Introduction to Business Mock Exam
Course Introduction
Introduction to Business offers students a comprehensive overview of the modern business environment, exploring fundamental concepts such as management, marketing, finance, operations, and entrepreneurship. Through real-world examples and case studies, the course examines the roles and responsibilities of various stakeholders, the impact of globalization, and ethical considerations in business decision-making.
Designed for students from all disciplines, this course provides foundational knowledge and practical skills essential for understanding how businesses operate and succeed in a dynamic, competitive economy.
Recommended Textbook
Financial and Managerial Accounting Information for Decisions 5th Edition by John J Wild
Available Study Resources on Quizplus
28 Chapters
5011 Verified Questions
5011 Flashcards
Source URL: https://quizplus.com/study-set/3645
Page 2
Chapter 1: Introducing Accounting in Business
Available Study Resources on Quizplus for this Chatper
249 Verified Questions
249 Flashcards
Source URL: https://quizplus.com/quiz/72494
Sample Questions
Q1) ______________ users of accounting information are users that are not directly involved in running the organization.
Answer: External
Q2) Creditors' claims on the assets of a company are called:
A) Net losses
B) Expenses
C) Revenues
D) Equity
E) Liabilities
Answer: E
Q3) The area of accounting aimed at serving the decision-making needs of internal users is:
A) Financial accounting
B) Managerial accounting
C) External auditing
D) SEC reporting
E) Governmental accounting
Answer: B
Q4) ______________ is the area of accounting aimed at serving external users.
Answer: Financial accounting
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Analyzing and Recording Transactions
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/72493
Sample Questions
Q1) The account used to record the transfers of assets from a business to its stockholders is:
A) A revenue account
B) The dividends account
C) Common stock account
D) An expense account
E) A liability account
Answer: B
Q2) A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.
A)True
B)False
Answer: True
Q3) The balance sheet provides a link between beginning and ending income statements.
A)True
B)False
Answer: False
Q4) ___________________ is a promise of payment from customers to sellers.
Answer: Accounts receivable
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Adjusting Accounts and Preparing Financial Statements
Available Study Resources on Quizplus for this Chatper
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/72492
Sample Questions
Q1) A company paid $6,000 for a six-month insurance policy.The policy coverage began on February 1.On February 28,$100 of insurance expense must be recorded.
A)True
B)False
Answer: False
Q2) What is the purpose of closing entries? Describe the closing process.
Answer: The purpose of closing entries is to transfer the end-of-period balances in the temporary accounts to the equity account(s).The closing process has four steps: (1)close credit balances in revenue accounts to income summary,(2)close debit balances in expense accounts to income summary,(3)close dividends to the retained earnings,and (4)close income summary to retained earnings.
Q3) Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of an asset.
A)True
B)False
Answer: TRUE
Q4) Profit margin equals ___________________ divided by net sales. Answer: net income
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Accounting for Merchandising Operations
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72491
Sample Questions
Q1) A company had net sales of $340,500,its cost of goods sold was $257,000,and its net income was $13,750.The company's gross margin ratio equals 24.5%.
A)True
B)False
Q2) The agreement regarding the amounts and timing of payment from a buyer to a seller are the ____________________.
Q3) Liquidity problems are likely to exist when a company's acid-test ratio:
A) Is less than the current ratio,
B) Is 1 to 1,
C) Is higher than 1 to 1,
D) Is substantially lower than 1 to 1,
E) Is higher than the current ratio,
Q4) The acid-test ratio differs from the current ratio in that:
A) Liabilities are divided by current assets.
B) Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.
C) The acid-test ratio measures profitability and the current ratio does not.
D) The acid-test ratio excludes short-term investments from the calculation.
E) The acid-test ratio is a measure of liquidity but the current ratio is not.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Inventories and Cost of Sales
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72490
Sample Questions
Q1) Given the following information,determine the cost of goods sold for November 30 using the FIFO perpetual inventory method.
November 3: 15 units were purchased at $8 per unit.
November 11: 18 units were purchased at $9.50 per unit.
November 15: 15 units were sold at $45 per unit.
November 18: 30 units were purchased at $10.75 per unit.
November 30: 20 units were sold at $55 per unit.
Q2) The lower of cost or market rule for inventory valuation must be applied to each individual unit separately and not to major categories of inventory or to the entire inventory.
A)True
B)False
Q3) Incidental costs most commonly added to the costs of inventory include import duties,freight,storage,and insurance.
A)True
B)False
Q4) If the _______________ is responsible for paying the freight,ownership of merchandise inventory passes when the goods arrive at their destination.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Cash and Internal Controls
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72489
Sample Questions
Q1) Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.
