Question 1) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income StatementBalance Sheet

26 May Question 1) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income StatementBalance Sheet

Question
1) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals:

Income StatementBalance Sheet

Dr.Cr.Dr.Cr.

Totals$58,000$48,000$34,000$44,000

Closing entries are necessary for __________.

A. temporary accounts only

B. permanent accounts only

C. permanent or real accounts only

D. both permanent and temporary accounts

Read more: http://blog.accountingcoach.com/closing-entries-2/

2) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?

A. General corporate liability insurance

B. Factory janitor

C. The western division’s vice president’s salary

D. Cost of landscaping the corporate office

Read more: http://www.investorwords.com/2942/manufacturing_overhead.html

3) Which list below best describes the major services performed by public accountants?

A. Employee training, auditing, bookkeeping

B. Bookkeeping, mergers, budgets

C. Cost accounting, production scheduling, recruiting

D. Auditing, taxation, management consulting

Read more: http://www.collegeboard.com/csearch/majors_careers/profiles/careers/106541.html

4) The conceptual framework developed by the Financial Accounting Standards Board __________.

A. are rules that all accountants must follow

B. was approved by a vote of all accountants

C. is legally binding on all accountants

D. is viewed as providing a constitution for setting accounting standards for financial reporting

Read more: http://www.investopedia.com/terms/f/fasb.asp

5) In what situations will a static budget be most effective in evaluating a manager’s effectiveness?

A. The company has substantial variable costs.

B. The company has substantial fixed costs.

C. The company has no fixed costs.

D. The planned activity levels match actual activity levels.

Read more: http://blog.accountingcoach.com/what-is-a-static-budget/

http://businessmanagement.suite101.com/article.cfm/what_is_management_effectiveness

6) Which one of the following items is not generally used in preparing a statement of cash flows?

A. Comparative balance sheets

B. Adjusted trial balance

C. Additional information

D. Current income statement

Read more: http://www.accountingcoach.com/online-accounting-course/06Xpg01.html

7) These are selected account balances on December 31, 2008.

Land (location of the corporation’s office building)$150,000

Land (held for future use)225,000

Corporate Office Building900,000

Inventory300,000

Equipment675,000

Office Furniture150,000

Accumulated Depreciation450,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

A .$1,425,000

B. $1,650,000

C. $2,400,000

D. $1,950,000

8) A well-designed activity-based costing system starts with __________.

A. analyzing the activities performed to manufacture a product

B. computing the activity-based overhead rate

C. assigning manufacturing overhead costs for each activity cost pool to products

D. identifying the activity-cost pools

Read more: http://www.valuebasedmanagement.net/methods_abc.html

9) The cost principle is the basis for preparing financial statements because it is __________.

A. the most accurate measure of purchasing power

B. relevant and objectively measured, and verifiable

C. an international accounting standard

D. a conservative value

Read more: http://www.accountingcoach.com/terms/C/cost-principle.html

10) Which one of the following is a product cost?

A. Advertising costs

B. Office salaries

C. Sales person’s salaries

D. Indirect labor

Read more: http://www.ider.herts.ac.uk/school/courseware/costs/product_costs.html

11) If a company reports a net loss, it __________.

A. will not be able to make capital expenditures

B. will not be able to pay cash dividends

C. will not be able to get a loan

D. may still have a net increase in cash

Read more: http://www.wisegeek.com/what-is-net-loss.htm

12) The primary purpose of the statement of cash flows is to __________.

A. prove that revenues exceed expenses if there is a net income

B. provide information about the investing and financing activities during a period

C. facilitate banking relationships

D. provide information about the cash receipts and cash payments during a period

13) The major reporting standard for management accounts is __________.

A. the Sarbanes-Oxley Act of 2002

B. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management

C. generally accepted accounting principles

D. relevance to decisions

Read more: http://www.investopedia.com/articles/04/033104.asp

14) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase?

