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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q113-Q118):

NEW QUESTION # 113
At the close of a fiscal period, the Prepaid Insurance Account shows a debit balance of $600, and an examination of entries in the Insurance Register shows $500 as expired insurance. Which of the following is the appropriate adjusting entry to be made as a part of the adjusting process?

A. Debit Insurance Expense $500, credit Income and Expense Summary $500
B. Debit Insurance Expense $500, credit Prepaid Insurance $500
C. Debit Prepaid Insurance $100, credit Insurance Expense $100
D. Debit Insurance Expense $100, credit Prepaid Insurance $100

Answer: B

Explanation:
Prepaid insurance represents insurance paid in advance, recorded as an asset. At the end of the fiscal period, the portion that has expired ($500) must be recognized as an expense. The adjusting entry reduces the Prepaid Insurance account (asset) by crediting it and increases the Insurance Expense account by debiting it for the expired amount. Thus, the correct entry is: Debit Insurance Expense $500, Credit Prepaid Insurance $500.
Option A incorrectly adjusts for $100, which is the remaining prepaid amount. Option B reverses the accounts and amounts incorrectly. Option C involves the Income and Expense Summary, which is not relevant for this adjustment. This question tests adjusting entries, a key concept in the Accounting and Finance category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Accounting Principles, Chapter 3.

NEW QUESTION # 114
Which of the following business education practices would effectively produce graduates with marketable employment skills?

A. Maintaining enrollments at consistently high levels
B. Creating an itemized list of students currently enrolled in the program
C. Keeping abreast of changes in computer software
D. Keeping a checklist of equipment and materials to be ordered on an annual basis

Answer: C

Explanation:
Keeping abreast of changes in computer software ensures students learn current, relevant technology skills, enhancing their employability in modern workplaces. Option B (high enrollments) focuses on quantity, not skill quality. Option C (student list) is administrative, not skill-focused. Option D (equipment checklist) supports infrastructure, not direct skill development. This question aligns with the Professional Business Education category, emphasizing curriculum relevance.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Professional Business Education; Career and Technical Education, Chapter 3.

NEW QUESTION # 115
Students are creating a digital storyboard that includes music. According to Fair Use Guidelines for Educational Multimedia, which of the following is the most students may use of any one song in their presentation?

A. No more than 1,000 words
B. Between 100 and 150 of the lyrics
C. Less than 3 minutes
D. No more than 30 seconds

Answer: D

Explanation:
According to the Fair Use Guidelines for Educational Multimedia, students may use up to 10% or 30 seconds of a copyrighted song, whichever is less, for educational projects like a digital storyboard, without requiring permission. Option B (less than 3 minutes) exceeds the guideline. Option C (1,000 words) applies to text, not music. Option D (100-150 lyrics) is incorrect, as the limit is time-based for music. This question aligns with the Business Law category, emphasizing copyright law in education.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Fair Use Guidelines for Educational Multimedia, Section 4.2.

NEW QUESTION # 116
If margarine and butter are substitute goods, which of the following will result in an increase in the demand for margarine?

A. A decrease in the supply of margarine
B. An increase in the supply of margarine
C. An increase in the price of butter
D. A decrease in the price of butter

Answer: C

Explanation:
Substitute goods can replace each other in consumption. If the price of butter increases, consumers are likely to switch to margarine, increasing its demand. Option B (increased margarine supply) shifts supply, not demand. Option C (decreased margarine supply) reduces availability, potentially increasing price but not demand. Option D (decreased butter price) would decrease margarine demand, as consumers prefer cheaper butter. This question falls under the Economics category, emphasizing demand determinants.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Principles of Economics, Chapter 3.

NEW QUESTION # 117
Which of the following is the best example of eminent domain?

A. The local government lays pipeline beneath the surface of privately owned land.
B. The local government tells homeowners that they may not build a multifamily dwelling in an area containing only single-family dwellings.
C. The state government intends to build a ramp to the highway and takes privately owned land to complete the building project.
D. The state government grants property ownership to homeowners who discover the property line runs through the middle of their home.

Answer: C

Explanation:
Eminent domain is the government's power to take private property for public use, with compensation, such as taking land to build a highway ramp. Option B (zoning restriction) is a regulatory action, not eminent domain. Option C (pipeline) could involve eminent domain but is less clear without mention of compensation or taking. Option D (granting ownership) is unrelated to eminent domain. This question falls under the Business Law category, emphasizing property law.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Business Law: Text and Cases, Chapter 24.

NEW QUESTION # 118
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