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NEW QUESTION 47
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?
- A. Aircraft maintenance expense
- B. Income tax expense
- C. Depreciation and amortization expense
- D. Salary expenses for flight crew
Answer: B
NEW QUESTION 48
Which of the following businesses is LEAST likely to locate its stores close to its competitors' stores?
- A. A boutique clothing store which sells expensive but high-quality apparel
- B. A car dealership which sells a different brand of car than its nearby competitors
- C. An ice cream chain which has built strong customer loyalty due to its distinctive flavors
- D. A home goods store which frequently offers sales
Answer: D
NEW QUESTION 49
A researcher wants to know the impact that obesity and universal health care have on the amount a country spends on healthcare as measured by the percentage of gross domestic product (GDP). The researcher collects data from 30 countries on the percentage of the population considered to be obese and whether that country offers universal health care to their citizens. A dummy variable is constructed to measure the latter: the variable is set to equal 1 for countries that offer universal health care and 0 for those that do not. The researcher wishes to set up a regression analysis to measure the effects these two variables have on health care spending. A partial view of the data is shown below.
Based on the available data, what ranges should be entered into the Excel regression dialog box for the dependent and independent variables?
- A. Dependent Variable. B1:C31; Independent Variable. D1:D31
- B. Dependent Variable. C1:D31; Independent Variable. B1:B31
- C. Dependent Variable. B1:B31; Independent Variable. C1:D31
- D. Dependent Variable. A1:A31; Independent Variable. B1:C31
Answer: C
NEW QUESTION 50
Company A owns properties that it leases for use as plant and office space. Company A received $120,000 on June 25 from Company B as a lease payment for use of a building for six months beginning July 1. What entry would Company A make on July 31?
- A. Debit cash for $120,000 and credit deferred revenue for $120,000
- B. Debit deferred revenue for $20,000 and credit rent revenue for $20,000
- C. Debit prepaid rent $100,000 and credit accrued rent $100,000
- D. Debit rent revenue for $20,000 and credit deferred revenue $20,000
Answer: B
NEW QUESTION 51
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