is found liable under federal antitrust laws, the damages to the harmed
company in the suit would be equal to the losses that company incurred during the time
period covered by the suit. True/False - answer False

Often local or industry economic conditions are key factors in estimating damages in
antitrust cases. True/False - answer True

Proving fraud under the Federal False Claims Act uses the same standard for fraud as
in any other civil fraud case. True/False - answer False

Qui tam suits allowing individuals to file suit on behalf of the federal government were
actually created during the Civil War and signed into law by President Abraham Lincoln.
True/False - answer True

Sometimes whistle-blowers receive a lot of money for their rule in exposing fraud
against the government. True/False - answer True

Most whistle-blowers become quite wealthy from their act of exposing fraud against
their former employer. True/False - answer False

if fraud is found in Federal Fraudulent Claims Act case, the amount of damages found
may be tripled. True/False - answer True

Federal False Claims Act cases, although interesting, seldom involve many accounting
or cost issues. True/False - answer False

Association and causation are two terms that mean the same thing when used in
connection with regression/correlation analysis. True/False - answer False

Regression/correlation analysis is a very powerful tool in assessing cost behavior
characteristics of accounting information. True/False - answer True

Regression/correlation analysis is a very powerful tool in assessing cost behavior
characteristics of accounting information and whatever results that regression analysis
provides, there is no question it is correct. True/False - answer False

In evaluating a Federal False Claims Act case, the court holds that fraud has been
committed even if it is only "acts in reckless disregard of the truth or falsity of the
information." True/False - answer True

In evaluating a Federal False Claims act case, to prevail the plaintiff in the case must
prove the defedany had "actual knowledge of information" relating to the fraudulent act.
True/False - answer False

The high-low method, although easy to use, has no value in cost data analysis.
True/False - answer False

, The high-low method is a quick and easy method to get some ideas about the possible
cost behavior patters of a set of costs. True/False - answer True

Graphic analysis can be particularly useful in showing attorneys and nonfinancial
managers cost behavior characteristics of selected cost data. True/False - answer
True

If a regression analysis of store operating costs showed an "a" value of $120,000 and a
"b" value of -$0.036, that would indicate that the correlation coefficient was positive.
True/False - answer False

If a regression analysis of store operating costs showed an "a" value of $120,000 and a
"b" value of -$0.036, that would indicate that the correlation coefficient was negative.
True/False - answer True

If a regression analysis of store operating costs showed an "a" value of $120,000 and a
"b" value of -$0.036, that would indicate that the coefficient of determination was
negative. True/False - answer False

If a regression analysis of store operating costs showed an "a" value of $120,000 and a
"b" value of -$0.036, that would indicate that the fixed costs for the store were a positive
$120,000. True/False - answer True

The coefficient of correlation and the coefficient of determination can both be neither
negative or positive. True/False - answer False

The coefficient of correlation can be either positive or negative, but the coefficient of
determination is always positive. True/False - answer True

Simple linear regression is the same things as the high-low method. True/False -
answer False

Simple linear regression involves the use of two variable. True/False - answer True

The Federal False Claims Act is a subset of Federal Antitrust Laws. True/False -
answer False

Federal False Claims Act cases are typically litigated for the US Government by the US
Justice Department. True/False - answer True

Most whistle-blowers get rich from their role in Federal False Claims Act cases.
True/False - answer False

If a company prices its products or services below commonly known industry standards,
the company is engaged in predatory pricing. True/False - answer False