Chapter 13 Exercises西财

西南财经大学经济学习题集以及参考答案个人收集整理勿做商业用途西南财经大学《西方经济学》阶段测试题（一）一、单项选择题1.经济学家对理性选择的研究主要集中于（）A.是什么决定消费者的目标和需要B。

为什么不同消费者有不同的偏好C.消费者的偏好如何影响他们所作的选择D.为什么消费者的偏好会随时间而改变2。

如果一国在生产可能性曲线内部生产（)A.只能通过减少一种商品的生产来增加另一种商品的生产B。

是高效率的生产C。

资源被平均分配给所有商品的生产D.有些资源被闲置3.一种行为的机会成本是指（）A。

为这种行为所花费的钱B.为这种行为所花费的时间的价值C.当你不必为这种行为付钱时就等于零D.投入这种行为的全部资源的其它可能的用途4.检验经济模型的方法是（）A.检验它的假设是否现实B.比较它的预期与事实C。

由权的领导人或经济学家作出结论D。

以上各项都是5。

下列属于规范的是()A.由于收入水平低，绝大多数中国人还买不起小轿车B.随着收入水平的提高，拥有小轿车的人会越来越多鼓励私人购买汽车有利于促进中国汽车工业的发展。

D。

提倡轿车文明是盲目向西方研究,不适合我国国情6.研究个体家庭和制造商决策的经济学称为()A。

宏观经济学B.微观经济学c.实证经济学d.规范经济学7。

咖啡价格上涨一般会导致()a.咖啡需求曲线向右移动B。

咖啡伴侣等咖啡互补品需求增加丙.等待咖啡替代品的需求减少。

D。

茶等咖啡替代品需求增加8.成功的商品广告交易会()A。

使该商品需求曲线左移乙.使这种商品的需求沿着需求曲线增加。

C。

使该商品需求曲线右移D.使该商品需求量沿着需求曲线减少9.描述在不同价格水平上厂商出售的商品数量的曲线被称为（）A。

需求曲线B。

供给曲线C.生产可能性曲线D.预算约束10.技术进步一般会导致()答.供给曲线向右移动。

B.供给量沿着供给曲线减少C。

一个人增加他所消费的所有商品的数量D。

供给量沿着供给曲线增加个人收藏和整理不应用于商业目的。

经管类专业综合实验_西南财经大学中国大学mooc课后章节答案期末考试题库2023年1.银行贷款管理中，不包括下列哪项业务？答案:电子支票转账2.商业银行中间业务广义上讲指什么？答案:不构成商业银行表内资产、表内负债，形成银行非利息收入的业务3.工作日志的写作思路中不包括哪项？答案:创新维度4.KPTP工作日志法中有两个P，其中第二个P表示什么？答案:Plan5.商业计划书的评判标准不包括以下哪项？答案:主观6.工作总结写作的基本原则是什么？答案:坚持实事求是7.工作说明书的主要功能包括哪些？答案:阐明工作任务、责任与职权为员工聘用、考核、培训等提供依据让组织内外部人员了解业务和职责范围建立工作程序和工作标准8.工作日志的写作意义有哪些？答案:提高自己的工作技能将工作时间碎片化转化为碎片化时间工作9.商业计划书容易出现的败笔有哪些？答案:描述语言上混乱不清晰，废话多只有创意，没有实际经验、没有细节对经营困难及风险预计不足，过于乐观10.财务总监的管理职责有哪些？答案:对该公司的经营目标进行财务描述协调该公司同银行、工商、税务、统计、审计等政府部门的关系组织并具体推动公司年度经营/预算计划程序，包括对资本的需求规划及正常运作制定该公司的财务目标、政策及操作程序11.企业年检的主要内容有哪些？答案:企业登记事项执行和变动情况企业生产经营情况企业对外投资情况企业设立分支机构情况12.企业所得税的征税对象是纳税人取得的所得，包括以下哪些内容？答案:销售货物所得转让财产所得利息所得租金所得13.转账由企业转入方在模拟实训平台的财务部—转账发起。

