1. Which one of the following statements about accrual accounting is incorrect?

1. Which one of the following statements about accrual accounting is incorrect?
a. It is appropriate for the not-for-profit sector
b. Revenues are not deferred
c. Expenses can be deferred
d. It is not appropriate for larger companies
2. Skywire telecommunications equipment company has invested heavily in the past fiscal year to upgrade its manufacturing equipment so that the company can take advantage of newer and more efficient technology. In Skywire’s year-end income statement, the upgrade expenditure is presented as:
a. Cost of goods sold
b. Operating Expense
c. Depreciation Expense
d. Interest Expense
3. Which one of the following would be recorded as a liability on your company’s balance sheet?
a. Wages paid to the staff at the distribution plant
b. Purchase price of the plant’s forklist trucks
c. The inventory at the plant
d. The company’s working capital
4. Gerry is chief financial officer of Worldwide Semiconductor. In reviewing World wide’s latest cash flow projections, he learns that cash is going to be tight. In seeking ways to revamp operations to improve future cash flow, Gerry asks a senior manager to assemble relevant financial reports and statements. Later, he notices that one of the documents sent to him is not appropriate for his requirements. Which item is not useful to him?
a. Information on a division’s inventory
b. Information on all equipment purchases
c. Profit-and-loss statement
d. Information on stock issues and dividends
5. Geordie is head of operations for a bulk-food and consumer-goods retail company. When he returns to work from a vacation, he wants to acquaint himself with the company’s current financial; position. Which financial statement should Geordie look at?
a. Income Statement
b. Cash flow statement
c. Balance Sheet
d. SWOT analysis
6. James is North American sales director for a warehpuse-style clothing and office-supply retailer. James relies on the fast sales of his limited number of products to maintain his low prices and sustain a healthy cash flow. Which of the following operating ratios is most useful to James?
a. Asset turnover
b. Days inventory
c. Days Payables
d. Quick ratio
7. A retreat of departmental managers to sort out conflicts that arise from competition over limited resources could occur as part of…
a. Bottom-up budgeting
b. SWOT analysis
c. Top-down budgeting
d. Valuation
8. Which of the following scenarios illustrates a best practice for preparing a budget?
a. Derek is research manager for Global Discoveries. In preparing his department’s budget, Derek finds it useful to work in the evening, free of distracting interactions with colleagues.
b. Bonnie has a filed entitles “Budget Diary.” Where she stores paperwork pertaining to her budget deliberations and assumptions
c. Ira plans to boost sales by reducing the retail price to its lowest level ever. Beacause the new price is substantially lower than last year’s, Ira decides not to base his budgetary assumptions and scenario’s on last year’s sales results.
d. In order to develop sound budgetary assumptions and projections, Wolfgang, a senior production manager at Mississauga Advertising, relies on his own extensive industry knowledge rather than depending on input from less experienced workers and subordinates.
9. The facility manager of Grand Auto Manufacturing is considering re-equipping the New Jersey assembly plant. The $90 million cost will produce an annual savings of $15 million over the eight-year expected lifetime of the machines. What is the payback period?
a. Two years
b. Three years
c. Six years
d. Nine years
10. When you evaluate a potential investment you need to get a more realistic picture of the anticipated benefits. Which of the following would you use to calculate the time value of money?
a. Payback period
b. Net present value
c. Return on investment
d. Cost/benefit analysis
11. As chief executive officer of Giant Chemical Corp., Manfred is contemplating acquiring a company that manufactures artificial he art valves and hip joints. To reach his decision, Manfred undertakes a breakeven analysis. Which of the following determinations represents the contribution portion of his analysis?
a. Money that can be used to pay the fixed costs.
b. Costs that are in dependent of product sales
c. Opportunity Cost
d. Variable costs
12. As a financial officer with an aircraft manufacturer, Rob begins tracking the financial performance of a new model of business jet. He notes an increase in equipment failure on the new assembly line in March. When the situation has not improved by June, Rob redirects funds available for other assembly lines towards the new jet’s assembly line. When Rob issues the next quarterly budget in September showing a decrease in expected performance of the new assembly line, senior managers express concerns. What is the likely reason behind senior management’s reaction? Rob failed to…
a. Ascertain whether the line problem was an aberration or a long-term issue.
b. Readjust his budget in light of new information.
c. Communicate with upper management
d. Regularly reassess the budget forecast

The nurse is assigned to see a home-bound client on a daily basis to prepare the client’s medications. The nurse fails to visit the client and does not request that another nurse visit the client. The client is later admitted to the hospital after taking the wrong dosage of medication. Which ethical concept does this situation reflect?

