The death of me- Bfounds finals
d
19 Which of the following statements about internal control is NOT true? a An internal control system consists of policies and procedures designed to protect an organization's assets. b An internal control system helps ensure the reliability of an organization's accounting records. c Effective internal controls reduce the likelihood of errors, omissions of misstatements in financial statements. d Internal control systems apply only to computerized accounting systems.
c
2 Examples of internal control procedures include all of the following EXCEPT a Accounting records should be verified independently b Record-keeping responsibilities should be separated from physical control over resources c Limit access to accounting records to top management d Use pre-numbered documents and forms
a
2 The standards developed by professional accounting organizations to identify appropriate accounting reporting standards are known as a Generally accepted accounting principles b Generally authorized accounting procedures c Government authorized accounting procedures d Generally accepted auditing standards
c
20 Mags & Wheels, Inc. reported Retained Earnings of $20,000 at year-end 2004. The accompanying inco statement reported $10,000 in revenues for 2004 and $20,000 in expenses. The beginning 2004 balance Retained Earnings must have been a $50,000 b $40,000 c $30,000 d $20,000 e $10,000
a
21 Identifying consumer needs and then producing the goods and services that will satisfy them while making profit for the organization is known as the a Marketing concept. b Financial concept c Economic concept d Production concept
a
22 _____ is a collection of facts organized in such a way that they have additional value beyond the value of facts themselves. a Data b Knowledge c Information d Information system
c
23 Which one of the following is NOT normally included in a US corporate annual report? a The auditors' report b Notes to the financial statements c Stakeholder statement d Management's discussion and analysis
d
24 What is the potential drawback to the use of debt financing? a The interest paid is not tax-deductible. b Debt financing is a form of permanent financing. c Debt financing gives common stockholders a voice in company management. d Debt financing increases the risk of not being able to make payments of principal and interests. e Dividends are paid from after-tax income.
a
25 The self-checkout at Wal-Mart is a good example of a/an a Customer Integrated System b Enterprise Resource Planning System c Management Information System d Decision Support System
d
26 The Occupational safety and Health Act requires: a Employees to carry self insurance b Employers to provide medical insurance c Employers to provide adequate fringe benefits d Employers to provide a safe and healthful workplace e None of the above
d
28 In Capsim Foundation, what are some effects of an increase in automation? a A decrease in labor hours. b Lower material costs. c Longer repositioning period in R&D. d Both a and c. e A, b, and c are all effects of an increase in automation
c
3 A single set of hardware, software, databases, telecommunications, people and procedures that are configured to collect, manipulate, store, and process data into information is called a(n) ______. a Manual system b Learning system c Computer-based information system d Data recording system
a
3 Payroll checks can be considered as ___. a Output b Process c Input d Feedback
c
30 Which of the following is NOT one of the main activities for a human resource manager? a Recruiting and selecting employees b Training and developing employees c Coordinating marketing and production activities d Performance planning and evaluation e Organizational career management
a
31 Normally, a decrease in the price of a product will cause a An increase in the quantity demanded of the product. b A decrease in the quantity demanded of the product. c An increase in the quantity supplied of the product. d None of the above.
e
33 Which of the following is an element of the promotional mix? a Advertising b Personal selling c Public relations d Sales promotion e All of the above
a
35 In Capsim Foundation, when scheduling the number of products you want produced each year you will enter the data: a In the Production Schedule cell of the Production Spreadsheet. b In the Buy/Sell Capacity cell of the Production Spreadsheet. c In Your Sales Forecast cell of the Marketing Spreadsheet. d In the Current Capacity cell of the Production Spreadsheet.
b
36 In Capsim Foundation, the perceptual map shows a The relationship between the consumers income and the price level b The acceptable areas to the consumer concerning the size of the product and its performance c The earnings of the company before interest and taxes are paid d The value of working capital that the company has e The difference between AR and AP.