A. $28,000

B. $18,000

C. $6,000

D. $12,00

15) The price of a good that prevails in a world market is called the

A. relative price.

B. absolute price.

C. world price.

D. comparative price.

16) A country’s consumption possibilities frontier can be outside its production possibilities frontier if __________.

A. the citizens of the country have a greater desire to consume goods and services than do the citizens of other countries

B. the country’s technology is superior to the technologies of other countries

C. the country imports more than it exports

D. the country engages in trade

17) The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.

A. monopolistically competitive markets

B. imperfectly competitive markets

C. incomplete markets

D. oligopoly markets

Read more: http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=imperfect+competition

18) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________.

A. plus the cost of tuition, equals the opportunity cost of going to college

B. should be counted only to the extent that they are more expensive at college than elsewhere

C. should be counted in full, regardless of the costs of eating and sleeping elsewhere

D. usually exceed the opportunity cost of going to college

19) A tax on an imported good is called a __________.

A. trade tax

B. tariff

C. quota

D. supply tax

Read more: http://mw4.m-w.com/dictionary/tariff

20) Without trade, __________.

A. interdependence is more extensive than it would be with trade

B. a country’s production possibilities frontier is also its consumption possibilities frontier

C. a country is better off because it will have to learn to be self-sufficient without trade

D. a country can still benefit from international specialization

21) Which of the following statements about GDP is correct?

A. GDP increases if the total population increases.

B. Money continuously flows from households to government and then back to households, and GDP measures this flow of money.

C. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.

D. GDP is to a nation’s economy as household income is to a household.

Read more: http://www.investorwords.com/2153/GDP.html http://en.wikipedia.org/wiki/Gross_domestic_product

22) The political business cycle refers to __________.

A. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected

B. changes in output created by the monetary rule the Fed must follow

C. the fact that about every four years some politician advocates greater government control of the Fed

D. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle

Read more: http://www.businessdictionary.com/definition/political-business-cycle.html http://www.jstor.org/pss/2296528

23) The open-economy macroeconomic model examines the determination of __________.

A. unemployment and the exchange rate

B. the trade balance and the exchange rate

C. the output growth rate and the real interest rate

D. the output growth rate and the inflation rate

Read more: http://www.angelfire.com/id/SergioDaSilva/open.html

http://economics.about.com/cs/openeconomy/

24) The model of short-run economic fluctuations focuses on the price level and __________.

A. economic growth

B. Net GDP

C. real GDP

D. the neutrality of money

Read more: http://www.pages.drexel.edu/~jdh56/ADAS%20lecture%20notes.pdf http://flashcarddb.com/cardset/17942-short-run-economic-fluctuations-flashcards

25) Which of the following statements about GDP is correct?

A. Nominal GDP values production at constant prices, whereas real GDP values production at current prices.

B. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.

C. Nominal GDP values production at current prices, whereas real GDP values production at constant prices.

D. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.

26) Real GDP __________.

A. evaluates current production at the prices that prevailed in some specific year in the past.

B. is a measure of the value of goods only; it excludes the value of services.

C. evaluates current production at current prices.

D. is not a valid measure of the economy’s performance, since prices change from year to year.

27) The balance of payment account is made up of:

A. an import account and an export account.

B. a monetary account and a fiscal account.

C. a current account and a financial and capital account.

D. an investment account and a consumption account.

Read more: http://internationalecon.com/Finance/Fch5/F5-5.php http://www.investopedia.com/articles/03/060403.asp

28) Which of the following best describes a mental image of a possible and desirable future state of the organization?

A. Horizontal communication

B. Vision

C. Mission

D. Vertical communication

E. Leadership

Read more: http://sbinfocanada.about.com/od/businessplanning/g/visionstatement.htm

29) Which of these refers to the practices aimed at discovering and harnessing an organization’s intellectual resources?