The nurse is assigned to see a home-bound client on a daily basis to prepare the client’s medications. The nurse fails to visit the client and does not request that another nurse visit the client. The client is later admitted to the hospital after taking the wrong dosage of medication. Which ethical concept does this situation reflect?

Dimensions Of Nursing Exam 2

* 1. All of the following are true about the nursing code of ethics except:

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Correct2. The nurse is assigned to see a home-bound client on a daily basis to prepare the client’s medications. The nurse fails to visit the client and does not request that another nurse visit the client. The client is later admitted to the hospital after taking the wrong dosage of medication. Which ethical concept does this situation reflect?

Correct3. A client is held down by the nurse and forced to have a nasogastric tube placed. Which of the following could this represent?

* 4. When applying the nursing process, which of the following should always be addressed first?

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* Correct5. How can most living organisms be classified in general systems theory?

Correct6. Which of the following are the steps to the nursing process? select all that apply

A) Planning

B) Implementation

D) Diagnosis

E) Evaluation

F) Assess

Correct7. What type of tort may occur if a client is not allowed to leave the hospital after receiving emergency care until the bill is paid?

Correct8. Which of the following is the best substitute for self-determination if an individual is no longer competent to make their own health care decisions?

Correct9. Does clinical reasoning and judgment require various ways of thinking in the role of a nurse?

Correct10. A client complains of hip pain and requests pain medication. For the nurse to apply the nursing process, what would the nurse do next?

Correct11. The client’s short term outcome was to walk in the hallway by the end of the day. The nurse reviews the client outcome, determines that it was not met, and modifies the interventions. Which phase of the nursing process is this?

Correct12. Which of the following phases of the nursing process determines client problems, risks, and strengths?

Correct13. What is another term that can be used for professional negligence?

Correct14. An example of invasion of privacy would be:

Correct15. The client must have a treatment requiring an informed consent. Whose role is it to review the proposed treatment and its associated risks with the client?

Correct16. Team building, nurse retention, and patient satisfaction are all benefits of being sensitive to personality types.

* 17. Why is it important for nurses to understand and use a nursing theory or model in practice?

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Correct18. Which of the following theorists authored the Model of Goal Attainment?

Correct19. A client suffered a ruptured appendix and had to have an open appendectomy. She is post-op day 1. She is able to perform many of her activities of daily living independently, such as wash her face, brush her teeth, feed herself, and reposition. However, she requires assistance to care for her indwelling urinary catheter, Jackson-Pratt drain, and change her dressing. Which of the following describes the level of care the nurse provides according to Orem’s self-care model?

Correct20. What are the primary ethical issues involved in genetic research?

Correct21. Which of the following would not be appropriate to chart?

Correct22. Identify the four concepts that are common in most nursing theories.

Correct23. You are teaching a group of senior citizens about the importance of getting their influenza and pneumonia vaccines. What type of intervention are you providing based on Neuman’s Health Care Systems Model?

Correct24. Upon what ethical principle do supporters of assisted suicide base their support for the practice?

Correct25. Which of the following does not describe critical thinking in nursing?

Correct26. Which professional nursing organization wrote the Code of Ethics for Nurses?

Correct27. This theorist states that even though you may be a novice now, with a solid educational base and many patient care experiences over time, you will one day become an expert.

* 28. A 16-year-old boy brought to the emergency room with a gunshot wound to the head is declared brain dead. His driver’s license identifies him as an organ donor, but the hospital staff is unable to locate his family for permission to take his organs. Another client in the same hospital will die within 24 hours without a heart transplant. The tissues of both clients match sufficiently for a transplant. What is the ethical course of action in this case?

