Sample Questions (Do Not Completed This Until You Contact Me Back Via Brainmass)

SAMPLE QUESTIONS (DO NOT COMPLETED THIS UNTIL YOU CONTACT ME BACK VIA BRAINMASS)

1) Balance sheet accounts are considered to be __________.
A. nominal accounts
B. permanent accounts
C. temporary stockholders’ accounts
D. capital accounts

2) The major reporting standard for management accounts is __________.
A. generally accepted accounting principles
B. the Sarbanes-Oxley Act of 2002
C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management
D. relevance to decisions

3) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
A. It should sell an equal quantity of both
B. Wine
C. Beer
D. Selling either results in the same additional income for the company

4) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A. Master budgeting analysis
B. Responsibility reporting
C. Static reporting
D. Exception reporting

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

Land (location of the corporation’s office building) $100,000
Land (held for future use) 150,000
Corporate Office Building 600,000
Inventory 200,000
Equipment 450,000
Office Furniture 100,000
Accumulated Depreciation 300,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
A. $950,000
B. $1,100,000
C. $1,300,000
D. $1,600,000

6) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
A. Hardware store
B. Farm implement dealership
C. Music store specializing in organ sales
D. Antique shop

7) The cost of an asset and its fair market value are __________.
A. the same on the date of acquisition
B. the same when the asset is sold
C. never the same
D. irrelevant when the asset is used by the business in its operations

8) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____.
A. $50
B. $75
C. $65
D. $60

9) The primary purpose of the statement of cash flows is to __________.
A. facilitate banking relationships
B. prove that revenues exceed expenses if there is a net income
C. provide information about the investing and financing activities during a period
D. provide information about the cash receipts and cash payments during a period

10) Which list below best describes the major services performed by public accountants?
A. Cost accounting, production scheduling, recruiting
B. Employee training, auditing, bookkeeping
C. Bookkeeping, mergers, budgets
D. Auditing, taxation, management consulting

11) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A. standards of financial reporting
B. generally accepted accounting principles
C. generally accepted accounting standards
D. operating guidelines

12) 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. may still have a net increase in cash
D. will not be able to get a loan

13) What exists when budgeted costs exceed actual results?
A. An excess profit
B. A favorable difference
C. A budgeting error
D. An unfavorable difference

14) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?
A. $90,000
B. $60,000
C. $150,000
D. $75,000

15) 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

16) If a binding price ceiling were imposed in the computer market, __________.
A. the quality of computers would increase
B. the supply of computers would decrease
C. the demand for computers would increase
D. a shortage of computers would develop

17) 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.

18) What you give up to obtain an item is called your __________.
A. direct cost
B. explicit cost
C. opportunity cost
D. true cost

19) In order to be successful, a cartel must __________.
A. agree on the prices charged by each member, but they need not agree on amounts produced
B. agree on the total level of production for the cartel, but they need not agree on the amount produced by each member
C. find a way to encourage members to produce more than they would otherwise produce
D. agree on the total level of production and on the amount produced by each member

20) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. borrower who supplies money to the financial system
B. saver who supplies money to the financial system
C. saver who demands money from the financial system
D. borrower who demands money from the financial system

21) 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

22) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A. the sacrifice ratio dilemma
B. the monetary policy reaction lag
C. inflation targeting
D. the time inconsistency of policy

23) The open-economy macroeconomic model includes __________.
A. neither the market for loanable funds or the market for foreign-currency exchange
B. only the market for loanable funds
C. both the market for loanable funds and the market for foreign-currency exchange
D. only the market for foreign-currency exchange

24) The principal lag for monetary policy __________.
A. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it
B. and fiscal policy is the time it takes to implement policy
C. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending
D. and fiscal policy is the time it takes for policy to change spending

25) President George W. Bush and congress cut taxes and raised government expenditures in 2003. Which of the following is not correct?
A. In general it is easier to reverse monetary policy than to reverse fiscal policy.
B. At the time the economy was just moving into a recession.
C. In general monetary policy can be implemented faster than fiscal policy.
D. While there was subsequent improvement in economic performance, it’s not entirely clear that this was due to the policy.