A)True
B)False
Q2) In comparing the canceled checks on the bank statement with the entries in the accounting records,it is found that check number 2889 for December's utilities was correctly written and drawn for $790 but was erroneously entered in the accounting records as $970.The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?
A) $180 decrease to Cash and a $180 decrease to Utility Expense.
B) $180 increase to Cash and a $180 decrease to Utility Expense.
C) $20 decrease to Cash and a $20 decrease to Utility Expense.
D) $20 increase to Cash and a $120 decrease to Utility Expense.
E) $970 increase to Cash.
Q3) The entry to increase the balance in petty cash from $50 to $75 would be to credit the Petty Cash account in the amount of $25.
A)True
B)False
Q4) A __________________________ is a document explaining the payment of a check.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Accounts and Notes Receivable
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/72488
Sample Questions
Q1) On December 31 of the current year,a company's unadjusted trial balance included the following: Accounts Receivable,debit balance of $88,790; Allowance for Doubtful Accounts,credit balance of $1,245.What amount should be debited to Bad Debts Expense,assuming 4% of outstanding accounts receivable at the end of the current year are considered uncollectible?
A) $1,245.00
B) $3,551.60
C) $4,796.60
D) $2,306.60
E) $87,545.00
Q2) Failure by a promissory note's maker to pay the amount due at maturity is known as:
A) Protesting a note
B) Closing a note
C) Dishonoring a note
D) Discounting a note
E) Depreciating a note
Q3) If a 60-day note receivable is dated September 22,what is the maturity date of the note?
Q4) The person to whom a note is payable to is known as the ______________.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Long-Term Assets
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/72487
Sample Questions
Q1) Many companies use accelerated depreciation in computing taxable income because:
A) It is required by the tax rules.
B) It is required by financial reporting rules.
C) It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due.
D) Using it causes a company to use higher income in the early years of the asset's useful life.
E) The results are identical to straight-line depreciation.
Q2) Compare the different depreciation methods (straight-line,units-of-production,and double-declining-balance)with respect to the computation of depreciation per period and the total depreciation over the life of the asset.
Q3) Revising estimates of the useful life or salvage value of a plant asset is referred to as a ____________________________________________.
Q4) Plant assets are used in everyday operations of the business and have useful lives that extend over more than one accounting period.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Current Liabilities
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72486
Sample Questions
Q1) Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be
A) $27,961
B) $28,800
C) $29,000
D) $29,691
E) $30,000
Q2) A _____________________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.
Q3) Companies with many employees often use a special ____________________ account to pay employees.
Q4) A corporation has a $42,000 credit balance in the Income Tax Payable account.Period-end information shows that the actual liability is $50,000.The company should record an entry to debit Income Tax Expense for $8,000 and credit Income Taxes Payable for $8,000.
A)True
B)False
Q5) Vacation benefits are a type of _______________ liability.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/72485
Sample Questions
Q1) A premium on bonds payable occurs when bonds have a contract rate greater than the market rate at issuance.
A)True
B)False
Q2) A bond listed at 103 on a stock exchange is selling at 103% of its par value.
A)True
B)False
Q3) Return on equity _______________ when the expected rate of return from the acquired assets is greater than the rate of interest on the bonds used to finance the asset acquisition.
Q4) A company issued seven-year,8% bonds with a par value of $200,000.The market rate when the bonds were issued was 5.5%.The company received $203,010 cash for the bonds.Using the straight-line method,the amount of recorded interest expense for the first semiannual interest period is:
A) $8,000
B) $8,215
C) $7,785
D) $16,000
E) $4,990
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporate Reporting and Analysis
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72484
Sample Questions
Q1) Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders plus any dividends in arrears is called:
A) Convertible preferred stock
B) Callable preferred stock
C) Premium stock
D) Cumulative preferred stock
E) Participating preferred stock
Q2) During the current year,Quark Company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders.Quark had 12,500 weighted-average shares of common stock outstanding for the year.Calculate the company's earnings per share.
Q3) Authorized stock is the total number of shares outstanding. A)True B)False
Q4) ________________________ is the number of shares that a corporation's charter allows it to sell.
Q5) _____________________ is a class of stock assigned a value by the corporation in its charter.
Q6) What is a stock split? How is a stock split different from a stock dividend?
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Reporting Cash Flows
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/72483
Sample Questions
Q1) Cash flow amounts and their timing should be examined when planning and analyzing operating activities.
A)True
B)False
Q2) The gain or loss from retirement of debt is reported under cash flows from operations on the statement of cash flows using the direct method.
