CORe Exam Question 61

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)?
  • CORe Exam Question 62

    A student is interested in which factors affect the U.S. poverty rate and develops a linear regression model. The student uses poverty rate in all 50
    U.S. states and Washington D.C. as the dependent variable and wants to relate it to the following variables:
    The unemployment rate
    The percent of the adult (over 25) population with at least a bachelor's degree
    The percent of the population without health insurance
    The percent of the adult (over 25) population without a high school diploma or equivalent
    The percent of households with children under 18 run by a single mother
    The student collects data from each state and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below.

    Based on these results, select the independent variables that have a coefficient that is statistically significant at the 5% level. (Select all that apply.)
  • CORe Exam Question 63

    The only grocery store in a town has recently seen its profits decrease. An executive at the grocery store has been challenged to find a way to reverse this trend without losing significant sales. What is a possible technique the company can use to increase its producer surplus?
  • CORe Exam Question 64

    A tech company has just completed market research on a potential new project that would last three years. The research cost $150,000 and determined that the project is expected to bring in $200,000 of revenue annually. The company will have to lease a plant for a total three-year cost of $100,000 and calculates that materials and labor will cost 60 percent of revenue. Given this information, what will economic profits be for the three years, and should the project be adopted?
  • CORe Exam Question 65

    A company buys a machine for $175,000. The machine will be depreciated on straight-line basis over a 10-year period with salvage value of $25,000. The company expects the machine to generate after-tax net cash inflows of $30,000 in each of the 10 years. At the end of the 10 years, the machine is expected to be sold for $25,000. The discount rate is eight percent.

    What is the net present value?