Learning Center
Plans & pricing Sign in
Sign Out

_ The income statement and balance sheet columns of Pine Company's

VIEWS: 1,407 PAGES: 16

  • pg 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

                    The net income (or loss) for the period is __________.

                                     A.      $48,000 income

                                     B.      $10,000 income

                                      C.       $10,000 loss

                                    D.       not determinable

   2) 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 balance sheet credit column

          B.       income statement credit column and the balance sheet debit column

        C.        income statement debit column and the income statement credit column

             D.      balance sheet debit column and the balance sheet credit column

               3) 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

                                    A.        $1,300,000

                                    B.        $1,100,000

                                    C.        $1,600,000

                                     D.       $950,000

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

               Land (location of the corporation's office building) $150,000
                          Land (held for future use)              225,000
                          Corporate Office Building               900,000
                                  Inventory                       300,000
                                  Equipment                       675,000
                               Office Furniture                   150,000
                          Accumulated Depreciation                450,000

What is the net amount of property, plant, and equipment that will appear on the balance

                                    A.        $1,950,000

                                    B.        $1,650,000

                                    C.        $2,400,000

                                    D.        $1,425,000

                   5) If a company reports a net loss, it __________.
                             A.             may still have a net increase in cash

                             B.             will not be able to pay cash dividends

                                   C.                 will not be able to get a loan

                       D.          will not be able to make capital expenditures

6) Which list below best describes the major services performed by public accountants?

                                  A.             Bookkeeping, mergers, budgets

                        B.             Employee training, auditing, bookkeeping

                       C.              Auditing, taxation, management consulting

                  D.          Cost accounting, production scheduling, recruiting

    7) What effect do current technology changes have on managerial accounting?

                                       A.             Creation of the middleman

                                       B.              Increase in product costs

                        C.             Reduction of emphasis on the value chain

          D.      Reduction of reporting costs of managerial accounting information

               8) What exists when budgeted costs exceed actual results?

                                                 A.        A budgeting error

                                            B.           A favorable difference

                                       C.              An unfavorable difference

                                                 D.         An excess profit

  9) In what situations will a static budget be most effective in evaluating a manager's

                        A.             The company has substantial fixed costs.
                     B.             The company has substantial variable costs.

                C.        The planned activity levels match actual activity levels.

                               D.             The company has no fixed costs.

10) 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.        $65

                                                     B.        $75

                                                     C.        $60

                                                     D.        $50

     11) Of the following companies, which one would not likely employ the specific
                       identification method for inventory costing?

                          A.             Music store specializing in organ sales

                                    B.          Farm implement dealership

                                               C.          Antique shop

                                              D.          Hardware store

        12) The major reporting standard for management accounts is __________.

   A.      the Standards of Ethical Conduct for Practitioners of Management Accounting and
                                     Financial Management

                               B.             the Sarbanes-Oxley Act of 2002

                                         C.         relevance to decisions

                       D.            generally accepted accounting principles

13) As Plant Controller, you are trying to determine which costs over which you have the
most control on a day to day basis. Your goal is to achieve better profitability. The Plant
Operations Manager suggests that overhead is the easiest area to directly reduce costs.
    Which of the following items would be classified as manufacturing overhead?

                                               A.      Factory janitor

                                 B.         General corporate liability insurance

                                C.         Cost of landscaping the corporate office

                           D.         The western division’s vice president’s salary

                                14) Multinational corporations __________.

                     A.         are required to use international accounting standards

               B.      are U.S. companies that sell goods and services in other countries

 C.        are firms that conduct their operations in more than one country through subsidiaries,
                             divisions, or branches in foreign countries

     D.        are U.S. companies that trade their securities on the exchanges in other countries

      15) A country's consumption possibilities frontier can be outside its production
                           possibilities frontier if __________.

          A.        the country’s technology is superior to the technologies of other countries

 B.        the citizens of the country have a greater desire to consume goods and services than
                                  do the citizens of other countries

                                      C.        the country engages in trade

                                D.         the country imports more than it exports

          16) A production possibilities frontier will be a straight line if __________.

A.         increasing the production of one good by x units entails no opportunity cost in terms of
                                           the other good

 B.        increasing the production of one good by x units entails a constant opportunity cost in
                                      terms of the other good

                                 C.          the economy is producing efficiently

               D.         the economy is engaged in trade with at least one other economy
                 17) A tax on an imported good is called a __________.

                                                A.         quota

                                                 B.        tariff

                                           C.           supply tax

                                            D.           trade tax

  18) Institutions in the economy that help to match one person's saving with another
                person's investment are collectively called the __________.