A. Effectiveness

B. Knowledge management

C. Collaboration

D. Competitiveness

E. Innovation

Read more: http://www.systems-thinking.org/kmgmt/kmgmt.htm http://en.wikipedia.org/wiki/Knowledge_management

30) As related to managing of human resources, diversity refers to:

A. Differences in retention strategies (such as training, hiring, incentives, etc)

B. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)

C. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)

D. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)

E. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)

Read more: http://humanresources.about.com/od/glossarym/g/manage_humans.htm http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm

31) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:

A. Differentiation strategy

B. High-price strategy

C. High-cost strategy

D. Diversification strategy

E. Low-cost strategy

Read more: http://www.businessdictionary.com/definition/high-price-strategy.html

32) Teams that operate separately from the regular work structure and exist temporarily are known as:

A. Transnational teams

B. Parallel teams

C. Management teams

D. Self-managed teams

E. Self-designing teams

Read more: http://www.super-business.net/Knowledge-Management/811.html

33) Which of these represent skills that managers need?

A. Interpersonal, quantitative, and professional

B. Technical, interpersonal & communication and conceptual & decision making

C. Interpersonal & communication, conceptual & decision making and professional

D. Conceptual & decision making, professional and technical

E. Professional, technical and interpersonal & communication

Read more: http://management.about.com/od/managementskills/Management_Skills.htm http://managementhelp.org/fp_progs/mng_mod/mng_ldr.htm

34) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.

A. an approach with high face validity

B. a formal means of screening candidates

C. an approach with low reliability

D. an approach with high reliability

E. an informal means of screening candidates

35) A manager’s ability to stimulate people to be high performers is referred to as:

A. Organizing

B. Staffing

C. Planning

D. Controlling

E. Leading

Read more: http://www.thefreedictionary.com/leading

36) The most dominant areas in the global economy include:

A. North America, Mexico and Asia

B. Western Europe, Asia and Africa

C. North America, Western Europe and Asia

D. North America, Asia and Africa

E. North America, South America and Western Europe

Read more: http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGBLPROSPECTSAPRIL/0,,menuPK:659178~pagePK:64218926~piPK:64218953~theSitePK:659149,00.html http://en.wikipedia.org/wiki/World_economy

37) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n):

A. Large corporation

B. Online Business

C. Multinational corporation

D. Entrepreneurship venture

E. Small business

Read more: http://www.corporatehx.com/

38) __________ is the process of working with people and resources to accomplish organizational goals.

A. Management

B. Supervising

C. Planning

D. Decision making

E. Controlling

Read more: http://en.wikipedia.org/wiki/Management http://www.leadership501.com/definition-of-management/21/

39) Building a dynamic organization is another way of describing which function of management?

A. Controlling

B. Organizing

C. Planning

D. Leading

E. Staffing

Read more: http://managementhelp.org/org_thry/org_defn.htm

40) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.

A. $2; about 25

B. About $2; about 15

C. Less than $1; about 15

D. Less than $1; about 25

E. Less than $1; about 40 (Check your textbook!!!)

41) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:

A. Mass-producing products that have an established market niche

B. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materials

C. Making subtle changes to the product, thereby avoiding patent restrictions

D. Learning from the leader thereby avoiding the costs and risks of technology leadership

E. Technology followers are not successful at low-cost strategies

42) Use the following table to answer question:

P(M A) is approximately _____.

A. .25

B. .125

C. .625

D. .50 (Check your textbook!!!)

43) Which of the following statements is true?

A. If A and B are independent events, the P(B) = P(A) P(B).

B. If event (A) occurs, then its complement (A’) will also occur.

C. The probability of A and its complement (A’) will always sum to one.

D. The sum of two mutually exclusive events is one.

44) Use the following table to answer question:

Are Service provider and county independent events?

A. Insufficient information to determine

B. Yes

C. No (Check your textbook!!!)

45) Use the following table to answer question:

P(S | W) is approximately _____.

A. .58

B. .12

C. 30

D. .40 (Check your textbook!!!)

46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.

Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with

Y = number of robberies in each city (thousands of robberies) and

X = size of police force in each city (thousands of police)?