a
37 In Capsim Foundation, the promotion budget affects: a Awareness b Brand equity c Performance d Size e Accessibility
d
38 Which of the following is NOT a characteristic of valuable information? a Timeliness b Accuracy c Flexibility d Complexity
a
39 The following resources were obtained to start operations of Lightning Enterprises at the beginning of 2004: Owners' contribution of cash $80,000 Owners' contribution of machinery & equipment 46,000 Loan from the bank 18,000 Total: $144,000 What is the amount of debt financing for this firm based on the above information? a $18,000 b $62,000 c $98,000 d $126,000 e $144,000
a
4 A(n) _____ system could be used to cailitate business related exchanges such as sales to customers. a Transaction processing b Decision support c Management information d Expert
d
4 Which of the following is properly classified as a financing activity? a Purchase of equipment b Sale of inventory c Collection of accounts receivable d Payment of loan principal
d
40 When Stouffer's decided to sell its French Bread Pizza in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy. a Promotion b Price c Product d Place e Possession
b
41 _______ is a flexible manufacturing technique in which mass-market goods and services are tailored to the unique needs of the individuals who buy them a Niche marketing b Mass customization c Unique marketing d Product personalization e Market individualization
c
42 The Blackboard system that is used at the University of Arkansas is a good example of a/an ______. a Workgroup Support System b Transaction Processing System c Enterprise Resource System
b
43 On July 1, 2005 Smart Company purchased a six year fire insurance policy for $7,200. Regarding the event, what amount should be reported on the December 31, 2005 balance sheet and income statement, respectively? Balance Sheet Income Statement a) 1200 $6,000 b)$6,000 $1,200 c) $6,600 $600 d) $7,200 $0
a
44 Assets are a Resources owned/controlled by an organization. b Obligations of (amounts owned by) an organization c The amount of investment made by owners in a business. d The profits earned by a corporation
a
45 The Securities and Exchange Commission (SEC) is responsible for overseeing a External financial reporting by publicly traded companies. b Internal financial reporting by government agencies c The audits of the Fortune 500 companies d The civil and criminal prosecution of stockholders.
b
46 Which of the following most typifies a record? a Mary Hones, Jim Smith, Horace James b Horage James, 820 Union Blvd., Modesto, CA c Name, Address, City, State d Part number 1
d
47 Human resource management is the process of a Creating a large computerized file of the profiles and purchase patterns of customers and potential customers b Identifying and evaluating risks, and selecting and managing techniques to adapt to risk exposures. c Using quality principles in all aspects of a company's production and operations. d Hiring, developing, motivating, and evaluating employees to achieve organizational goals.
d
48 Reliance Computers received a bank loan of $25,000. Which of the following statements is true? a The cash account would increase by $25,000. b Liabilities would increase by $25,000 c The bank loan was a financing activity. d All of the above are true.
b
49 What are the two main types of external equity financing for a typical corporation? a Convertible and preferred stock b Common stock and bonds c Secured and unsecured bonds d Common and preferred stock e Retained earnings and unsecured bonds
b
5 A collection of related data fields on a particular person, event, or object is called a a Character b Record c File d Database
d
5 In economic terms, when demand and supply meet, the price of the product or service is established. This is the point of: a Price intersection b Monetary value c Interaction d Equilibrium e Price stabilization
d
50 The interrelated elements of the information system include all of the following except a Input b Processing c Output d Resource planning
a
51 In a relational database, the customer record contains information regarding the customer's last name. the last name is a(n) ____. a Attribute/field b Entity/record c Key d File
c
52 A strategy of charging a high introductory price for a new product that invites eventual competition is called price: a Escalation b Kiting c Skimming d Penetration e Enhancement
c
53 Which of the following is used to uniquely distinguish records so that they can be accessed, organized, and manipulated? a Character b Attribute/field c Primary key d Entity/record
a
54 Inventory of $900 was purchased on credit. The proper entry to record this event in the accounting system would a Increase total assets, and increase total liabilities. b Decrease total assets, and decrease total liabilities. c Increase expenses, and decrease cash d Have no effect on total assets.