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DCorrect29. Identify the situation in which a nurse would likely be charged with negligence.

Correct30. Which situation is the nurse allowed to breech a client’s right of confidentiality?

Correct31. Critical thinking can also be referred to as common sense.

Correct32. The requirement that health-care providers do no harm to their clients is known as:

Correct33. Identify the statement that is most accurate concerning middle range nursing theories.

Correct34. Which of the following is the appropriate order in Benner’s stages of knowledge?

Correct35. The nurse is caring for a client who is a kinesthetic learner. How would the nurse best approach teaching the client how to self-inject insulin before discharge?

Correct36. What is the practice of allowing a client to die without the use of any extraordinary measures?

Correct37. A 9-month-old baby who is developmentally delayed is tested for genetic abnormalities. After the results are back from the laboratory, a representative from the client’s medical insurance company calls the nurses’ station on the phone and asks for the results of the tests. How can the nurse best respond to this request?

Correct38. What study advice would you provide to a visual learner?

Correct39. The ethical principle which requires the health-care provider to tell the truth and not to deceive or mislead clients is known as:

Correct40. Under which category are nursing licensure laws included?

Correct41. What is the underlying legal concept that protects health-care professionals under the Good Samaritan Act?

Correct42. A client complains of pain to the nurse. The nurse medicates the client as prescribed, but then fails to follow up and make sure the patient is no longer in pain. Which of the following ethical principles has the nurse failed to demonstrate?

Correct43. Which of the following demonstrates the planning phase of the nursing process?

Correct44. A nurse is providing a back rub to a client just after administering a pain medication to help decrease the client’s pain. Which phase of the nursing process is this nurse demonstrating?

Correct45. An 18 -month-old infant is brought into the emergency room with several recent cigarette burns on his chest and legs. What is the nurse’s legal responsibility in this case?

Correct46. Which of the following “rights” are based on a moral principle?

Correct47. A client is in a coma and unable to make health-care decisions. Who should sign the informed consent for a non-emergent, scheduled surgery?

Correct48. The processes used in ethical decision making include all of the following except:

Correct49. Theory can be defined in nursing as which of the following?

Correct50. The term tort refers to a violation of the civil law

When a company is trying to decide on investing in the company (capital improvements) why is it important for a company to create pro-forma income statements, balance sheets etc.

When a company is trying to decide on investing in the company (capital improvements) why is it important for a company to create pro-forma income statements, balance sheets etc.

2. When making the minimum payment, how much more interest do you pay when the interest rate is 18% rather than 13%?

2. When making the minimum payment, how much more interest do you pay when the interest rate is 18% rather than 13%?

3. In the fixed rate example, how much would you save by doubling the fixed payment to $100 a month instead of $50 per month?

4. Assume you have a friend who is making the minimum monthly payments on a credit card. Your friend asks your thoughts on what he is doing. Based on these calculations and what you have learned, how would you advise your friend about making only minimum payments? Your response should be at least 100 words.

5. Calculate the cost of credit using the following formulas. Show your calculations.

Simple Interest: You borrow $2,000 for car repairs. The interest rate is 5%, and you will pay it in full one year later.

Simple Interest on the Declining Balance: You borrow $2,000 for car repairs. The interest rate is 5% and you will make two equal payments over a year (for example, half in January, and half in July)

Answer each of the following questions in 50-100 words each:

6. Grayson just received his credit card statement. He noticed a charge for $40 to a store he has never patronized. What steps should he take to handle this?

7. List the advantages and disadvantages of using credit. Provide at least two of each.

1. Which of the following is an ideal criteria for the methods used to evaluate a capital investment project?

1.

Which of the following is an ideal criteria for the methods used to evaluate a capital investment project?

All cash flows should be included, which might consist of opportunity costs, sunk costs, and cannibalization costs.

The method must account for the success of previous projects

The method should set required risk to be constant for all projects that will be considered

The method should consider the timing of the project’s cash flows

None of the above

2.

Some company is considering a project with an initial cost of $46,000. The project will produce cash inflows of $18,000 a year for the first 2 years and $19,000 a year for the following 2 years. What is the net present value if the discount rate is 14%?

