A correlation coefficient of _____ provides the greatest possible risk reduction to the firm.
1.-1
2.+1
3.+0.5
4.None of these
A cost center responsibility report ________.
1.Typically focuses on the flexible budget variance
2.Includes depreciation expense
3.Is the same as a performance report
4.Shows all costs incurred by the department
A short-term creditor is primarily interested in the __________ of the borrower.
1.Liquidity
2.Profitability
3.Consistency
4.Solvency
A shortened form of the ledger is called a ________.
1.Trial balance
2.Balance sheet
3.Chart of accounts
4.T-account
A ____ invests money in the business but has no management responsibility.
1.General partner
2.Limited partner
3.Sole proprietor
4.Nominal partner
A _____ cost occurs when the amount used varies based on the volume of service provided.
1.Direct
2.Indirect
3.Fixed
4.Variable
Activity drivers can be classified as either ____ or ____.
1.Unit-level; nonunit-level
2.Inputs; outputs
3.Right; wrong
4.Exact; inexact
All fixed costs are listed ________ on a contribution margin income statement.
1.Above the gross profit line
2.Below the gross profit line
3.Above the contribution margin line
4.Below the contribution margin line
All of the following are assets except ________.
1.Inventory
2.Patents
3.Cash
4. Bank loans
An entity that buys goods and sells them to customers at a markup is a ________.
1.Merchandiser
2.Service provider
3.Manufacturer
4.Producer
An unfavorable flexible budget variance in operating income might be due to a(n) ________.
1.Decrease in sales volume
2.Increase in sales price per unit
3.Increase in variable cost per unit
4.Decrease in fixed costs
At the internal rate of return, the present value of net cash inflows will equal the ________.
1.Average operating income
2.Initial cost of the investment
3.Profit from the project
4.Residual value
At the maturity of a note payable, a borrower will pay ________.
1.The principal plus interest
2.The principal minus interest
3. The interest amount only
4.The principal amount only
Bank capital is equal to ________ minus ________.
1.Total assets; total liabilities.
2.Total liabilities; total assets.
3.Total assets; total reserves.
4.Total liabilities; total borrowings
Because ________ are less liquid for the depositor than ________, they earn higher interest rates.
1.Money market deposit accounts; time deposits
2.Checkable deposits; savings accounts
3.Savings accounts; checkable deposits
4.Savings accounts; time deposits
By increasing ________, a manager can increase operating income under absorption costing.
1.Leased assets
2.Fixed costs
3.Variable costs
4.All of the above
Calculating gross pay for hourly workers is an example of ________ decision making.
1.Structured
2.Unstructured
3.Undocumented
4.Semi-structured
Changes in activity have a(n) _________ effect on fixed costs per unit
1.Inverse
2.Neutral
3.Positive
4.Negative
Disaster recovery typically looks at the __________.
1.Long run
2.Continuation of the business
3.Overall business plan
4.Short term
Discounted cash flow methods, such as net present value and internal rate of return, ________.
1.Focus on the payback period
2.Use net income amounts rather than cash flows
3.Consider discounted cash flows
4.Use simple interest calculations
Dividends normally carry a _______ balance and are shown in the ______________.
1.Debit; Statement of stockholders’ equity.
2.Debit; Income statement.
3.Credit; Balance sheet.
4.Debit; Balance Sheet
Given a price of p2, this firm in a purely competitive industry should ___________
1.Produce Q1
2.Produce Q3 with a minimum loss
3.Produce Q5 with an economic profit
4.Shut down to minimize the loss at the fixed cost level
If a company retires preferred stock, ________.
1.Total​stockholders' equity will increase
2.The number of outstanding shares will increase
3.The company can record a gain or loss on retirement of stock T
4.otal​ stockholders' equity will decrease
In a negative message regarding a transaction, the salutation should be _____.
1.Addressed To Whom It May Concern
2.Dear Sir or Madam
3.Personalized to the recipient
4.Dear Customer
In multiple regression, plot the residuals against ____ to detect changing variability
1.All explanatory variables
2.Collinear variables
3.The predicted values
4.The response variable
In the accompanying figure, the book rep table displays in ____.
1.Layout view
2.Structure view
3. Design view
4.Table view
Inventory reduction is a ____ principle.
