BUS 475 Final Exam step-7
BUS 475 Final Exam step-7
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Date Created: 11/07/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 1) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________. A. income statement debit column and the income statement credit column B. income statement credit column and the balance sheet debit column C. income statement debit column and the balance sheet credit column D. balance sheet debit column and the balance sheet credit column 2) Multinational corporations __________. A. are firms that conduct their operations in more than one country through subsidiaries, divisions, or branches in foreign countries B. are U.S. companies that sell goods and services in other countries C. are required to use international accounting standards D. are U.S. companies that trade their securities on the exchanges in other countries 3) Balance sheet accounts are considered to be __________. A. capital accounts B. nominal accounts C. temporary stockholders’ accounts D. permanent accounts 4) What is value chain management best defined as? A. The incremental value of costs associated with hiring a new production floor leader B. All activities associated with providing a product or service C. A large chain that keeps the machines from falling on the production floor D. Management decisions that affect how quickly the production run occurs 5) The primary purpose of the statement of cash flows is to __________. A. provide information about the cash receipts and cash payments during a period B. facilitate banking relationships C. provide information about the investing and financing activities during a period D. prove that revenues exceed expenses if there is a net income 6) In what situations will a static budget be most effective in evaluating a manager's effectiveness? A. The planned activity levels match actual activity levels. B. The company has no fixed costs. C. The company has substantial fixed costs. D. The company has substantial variable costs. 7) Which one of the following is a product cost? A. Sales person’s salaries B. Advertising costs C. Indirect labor D. Office salaries 8) 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. $1,600,000 B. $950,000 C. $1,300,000 D. $1,100,000 9) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Antique shop B. Music store specializing in organ sales C. Hardware store D. Farm implement dealership 10) If a company reports a net loss, it __________. A. will not be able to get a loan B. may still have a net increase in cash C. will not be able to make capital expenditures D. will not be able to pay cash dividends 11) 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. $12,000 B. $18,000 C. $6,000 D. $28,000 12) The cost principle requires that when assets are acquired, they be recorded at __________. A. selling price B. appraisal value C. list price D. exchange price paid 13) Which one of the following items is not generally used in preparing a statement of cash flows? A. Current income statement B. Adjusted trial balance C. Additional information D. Comparative balance sheets 14) Managerial accounting __________. A. pertains to the entity as a whole and is highly aggregated B. is concerned with costing products C. places emphasis on specialpurpose information D. is governed by generally accepted accounting principles 15) A logical starting point from which the study of international trade begins is __________. A. the principle of absolute advantage B. the recognition that not all markets are competitive C. the principle of comparative advantage D. the recognition that government intervention in markets sometimes enhances the economic welfare of the society 16) Without trade, __________. A. a country can still benefit from international specialization B. a country is better off because it will have to learn to be selfsufficient without trade C. interdependence is more extensive than it would be with trade D. a country's production possibilities frontier is also its consumption possibilities frontier 17) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________. A. must balance with the price effect B. must dominate the price effect C. must be smaller than the price effect D. can be larger or smaller than the price effect 18) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________. A. compete rather than cooperate with each other B. collude with each other C. form various degrees of cartels D. cooperate rather than compete with each other 19) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________. A. equal to quantity supplied B. greater than quantity supplied C. less than quantity supplied D. double the quantity supplied 20) If a price ceiling is a binding constraint on the market, __________. A. sellers cannot sell all they want to sell at the price ceiling B. the equilibrium price must be below the price ceiling C. there is excess supply D. buyers cannot buy all they want to buy at the price ceiling 21) A tax on an imported good is called a __________. A. supply tax B. quota C. tariff D. trade tax 22) The political business cycle refers to __________. A. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle B. the fact that about every four years some politician advocates greater government control of the Fed C. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get reelected D. changes in output created by the monetary rule the Fed must follow 23) Real GDP __________. A. is not a valid measure of the economy's performance, since prices change from year to year. B. evaluates current production at current prices. C. evaluates current production at the prices that prevailed in some specific year in the past. D. is a measure of the value of goods only; it excludes the value of services. 24) The model of shortrun economic fluctuations focuses on the price level and __________. A. the neutrality of money B. real GDP C. economic growth D. Net GDP 25) In the market for foreigncurrency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________. A. demanded for the purpose of buying U.S. net exports of goods and services B. supplied for the purpose of buying assets abroad C. supplied for the purpose of selling assets domestically D. demanded for the purpose of importing foreign goods and services 26) The openeconomy macroeconomic model examines the determination of __________. A. the output growth rate and the inflation rate B. unemployment and the exchange rate C. the output growth rate and the real interest rate D. the trade balance and the exchange rate 27) The balance of payment account is made up of: A. an investment account and a consumption account. B. an import account and an export account. C. a current account and a financial and capital account. D. a monetary account and a fiscal account. 