                                 A.         Federal Reserve system

                                      B.              banking system

                                      C.             monetary system

                                      D.              financial system

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.         greater than quantity supplied

                             B.            less than quantity supplied

                              C.            equal to quantity supplied

                             D.            double the quantity supplied

20) For a college student who wishes to calculate the true costs of going to college, the
                         costs of room and board __________.

   A.     should be counted in full, regardless of the costs of eating and sleeping elsewhere

   B.     should be counted only to the extent that they are more expensive at college than

               C.       usually exceed the opportunity cost of going to college

         D.     plus the cost of tuition, equals the opportunity cost of going to college
21) 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 dominate the price effect

                              B.          must be smaller than the price effect

                               C.            must balance with the price effect

                       D.           can be larger or smaller than the price effect

                 22) Which of the following statements about GDP is correct?

 A.        Nominal GDP values production at current prices, whereas real GDP values production
                                       at constant prices.

      B.       Nominal GDP values production at constant prices, whereas real GDP values
                                 production at current 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 consistently underestimates the value of production, whereas real GDP
                      consistently overestimates the value of production.

  23) The model of aggregate demand and aggregate supply explains the relationship
                               between __________.

                         A.             the price and quantity of a particular good

                                     B.          unemployment and output

                                        C.        wages and employment

                                    D.          real GDP and the price level

      24) The Federal Reserve will tend to tighten monetary policy when __________.

                               A.            interest rates are rising too rapidly

                        B.          it thinks the unemployment rate is too high

                       C.           the growth rate of real GDP is quite sluggish
         D.          it thinks inflation is too high today, or will become too high in the future

                       25) The Federal Open Market Committee __________.

               A.        operates with almost complete discretion over monetary policy

        B.          is required to increase the money supply by a given growth rate each year

             C.        is required to keep the interest rate within a range set by Congress

   D.        is required by its charter to change the money supply using a complex formula that
                      concerns the tradeoff between inflation and unemployment

26) The open-economy macroeconomic model examines the determination of __________.

                         A.          the output growth rate and the real interest rate

                                B.          unemployment and the exchange rate

                           C.          the output growth rate and the inflation rate

                              D.           the trade balance and the exchange rate

   27) The part of the balance of payments account that records the amount of foreign
                       currency the government buys or sells is the:

                                               A.        current account.

                                      B.        financial and capital account.

                                     C.         government financial account.

                                               D.        balance of trade.

   28) Which of these refers to the practices aimed at discovering and harnessing an
                         organization's intellectual resources?

                                                A.        Collaboration

                                          B.         Knowledge management

                                                    C.      Innovation
                              D.          Competitiveness

                                E.         Effectiveness

29) __________ is the process of working with people and resources to accomplish
                              organizational goals.

                                     A.      Planning

                                B.         Management

                                   C.       Controlling

                              D.          Decision making

                                   E.       Supervising

30) Building a dynamic organization is another way of describing which function of

                                     A.      Planning

                                   B.       Organizing

                                     C.      Leading

                                   D.       Controlling

                                     E.       Staffing

31) A manager's ability to stimulate people to be high performers is referred to as:

                                     A.      Planning

                                   B.       Organizing

                                     C.      Leading

                                   D.       Controlling

                                     E.       Staffing
      32) 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.          Total quality management

                                    B.          Just-in-time control (JIT)

                                               C.       ISO 9000

                         D.         Computer-integrated manufacturing (CIM)

                                   E.         Customer-based integration

                    33) Which of these represent skills that managers need?

     A.     Interpersonal & communication, conceptual & decision making and professional

      B.      Technical, interpersonal & communication and conceptual & decision making

               C.        Professional, technical and interpersonal & communication

               D.        Conceptual & decision making, professional and technical

                        E.         Interpersonal, quantitative, and professional

34) Listening to employee suggestions, gaining support for organizational objectives and
                 fostering an atmosphere of teamwork are all considered:

                                          A.         Technical skills

                              B.         Interpersonal/communication skills

                                          C.         Diagnostic skills

                                         D.         Professional skills

                                               E.      Conceptual

35) Managers will utilize __________ skills with increasing frequency as they rise within an

                                    A.          Conceptual and decision
                          B.         Interpersonal and communication

                                               C.        Technical

                                          D.            Professional

                                          E.           Professional

36) 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.        Diversity

                                          B.           Employment

                                               C.        Selection

                                           D.            Recruiting

                                     E.              Managerial ethics

37) Which of the following has proven to be a particularly good predictor for jobs that
                            require cognitive complexity?