答案:错误14.商业计划书是一份全方位的项目计划，为了预测企业的成长率并做好未来的行动规划，也便于投资商能对企业或项目做出评判，从而使企业获得融资。

答案:正确15.商业计划书没有相对固定的格式，可以随意发挥。

答案:错误16.服务机构的工作说明书，主要包括组织基本情况介绍、业务介绍、考核评价组织文化建设等内容。

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 13 Financial Crises in Emerging Market Economies13.1 Dynamics of Financial Crises in Emerging Market Economies1) Financial crises generally develop along two basic pathsA) mismanagement of financial liberalization/globalization and severe fiscal imbalances.B) stock market declines and severe fiscal imbalances.C) mismanagement of financial liberalization/globalization and stock market declines.D) stock market declines and unanticipated declines in the value of the domestic currency. Answer: AAACSB: Reflective Thinking2) In emerging market countries, the deterioration in bank's balance sheets has more ________ effects on lending and economic activity than in advanced countries.A) negativeB) positiveC) affirmingD) advancingAnswer: AAACSB: Reflective Thinking3) All of the following might create problems from financial liberalization in emerging countries EXCEPTA) ineffective screening of borrowers.B) limits on risk-taking.C) lax government supervision of banks.D) lenders failure to monitor borrowers.Answer: BAACSB: Reflective Thinking4) The mismanagement of financial liberalization in emerging market countries can be understood as a severeA) principal/agent problem.B) asymmetric information problem.C) lemons problem.D) free-rider problem.Answer: AAACSB: Reflective Thinking5) Factors likely to cause a financial crisis in emerging market countries includeA) severe fiscal imbalances.B) decreases in foreign interest rates.C) a foreign exchange crisis.D) too strong oversight of the financial industry.Answer: AAACSB: Reflective Thinking6) The two key factors that trigger speculative attacks on emerging market currencies areA) deterioration in bank balance sheets and severe fiscal imbalances.B) deterioration in bank balance sheets and low interest rates abroad.C) low interest rates abroad and severe fiscal imbalances.D) low interest rates abroad and rising asset prices.Answer: AAACSB: Reflective Thinking7) Severe fiscal imbalances can directly trigger a currency crisis sinceA) investors fear that the government may not be able to pay back the debt and so begin to sell domestic currency.B) the government may stop printing money.C) the government may have to cut back on spending.D) the currency must surely increase in value.Answer: AAACSB: Reflective Thinking8) In emerging market countries, many firms have debt denominated in foreign currency like the dollar or yen. A depreciation of the domestic currencyA) results in increases in the firm's indebtedness in domestic currency terms, even though the value of their assets remains unchanged.B) results in an increase in the value of the firm's assets.C) means that the firm does not owe as much on their foreign debt.D) strengthens their balance sheet in terms of the domestic currency.Answer: AAACSB: Reflective Thinking9) A sharp depreciation of the domestic currency after a currency crisis leads toA) higher inflation.B) lower import prices.C) lower interest rates.D) decrease in the value of foreign currency-denominated liabilities.Answer: AAACSB: Reflective Thinking10) The key factor leading to the financial crises in Mexico and the East Asian countries wasA) a deterioration in banks' balance sheets because of increasing loan losses.B) severe fiscal imbalances.C) a sharp increase in the stock market.D) a sharp decline in interest rates.Answer: AAACSB: Application of Knowledge11) Factors that led to worsening conditions in Mexico's 1994-1995 financial markets includeA) failure of the Mexican oil monopoly.B) the ratification of the North American Free Trade Agreement.C) increased uncertainty from political shocks.D) decline in interest rates.Answer: CAACSB: Application of Knowledge12) Factors that led to worsening financial market conditions in East Asia in 1997-1998 includeA) weak supervision by bank regulators.B) a rise in interest rates abroad.C) unanticipated increases in the price level.D) increased uncertainty from political shocks.Answer: AAACSB: Application of Knowledge13) Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 includeA) rise in interest rates abroad.B) bankers' lack of expertise in screening and monitoring borrowers.C) deterioration of banks' balance sheets because of increasing loan losses.D) stock market decline.Answer: AAACSB: Application of Knowledge14) Argentina's financial crisis was due toA) poor supervision of the banking system.B) a lending boom prior to the crisis.C) fiscal imbalances.D) lack of expertise in screening and monitoring borrowers at banking institutions.Answer: CAACSB: Application of Knowledge15) A feature of debt markets in emerging-market countries is that debt contracts are typicallyA) very short term.B) long term.C) intermediate term.D) perpetual.Answer: AAACSB: Analytical Thinking16) The economic hardship resulting from a financial crises is severe, however, there are also social consequences such asA) increased crime.B) difficulty getting a loan.C) currency devaluations.D) loss of output.Answer: AAACSB: Reflective Thinking17) Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) wereA) nearly 50% of GDP.B) about 10% of GDP.C) almost 90% of GDP.D) nearly 25% of GDP.Answer: AAACSB: Application of Knowledge18) The chaebols encouraged the Korean government to open up Korean financial markets to foreign capital. The Korean government responded byA) allowing unlimited short-term foreign borrowing but maintained quantity restrictions on long-term foreign borrowing by financial institutions.B) allowing unlimited short-term and long-term foreign borrowing by financial institutions.C) maintaining quantity restrictions on short-term foreign borrowing but allowing unlimited long-term foreign borrowing by financial institutions.D) not allowing any foreign borrowing by financial institutions.Answer: AAACSB: Application of Knowledge19) At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________.A) were not; could borrow abroadB) were not; could not borrow abroadC) were; could borrow abroadD) were; could not borrow abroadAnswer: AAACSB: Application of Knowledge20) At the time of the South Korean financial crisis, the merchant banks wereA) almost virtually unregulated.B) subject to heavy government regulation.C) engaged in long-term lending to the corporate sector.D) restricted to long-term foreign borrowing.Answer: AAACSB: Application of Knowledge21) What two key factors trigger speculative attacks leading to currency cries in emerging market countries?Answer: The deterioration in bank balance sheets and severe fiscal imbalances are the key factors. To counter a speculative attack, a country might try to raise interest rates. Raising interest rates, however, would worsen the problem of banks that are already in trouble. Speculators recognize this and seize the opportunity. When their are severe fiscal imbalances, there is concern that government debt will not be paid back. Funds are pulled out of the country and domestic currency is sold leading to a decline in the value of the domestic currency. Speculators will once again seize the opportunity.AACSB: Reflective Thinking。

第一章：1.什么是金融市场，金融市场的基本功能是什么？金融市场是资金由盈余单位向短缺单位转移的市场。

金融市场履行的基本经济功能是：从那些由于支出少于收入而积蓄了盈余资金的人那里把资金引导到那些由于支出超过收入而资金短缺的人那里。

第二章：金融体系概述1.金融市场的种类划分(1) 股权市场和债权市场。

(按契约的性质)(2) 一级市场和二级市场。

（按在发行和交易中的地位）(3) 场内交易市场和场外交易市场。

（按交易的地点和场所）(4) 货币市场和资本市场。

（按所交易金融工具的期限长短）2.主要的货币市场工具和资本市场工具有哪些？货币市场工具：（1）美国国库券（贴现发行）（2）可转让银行定期存单（3）商业票据（4）回购协议（5）联邦基金资本市场工具：（1）股票（2）抵押贷款（3）公司债券（4）美国政府债券（5）美国政府机构债券（6）州和地方政府债券3.金融中介机构的概念和类型概念：金融中介机构是通过发行负债工具筹集资金，并且通过运用这些资金购买证券或者发放贷款来形成资产的金融机构。