A. No correlation.

B. Autocorrelation.

C. Positive slope (due to city size).

D. High R2 (due to city size).

Read more: http://geography.uoregon.edu/geogr/topics/regression01.htm

47) Thirty patients are selected from a filing cabinet containing 812 patient folders by choosing every 27th patient folder. Which sampling method is this?

A. Cluster sample

B. Simple random sample

C. Stratified sample

D. Systematic sample

48) Suppose that the optimal values of the decision variables to a two-variable linear programming problem remain the same as long as the slope of the objective function lies between the slopes of the following two constraints:

2X1 + 3X2 26

2X1 + 2X2 20

The current objective function is:

8X1 + 9X2 = Z

Which of the following statements about the range of optimality on c1 is TRUE?

A. 0 c1 2

B. 9 c1 12

C. 2 c1 6

D. 6 c1 9

49) Which one of the following statements concerning production and staffing plans is best?

A. Aggregation can be performed along three dimensions: product families, labor, and time.

B. A master production schedule is a projected statement of income, costs, and profits.

C. A staffing plan is the intermediate link between the business plan and the master production schedule.

D. Production plans are based primarily on information from the master production plan.

Read more: http://asumag.com/mag/university_building_staffing_plan/ http://www.lotsofessays.com/viewpaper/1712622.html

50) Which one of the following statements concerning production and staffing plans is best?

A. When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time.

B. Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregated.

C. Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one another.

D. The impact of production and staffing plans cuts across several functional areas of the firm.

51) Queuing models use an A/B/C notation. What do these variables represent?

A. maximum time between arrivals/maximum allowable service time/maximum number of parallel servers

B. distribution of time between arrivals/distribution of service times/number of parallel servers

C. average time between arrivals/average service time/number of parallel servers

D. minimum time between arrivals/minimum allowable service time/minimum number of parallel servers

Read more: http://en.wikipedia.org/wiki/Queueing_model http://it.toolbox.com/blogs/enterprise-solutions/queuing-theory-models-14995

52) Which is not a tool of statistical quality control?

A. Attribute control chart

B. Fishbone diagram

C. Pareto chart

D. Deming chart

Read more: http://www.britannica.com/EBchecked/topic/564167/statistical-quality-control http://www.itl.nist.gov/div898/handbook/pmc/section1/pmc11.htm

http://www.vertex42.com/ExcelTemplates/fishbone-diagram.html

53) Fundamental points about network computing in organizations include all of the following except:

A. Networks have had limited impact on organizational productivity

B. Computers constantly exchange data

C. Computer data exchange provides significant advantages to organizations

D. Networks can be of any size, from small to enormous

E. Networks support new ways of doing business

Read more: http://www.opengroup.org/onlinepubs/7619899/toc.htm

54) When customers access a Web site and make purchases, they generate __________.

A. Web data

B. Tracking cookies

C. Information

D. Clickstream data

E. Hyperlink data

Read more: http://en.wikipedia.org/wiki/HTTP_cookie

http://chris.pirillo.com/what-is-a-tracking-cookie/

55) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data.

A. transaction processing system

B. enterprise resource planning system

C. functional area information system

D. dashboard

E. office automation system

Read more: http://en.wikipedia.org/wiki/Transaction_processing_system

http://www.bestpricecomputers.co.uk/glossary/transaction-processing-systems.htm

56) Which of the following is not a source for external data?

A. commercial databases

B. satellites

C. corporate databases

D. sensors

E. government reports

Read more: http://spireproject.com/database.htm

57) Which of the following statements is correct?

A. An individual’s right to privacy is absolute

B. Advances in information technologies have not affected individual privacy

C. It is difficult to determine and enforce privacy regulations

D. An individual’s right to privacy supersedes the needs of society

E. The Internet has increased individuals’ privacy

Read more: http://en.wikipedia.org/wiki/Privacy

Right to Privacy: An Outmoded Concept?