$7,713.87

$53,713.87

$99,713.87

$28,000.00

3.

The Net Present Value is a measure of:

How much value is added to the firm as a result of undertaking the project.

Which projects should be accepted and rejected.

The value of a project to the firm.

All of the above.

4.

What is the profitability index of the following stream of cash flows if the discount rate is 11%?

Year 0

Year 1

Year 2

Year 3

Year 4

-$21.4 Million

$7.8 Million

$8.1 million

$7.1 million

$6.4 million

1.05

1.01

0.99

1.03

1.08

5.

The net present value of a project is smaller when:

The required rate is lower

Cash inflows are pushed farther into the future

The initial outlay is decreased

None of the above

6.

Use the following information on Project Michelle to answer the question.

Initial Outlay

Year 1

Year 2

Year 3

Year 4

Year 5

$50 million

$10 million

$20 million

$20 million

$10 million

$5 million

The required rate of return is 15%.What is the internal rate of return of the Project Michelle?

5.50%

30.00%

11.25%

10.50%

7.

The decision rule for using the NPV states that when the NPV is greater than ______________ the project should be accepted.

The initial outlay

Zero

The IRR

One

None of the above

8.

Which of the statements correctly identifies the disadvantages of the payback period method?

The payback period does not identify the varying levels of risk in a project

The payback period does not account for the timing of the project’s cash flows

The payback period does not account for the varying levels of risk in a project

All of the above

None of the above

9.

What is the payback period for the following stream of cash flows if the discount rate is 16%?

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

-$102.4M

$37.4M

$33.1M

$28.4M

$24.9M

$17.1M

$15.9M

2.84 years

3.05 years

2.96 years

3.55 years

3.14 years

10.

Internal rate of return is calculated by:

Finding the discount rate that forces the NPV of the project to zero.

Adjusting the initial outlay of the project so that it is equal to the discounted cash flows.

Adjusting the inflows until the NPV is zero.

None of the above.

1. A preferred stock pays a dividend of $3.50 in perpetuity. If the return required by shareholders is 11%, then the price per share for this preferred stock is?

1.

A preferred stock pays a dividend of $3.50 in perpetuity. If the return required by shareholders is 11%, then the price per share for this preferred stock is

$35.08.

$31.82.

$38.50.

$41.21.

none of the above

2.

If a company called Fin201 Inc. went out of business and was liquidated, which of the following is the correct order that the following stakeholders and owners would be paid? (paid first, paid second, paid third)

common stock, debt holders, preferred stock

TAs, Professor Cardell, students, bugs, dirt

preferred stock, debt holders, common stock

debt holders, preferred stock, common stock

3.

If a company skips a dividend payment to preferred shareholders, then the company

must pay the dividend to common shareholders.

must repurchase shares from both common and preferred shareholders.

cannot pay any dividends to common shareholders until the preferred dividend is paid.

all of the above

none of the above

4.

A firm just issued new shares of preferred stock that will pay a dividend of $4.60. If the return required by shareholders is 10%, then the price of the preferred stock is

$5.06.

$0.46.

$74.54.

$460.00.

$46.00.

5.

Which of the following securities is considered a hybrid security?

common stock

preferred stock

bond

annuity

none of the above

6.

Some Co. is planning to pay a dividend of $5.60 in the next year and expects to grow the dividend at a constant rate of 4% per year, indefinitely. If the required rate of return by shareholders is 13%, then the price of this stock should be

$43.10.

$52.66.

$63.72.

$67.10.

none of the above

7.

Which of the following securities represents ownership in the firm?

annuity

bond

preferred stock

all of the above

none of the above

8.

Which of the following statements correctly defines the difference between preferred stock and common stock?

Preferred shareholders have more of a claim to dividends than common stockholders.

Preferred shareholders do not have the voting rights that common stockholders have.

Common shareholders have more exposure to variable share prices than preferred shareholders.

all of the above

none of the above

9.

Stockholders have a ________ claim on firm earnings and assets.

fixed

guaranteed

residual

contracted

10.

Which of the following is not a characteristic of common stock?

has the lowest priority to claim the asset in case of bankruptcy

has voting rights

pays fixed dividends

has no maturity