1.Lean
2.Traditional processing
3.Economic
4.Just-in-time
Long-term investments are made by the investment center manager for the purpose of ________.
1.Increasing profits
2.Decreasing profits
3.Increasing interest expense
4.Decreasing plant assets
Payment cards with disposable numbers are known as _____.
1.Credit cards
2.Store-branded cards
3.Single-use cards
4.Charge cards
Proponents of the emh typically advocate __________.
1.Buying individual stocks on margin and trading frequently.
2.Investing in hedge funds.
3. A passive investment strategy.
4.Buying individual stocks on margin and trading frequently and investing in hedge funds
Reduction in production cost results in ________.
1.Decreased profitability
2. Lower shareholder value
3.Increased profitability
4.Increased competition
Set up time is disregarded as an improvement priority under the ____ manufacturing concept.
1.Ust in Time
2.Traditional
3.Both of above
4.None of these
The amount of net income is transferred from ________ to ________.
1.The balance sheet; the income statement
2.The income statement; the statement of owner's equity
3.The balance sheet; the statement of cash flows
4.The income statement; the statement of expenditures
The amount spent by a publishing company to pay for manufacturing its books is called ________.
1.Cost of goods sold
2.Operating expenses
3.Cost of goods purchased
4.Net loss
The commitment concept says that plans should ________.
1.Extend far enough to meet those commitments made when the plans were developed
2.Be done for as long a time period as possible
3.Be done for as short a time period as possible
4.Not commit to specifically meeting the goals made when the plans were developed
The contribution margin income statement presents ________ below the contribution margin line.
1.All fixed expenses
2.Only variable expenses relating to selling and administrative activities
3.Only fixed expenses relating to selling and admin fees
4. All variable expenses
The cost of goods sold is subtracted from sales to arrive at _____.
1.Gross profit. .
2.Net sales
3.Fees earned.
4.Operating income
The current portion of long-term notes payable is ________.
1.The amount of principal that will be paid within five years
2.Included with the long-term liabilities on the balance sheet
3.Recorded an adjusting entry
4.Reclassified as current for reporting purposes on the balance sheet
The direct materials budget is prepared using information from the ________ budget.
1.Cash
2.Master
3.Capital expenditure
4.Production
The entry to record the purchase of direct materials on account would include a ________.
1.Debit to the Raw Materials Inventory account.
2.Debit to the Work-in-Process Inventory account.
3.Credit to the Work-in-Process Inventory account.
4.Credit to the Raw Materials Inventory account
The ima?s ethical standards include all of the following except ________.
1.Honesty, , ,
2.Credibility
3.Confidence
4.Competence
The income statement of a service company will most likely include _______
1.Salaries expense
2.Factory overhead
3.Direct materials
4.Cost of goods sold
The interest rate that investors demand to earn for loaning their money is known as the ________.
1.Yield to maturity
2.Coupon rate
3.Differential rate
4.Market interest rate
The predetermined overhead allocation rate is calculated by dividing ________.
1.The actual overhead costs by actual amount of the cost driver or allocation base
2.The total estimated overhead costs by total number of days in a year
3.The estimated amount of cost driver by actual total overhead costs
4.The estimated overhead costs by total estimated quantity of the overhead allocation base
The revenue recognition principle guides accountants in ________
1.Ensuring expenses are deducted from revenues
2.Ensuring only revenues received in cash are recorded
3.Determining when to record expenses
4.Determining when to record revenues
The ________ capital budgeting method uses accrual accounting income.
1.ARR
2.Payback
3.NPV
4.IRR
The ________ capital budgeting model considers both profitability and the time value of money.
1.Payback
2.Accounting rate of return
3.Net present value
4.Both a and c are correct
Total revenue divided by ________ = units sold.
1.Cost
2. Profit
3.Selling price
4.Total operating costs
Under the _____, partnership assets are arranged in a certain order to pay any outstanding debts.
1.Non-negotiable/notices
2.Negotiable/defects
3.Marshaling/debts
4.Partnering/claims
Under variable costing, a unit of a product includes ________.