（1）存款机构（商业银行，储贷协会，互助储蓄银行，信用社）（2）契约型储蓄机构（保险公司，养老金，退休金）（3）投资中介机构（财务公司，共同基金，货币市场共同基金，投资银行）4.直接融资和间接融资的区别（1）在直接融资中，借款人通过将证券卖给贷款人，直接从贷款人那里取得资金；在间接融资中，金融机构居于贷款人和借款人之间，帮助实现资金在二者之间的转移。

（2）直接融资的优点：短缺单位可以节约一定的融资成本，盈余单位可以获得较高的资金报酬。

缺点：盈余单位需要有一定专业知识和能力且负担的风险高；对短缺单位来说，直接融资市场门槛较高。

（3）间接融资的优点或功能：降低交易成本，实现规模经济；有助于降低投资者面临的风险；解决信息不对称问题（交易发生前：逆向选择；交易发生后：道德风险）（4）需要注意的是区别这两种融资不在于是否有金融机构的介入，而在于金融机构是否发挥了信用中介作用。

西南财大西经重点章节或知识点第三章效用论第六节替代效应和收入效应★★★第六章完全竞争市场第四节完全竞争厂商的短期均衡和短期供给曲线★★★第五节完全竞争行业的短期供给曲线★★★第六节完全竞争厂商的长期均衡★★★第七章非完全竞争的市场第一节垄断★★★★第三节寡头★★★★★第四节寡头厂商之间的博弈：博弈论初步第五节不同市场的比较★★第九章生产要素价格决定的供给方面重点掌握劳动供给曲线和储蓄曲线的背弯即可第十章一般均衡论和福利经济学第三节交换的帕累托最优条件★★★★第四节生产的帕累托最优条件★★★★第五节交换和生产的帕累托最优条件★★★★第六节完全竞争和帕累托最优状态★★★★第十一章市场失灵和微观经济政策★★★★★第一节垄断★★★★第二节外部影响★★★★第三节公共物品和公共资源★★★第四节信息的不完全和不对称★★★第十三章简单国民收人决定理论第五节乘数论★★★★第七节三部门经济中各种乘数★★★★第十四章产品市场和货币市场的一般均衡★★★第一节投资的决定第二节 IS曲线第三节利率的决定第四节 LM曲线第五节 IS-LM分析第六节凯恩斯的基本理论框架第十五章宏观经济政策分析★★★第一节财政政策和货币政策的影响第二节财政政策效果第三节货币政策效果第四节两种政策的混合使用第十六章宏观经济政策实践★★★第一节经济政策目标第二节财政政策第三节货币政策第十七章总需求-总供给模型★★★★第一节总需求曲线第二节总供给的一般说明第四节古典总供给曲线第五节凯恩斯总供给曲线第六节常规总供给曲线第七节总需求总供给模型对现实的解释第十八章失业与通货膨胀★★★第二十章国际经济部门的作用第三节 IS-LM-BP模型★★★第四节开放经济条件下的宏观经济政策★★★第二十一章经济增长和经济周期理论★★★★重点看一、三、四节即可，重中之重就是索罗模型，即新古典增长理论下面是重点考点集锦，掌握好以下内容可把握西经70%的内容。

一、微观经济学部分1、市场失灵的全部内容（几乎年年必考，任何细节不得放过，全面秒杀）2、寡头模型：以卡特尔模型、古诺模型、伯特兰模型为主（近几年新兴考点，最近几年年年必考，最起码这三个模型牢记于心）3、劳动供给曲线和储蓄曲线背弯（常考考点）4、完全竞争的一系列内容（像厂商的短期供给曲线、长期供给曲线，市场的长、短期均衡等等）5、帕累托最优（注意与完全竞争的联系）二、宏观经济学部分1、各类乘数的推导2、IS-LM模型及其应用3、财政政策和货币政策及其应用4、索罗模型5、IS-LS-BP模型6、菲利普斯曲线7、AD-AS模型强化学习主要针对的理论模块一、微观经济学部分1、完全竞争理论：完全竞争的特点、完全竞争厂商的短期均衡和短期供给曲线、完全竞争厂商的长期均衡和长期供给曲线、完全竞争市场的短期供给曲线、完全竞争市场的长期均衡和长期供给曲线（注意实现均衡的条件及其分析过程）2、一般均衡理论：帕累托最优状态及其推导和最优的条件（交换的帕累托最优、生产的帕累托最优、交换和生产的帕累托最优）、完全竞争与帕累托效率（分析完全竞争符合帕累托最优）3、寡头模型：卡特尔模型、古诺模型、伯特兰模型（三个模型的含义、图示分析及各自的缺陷）4、市场失灵：自然垄断、信息不对称、外部效应、公共物品（四种市场失灵的含义、效率分析、主要内容、图示分析、解决思路）5、消费者行为理论：无差异曲线、效用最大化、价格效应的分解、消费者行为理论的应用、消费者剩余6、生产者行为理论：成本最小化与最佳要素组合、生产者剩余7、要素价格理论：劳动供给曲线、储蓄曲线（主要分析劳动供给曲线以及储蓄曲线的背弯）8、供求理论：支持价格与限制价格、税收归宿理论二、宏观经济学部分1、宏观消费理论：凯恩斯消费函数、绝对收入理论、相对收入理论、持久收入理论、生命周期理论2、简单收入决定模型：各类政府收支乘数（税收乘数、政府支出乘数、转移支付乘数、平衡预算收支乘数）3、扩大的收入决定模型（IS-LM模型）：IS曲线及其推导、LM曲线及其推导、宏观经济均衡4、宏观经济政策：财政政策、货币政策、使用IS-LM模型分析财政政策以及货币政策的效果、财政政策和货币政策的组合应用5、总需求-总供给分析（AD-AS模型）：AD曲线及其推导和移动、AS曲线及AS曲线的特例和政策含义、AD-AS模型的应用6、失业与通货膨胀：失业理论、通货膨胀及其原因和分析、通胀与失业率的关系——菲利普斯曲线7、经济增长理论：索洛模型（索洛模型的基本假设、索洛模型的基本方程、索洛模型的稳定状态、人口和储蓄率变化对稳态的影响、资本积累的黄金率水平）、增长核算理论、哈罗德-多马模型8、开放经济模型：蒙代尔法则、斯旺图示、开放经济的宏观调控政策的国际协调、蒙代尔-弗莱明模型（IS-LM-BP模型）。