A)True
B)False
Q3) When the operating activities section of the statement of cash flows is reported using the direct method,the FASB requires:
A) A reconciliation to the statement of cash flows under the indirect method.
B) A reconciliation of net income to net cash provided or used by operating activities.
C) Footnotes to the financial statements disclosing the difference between net income and the cash provided or used by financing activities.
D) The income statement to be prepared under the cash basis of accounting.
E) Noncash investing and financing activities must be included in the statement of cash flows.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Analysis of Financial Statements
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/72482
Sample Questions
Q1) In horizontal analysis the percent change is computed by:
A) Subtracting the analysis period amount from the base period amount.
B) Subtracting the base period amount from the analysis period amount.
C) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
D) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.
E) Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount.
Q2) The comparison of a company's financial condition and performance across time is known as ________________________________.
Q3) Trend analysis is also called:
A) Financial analysis
B) Ratio analysis
C) Index number trend analysis
D) Industry analysis
E) Output analysis
Q4) Explain the form and content of a complete income statement.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Managerial Accounting Concepts and Principles
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72481
Sample Questions
Q1) What are raw materials inventory turnover and days' sales in raw materials inventory? What is the purpose of these measures?
Q2) A sunk cost has already been incurred and cannot be avoided or changed,so it is irrelevant to decision making.
A)True
B)False
Q3) The three major cost components of a manufactured product are:
A) Marketing, selling, and administrative costs.
B) Indirect labor, indirect materials, and miscellaneous factory expenses.
C) Direct materials, direct labor, and factory overhead.
D) Differential costs, opportunity costs, and sunk costs.
E) General, selling, and administrative costs.
Q4) Assuming production needs can be met,companies usually prefer:
A) A lower number of days' sales in raw materials inventory.
B) A higher number of days' sales in raw materials inventory.
C) That days' sales in inventory be higher than the days in the accounting period.
D) That days' sales in inventory be greater than the operating cycle
E) That days' sales in inventory be equal to the days in the accounting period
To view all questions and flashcards with answers, click on the resource link above. Page 16
Q5) The manufacturing statement is also known as
Chapter 15: Job Order Costing and Analysis
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/72480
Sample Questions
Q1) What is a cost accounting system? What are the two basic types of cost accounting systems?
Q2) A job order manufacturing system would be appropriate for a company that produces which one of the following items?
A) A landscaping design for a new hospital.
B) Seedlings for sale in a nursery.
C) Sacks of yard fertilizer.
D) Packets of flower seeds.
E) Small gardening tools, including rakes, shovels, and hoes.
Q3) A material amount of overapplied or underapplied overhead should be disposed of by allocating it to:
A) Cost of goods sold and finished goods.
B) Finished goods and goods in process.
C) Goods in process, finished goods, and cost of goods sold.
D) Goods in process.
E) Raw materials, goods in process, and finished goods.
Q4) A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May.Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Process Costing
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72479
Sample Questions
Q1) During the current period,Department A finished and transferred 50,000 units to Department B.Of the 50,000 units,20,000 were one-fifth complete at the beginning of the period and 30,000 were started and completed during the period.Also during the period,10,000 units were started but brought only to a stage of being three-fifths completed.If the FIFO method is used and $13,000 of overhead was charged to Department A during the period,how much overhead should be allocated to the ending goods in process inventory?
A)$1,615
B)$3,250
C)$2,600
D)$2,500
E)$1,500
Q2) A hybrid costing system would be most appropriate when:
A) A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs.
B) Large quantities of identical products are being produced.
C) The volume of production is low and costs are high.
D) There is no standardization of units of production.
E) The volume of production is low and standardized products are produced.
Q3) What was the cost of the beginning inventory of finished goods?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Activity-Based Costing and Analysis
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/72478
Sample Questions
Q1) Data concerning volume-related measures are readily available in most manufacturing settings.
A)True
B)False
Q2) Activities are the cost objects of the second stage of ABC.
A)True
B)False
Q3) ABC is significantly less costly to implement and maintain than more traditional overhead costing systems.
A)True
B)False
Q4) Overhead costs:
A) Are directly related to production.
B) Can be traced to units of product in the same way that direct materials can.
C) Cannot be traced to units of product in the same way that direct labor can.
D) Are period costs.
E) Include only fixed costs.
Q5) Kudzu's plantwide overhead rate will be $21 per direct labor hour next year.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/72477
Sample Questions
Q1) Discuss how CVP analysis can be useful in planning.