c
55 Which one of the following well known national companies is PRIMARILY a merchandising retailing firm? a Dell computers b First USA Bank c Home Depot d Harley-Davidson
d
56 Which financial statement(s) report(s) the financial position of a firm at a specific point in time (on a particular day)? a The balance sheet, income statement, and statement of cash flows b The balance sheet and income statement c The income statement only d The balance sheet only
a
57 Which of the following will affect a company's contributed capital? a The issuance of stock b The earning of net income c The payment of dividends d The purchase of another company's stock
c
58 The primary reason most owners invest in business is in order to a Obtain money for other purposes. b Provide goods and services demanded by society. c Receive a return on their investments from profits earned by the business. d Expand the business.
c
59 ________ assets are cash or other resources expected to be converted to cash or consumed during the next fiscal year. a tangible b plant c current d intangible
b
6 Personal selling, advertising, public relations, and sales promotions are decisions made when planning the ___ strategy. a Place b Promotion c Possession d Price e Product
c
6 Short-term loans: a Have a maturity of one year or longer b Are always secured c Are shown as a liability on the balance sheet d Do not require any collateral e Are shown as a capital expenditure on the balance sheet
a
60 Customer satisfaction: a refers to the customer's feeling that a product hs met or exceeded expectations b determines what kind of marketing strategy will be used c is the same as customer value d is only important to companies that have a differential competitive advantage e is accurately described by all of the above
c
61 The following information is available to prepare a statement of cash flows: Cash paid for supplies $10,000 Cash received from customers$26,000 Cash paid for equipment $8,000 Cash paid for income taxes $3,000 What is the amount of cash flow from operating activities? a $3,000 b $16,000 c $13,000 d $23,000
b
62 Expenses result when a business a Sells equipment b Consumes resources during the sale of goods. c Distributes money to owners d Hires employees
a
63 The primary purpose of accounting is to a Help people make decisions about economic activities. b Provide information that management can use to convince stockholders that management deserves high salaries. c Provide employment to persons who have a knack for dealing with numbers. d Maximize the amount of profit that a firm has earned.
d
64 In Capsim Foundation, the primary buying criteria for each segment is: a Positioning for Low Tech and price for High Tech. b Reliability for Low Tech and performance for High Tech c Price for Low Tech and performance for High Tech. d Price for Low Tech and positioning for High Tech. e Reliability for Low Tech and technology for High Tech.
a
65 During the growth stage of the product life cycle,: a Sales grow at an increasing rate, and profits are healthy b The product is frequently modified c Manufacturers adopt a line extension strategy for their product d Primary demand promotion is the norm e Production and marketing costs are high, and sales are low
a
66 The goal of inventory management is to: a Minimize the costs and maintain accurate levels of inventory b Buy as much possible c Hold as much as possible in stock d Always buy the cheapest raw material
d
67 Using the information listed below, calculate the total stockholders' equity for Annie's Taxi Service, Inc. $80,000 Accounts Receivable $100,000 Contributed Capital $15,000 Cash $1,000 Wages Payable $90,000 Retained Earnings $360,000 equipment a $189,000 b $375,000 c $270,000 d $190,000
c
69 In Capsim Foundation, MTBF measures what? a Price b Performance c Reliability d Size e Market segment
d
7 The term "working capital" is used to describe the a Amount of equity (ownership) capital in the firm b Portion of capital actively employed in generating revenues c Amount of debt (borrowed) capital in the firm d Cushion of current assets over current liabilities
b
7 The terms "risk" and "return" are related in that a Risky investments always generate low returns. b When one goes up, the other usually goes up c They generally rise and fall somewhat inversely. d Smaller investments usually incur smaller risk but generate higher returns.
a
70 HogWild Corporation had the following transactions during the month of May: 1 Owners started the business by investing $400,000 in cash. 2 purchased $200,000 of equipment by making a $100,000 cash down payment and signed a 90-day payable for the balance. 3 purchased land for $20,000 signing a not payable for the full amount. 4 earned $60,000 of services revenue. What are the Total Assets for the HogWild Corporation at the end of May? a $580,000 b $680,000 c $540,000 d $560,000 e $620,000
d
8 In Capsim Foundation, before making decisions on the Finance Spreadsheet, you should make a All R&D decisions first. b All R&D and Marketing decisions first. c All R&D and Production decisions first. d All R&D marketing and production decisions first. e Financing decisions must be made before R&D decisions.