西财经经济学一初试历年真题西财经经济学一初试历年真题说明：真题答案符号代表书1:马克思主义政治经济学原理刘诗白主编西南财经大学2003年8月第一版书2:社会主义市场经济理论刘诗白主编西南财经大学2004年1月第一版书3:马克思主义政治经济学原理卫兴华林岗主编中国人民大学2003年7月第一版书4:西方经济学原理扬伯华缪一德主编西南财经大学2004年8月第三版书5:政治经济学刘诗白主编西南财经大学1998年3月第5版例如:见书1P47—48，表示见“书1:马克思主义政治经济学原理刘诗白主编西南财经大学2003年8月第一版的第47页至第48页。

”依此类推。

西南财经大学2008年研究生考试经济学（一）政治经济学辨析劳动生产率提高会提高商品价值总量和商品数量简述1相对过剩人口的形成原因2经济体制与经济制度的关系3什么是收入再分配，为什么要进行收入再分配论述1从我国基本分配制度论述群众财产性收入的合理性2结合反全球化运动现象论述全球化的二重性西方经济学1完全竞争厂商成本递增情况下对长期均衡的影响2外部不经济为什么导致市场失灵，用科斯定理如何解决3宏观总需求曲线与微观需求曲线的区别，它们向右下方倾斜的区别4从开放的四部门收入恒等式论述美国贸易逆差居高不下的原因2007 2006年略。

