[2023] CORe PDF Questions – Perfect Prospect To Go With ActualCollection Practice Exam [Q72-Q95]

QUESTION 72
A company’s 2013 year-end balance sheet included the following:

The company’s net cash from operating activities on its 2013 statement of cash flows is $200,000. Current year depreciation expense is $25,000. What amount should the company report as net income for 2013?

QUESTION 73
The owner of a chain of convenience stores is concerned that store-level marketing expenditures are not increasing its stores’ sales. In addition, the owner believes that an especially cold winter has caused sales to drop. The owner collects data in Dec. 2013 for a random sampling of 50 stores in the Midwestern region of the United States; a portion of this spreadsheet is given below.

In the regression specified above, which cell range belongs in the highlighted region?

QUESTION 74
Why are prices typically higher when a firm has monopoly power than when firms are perfectly competitive?

QUESTION 75
The management of a company is evaluating a potential capital expenditure. They are
using a discount rate of eight percent. They decide to see what the impact would be of changing the discount rate to 10 percent. Which of the following measurements would change?

QUESTION 76
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.)

QUESTION 77
A company had the following trial balance on Dec. 31, 2013:

What is the company’s net income for 2013?

QUESTION 78
A mutual fund manager believes that a new research method will provide better returns for clients. The manager’s historical monthly return prior to the new research method was 0.46%. After the manager began using the new method the monthly return was 0.57%. After running a hypothesis test, the manager saw that the one sided p-value was 0.029. Assuming a 95% confidence level, which of the conclusions below would be correct?

QUESTION 79
Which of the following formulas is used to calculate operating income on the income statement of a manufacturing company?

QUESTION 80
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?

QUESTION 81
A researcher wants to determine the relationship between the number of sea-turtles and the depth of the ocean.

Based on the data below, select the correct columnsfor the Excel regression inputranges.
(Select all that apply.)

QUESTION 82
A grocery store has recently begun selling a new brand of milk for the same price as the brand of milk it already carries. After a few weeks, the grocery store finds that no one is buying the original brand of milk anymore. Which of the following scenarios could explain this situation?

QUESTION 83
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)

QUESTION 84
ABC Furniture Store recently hired a new salesperson and wished to examine how that affected the store’s daily furniture sales. Prior to the new salesperson’s hire, the store averaged $10,000 worth of sales per day with a standard deviation of $1,500. The store’s manager took a random sample of 100 days after the salesperson’s date of hire and found that the store averaged $11,500 worth of sales per day. Which of the following options would correctly calculate the 95% range of likely sample means for this hypothesis test? Note that the Excel function is: =CONFIDENCE.NORM(alpha, standard_dev, size)

QUESTION 85
Which of the following graphs shows a negative relationship between the two variables?
A)

B)

C)

D)

QUESTION 86
A college has recently finished building a new dining hall on campus. School administrators wish to survey students regarding their thoughts on the new dining hall. Which of the options below represents a correct sampling method?

QUESTION 87
A company paid $150,000 of income tax for 2013. During the year, the company recognized $80,000 of interest revenue from municipal bonds. Income from municipal bonds are tax exempt. The company’s net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report as its pretax accounting income for 2013?

QUESTION 88
A company reported pretax financial statement income of $420,000 for Year 1. Taxable income for Year 1 was $300,000 due to a temporary timing difference in depreciation expenses. The income tax rate is 30 percent. In its Year 1 balance sheet, the company should record a deferred tax:

QUESTION 89
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?

QUESTION 90
On Valentine’s Day, the price for a dozen roses typically rises 20 percent. What is the reason behind the increased price?

QUESTION 91
A ski coach is interested in estimating the 68% confidence interval around the mean time (in seconds) of all the gold medal winners in Olympic downhill skiing. The coach collects the data, presented below, for all of the winners from 1948 to 2014. The mean of the sample is 122.5 seconds, with a standard deviation of 23 seconds. Which Excel function below is the BEST option for determining the 68% confidence interval?

Please note that the Excel functions for confidence intervals are =CONFIDENCE.NORM(alpha, standard_dev, size) and =CONFIDENCE.T(alpha, standard_dev, size).

QUESTION 92
Which of the following activities will NOT cause net cash provided by investing activities to increase under US Generally Accepted Accounting Principles (GAAP)?

QUESTION 93
Why are ratios important when comparing different companies within the same industry?

QUESTION 94
What are the items that companies using the International Financial Reporting Standards (IFRS) might place in different sections within the statement of cash flows compared to those reporting under US Generally Accepted Accounting Principles (GAAP)?

QUESTION 95
Which of the following transactions represents an owner’s equity transaction for a company?