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10)
According to value-chain analysis, which
following would be considered part of the
administration in a firm?
information systems
procurement
technology development
human resource management
of the
general
11)
Which of the following can be represented by a discrete
random variable?
The circumference of a randomly generated circle
The number of defective light bulbs in a sample of five
The time of a flight between Chicago and New York
The average distance achieved in a series of long jumps
12)
What is an advantage of the correlation coefficient over
the covariance?
It falls between 0 and 1.
It falls between -1 and 1.
It falls between -1 and 1; and it is a unit free measure,
therefore making it easier to interpret.
It is a unit-free measure, therefore making it easier to
interpret.
13)
GAAP, compared to IFRS, tends to be more:
rules-based
simple in accounting requirements
principles-based
simple in disclosure requirements
14)
The resource-based view (RBV) of the firm combines
two perspectives:
the internal analysis of the firm and the external analysis of
the industry and competitive environment
the primary and support activities of the firm
the industry and the competitive environment
the interrelationships among the primary activities of the
firm and corporate management
15)
Sarbanes Oxley applies to:
U.S and international companies.
U.S. and Canadian companies but not other international
companies.
U.S companies but not international companies.
international companies but not U.S. companies.
16)
Is it possible for a data set to have no mode?
No, unless there is an odd number of observations
Yes, if two observations occur twice
Yes, if there are no observations that occur more than once
No, if the data set is nonempty, there is always a mode
17)
Under the accrual basis of accounting:
events that change a company's financial statements are
recognized in the period they occur rather than in the period
in which cash is paid or received.
the ledger accounts must be adjusted to reflect a cash basis
of accounting before financial statements are prepared
under generally accepted accounting principles.
cash must be received before revenue is recognized.
net income is calculated by matching cash outflows against
cash inflows.
18)
Which trial balance will consist of the greatest number
of accounts?
Trial balance
Adjusted trial balance
Balance
Post-closing trial balance
19)
Vertical analysis is a technique that expresses each
item in a financial statement:
in dollars and cents.
as a percent of a base amount.
as a percent of the item in the previous year.
starting with the highest value down to the lowest value.
20)
Cost allocation of an intangible asset is referred to as:
accretion
amortization
depreciation
capitalization
21)
According to the text, the triple bottom line approach to
corporate accounting includes three components:
financial, environmental, and social
financial, organizational, and customer
financial, environmental, and customer
financial, organizational, and psychological
22)
An analyst believes the probability that U.S. stock
returns exceed long-term corporate bond returns over a 5year period is based on personal assessment. This type of
probability is best characterized as a(n) ____________.
Subjective probability
Objectivity probability
Empirical probability
A priori probability
23)
Green, Inc. had 200,000 shares of common stock
outstanding before a stock split occurred and 800,000 shares
outstanding after the stock split. The stock split was:
2-for-8
1-for-8
8-for-1
4-for-1
24)
Firms must be aware of goals other than short-term
profit maximization. One area of concern should be social
responsibility which is:
the expectation that business will strive to improve the
overall welfare of society
the fact that court costs could impact the financial bottom
line
the idea that organizations are solely responsible to local
citizens
the idea that businesses are responsible to maintain a
healthy social climate for their employees
25)
Expenditures that maintain the operating efficiency and
expected productive life of a plant asset are generally:
expensed when incurred.
not recorded until they become material in amount.
debited to the Accumulated Depreciation account.
capitalized as a part of the cost of the asset.
26)
For both qualitative and quantitative data, what is the
difference between the relative frequency and the percent
frequency?
27)
Shaw Industries, a giant carpet manufacturer, increases
its control over raw materials by producing much of its own
polypropylene fiber, a key input to its manufacturing
process. This is an example of _______________.
using related diversification to achieve value by leveraging
core competencies to achieve economies of scope
using related diversification to achieve value by pooling
negotiating power to achieve market power
using related diversification to achieve value by integrating
vertically in order to attain economies of scope
using related diversification to achieve value by integrating
vertically in order to acquire market power
28)
Which of the following can be represented by a
continuous random variable?
The average temperature in Tampa, Florida, during the
month of July
The number of customers who visit a department store
between 10:00 a.m. and 11:00 a.m. on Mondays
The number of students who will get financial assistance in a
group of 50 randomly selected students
The number of typos found on a randomly selected page of
this test bank
29.)
Which of the following controls would best help
detect the removal of a blank check by an employee from
the back of a company's checkbook for subsequent
misappropriation of funds?
An accounting policies manual
Tracing any debit memorandums from the bank to the
company's records
A review of the cash budget
The use of pre-numbered checks
30.)
A SWOT analysis is a framework for analyzing a
firms environments. A SWOT is made up of
Internal environmental analysis of threats and weaknesses.
Internal strengths and weaknesses; external threats and
opportunities.
Internal threats and weakness and external strengths and
opportunities.
External analysis of strengths and opportunities.
31.)
Trumpeting Trumpets has the following inventory
data:
July 1: Beginning inventory
30 units at $120
July 5: Purchases
120 units
90 units at $115
84 units
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