                                      A.             intelligence tests

                                    B.              integrity evaluations

                                          C.           work sampling

                                          D.           aptitude tests

                                E.              behavioral assessment

38) The best way for an employer to find out if a potential employee can do a job is by

                               A.          using the interview process

                                     B.             using a written test

                        C.          having them spend a day in the office
                                          D.             administering an IQ test

                                E.         using a performance simulation test

    39) One study found that manufacturing labor costs about _____ an hour in China,
                     compared to _____ dollars in the United States.

                                          A.             Less than $1; about 15

                                               B.          About $2; about 15

                                          C.             Less than $1; about 25

                                                    D.        $2; about 25

                                          E.             Less than $1; about 40

      40) The pursuit of lucrative opportunities by enterprising individuals is called:

                                                A.          Intrapreneurship

                                                    B.       Independence

                                           C.             Business incubating

                                               D.           Entrepreneurship

                                          E.             Social experimentation

41) 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.             Anyone can start a business

           B.             Entrepreneurs are their own bosses and completely independent

                     C.        Money should not be considered a start-up ingredient

                D.          Successful entrepreneurs take very careful, calculated risks

                E.          All entrepreneurs need venture capital in order to get started

     42) Independent events A and B would be consistent with which of the following

                              A.       P (A) = .4, P (B) = .5, P (A   B) = .2

                              B.       P (A) = .3, P (B) = .5, P (A   B) = .4

                              C.       P (A) = .4, P (B) = .3, P (A   B) = .5

                              D.       P (A) = .5, P (B) = .4, P (A   B) = .3

                           43) Which of the following statements is true?

               A.          If event (A) occurs, then its complement (A') will also occur.

          B.         The probability of A and its complement (A') will always sum to one.

                      C.        The sum of two mutually exclusive events is one.

                D.          If A and B are independent events, the P(B) = P(A) P(B).

44) Twelve randomly-chosen 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”

                                              A.       Mean

                                             B.       Median

                                              C.       Mode

                                            D.       Midrange

45) To estimate the average annual expenses of students on books and class materials a
sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99%
               confidence interval for the population mean is __________.

                                       A.        $825.48 to $874.52

                                       B.        $826.82 to $873.18

                                       C.        $832.36 to $867.64

                                       D.        $823.72 to $876.28
46) 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 determining the p-value for reporting the study's findings, which of the following is

               A.      The p-value cannot be determined without specifying   .

                           B.       The p-value is greater than .05.

                              C.         The p-value is equal to .05.

                              D.      The p-value is less than .05.

  47) William used a sample of 68 U.S. cities to estimate the relationship between Crime
(annual property crimes per 100,000 persons) and Income (median income per capita). His
              estimated regression equation was Crime = 428 + .050 Income.

Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will

                                    A.        decrease by 50

                                    B.        increase by 500

                                     C.        increase by 50

                                    D.        increase by 428

48) In an activity-on-node [AON] network, the nodes represent ____________, whereas the
                              arcs represent ____________.

                                     A.        activities; time

                         B.        activities; precedence relationships

                                    C.        events; activities

                           D.        precedence relationships; time

                           49) In a network diagram, an activity:
     A.        is the largest unit of work effort consuming both time and resources that a project
                                    manager can schedule and control.

 B.           is the smallest unit of work effort consuming both time and resources that a project
                                   manager can schedule and control.

              C.        should always be something the company has had experience with.

               D.        must always have a single, precise estimate for the time duration.

50) Which one of the following statements concerning production and staffing plans is

A.           Production and staffing plans specify production rates, workforce levels, and inventory
           holdings, but do not account for capacity limitations because they are aggregated.

B.           Production and staffing plans attempt to achieve several objectives, all of which must
                                    be consistent with one another.

 C.           When production and staffing plans are made, aggregation can be performed only
                            along two dimensions: products and time.

D.          The impact of production and staffing plans cuts across several functional areas of the

51) Which one of the following statements concerning production and staffing plans is

 A.           Aggregation can be performed along three dimensions: product families, labor, and

     B.        A staffing plan is the intermediate link between the business plan and the master
                                           production schedule.

C.           Production plans are based primarily on information from the master production plan.

D.           A master production schedule is a projected statement of income, costs, and profits.

      52) Queuing models use an A/B/C notation. What do these variables represent?

 A.           distribution of time between arrivals/distribution of service times/number of parallel

      B.           average time between arrivals/average service time/number of parallel servers
C.   maximum time between arrivals/maximum allowable service time/maximum number of
                                  parallel servers

D.   minimum time between arrivals/minimum allowable service time/minimum number of
                                 parallel servers

To top