1.Direct material, direct labor, and manufacturing overhead
2.Direct material, direct labor, and variable overhead cost
3.Direct material, direct labor, and fixed manufacturing overhead
4.Direct material, direct labor, and all variable manufacturing overhead
Underallocated overhead occurs when ________.
1.Actual overhead costs are less than allocated overhead costs
2.Estimated overhead costs are greater than budgeted overhead costs
3.Estimated overhead costs are greater than actual overhead costs
4.Allocated overhead costs are less than actual overhead costs
Volatility refers to the degree of ________ within an environment.
1.Support
2.Instability
3.Flexibility
4.Resources
When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________.
1.Common Stock - $3 Stated is credited for $18,000
2.The difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated
3.The accounting is exactly the same as the accounting for par value stock
4.The account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock
When a business records accrued interest expense on a note payable ________.
1.Interest Expense is credited
2.Note Payable is credited
3.Cash is debited
4.Interest Payable is credited
When a company pays cash for a long-term investment in bonds, ________.
1.Equity remains unchanged
2.Current assets increase
3. Liabilities increase
4.Total assets increase
When a company receives cash from customers before earning the revenue, _________ will be credited.
1.Accounts Receivable
2.Sales Tax Payable
3.Accounts Payable
4.Unearned Revenue
When a company uses the allowance method to measure bad debts, ________.
1.The Allowance for Bad Debts account balance is added to the balance of the Accounts Receivable account to arrive at the net realizable value
2.The amount of bad debts expense is estimated at the end of the accounting period
3.The Allowance for Bad Debts account is debited when the bad debts expense is estimated
4.The Bad Debts Expense account is debited when an account is written off
When a division is operating at capacity, the transfer price should be ________.
1.A​ market-based transfer price
2.A​ cost-based transfer price
3.Based on opportunity cost
4.The total manufacturing cost
When deciding whether to discontinue a segment of a business, relevant costs include ________.
1.Fixed supervision costs that can be eliminated
2.Variable marketing costs per unit of product sold
3.Cost of goods sold
4.Future administrative costs that will continue
When discussing weighing schemes for calculating the weighted average cost of capital, ________.
1.Market value weights are preferred over book value weights and target weights are preferred over historic weights.
2.Book value weights are preferred over market value weights and target weights are preferred over historic weights.
3.Book value weights are preferred over market value weights and historic weights are preferred over target weights.
4.Market value weights are preferred over book value weights and historic weights are preferred over target weights
When preparing the cost of goods sold budget, ________.
1.Ignore balances in Finished Goods Inventory
2.Start by calculating the projected cost to produce each unit
3.Ignore the inventory costing method
4.Multiply units produced by the total projected cost per unit
When the sales price per unit decreases, the contribution margin per unit ________.
1.Increases proportionately
2.Increases
3.Remains the same
4.DECREASES
With _____, marketers group people by their values, attitudes, personality, and lifestyle.
1.Demographics
2.Psychographics
3.Geodemographics
4.None of these
____ define(s) the specific types of people the advertiser wants to reach.
1.Audience objectives
2.Media objectives
3.Distribution objectives
4.Continuity objectives
____ manufacturing deals with several suppliers in hopes of finding the best price.
1.Traditional
2.Just - in - time
3. Economic
4.Productivity
____ manufacturing philosophy emphasizes quality and zero defects.
1.Lean
2.Traditional
3.Chinese
4.Zero-Based
_____ are numbers or letters assigned in a specific order.
1.Sequence
2.Category
3.Significant digit
4.Derivation
_____ are people who are prompted to apply for a job by someone within the organization.
1.Direct applicants
2.Internal employees
3.Boomerang employees
4.Referrals
_______ relate to the effort spent in making sales.
1.Primary data
2.Observational data
3.Marketing outcome data
4.Marketing input data
________ are a company's decision makers.
1.Managers
2.Employees
3.Owners
4.none of these
________ includes general management, finance, accounting, legal, and government affairs.
1.Human resources
2.Research and development
3.Firm infrastructure
4.None of these
________ is pay stated as a percentage of a sale amount.
1.Salary
2.Wage
3.Commission
4.Bonus
__________ is the total combined values of all of the company’s customers.
1.Customer satisfaction
2.Customer-perceived value
3.Share of customer
4.Customer equity