西南财经大学2005年研究生考试经济学（一）政治经济学部分一、辨析题（10分）经济发展就是经济增长。

见书2P308二、简答题（每小题10分，共30分）1、怎样理解商品价值实现中第二层含义的社会必要劳动时间的内涵。

2、为什么说超额剩余价值是相对剩余价值的特殊形态。

见书1P60-613、如何理解让资本、技术和管理要素按贡献参与分配。

见书3P195-196三、论述题（每小题25分，共50分）1、试论马克思资本周转理论及其现实意义。

见书P105-1142、用可持续发展理论分析我国经济增长方式的转变。

见书2概念P297方式P302可持续发展理论P341-342西方经济学部分四、某消费者原来每月煤气开支为10元。

A d v a n c e d A c c o u n t i n g,11e(B e a m s/A n t h o n y/B e t t i n g h a u s/S m i t h) Chapter 1 Business CombinationsMultiple Choice Questions1) Which of the following is not a reason for a company to expand through a combination, rather than by building new facilities?A) A combination might provide cost advantages.B) A combination might provide fewer operating delays.C) A combination might provide easier access to intangible assets.D) A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.Answer: DObjective: LO1Difficulty: Easy2) A business merger differs from a business consolidation becauseA) a merger dissolves all but one of the prior entities, but a consolidation dissolves all of the prior entities.B) a consolidation dissolves all but one of the prior entities, but a merger dissolves all of the prior entities.C) a merger is created when two entities join, but a consolidation is created when more than two entities join.D) a consolidation is created when two entities join, but a merger is created when more than two entities join.Answer: AObjective: LO2Difficulty: Easy3) Following the accounting concept of a business combination, a business combination occurs when a company acquires an equity interest in another entity and hasA) at least 20% ownership in the entity.B) more than 50% ownership in the entity.C) 100% ownership in the entity.D) control over the entity, irrespective of the percentage owned.Answer: DObjective: LO2Difficulty: Easy4) Historically, much of the controversy concerning accounting requirements for business combinations involved the ________ method.A) purchaseB) pooling of interestsC) equityD) acquisitionAnswer: BObjective: LO2Difficulty: Easy5) Pitch Co. paid $50,000 in fees to its accountants and lawyers in acquiring Slope Company. Pitch will treat the $50,000 asA) an expense for the current year.B) a prior period adjustment to retained earnings.C) additional cost to investment of Slope on the consolidated balance sheet.D) a reduction in additional paid-in capital.Answer: AObjective: LO3, 4Difficulty: Moderate6) Picasso Co. issued 5,000 shares of its $1 par common stock, valued at $100,000, to acquire shares of Seurat Company in an all-stock transaction. Picasso paid the investment bankers $35,000 and will treat the investment banker fee asA) an expense for the current year.B) a prior period adjustment to Retained Earnings.C) additional goodwill on the consolidated balance sheet.D) a reduction to additional paid-in capital.Answer: DObjective: LO3Difficulty: Moderate7) Durer Inc. acquired Sea Corporation in a business combination and Sea Corp went out of existence. Sea Corp developed a patent listed as an asset on Sea Corp's books at the patent office filing cost. In recording the combination,A) fair value is not assigned to the patent because the research and development costs have been expensed by Sea Corp.B) Sea Corp's prior expenses to develop the patent are recorded as an asset by Durer at purchase.C) the patent is recorded as an asset at fair market value.D) the patent's market value increases goodwill.Answer: CObjective: LO4Difficulty: Moderate8) In a business combination, which of the following will occur?A) All identifiable assets and liabilities are recorded at fair value at the date of acquisition.B) All identifiable assets and liabilities are recorded at book value at the date of acquisition.C) Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired.D) None of the above is correct.Answer: AObjective: LO3Difficulty: Moderate9) According to FASB Statement 141R, which one of the following items may not be accounted for as an intangible asset apart from goodwill?A) A production backlogB) A talented employee workforceC) Noncontractual customer relationshipsD) Employment contractsAnswer: BObjective: LO4Difficulty: Easy10) Under the provisions of FASB Statement No. 141R, in a business combination, when the fair value of identifiable net assets acquired exceeds the investment cost, which of the following statements is correct?A) A gain from a bargain purchase is recognized for the amount that the fair value of the identifiable net assets acquired exceeds the acquisition price.B) The difference is allocated first to reduce proportionately (according to market value)non-current assets, then to non-monetary current assets, and any negative remainder is classified as a deferred credit.C) The difference is allocated first to reduce proportionately (according to market value)non-current assets, and any negative remainder is classified as an extraordinary gain.D) The difference is allocated first to reduce proportionately (according to market value)non-current, depreciable assets to zero, and any negative remainder is classified as a deferred credit.Answer: AObjective: LO4Difficulty: Easy11) With respect to goodwill, an impairmentA) will be amortized over the remaining useful life.B) is a two-step process which analyzes each business reporting unit of the entity.C) is a one-step process considering the entire firm.D) occurs when asset values are adjusted to fair value in a purchase.Answer: BObjective: LO4Difficulty: EasyUse the following information to answer the question(s) below.Polka Corporation exchanges 100,000 shares of newly issued $1 par value common stock with a fair market value of $20 per share for all of the outstanding $5 par value common stock of Spot Inc. and Spot is then dissolved. Polka paid the following costs and expenses related to the business combination:Costs of special shareholders' meetingto vote on the merger $12,000Registering and issuing securities 10,000Accounting and legal fees 18,000Salaries of Polka's employees assignedto the implementation of the merger 27,000Cost of closing duplicate facilities 13,00012) In the business combination of Polka and SpotA) the costs of registering and issuing the securities are included as part of the purchase price for Spot.B) the salaries of Polka's employees assigned to the merger are treated as expenses.C) all of the costs except those of registering and issuing the securities are included in the purchase price of Spot.D) only the accounting and legal fees are included in the purchase price of Spot.Answer: BObjective: LO3Difficulty: Moderate13) In the business combination of Polka and Spot,A) all of the items listed above are treated as expenses.B) all of the items listed above except the cost of registering and issuing the securities are included in the purchase priceC) the costs of registering and issuing the securities are deducted from the fair market value of the common stock used to acquire Spot.D) only the costs of closing duplicate facilities, the salaries of Polka's employees assigned to the merger, and the costs of the shareholders' meeting would be treated as expenses.Answer: CObjective: LO3Difficulty: Moderate14) Which of the following methods does the FASB consider the best indicator of fair values in the evaluation of goodwill impairment?A) Senior executive's estimatesB) Financial analyst forecastsC) Market valueD) The present value of future cash flows discounted at the firm's cost of capitalAnswer: CObjective: LO4Difficulty: Easy15) Pepper Company paid $2,500,000 for the net assets of Salt Corporation and Salt was then dissolved. Salt had no liabilities. The fair values of Salt's assets were $3,750,000. Salt's only non-current assets were land and buildings with book values of $100,000 and $520,000, respectively, and fair values of $180,000 and $730,000, respectively. At what value will the buildings be recorded by Pepper?A) $730,000B) $520,000C) $210,000D) $0Answer: AObjective: LO4Difficulty: Moderate16) According to FASB Statement No. 141, liabilities assumed in an acquisition will be valued at the ________.A) estimated fair valueB) historical book valueC) current replacement costD) present value using market interest ratesAnswer: AObjective: LO3Difficulty: Easy17) In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct?A) Firms are not required to disclose the name of the acquired company.B) Firms are not required to disclose the business purpose for a combination.C) Firms are required to disclose the nature, terms and fair value of consideration transferred in a business combination.D) All of the above are correct.Answer: CObjective: LO4Difficulty: Easy18) Goodwill arising from a business combination isA) charged to Retained Earnings after the acquisition is completed.B) amortized over 40 years or its useful life, whichever is longer.C) amortized over 40 years or its useful life, whichever is shorter.D) never amortized.Answer: DObjective: LO4Difficulty: Easy19) In reference to international accounting for goodwill, U.S. companies have complained that past U.S. accounting rules for goodwill placed them at a disadvantage in competing against foreign companies for merger partners. Why?A) Previous rules required immediate write off of goodwill which resulted in a one-time expense that was not required under international rules.B) Previous rules required amortization of goodwill which resulted in an ongoing expense that was not required under international rules.C) Previous rules did not permit the recording of goodwill, thus resulting in a lower asset base than international counterparts would recognize.D) All of the above are correct.Answer: BObjective: LO4Difficulty: Moderate20) When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company?A) Purchase of the majority of outstanding voting stock of the acquired company.B) Purchase of all assets and liabilities of another company.C) Purchase the assets, but not necessarily the liabilities, of another company previously in bankruptcy.D) All of the above methods result in a company gaining control over another company. Answer: DObjective: LO2Difficulty: ModerateExercises1) Parrot Incorporated purchased the assets and liabilities of Sparrow Company at the close of business on December 31, 2011. Parrot borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Sparrow's recorded assets and liabilities as of the date of acquisition are listed below. In addition, Sparrow had a patent that had a fair value of $50,000.Book Value Fair ValueCash $120,000 $120,000Inventories 220,000 250,000Other current assets 630,000 600,000Land 270,000 320,000Plant assets-net 4,650,000 4,600,000Total Assets $5,890,000Accounts payableNotes payable 2,100,000 2,100,000Capital stock, $5 par 700,000Additional paid-in capital 1,400,000Retained Earnings 490,000Total Liabilities & Equities $5,890,000Required:1. Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow survives as a separate legal entity.2. Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Parrot for the acquisition of Sparrow (Sparrow survives as a separate legal entity):Investment in Sparrow 2,640,000Cash 640,000Notes Payable 2,000,0002. General journal entry recorded by Parrot for the acquisition of Sparrow (Sparrow dissolves as a separate legal entity):Cash 120,000Inventories 250,000Other current assets 600,000Land 320,000Plant assets 4,600,000Patent 50,000Accounts payable 1,200,000Notes payable 2,100,000Cash 640,000Notes Payable 2,000,000Objective: LO4Difficulty: Moderate2) On January 2, 2011 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2011 is as follows:Piron SeanaCash $150,000 $120,000Inventories 320,000 400,000Other current assets 500,000 500,000Land 350,000 250,000Plant assets-net 4,000,000 1,500,000Total Assets $5,320,000 $2,770,000Accounts payableNotes payable 1,300,000 660,000Capital stock, $5 par 2,000,000 500,000Additional paid-in capital 1,000,000 100,000Retained Earnings 20,000 1,210,000Total Liabilities & Equities $5,320,000 $2,770,000Required:1. Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity.2. Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Piron for the acquisition of Seana (Seana survives as a separate legal entity):Investment in Seana 1,900,000Common stock 500,000Additional paid-in capital 1,400,000Investment expense 20,000Additional paid-in capital 15,000Cash 35,0002. General journal entry recorded by Piron for the acquisition of Seana (Seana dissolves as a separate legal entity):Cash 85,000Inventories 400,000Other current assets 500,000Land 250,000Plant assets 1,500,000Goodwill 90,000Investment expense 20,000Accounts payable 300,000Notes payable 660,000Common stock 500,000Additional paid-in capital 1,385,000Objective: LO4Difficulty: Difficult3) At December 31, 2011, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophocles Company. In addition, Pandora agreed to pay the owners of Sophocles an additional $200,000 if a specific contract achieved the profit levels that were targeted by the owners of Sophocles in their sale agreement. The fair value of this amount, with an agreed likelihood of occurrence and discounted to present value, is $160,000. In addition, Pandora paid $10,000 in stock issue costs, $40,000 in legal fees, and $48,000 to employees who were dedicated to this acquisition for the last three months of the year. Summarized balance sheet and fair value information for Sophocles immediately prior to the acquisition follows.Book Value Fair ValueCash $100,000 $100,000Accounts Receivable 280,000 250,000Inventory 520,000 640,000Buildings and Equipment (net) 750,000 870,000Trademarks and Tradenames 0 500,000Total Assets $1,650,000Accounts Payable $190,000Notes Payable 900,000 900,000Retained Earnings 550,000Total Liabilities and Equity $1,650,000Required:1. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles dissolves as a separate legal entity.2. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles continues as a separate legal entity.3. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles dissolves as a separate legal entity.4. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles survives as a separate legal entity.Answer:1. At $35 per share, assuming Sophocles dissolves as a separate legal entity:Cash $100,000Accounts Receivable 250,000Inventory 640,000Buildings and Equipment 870,000Trademarks/Trade names 500,000Goodwill 290,000Accounts payable 190,000Contingent Liability 160,000Notes payable 900,000Common stock 800,000Additional paid-in capital 600,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.2. At $35 per share, assuming Sophocles continues as a separate legal entity:Investment in Sophocles 1,560,000Contingent Liability 160,000Common stock 800,000Additional paid-in capital 600,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.3. At $25 per share, assuming Sophocles dissolves as a separate legal entity:Cash $100,000Accounts Receivable 250,000Inventory 640,000Buildings and Equipment 870,000Trademarks/Trade names 500,000Accounts payable 190,000Contingent Liability 160,000Notes payable 900,000Gain on bargain purchase 110,000Common stock 800,000Additional paid-in capital 200,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.4. At $25 per share, assuming Sophocles continues as a separate legal entity:Investment in Sophocles 1,160,000Contingent Liability 160,000Common stock 800,000Additional paid-in capital 200,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.Objective: LO4Difficulty: Difficult4) On January 2, 2011 Palta Company issued 80,000 new shares of its $5 par value common stock valued at $12 a share for all of Sudina Corporation's outstanding common shares. Palta paid $5,000 for the direct combination costs of the accountants. Palta paid $18,000 to register and issue shares. The fair value and book value of Sudina's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2011 is as