Q2) Leather Head Sports operates on a small production scale using expensive,top-quality materials.How does cost-volume-profit analysis benefit this company?
Q3) Hess Co.manufactures a product that sells for $12 per unit.Total fixed costs are $96,000 and variable costs are $7 per unit.Hess can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit.What effect would the purchase of the new machine have on Hess's break-even point in units?
Q4) What is the high-low method? Briefly describe how it is applied.
Q5) A product sells for $200 per unit,and its variable costs per unit are $130.The fixed costs are $420,000.What is the break-even point in dollar sales?
A) $2,100
B) $6,000
C) $420,000
D) $646,154
E) $1,200,000
Q6) Contribution margin ratio is calculated as the ________________ divided by _____________.
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Variable Costing and Performance Reporting
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72476
Sample Questions
Q1) A company reports the following information for its first year of operations: \[\begin{array} { l l }
\text { Units produced this year } & ? \text { units } \\
\text { Units sold this year } & 1,500 \mathrm { units } \\
\text { Direct materials } & \$ 9 \text { per unit } \\
\text { Direct labor } & \$ 5 \text { per unit } \\
\text { Variable overhead } & \$ 7 \text { per unit } \\
\text { Fixed overhead } & \$ 24,000 \mathrm { in } \text { total } \end{array}\]
If the company's cost per unit of finished goods using absorption costing is $27,how many units were produced?
A) 4,000 units.
B) 3,600 units.
C) 1,846 units.
D) 2,667 units.
E) 2,000 units.
Q2) When units produced exceed the units sold,income under absorption costing is higher than income under variable costing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 20: Master Budgets and Performance Planning
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/72475
Sample Questions
Q1) A capital expenditures budget is prepared before the operating budgets.
A)True
B)False
Q2) The Lamb Company budgeted sales for January,February,and March of $96,000,$88,000,and $72,000,respectively.Seventy percent of sales are on credit.The company collects 60% of its credit sales in the month following sale,35% in the second month following sale,and 5% is not collected.What are Lamb's expected cash receipts for March related to all current and past sales?
Q3) A company's gross profit rate is 30% of sales.Expected January sales are $78,000 and desired January 31<sup>st</sup> inventory is $7,500.Assuming the December 31<sup>st</sup> inventory is $6,200 what amount of purchases should this company budget for the month of January?
A) $53,300
B) $55,900
C) $24,700
D) $22,100
E) $79,300
Q4) There are three major subgroups of the master budget.These are ________________________,___________________,and
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72474
Sample Questions
Q1) DT Co.produces picture frames.It takes 3 hours of direct labor to produce a frame.DT's standard labor cost is $11 per hour.During March,DT produced 4,000 frames and used 12,400 hours at a total cost of $133,920.
a.What is DT's labor rate variance for March?
b.What is DT's direct labor efficiency variance for March?
c.Record the labor costs and the variances for DT.
Q2) Calculate the direct materials price and quantity variances,direct labor rate and efficiency variances,and the overhead controllable and volume variances.In each case,state whether the variance is favorable or unfavorable.
Q3) The direct materials price variance is:
A) $520 unfavorable
B) $400 unfavorable
C) $120 favorable
D) $520 favorable
E) $400 favorable
Q4) Define standard costs.How do they assist management?
Q5) Identify and explain the primary differences between fixed and flexible budgets.
Q6) A _______________________ contains relevant information that compares actual results to planned activities.
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Decentralization and Performance Measurement
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/72473
Sample Questions
Q1) Which of the following would not be considered a cost center?
A) Accounting department.
B) Purchasing department.
C) Research department.
D) Advertising department.
E) Pharmacy in a grocery store.
Q2) Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:
A) Direct expenses
B) Indirect expenses
C) Controllable expenses
D) Uncontrollable expenses
E) Fixed expenses
Q3) What is the purpose of a departmental accounting system?
Q4) A _____________________________ provides information for managers to use to evaluate the profitability or cost effectiveness of each department's activities.
Q5) Cycle efficiency is the ratio of value-added time to total cycle time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Relevant Costing for Managerial Decisions
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/72472
Sample Questions
Q1) Sales mix refers to the combination of products sold by a company.
A)True
B)False
Q2) A company manufactures three products.Each unit of product X requires 10 machine hours,each unit of product Y requires 4 machine hours,and each unit of product Z requires 6 machine hours.The company's productive capacity is limited to 180,000 machine hours.Each unit of product X sells for $15 and has variable costs of $7.Each unit of product Y sells for $8 and has variable costs of $3.Each unit of Z sells for $12 and has variable costs of $4.
