Final

Which of the following is considered value added time? a.) order response time b.) processing time c.) queue time d.) shipping time

b.) processing time

The Capital Resources Process features which of the following pairs of activities: a.) Operating and Investing Activities b.) Financing and Planning Activities c.) Financing and Investing Activities d.) Reporting and Operating Activities

c.) Financing and Investing Activities

Which of the following is not one of the four business processes? a.) Performance Measurement and Management Process b.) Capital Resources Process c.) Internal Control Process d.) Business Organization and Strategy Process

c.) Internal Control Process

Am accounting firm borrows $100,000 to buy a new computer system. This is an example of a(n): a.) operating activity b.) investing activity c.) financing activity d.) planning activity

c.) financing activity

Activities involving obtaining necessary funds to purchase long-term assets, repay existing obligations, and provide a return for owners are referred to as: a.) financing activities b.) operating activities c.) investing activities d.) planning activities

a.) financing activities

On a bank reconciliation, which of the following will reduce the bank's cash balance? a.) deposit in transit b.) failure of the company to record the correct amount of a check on the company records c.) outstanding check d.) NSF check

c.) outstanding check

When a company operates in a more certain environment it tends to focus inward and have a(n): a.) flexible strategy b.) rigid strategy c.) loose strategy d.) efficiency strategy

d.) efficiency strategy

The owner of a dry cleaning business maintains separate checkbooks for his business and his personal affairs. This best describes an application of the: a.) business entity concept b.) going concern concept c.) monetary unit concept d.) periodicity concept

a.) business entity concept

Which of the following is not a correct relationship? a.) production function - determine wants and needs of customers b.) marketing function - advertising c.) finance function - borrow cash d.) human resource function - layoff employees e.) all are correct

a.) production function - determine wants and needs of customers

Net income is found on which of the following two statements? a.) statement of changes in shareholders' equity and income statement b.) balance sheer and income statement c.) statement of changes in shareholders' equity and balance sheet d.) statement of cash flows and balance sheet

a.) statement of changes in shareholders' equity and income statement

A business entity which is legally separate and distinct from its owners is called a: a.) partnership b.) corporation c.) merchandiser d.) sole proprietorship

b.) corporation

The accounting concept requiring that the reporting of profits of a business be done at regular intervals throughout the life of the business is the: a.) business entity concept b.) going concern concept c.) monetary unit concept d.) periodicity concept

b.) going concern concept

Abercrombie and Fitch is an example of which of the following? a.) service firm b.) merchandising firm c.) manufacturing firm d.) both A and B

b.) merchandising firm

Limited liability means: a.) A company is only liable for an amount that is established by a pre-set limit b.) Creditors are limited to just the cash available in the company at the time of the loss. c.) Creditors of a company can only claim the assets of the firm and not the assets of the owners of the firm. d.) Creditors of a firm can claim all the assets of a company but only a limited amount of the owner's personal assets.

c.) Creditors of a company can only claim the assets of the firm and not the assets of the owners of the firm.

The balanced scorecard approach has four perspectives. Which of the following is not one of those perspectives? a.) financial prspective b.) learning and growth perspective c.) internal control perspective d.) customer perspective

c.) internal control perspective

The grocery store requires employees to ring up sales and place all cash received in the cash register. This is an application of which of the following internal controls: a.) requiring proper authorization b.) separating incompatible duties c.) physically controlling assets and documents d.) maintaining adequate documents and records

c.) physically controlling assets and documents

The statements of financial accounting standards, and other authoritative pronouncements that define what constitutes acceptable accounting practice for financial reporting are collectively referred to as: a.) SFAS b.) FASB c.) SEC d.) GAAP

d.) GAAP

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following? a.) The financial statements are correct as reported. b.) The financial statements are fairly presented. c.) The financial statements are free from fraud. d.) The financial statements are presented fairly and in accordance to GAAP.

d.) The financial statements are presented fairly and in accordance to GAAP.

Which of the following measures the liquidity of a company? a.) return on owners' equity b.) gross margin ratio c.) return on investment d.) quick ratio

d.) quick ratio