follows:Palta SudinaCash $75,000 $60,000Inventories 160,000 200,000Other current assets 200,000 250,000Land 175,000 125,000Plant assets-net 1,500,000 750,000Total Assets $2,110,000 $1,385,00Accounts payableNotes payable 700,000 330,000Capital stock, $2 par 600,000 250,000Additional paid-in capital 450,000 50,000Retained Earnings 260,000 600,000Total Liabilities & Equity $2,110,000 $1,385,000Required:1. Prepare Palta's general journal entry for the acquisition of Sudina assuming that Sudina survives as a separate legal entity.2. Prepare Palta's general journal entry for the acquisition of Sudina assuming that Sudina will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Palta for the acquisition of Sudina (Sudina survives as a separate legal entity):Investment in Sudina 960,000Common stock 400,000Additional paid-in capital 560,000Investment expense 5,000Additional paid-in capital 18,000Cash 23,0002. General journal entry recorded by Palta for the acquisition of Sudina (Sudina dissolves as a separate legal entity):Cash 37,000Inventories 200,000Other current assets 250,000Land 125,000Plant assets 750,000Goodwill 60,000Investment expense 5,000Accounts payable 155,000Notes payable 330,000Common stock 400,000Additional paid-in capital 542,000Objective: LO4Difficulty: Moderate5) Saveed Corporation purchased the net assets of Penny Inc. on January 2, 2011 for $1,690,000 cash and also paid $15,000 in direct acquisition costs. Penny dissolved as of the date of the acquisition. Penny's balance sheet on January 2, 2011 was as follows:Accounts receivable-net $190,000 Current liabilities $235,000Inventory 480,000 Long term debt 650,000Land 10,000 Common stock ($1 par) 25,000Building-net 630,000 Paid-in capital 150,000Equipment-net 240,000 Retained earnings 590,000Total assets $1,650,000 Total liab. & equity $1,650,000values of $640,000, $140,000 and $230,000, respectively. Penny has customer contracts valued at $20,000.Required:Prepare Saveed's general journal entry for the cash purchase of Penny's net assets. Answer: General journal entry for the purchase of Penny's net assets:Accounts receivable 190,000Inventory 640,000Land 140,000Building 630,000Equipment 230,000Customer contracts 20,000Goodwill 725,000Investment expense 15,000Current liabilities 235,000Long-term debt 650,000Cash 1,705,000Objective: LO4Difficulty: Moderate6) Bigga Corporation purchased the net assets of Petit, Inc. on January 2, 2011 for $380,000 cash and also paid $15,000 in direct acquisition costs. Petit, Inc. was dissolved on the date of the acquisition. Petit's balance sheet on January 2, 2011 was as follows:Accounts receivable-net $90,000 Current liabilities $75,000Inventory 220,000 Long term debt 80,000Land 30,000 Common stock ($1 par) 10,000Building-net 20,000 Addtl. paid-in capital 215,000 Equipment-net 40,000 Retained earnings 20,000Total assets $400,000 Total liab. & equity $400,000values of $260,000, $35,000 and $35,000, respectively. Petit has patent rights with a fair value of $20,000.Required:Prepare Bigga's general journal entry for the cash purchase of Petit's net assets.Answer: General journal entry for the purchase of Petit's net assets:Accounts receivable 90,000Inventory 260,000Land 35,000Building 20,000Equipment 35,000Patent 20,000Goodwill 75,000Investment expense 15,000Current liabilities 75,000Long-term debt 80,000Cash 395,000Objective: LO4Difficulty: Moderate7) The balance sheets of Palisade Company and Salisbury Corporation were as follows onexchange for all of Salisbury's shares, and Salisbury was dissolved. Palisade paid $20,000 to register and issue the new common shares. It cost Palisade $50,000 in direct combination costs. Book values equal market values except that Salisbury's land is worth $250,000.Required:Prepare a Palisade balance sheet after the business combination on January 1, 2011. Answer: The balance sheet for Palisade Corporation subsequent to its acquisition of Salisburyand $120,000, less the cash paid out during the acquisition process of $70,000. Retained Earnings of the parent is reduced for the Investment Expense incurred in the process of $50,000.Objective: LO4Difficulty: ModerateSpinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below.Cash $200,000Accounts Receivable 220,000Copyrights (purchased) 400,000Goodwill 120,000Liabilities (180,000)Net assets $760,000Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $100,000.Required:Calculate the amount of goodwill that will be recorded on Pilate's balance sheet as of the date of acquisition.Answer: Goodwill is calculated as follows:Purchase price $900,000Fair value of net assets:Cash $200,000Accounts Receivable 185,000Copyrights 400,000Patents 100,000Liabilities (180,000)Total (705,000)Purchase price in excess offair value of net assets: $195,000Objective: LO4Difficulty: ModerateSpinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below.Cash $200,000Accounts Receivable 220,000Copyrights (purchased) 400,000Goodwill 120,000Liabilities (180,000)Net assets $760,000Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $100,000.Required:Calculate the amount of goodwill that will be recorded on Pilate's balance sheet as of the date of acquisition. Then record the journal entry Pilates would record on their books to record the acquisition.Answer: Goodwill is calculated as follows:Purchase price $700,000Fair value of net assets:Cash $200,000Accounts Receivable 185,000Copyrights 400,000Patents 100,000Liabilities (180,000)Total (705,000)Fair value of net assets inexcess of Purchase price: $(5,000)Because Pilates paid less than the fair value of the net assets, they are considered to have made a bargain purchase, and would thus record a Gain on Bargain Purchase in the amount of $5,000 at the time of acquisition.The following journal entry would be prepared:Cash 200,000Accounts receivable 185,000Copyrights 400,000Patents 100,000Liabilities 180,000Bargain purchase gain 5,000Cash 700,000Objective: LO4Difficulty: Moderate10) Pali Corporation exchanges 200,000 shares of newly issued $10 par value common stock with a fair market value of $40 per share for all the outstanding $5 par value common stock of Shingle Incorporated, which continues on as a legal entity. Fair value approximated book value for all assets and liabilities of Shingle. Pali paid the following costs and expenses related to the business combination:Registering and issuing securities 19,000Accounting and legal fees 150,000Salaries of Pali's employees whosetime was dedicated to the merger 86,000Cost of closing duplicate facilities 223,000Required: Prepare the journal entries relating to the above acquisition and payments incurred by Pali, assuming all costs were paid in cash.Answer:Investment in Shingle 8,000,000Common Stock 2,000,000Additional Paid in Capital 6,000,000Additional Paid in Capital 19,000Cash 19,000Investment Expense (fees) 150,000Cash 150,000Salary expense 86,000Cash 86,000Plant closure expense 223,000Cash 223,000Objective: LO3Difficulty: Moderate11) Samantha's Sporting Goods had net assets consisting of the following:Book Value Fair ValueCash 150,000 150,000Inventory 820,000 960,000Building and Fixtures 330,000 310,000Liabilities (90,000) (88,000)Pedic Incorporated purchased Samantha's Sporting Goods, and immediately dissolved Samantha's as a separate legal entity.Requirement 1: If Samantha's was purchased for $1,000,000 cash, prepare the entry recorded by Pedic.Requirement 2: If Samantha's was purchased for $1,500,000 cash, prepare the entry recorded by Pedic.Answer:Requirement 1:Cash* 150,000Inventory 960,000Building and Fixtures 310,000Liabilities 88,000Gain on Bargain Purchase 332,000Cash* 1,000,000*Cash entries may be recorded net on single line entry.Requirement 2:Cash* 150,000Inventory 960,000Building and Fixtures 310,000Goodwill 168,000Liabilities 88,000Cash* 1,500,000*Cash entries may be recorded net on single line entry.Objective: LO4Difficulty: Moderate。