28) To be competitive in a global economy, Europeans must increase their level of: A. Espionage activity B. Philanthropic contributions C. Population density D. Productivity E. Financial subsidy 29) Which of these refers to the practices aimed at discovering and harnessing an organization's intellectual resources? A. Innovation B. Competitiveness C. Collaboration D. Knowledge management E. Effectiveness 30) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a lowcost position by: A. Learning from the leader thereby avoiding the costs and risks of technology leadership B. Massproducing products that have an established market niche C. Making subtle changes to the product, thereby avoiding patent restrictions D. Producing an imitation of the new technology that utilizes lowerquality and lowercost materials E. Technology followers are not successful at lowcost strategies 31) The best way for an employer to find out if a potential employee can do a job is by __________. A. having them spend a day in the office B. administering an IQ test C. using the interview process D. using a written test E. using a performance simulation test 32) A manager's ability to stimulate people to be high performers is referred to as: A. Leading B. Supervising C. Organizing D. Planning E. Controlling 33) 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. ISO 9000 B. Organic C. Total quality integration D. Six Sigma Quality E. Mechanistic 34) The pursuit of lucrative opportunities by enterprising individuals is called: A. Business incubating B. Social experimentation C. Independence D. Intrapreneurship E. Entrepreneurship 35) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered: A. Diagnostic skills B. Conceptual C. Interpersonal/communication skills D. Technical skills E. Professional skills 36) Managers will utilize __________ skills with increasing frequency as they rise within an organization. A. Technical B. Professional C. Interpersonal and communication D. Conceptual and decision E. Professional 37) As related to managing of human resources, diversity refers to: A. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.) B. Differences in retention strategies (such as training, hiring, incentives, 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 pay methods (such as hourly, salaried, overtime, hazardpay, commissioned, etc.) 38) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is: A. Selection B. Managerial ethics C. Employment D. Diversity E. Recruiting 39) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true? A. Money should not be considered a startup ingredient B. All entrepreneurs need venture capital in order to get started C. Entrepreneurs are their own bosses and completely independent D. Anyone can start a business E. Successful entrepreneurs take very careful, calculated risks 40) Which of these represent skills that managers need? A. Professional, technical and interpersonal & communication B. Interpersonal & communication, conceptual & decision making and professional C. Interpersonal, quantitative, and professional D. Technical, interpersonal & communication and conceptual & decision making E. Conceptual & decision making, professional and technical 41) The basic components of an effective sexual harassment policy include the following EXCEPT: A. To establish a formal complaint procedure B. To develop an organization wide policy on sexual harassment C. To establish a means for ongoing training D. To establish a performance appraisal system E. To act immediately when employees complain of sexual harassment 42) Which of the following statements is true? A. The sum of two mutually exclusive events is one. B. If event (A) occurs, then its complement (A') will also occur. C. If A and B are independent events, the P(B) = P(A) P(B). D. The probability of A and its complement (A') will always sum to one. 43) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours. In a lefttailed test at = .05 we would __________. A. comfortably accept the claim B. switch to alpha of 0.01 for a more powerful test C. comfortably reject the claim D. feel uncomfortable with either decision (too close) 44) A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last year intended to specialize in family practice. What is the width of a 90% confidence interval for the proportion that plan to specialize in family practice? A. ± .07357 B. ± .08765 C. ± .04472 D. ± .00329 45) Use the following table to answer question: P(S | W) is approximately _____. A. .40 B. .12 C. .58 D. .30 46) Twelve randomlychosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of central tendency is least representative of the “typical” student? A. Mode B. Mean C. Midrange D. Median 47) In a righttail test, a statistician came up with a z test statistic of 1.469. What is the pvalue? A. .0708 B. .0301 C. .0874 D. .4292 48) In lean systems, if a defective product is found, which of the following is generally NOT done? A. The defective unit is returned to the worker responsible for creating the defect. B. The production line is stopped. C. The defective unit is passed on to the next workstation. D. The production line is made aware of the problem without stopping the line. 49) A computer analysis reveals that the bestfitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using yearend common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571. Which conclusion is not correct? A. Few investments could match the astounding growth rate. B. The stock's true intrinsic value is $4.12. C. At the end of year 3 the stock price would be nearly $80. D. The absolute annual growth (in dollars per share) is increasing. 50) In statistical process control a pchart could __________. A. have more than one characteristics B. measure the fraction of conforming parts in a sample C. measure the number of defects per sample unit D. use the student's distribution
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