Figure 8-3 Above Shows the Top Ten Prime-Time Broadcast TV

question 203

Multiple Choice

Figure 8-3 above shows the top ten prime-time broadcast TV shows during a recent May sweeps week.If an advertiser such as Apple wanted to buy time on one of these TV shows,which of the following statements would be most accurate?

• A)People who like reality TV are more likely to watch ABC than FOX.
• B)Apple should advertise on NCIS: Los Angeles since the rate CBS would charge is the same as the rate FOX would charge for American Idol.
• C)Apple would advertise on Dancing with the Stars-Results and NOT Dancing with the Stars because the proportion of the TV households actually tuned into the former is greater than the latter.
• D)Of all households with TVs in the U.S. ,fewer households watched American Idol-Wednesday than American Idol-Thursday.
• E)The cost of an advertisement shown on American Idol-Thursday would cost more than one aired during Dancing with the Stars-Results.

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Definitions:

Financing Activity

Transactions involved in raising, repaying, or restructuring the capital funding of a company, as reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from revenue.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Indirect Method

A method of presenting the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.