179Chapter 1313. Dividend policyChapter GuideE3 internal sources of finance and dividend policya) Identify & discuss internal sources of finance, including: 1) retained earnings2) increased working capital efficiencyb) Discuss the relationship between the dividend decision and the financingdecision,c) Discuss the theoretical approaches to, and the practical influences on, thedividend decisions, including: i. legal constraints ii. liquidityiii. shareholder expectations iv. alternatives to cash dividendsThis chapter is likely to be examined as discussion question, perhaps combined with ratio analysis.180Chapter Overview181In chapter 12 we looked at the external sources of finance available to a business. If a business is generating surplus cash from its operations then this is an obvious and important source of finance (note that this is not the same as retained profits).✓ Flexible source of finance,1.1 Advantages ✓ Companies are not tied to specific repayment patterns. ✓ No dilution of control ✓No issuing cost✓ Shareholders may be sensitive to the loss of dividends.1.2 Disadvantages✓ Retaining profit is not a cost-free method of obtaining funds, there is anopportunity cost in that if dividends were paid, the cash received could be invested by shareholders to earn a return.✓ Investment decision2.1 Dividend paymentsIf the company is going through a growth phase, it is unlikely to have sufficient liquidity to pay dividends. In this case shareholder expectations may well be for the dividend to remain low or 0. This will not be a problem as long as the share price is rising.✓ Financing decisionIf a company can borrow to finance its investments, it can still pay dividends. This is sometimes called borrowing to pay a dividend. There are legal constraints over a company’s ability to do this; it is only legal if a company has accumulated realised profits.1．Internal sources of finance2. Dividend policy182DividendpolicySufficientlyfundsavailableLiquiditypositionInvestorsrequiredividends PreferredgearingLaw ondistributableprofits LoanagreementsFunds forassetreplacementOther sourcesof finance2.2 Other consideration✓If a company can identify projects with positive NPVs, it should invest in them3.1 Residual theory✓Only when there is no investment opportunities should dividends be paid 3.2 TraditionalviewFocus on the effects on share price. The price of a share depends upon the mix of dividends, given shareholder’s required rate of return and growth.3.3 Irrelevant theoryModigliani and Miller proposed that in a tax-free world, shareholders are indifferent between dividends and capital gains, and the value of a company solely determined by the earning power of its assets/ investments3. Theories of dividend policy183Scrip dividend is a dividend paid by the issue of additional company shares, rather than by cash.Advantages:They can preserve a company’s cash position if a substantial number of shareholders take up the share option✓ Investors may be able to obtain tax advantages✓ Expand holding without incurring the transaction costsDecrease the company’s gearing, thus enhance its borrowing capacity.A stock split will creating cheaper shares with greater marketability, there is possibly an added psychological advantage, in that investors may expect a company which splits its shares in this way to be planning for substantialearnings growth and dividend growth in the future.E.g. $1 ordinary share split into two $0.5 shares.Purchase by a company of its own shares can take place for various reasons and must be in accordance with any requirements of legislation.✓ Way of a use for cash surplus 6.1 Benefits✓ Increase in earnings per share✓ Increase in gearing. This will be of interests to a company wanting toincrease its gearing without increasing its total long-term funding. ✓ Preventing a takeover✓ Hard to arrive at a price that fair to both vendors and shareholder.6.2 Drawbacks ✓ May be seen as an admission that the company cannot make better use of ✓ surplus fund✓Shareholders may suffer from being taxed on capital gain.4. Scrip dividends5.Stock Split6. Share repurchase184Zero/low dividendHigh growth /investment needsWants to minimise debtHigh, stable dividendLower growthAble and willing to take on debtChapter summary。