d
8 Which of the financial statements below would reveal the financing and investing activities that occurred during the year? Equity Income Statement a Yes Yes b Yes No c No Yes d No No
b
9 If a savings account was viewed from an information systems perspective, which of the following would be considered an input? a An account balance b A deposit c A monthly statement d A calculation on the monthly statement
e
9 Which of the following statements is a DISADVANTAGE inherent in equity financing? a The company is not required to repay equity. b Interest is tax-deductible. c Equity has no maturity date. d A firm has no obligation to pay dividends. e Equity owners have residual claim on income.
a
A security that represents an ownership interest in a corporation is called a Common stock b Commercial paper c Indentured debt d A bond
c
In Capsim Foundation, what trend can be explicitly observed in the industry your company is operating in? a More and more products are sold directly to the private end consumer. b Products become more and more expensive c Products become smaller and smaller. d Customers show less and less brand loyalty. e All of the above.
a
In a database, which of the following attributes would make the best primary key? a Social security number b Last name c First name d Age
a
Operating expenses should be reported on the income statement after a cost of goods sold and before earnings per share b administrative expenses but before costs of goods sold c sales revenue and before cost of goods sold d earnings per share but before administrative expenses
b
Wanda & Willies Water Park reports the following information: $70,000 Retained Earning $10,000 Accounts Payable $15,000 Utilities Paid $5,000 Loan Payments $80,000 Cash Received from Customers $3,000 Cash at Year End Based on the information above, determine the net change in cash during the period for Wand & Willie's Water Park. a $53,000 b $63,000 c $130,000 d $60,000
d
Which of the following is NOT an asset? a Cash b Equipment c Goodwill d Revenue
a
11 If Thomas invested $20,000 to start Athletic Works and earned a profit of $1,600 what would be the return on the investment? a 8% b 80% c 12.5% d 0.125%
d
11 Which one of the following would be considered a field value in a STUDENT TABLE? a Age b GPA c Social Security Number d Courtney Woods
d
12 During an accounting period, total assets decrease by $500 while owners' equity increased by $800. The change in total liabilities during this period must have been a $300 increase b $300 decrease c $1,300 increase d $1,300 decrease
e
12 Which of the following is NOT an example of a fringe benefit? a Insurance program b Pension plan c Vacation plan d Paid sick leave e Commission
a
13 Organizations that sell consumer goods that are produced by other companies are a Merchandising/retailing companies b Manufacturing companies c Service companies d Non-profit entities.
c
14 Examples of internal control procedures include all of the following EXCEPT a Accounting records should be verified independently b Record-keeping responsibilities should be separated from physical control over resources c Limit access to accounting records to top management d Use pre-numbered documents and forms
e
14 When Kellogg's designed a new package for its Special K Plus cereal, it decided to make it look like a milk carton to emphasize the product's calcium content. This type of decision was made as part of the ______ strategy. a Place b Promotion c Price d Possession e Product
d
15 The Stable Company reports the following information Accounts payable $2,600 Accounts Receivable $5,000 Cash 8,000 Mortgage Payable 4,400 Retained earnings 7,800 Inventory 10,200 Buildings 17,000 Supplies Expense 1,600 What is the amount of the firm's current assets? a $25,800 b $23,200 c $40,200 d $24,800
c
16 A _______ is a study of the tasks required to do a particular job well. a Job forecast b Skill inventory c Job analysis d Task delineation e Job survey
b
17 For most organizations, ____ support the routine, day-to-day activities that occur in the normal course of business. a Decision Support Systems (DSS) b Transaction Processing Systems (TPS) c Management Information Systems (MIS) d Expert Systems (ES)
e
18 The sales begin with the salesperson locating companies or people who are most likely to buy the seller's offerings. This activity is called: a Screening b Prospecting c Brainstorming d Market research e Target marketing
d
10 Which of the following is NOT one the stages in the product life cycle? a Maturity b Introduction c Decline d Development e Growth
a
10 In the approach to data management, separate data files are created and stored for each application program. a Traditional b Database c Integral d Attribute