Chapt 18 quiz

Which one of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt? A) liquidity ratios B) activity ratios C) leverage ratios D) profitability

leverage ratios

Irene was quite upset to learn her employer read her e-mails. She thought all her messages were private. Which one of the following arguments would best explain her employer's actions? A) Managers want to ensure company e-mail servers are not being used for personal e-mails. B) Managers are looking for information that can later be used to terminate employees. C) Managers want to be certain employees are not inadvertently passing on company secrets. D) Managers monitor computer usage to justify system upgrades

managers want to be certain employees are not inadvertently passing on company secrets

Which one of the following sources usually provides filtered information which cannot be documented? A) oral reports B) personal observations C) online reports D) written reports

oral reports

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________. A) concurrent control B) feedback control C) immediate corrective action D) basic corrective action

basic corrective action

Management by walking around is an example of ________ control. A) concurrent B) feedback C) feedforward D) reactive

concurrent

The launch went off without a hitch but the space capsule directed toward Neptune has veered off course. NASA sends signals to change the direction of flight to get it back on track. NASA is using ________ control. A) feedforward B) concurrent C) preventive D) feedback

concurrent

Benchmarks for a company must be created based on the previous performance of the company. True False

fals e

If the variance between the standard and the actual result is in the organization's favor, managers do not need to do anything. True False

false

Managers should not consider the standards when measuring the actual performance of employees. True False

false

Charles wants to prevent problems before their occurrence. Which one of the following is the most desirable type of control to achieve this goal? A) feedback control B) preventive control C) proactive control D) feedforward control

feedforward control

Corporate governance ________. A) refers to the compliance of the company to applicable laws and regulations B) refers to executive governance practices in companies C) is a term that refers to legal agreements made between two or more partner firms D) is a system used to govern a corporation so that the interests of corporate owners are protected

is a system used to govern a corporation so that the interests of corporate owners are protected

Helen noticed employee theft has increased. She has considered several options to deal with this loss. Which one of the following is likely to be the most effective concurrent control? A) Dismiss any employee involved in theft. B) Publicly announce thefts when they are discovered. C) Carefully screen job applicants using honesty testing. D) Publicize progress in reducing theft.

publicize progess in reducing theft

Which one of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue? A) return on investment B) total asset turnover ratios C) acid test ratio D) inventory turnover ratios

return on investment

Andrew prefers to get his performance data in the form of charts and graphs. Andrew prefers ________. A) written reports B) statistical reports C) personal observations D) oral report

statistical reports

Sometimes the French fries are rather pale, other times they are golden, sometimes they are quite dark. Anna cooks them according to how much time she has available between customers. The variation in appearance can be attributed to ________. A) differences in the potatoes B) customer demand C) the fact that there is no performance standard D) emphasis of quantity over quality

the fact that there is no performance standard

The comparing step in the control process determines ________. A) a company's relative position in the industry in terms of the standards used B) a company's relative position in the industry in terms of performance variances C) the variation between actual performance and the standard D) the variation between actual performance and an external benchmark from a noncompetitor

the variation between actual performance and the standard

Embezzlement and fraudulent filing of expenses are examples of employee theft. True False

true

Most employees do their jobs well and never require disciplinary action. True False

true

The Sarbanes-Oxley Act called for more disclosure and transparency of corporate financial information.

true

At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. These are all ________. A) statistical reports B) oral reports C) personal observations D) written reports

written reports