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1. BUS 475 CAPSTONE FINAL
EXAMINATION
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BUS 475 Capstone Final Examination Part 2
BUS 475 Capstone Final Examination Part 2 -
This is the latest BUS/475 Capstone Final Examination Part 2
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2. Which of the following is not a current liability on
December 31, 2014?
A lawsuit judgment to be decided on January 10,2015
A Note Payable due December 31 2015
Accrued salaries payable from 2014
An Accounts Payable due January 31,2015
Continuous monitoring, in the contemporary approach, is
beneficial because_____________.
it increases the time it takes to detect changes in the
competitive environment
organization response time is increased
organizational flexibility is reduced
It reduces time lags
The acquisition of treasury stock by a corporation:
requires that a gain or loss be recognized on the income
statement.
increases its total assets and total stockholders’ equity.
3. has no effect on total assets and total stockholders’
equity.
decreases its total assets and total stockholders’ equity.
You work in marketing for a company that produces work
boots. Quality control has sent you a memo detailing the length
of time before the boots wear out under heavy use. They find
that the boots wear out in an average of 208 days, but the
exact amount of time varies, following a normal distribution
with a standard deviation of 14 days. For an upcoming ad
campaign, you need to know the percent of the pairs that last
longer than six months-that is, 180 days. Use the empirical rule
to approximate this percent.
97.5%
95%
2.5%
5%
__________involves ensuring proper strategic controls and
organizational designs.
Corporate governance
4. Strategy implementation
Business-level strategy
Corporate-level strategy
A post-closing trial balance will show:
only income statement accounts
zero balances for balance sheet accounts
only balance sheet accounts
zero balances for all accounts
The preparation of adjusting entries is:
straightforward because the accounts that need adjustment
will be out of balance
needed to ensure that the expense recognition principle is
followed.
only required for accounts that do not have a normal balance.
optional when financial statements are prepared.
5. In a simple linear regression model, if the plots on a
scatter diagram lie on a straight line, what is the standard error
of the estimate?
Infinity
0
+1
-1
The fraud triangle applies to:
U.S. and Canadian companies, but not other international
companies.
U.S companies but not international companies.
U.S and international companies.
international companies but not U.S. companies.
According to value-chain analysis, which of the following would
be considered part of the general administration in a firm?
information systems
procurement
6. technology development
human resource management
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
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.
GAAP, compared to IFRS, tends to be more:
7. rules-based
simple in accounting requirements
principles-based
simple in disclosure requirements
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
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.
8. international companies but not U.S. companies.
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
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.
9. Which trial balance will consist of the greatest number
of accounts?
Trial balance
Adjusted trial balance
Balance
Post-closing trial balance
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.
Cost allocation of an intangible asset is referred to as:
accretion
amortization
depreciation
capitalization
10. 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
An analyst believes the probability that U.S. stock returns
exceed long-term corporate bond returns over a 5-year 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
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:
11. 2-for-8
1-for-8
8-for-1
4-for-1
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
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.
12. debited to the Accumulated Depreciation account.
capitalized as a part of the cost of the asset.
For both qualitative and quantitative data, what is the
difference between the relative frequency and the percent
frequency?
The relative frequency equals the percent frequency multiplied
by 100.
The percent frequency equals the relative frequency multiplied
by 100
As opposed to the relative frequency, the percent frequency is
divided by the number of observations in the data set.
As opposed to the percent frequency, the relative frequency is
divided by the number of observations in the data set.
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
13. 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
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
14. 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
A SWOT analysis is a framework for analyzing a firm’s
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.
Trumpeting Trumpets has the following inventory data:
15. July 1: Beginning inventory
30 units at $120
July 5: Purchases
180 units at $112
July 14: Sale
120 units
July 21: Purchases
90 units at $115
July 30: Sale
84 units
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16. QNT 565 Final Exam
STR 581 Capstone Final Examination, Part One
STR 581 Capstone Final Examination, Part Two
STR 581 Capstone Final Examination, Part Three
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