Required:
a.Calculate the contribution margin per hour of each of the products.
b.Determine the preferred sales mix if there are no market constraints on any of the products.
c.Determine the preferred sales mix if the demand is limited to 20,000 units of each.
Q3) An ________________________ requires a future outlay of cash and is relevant for current future decision making.
Q4) A cost-plus method of determining a product's selling price adds a _________________________ to total product cost to reach a target price.
To view all questions and flashcards with answers, click on the resource link above.
25
Chapter 24: Capital Budgeting and Investment Analysis
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/72471
Sample Questions
Q1) A company is considering the purchase of new equipment for $45,000.The projected after-tax net income is $3,000 after deducting $15,000 of depreciation.The machine has a useful life of three years and no salvage value.Management of the company requires a 12% return on investment.The present value of an annuity of 1 for various periods follows: \[\begin{array} { l c } &\text { Present Value of an }\\ \underline{\text { Period}} & \underline{\text { Annuity of } 1 \text { at } 12 \%} \\ 1 & 0.8929 \\ 2 & 1.6901 \\ 3 & 2.4018 \end{array}\]
What is the net present value of this machine,assuming all cash flows occur at year-end?
Q2) There is only one method of evaluating capital budgeting decisions. A)True B)False
Q3) What is capital budgeting? Why are capital budgeting decisions often difficult and risky?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Accounting With Special Journals
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/72498
Sample Questions
Q1) A business segment:
A) Requires only internal reporting.
B) Is a part of a company that is separately identified by its products, services, or geographic market.
C) Requires special journals.
D) Requires subsidiary ledgers.
E) Cannot report its results separately.
Q2) A company had cash sales during the period.These transactions would be recorded in which of the following journals?
A) Sales journal
B) Purchases journal
C) Cash disbursements journal
D) Cash receipts journal
E) General journal.
Q3) ______________________ provide the basic information processed by an accounting system and can include bank statements,billings to customers,and employee earnings records.
Q4) _____________________ are systems that interpret,transform,and summarize information for use in analysis and reporting.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Time Value of Money
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/72497
Sample Questions
Q1) With deposits of $5,000 at the end of each year,you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.
A)True B)False
Q2) The future value of an ordinary annuity is the accumulated value of each annuity payment with interest one period after the date of the final payment.
A)True B)False
Q3) A company has $50,000 today to invest in a fund that will earn 7%.How much will the fund contain at the end of eight years?
Q4) Interest is the borrower's payment to the owner of an asset for its use.
A)True B)False
Q5) Sandra has a savings account that is now $50,000.She started with $28,225 and earned interest at 10% compounded annually.It took five years to accumulate the $50,000.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Investments and International Operations
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72496
Sample Questions
Q1) Foreign exchange rates fluctuate due to many factors including changing political and economic conditions.
A)True
B)False
Q2) A company had net income of $76,000 in 2012 and $88,000 in 2013.Its net sales were $640,000 in 2012 and $611,000 in 2013.Its average total assets in 2012 were $670,000 and $712,000 in 2013.Calculate the profit margin,total asset turnover,and return on total assets for both years.Comment on the results.
Q3) A company should report its portfolio of trading securities at its market value.
A)True B)False
Q4) Micron owns 3,000 shares of JVT.JVT has 25,000 total shares of stock outstanding.JVT paid $3 per share in cash dividends to its stockholders.Micron should record a:
A) Debit to Dividends for $75,000.
B) Debit to Dividends for $9,000.
C) Debit to Cash for $9,000.
D) Debit to Long-Term Investments for $9,000.
E) Credit to Long-Term Investments for $9,000.
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Accounting for Partnerships
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/72495
Sample Questions
Q1) Holden,Phillips,and Rogers are partners with beginning-year capital balances of $120,000,$60,000,and $60,000,respectively.Partnership net income for the year is $84,000.Make the necessary journal entry to close Income Summary to the capital accounts if:
a.Partners agree to divide income based on their beginning-year capital balances.
b.Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers),respectively.
c.Partnership agreement is silent as to division of income and loss.
Q2) The BlueFin Partnership agrees to dissolve.The cash balance after selling all assets and paying all liabilities is $60,000.The final capital account balances are: Smith,$35,000; Nagy,$29,000; and Russ,($4,000).Russ is unable to pay the capital deficiency.Prepare the journal entries to record the transactions required to dissolve this partnership.
Q3) If at the time of partnership liquidation,a partner has a $5,000 capital deficiency and pays the partnership $5,000 out of personal assets to cover the deficiency,then that partner is entitled to share in the final distribution of cash.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30