58) The management cockpit best exemplifies which type of system?

A. Decision support system

B. Functional area information system

C. Expert system

D. Digital dashboard

E. Group decision support system

Read more: http://www.ap.atosorigin.com/en-us/services/solutions/consulting/management_consulting/management_cockpit/default.htm

59) Information-based industries are most susceptible to which one of Porter’s five forces?

A. bargaining power of suppliers

B. rivalry among existing firms in an industry

C. bargaining power of customers

D. threat of substitute products

Read more: http://www.quickmba.com/strategy/porter.shtml http://en.wikipedia.org/wiki/Porter_five_forces_analysis

60) International Game Technology’s new ERP system produced all of the following benefits except:

A. The company gained flexibility in manufacturing products

B. Integrated the company’s business functions

C. Company was able to maintain its original business processes

D. ERP system connected the company’s global operations

E. Operations employees were able to access manufacturing process details at their workstations

61) Which of the following is not a reason that managers need IT support?

A. Need to access remote information sources

B. Number of alternatives are decreasing

C. Decisions must typically be made under time pressure

D. Decisions are becoming more complex

E. Decision makers are often in different locations

62) Which of the following are not provided by digital dashboards?

A. Key performance indicators

B. Drill down

C. Transaction processing

D. Status access

E. Exception reporting

Read more: http://en.wikipedia.org/wiki/Dashboards_%28management_information_systems%29

http://www.infovis.net/printMag.php?num=143&lang=2

63) Which of the following best represents operating income?

A. Income from capital gains

B. Income after financing activities

C. Earnings before interest and taxes

D. Income from discontinued operations

Read more: http://www.investorwords.com/3460/operating_income.html

64) Which of the following is most consistent with the hedging principle in working capital management?

A. Fixed assets should be financed with short-term notes payable.

B. Inventory should be financed with preferred stock.

C. Accounts receivable should be financed with short-term lines of credit.

D. Borrow on a floating rate basis to finance investments in permanent assets.

Read more: http://www.forex-currency-trading-tips.com/tag/definition-of-hedging-principle

65) Exchange rate risk:

A. has been phased out due to recent international legislation.

B. arises from the fact that the spot exchange rate on a future date is a random variable.

C. applies only to certain types of domestic businesses.

D. doesn’t affect trades made in US Dollars.

Read more: http://www.investorwords.com/1808/exchange_rate_risk.html

http://moneyterms.co.uk/exchange-rate-risk/

66) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)

A. $900

B. $490

C. $570

D. -$150

67) At 8% compounded annually, how long will it take $750 to double?

A. 6.5 years

B. 9 years

C. 48 months

D. 12 years

68) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:

A. overvalued.

B. a good buy.

C. undervalued.

D. at equilibrium.

Read more: http://www.arabbank.com.au/trade-finance/forward-exchange-contracts

http://www.businessdictionary.com/definition/forward-exchange-contract.html

69) Forward rates are quoted:

A. in direct form and at a premium or discount

B. by the FDIC

C. in an indirect form

D. on financial statements

E. daily

Read more: http://businesslink.gov.uk/bdotg/action/detail?itemId=1074298651&type=RESOURCES

http://www.lloydstsbbusiness.com/internationalservices/forwardexchangecontracts.asp

70) You hold a portfolio with the following securities:

SecurityPercent of PortfolioBetaReturn

X Corporation20%1.3514%

Y Corporation35%.9510%

Z Corporation45%.758%

Compute the expected return and beta for the portfolio.

A. 10.67%, 1.02

B. 34.4%, .94

C. 9.9%, 1.02

D. 9.9%, .94

71) A stock with a beta greater than 1.0 has returns that are _____ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are _____ volatile than those of the market portfolio.

A. more, more

B. less, more

C. more, less

D. less, less

Read more: http://stocks.about.com/od/evaluatingstocks/a/beta120904.htm

http://finance.mapsofworld.com/portfolio/investment/stock.html