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HBX CORe Final Examination Sample Questions (Q157-Q162):
NEW QUESTION # 157
Which of the following activities will cause assets and owner's equity to decrease?
- A. Repurchase common shares for cash
- B. Declare dividends on outstanding shares
- C. Pay off the principal and interest of a long-term debt
- D. Sell used plant equipment and realize a gain
Answer: A
NEW QUESTION # 158
Which of the following companies could expect to have the fewest competitors? (Select all that apply.)
- A. Restaurant
- B. Automobile manufacturer
- C. Airline
- D. Tutoring service for grade school math
- E. Real estate agency
Answer: B,C
NEW QUESTION # 159
A new technological improvement is invented for the production of coffee. At the same time, the price of tea (a substitute for coffee) decreases, and the price of sugar (a complement to both coffee and tea) increases. What is the known result for the new equilibrium for coffee?
- A. Quantity and price both increase
- B. Price decreases
- C. Quantity and price both decrease
- D. Price increases
Answer: B
NEW QUESTION # 160
Deferred Taxes can be which of the following account types? (Select all that apply.)
- A. Revenue
- B. Expense
- C. Owner's Equity
- D. Liability
- E. Asset
Answer: D,E
NEW QUESTION # 161
Government regulators in a country announce costly new safety regulations for an industry. These new regulations are welcomed by all the companies in the industry. Why might these companies want this added cost?
- A. The new regulations will help differentiate the industry as a whole.
- B. The new regulations will limit competition by discouraging future entrants.
- C. The new regulations are a fixed cost and will decrease the marginal cost of each unit.
- D. The increased costs will allow companies to raise prices on their products.
Answer: B
NEW QUESTION # 162
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