[UPDATED 2022] HBX CORe Questions Prepare with Free Demo of PDF
NEW 2022 Certification Sample Questions CORe Dumps & Practice Exam
What is the duration, language, and format of the HBX CORe Exam
Number of Questions: 60
Type of Questions: Single and Multiple Choice.
Language: English
Length of Examination: 120 minutes
Passing score: 70%
NEW QUESTION 65
A stockbroker wishes to examine the relationship between merger failures and stock prices. For 30 days, data were collected for closing stock prices each day and the number of merger failures announced that day. After reviewing the data, the stockbroker believes that merger failures affect stock market prices for more than one day. Which of the following measures would help the stockbroker incorporate that effect into the regression model?
- A. Include lagged variables
- B. Introduce a variable that is collinear with number of news reports on merger failure
- C. Include other independent variables, such as the number of news reports on dividend released each day
- D. Include dummy variables
Answer: A
NEW QUESTION 66
Managers at a fast food chain that employs mostly minimum wage workers learn that a new law may increase the minimum wage in the United States by 25 percent. Assuming demand for labor is NOT perfectly elastic, how will this affect the market outcome?
- A. Price and quantity of fast food will not change, but the fast food chain will capture more value.
- B. Demand for fast food will increase, offsetting the change in price due to decreased supply.
- C. At any market price, fast food restaurants will be willing to supply less food.
- D. As more people will be willing to work for the higher wage, the fast food chain's output will increase.
Answer: C
Explanation:
Topic 3, Financial Accounting
NEW QUESTION 67
A trainer believes that a new workout regimen has helped athletes score more points per game. If the previous mean for points scored per player per game was 5.3, which alternative hypothesis below is the trainer trying to substantiate?
- A. u<5.3
- B. u>5.3
- C. u5.3
- D. u=5.3
Answer: B
NEW QUESTION 68
For valuation purposes, the opportunity cost and inflation are two main concepts that explain the:
- A. Time value of money
- B. Economic value added
- C. Riskiness of a project
- D. Real rates of interest
Answer: A
NEW QUESTION 69
An earthquake destroys a major manufacturing plant that produces sneakers. The manufacturing plant for rubber, a complementary good to sneakers, is unaffected by the earthquake. What is the result?
- A. The equilibrium quantity of sneakers decreases, and the equilibrium quantity of rubber increases.
- B. The equilibrium quantity of sneakers increases, and the equilibrium quantity of rubber decreases.
- C. The equilibrium quantity for both products decreases.
- D. The equilibrium quantity for both products remains the same.
Answer: C
NEW QUESTION 70
Which of the following activities will cause assets and owner's equity to decrease?
- A. Sell used plant equipment and realize a gain
- B. Pay off the principal and interest of a long-term debt
- C. Repurchase common shares for cash
- D. Declare dividends on outstanding shares
Answer: C
NEW QUESTION 71
Which of the following statements is NOT true regarding Company A? Exhibit:
- A. The efficiency in using inventory of Company A increased in 2013.
- B. The profitability of Company A increased in 2013.
- C. The solvency of Company A increased in 2013.
- D. The efficiency in collecting receivables of Company A increased in 2013.
Answer: A
NEW QUESTION 72
What is the first item that is usually forecasted when projecting financial statements?
- A. Operating expenses
- B. Capital expenditures
- C. Revenue/Sales
- D. Net income
Answer: C
NEW QUESTION 73
A company's retained earnings on Dec. 31st, 2009 to 2013 is as follows:
On the pro-forma income statement for 2014, the net income is $10,000. The expected dividends to be paid in 2014 is $3,500. What is the projected retained earnings on Dec. 31st, 2014?
- A. $15,000
- B. $31,500
- C. $18,500
- D. $35,000
Answer: B
NEW QUESTION 74
Which of the following options is an example of an implicit transaction?
- A. A sales order from a customer for a product to be shipped in two weeks
- B. An invoice for an item of plant equipment that was just purchased
- C. An invoice for services provided by the pension fund administrator
- D. A depreciation expense for an asset placed in service eight months ago
Answer: D
NEW QUESTION 75
A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity. If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
- A. Rent the office, and earn $35,000 in economic profit.
- B. Rent the office to another company, and earn $70,000 in economic profit.
- C. Use the office, and earn $40,000 in economic profit.
- D. Rent the office to another company, and earn $30,000 in economic profit.
Answer: D
NEW QUESTION 76
Two years ago, the purchasing manager at a company spent $25,000 on a new machine that would improve production efficiency at the company. The manufacturers of the machine release an updated model that costs $35,000 and that promises to further improve production efficiency. Under what conditions should the purchasing manager upgrade to the new model?
- A. If the savings from the additional efficiency improvements are large enough to offset the $35,000 cost of the new machine
- B. If the savings from the additional efficiency improvements are large enough to offset the $60,000 spent on machines
- C. If the efficiency improvements from the old machine did not result in enough savings to offset the $25,000 purchase price
- D. If the savings from the additional efficiency improvements are large enough to offset the $10,000 difference in price between the machines
Answer: A
NEW QUESTION 77
In determining free cash flows, how is the change in net working capital calculated?
- A. Current Assets minus Current Liabilities (year projected) - Current Assets minus Current Liabilities (previous year)
- B. Current Assets (previous year) - Current Assets (year projected)
- C. Ending balance of cash (previous year) - Ending balance of cash (year projected)
- D. Receivables minus Payables (year projected) - Receivables minus Payables (previous year)
Answer: A
NEW QUESTION 78
In which of the following scenarios would both the price and quantity sold of paperback books decrease?
- A. Printers develop processes that significantly decrease their costs.
- B. The price of e-books, a substitute for paperback books, decreases.
- C. The price of bookmarks, a complementary good to paperback books, decreases.
- D. The government passes new environmental regulations that increase the price of paper.
Answer: B
NEW QUESTION 79
An individual has an extremely rare item and intends to sell it via an English (open outcry) auction. In which situation should the seller forgo the auction and sell the item for a fixed price?
- A. The seller knows that consumers' willingness to pay varies between $1,000 and $5,000.
- B. The seller has no information about consumers' willingness to pay.
- C. The seller knows that consumers' willingness to pay varies between $500 and $1,000 and knows that only one consumer is willing to pay above $900.
- D. The seller knows that consumers' willingness to pay varies between $500 and $1,000 and knows that at least three consumers are willing to pay above $950.
Answer: C
NEW QUESTION 80
Company A is projecting a 10 percent increase in revenue for the next quarter with no significant changes to their operations. Which of the following accounting elements is the LEAST likely to mirror that increase?
- A. Capital expenditures
- B. Inventory
- C. Accounts receivable
- D. Cost of goods sold
Answer: A
NEW QUESTION 81
A company manager commissions a report to study the relationship between sales volume (in thousands of units) and the number of computers in each of the company's offices.
When the manager receives the report, however, the p-value for the independent variable is missing. Based on the rest of the regression output, which of the following numbers is the correct p-value?
- A. 0.0490
- B. 0.6196
- C. 0.0023
- D. 0.0095
Answer: B
NEW QUESTION 82
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