26) In the open-economy macroeconomic model, other things the same, a decrease in the interest rate shifts __________.
A. the supply of dollars in the market for foreign-currency exchange to the left
B. the demand for dollars in the market for foreign-currency exchange to the right
C. the supply of dollars in the market for foreign-currency exchange to the right
D. the demand for dollars in the market for foreign-currency exchange to the left

27) Which of the following statements about GDP is correct?
A. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
B. Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
C. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
D. Nominal GDP values production at constant prices, whereas real GDP values production at current prices.

28) The manager's first question for you is "What law do I need to look at to make sure I am in compliance on this issue?" The correct answer to that question is:
A. Sexual harassment policy
B. There is no law in the United States that covers this issue
C. Pregnancy Discrimination Act
D. Americans with Disabilities Act
E. American Civil Liberties Act

29) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n):
A. Online Business
B. Multinational corporation
C. Entrepreneurship venture
D. Small business
E. Large corporation

30) One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called:
A. Organic
B. Six Sigma Quality
C. Mechanistic
D. ISO 9000
E. Total quality integration

31) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:
A. Technology followers are not successful at low-cost strategies
B. Making subtle changes to the product, thereby avoiding patent restrictions
C. Mass-producing products that have an established market niche
D. Learning from the leader thereby avoiding the costs and risks of technology leadership
E. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materials

32) Teams that operate separately from the regular work structure and exist temporarily are known as:
A. Transnational teams
B. Management teams
C. Self-managed teams
D. Self-designing teams
E. Parallel teams

33) Teams that work on long-term projects but disband once the work is completed are known as:
A. Transnational teams
B. Parallel teams
C. Project and development teams
D. Traditional work groups
E. Management teams

34) __________ is the process of working with people and resources to accomplish organizational goals.
A. Supervising
B. Planning
C. Decision making
D. Controlling
E. Management

35) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A. Customer-based integration
B. Total quality management
C. Computer-integrated manufacturing (CIM)
D. ISO 9000
E. Just-in-time control (JIT)

36) Building a dynamic organization is another way of describing which function of management?
A. Staffing
B. Planning
C. Controlling
D. Leading
E. Organizing

37) Which of these describes a vision, as it pertains to leadership?
A. A short-term goal of an organization
B. Likely to land you in a padded room
C. A mental image of a future state of an organization
D. A long-term goal of an organization
E. The method through which leaders achieve goals

38) As related to managing of human resources, diversity refers to:
A. Differences in retention strategies (such as training, hiring, incentives, etc)
B. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
C. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
D. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
E. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)

39) To be competitive in a global economy, Europeans must increase their level of:
A. Financial subsidy
B. Philanthropic contributions
C. Productivity
D. Population density
E. Espionage activity

40) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.
A. Less than $1; about 40
B. $2; about 25
C. About $2; about 15
D. Less than $1; about 15
E. Less than $1; about 25

41) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.
A. a formal means of screening candidates
B. an approach with high reliability
C. an approach with high face validity
D. an approach with low reliability
E. an informal means of screening candidates

48) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
A. The expected duration of this project is 25 + 15 + 20 = 60 days.
B. The expected duration of this project is 25 days.
C. A–B–C has the most slack.
D. A–D–C is the critical path.

49) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571.

Which conclusion is not correct?
A. The absolute annual growth (in dollars per share) is increasing.
B. Few investments could match the astounding growth rate.
C. At the end of year 3 the stock price would be nearly $80.
D. The stock's true intrinsic value is $4.12.

50) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen?
A. All of these
B. Servers will eliminate time-consuming portions of their jobs, thereby increasing capacity.
C. Servers will decrease time spent per customer, thereby increasing capacity.
D. Customers will renege or balk, thereby reducing demand.

51) Likely reasons for inaccurate control limits would include which of the following?
A. Process variation was not zero, as expected.
B. There was insufficient preliminary sampling.
C. The engineers were underpaid for their work.
D.