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| 1 | |
Which of the following is not one of the management cycle phases? |
| | A) | Performance Measurement and Management Phase |
| | B) | Planning Phase |
| | C) | Performing Phase |
| | D) | Evaluating Phase |
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| 2 | |
Which one of the following processes is responsible for borrowing money on a long-term basis to acquire long-term assets? |
| | A) | Capital Resources Process |
| | B) | Operating Process |
| | C) | Debt Process |
| | D) | Business Organization and strategy Process |
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| 3 | |
When a company operates in a static environment and focuses on reducing cost and increasing efficiency it is more likely to use: |
| | A) | Mechanistic organizational structure with an efficiency strategy |
| | B) | Organic organizational structure with a flexible strategy |
| | C) | Holistic organizational structure with an organic strategy |
| | D) | Synthetic organizational structure with an decentralized strategy |
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| 4 | |
Which of the following strategies focuses mainly on developing new products to meet rapidly changing consumer demand? |
| | A) | Flexible strategy |
| | B) | Organic strategy |
| | C) | Efficiency strategy |
| | D) | Decentralized strategy |
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| 5 | |
Which of the following is not one of the four perspectives of the Balanced Scorecard Approach? |
| | A) | Financial Perspective |
| | B) | Operating Perspective |
| | C) | Customer Perspective |
| | D) | Learning and Growth Perspective |
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| 6 | |
Which of the following ratios measures the profit earned by the firm for those who invested in the company? |
| | A) | Quick Ratio |
| | B) | Return on Owners' Equity |
| | C) | Gross Margin Ratio |
| | D) | Return on Investment |
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| 7 | |
Which of the following is the Quick Ratio? |
| | A) | Net Income/Average Total Assets |
| | B) | Net Income/Average Owners' Equity |
| | C) | Cash + Temporary Investments + Receivables / Current Liabilities |
| | D) | Gross Margin |
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| 8 | |
The profitability generated by the assets of a corporation would be best measured by the: |
| | A) | Quick Ratio |
| | B) | Return on Investment |
| | C) | Return on Owners' Equity |
| | D) | Gross Margin Ratio |
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| 9 | |
Which of the following is considered value added time? |
| | A) | Order response time |
| | B) | Processing time |
| | C) | Queue time |
| | D) | Shipping time |
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| 10 | |
External failure cost occurs when: |
| | A) | A company repairs a product before it is sold to the customer. |
| | B) | A company repairs a product after it is sold to the customer. |
| | C) | A company hires someone to inspect material before production takes place. |
| | D) | A company pays an engineer to insure the production line is free of faulty machines. |
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| 11 | |
The controller of Quinter, Inc. requires only one person is allowed to run a cash register during a particular span of time. This is an application of which of the following internal controls: |
| | A) | separating incompatible duties |
| | B) | maintaining adequate documents and records |
| | C) | requiring proper authorization |
| | D) | physically controlling assets and documents |
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| 12 | |
On May 31, Carlson International had a cash ledger balance of $22,370. The May bank statement balance was $20,832. Outstanding checks were $1,755; deposits in transits were $3,070. There was a service charge of $45 and a non-sufficient funds check of $178. What is the correct amount of cash? |
| | A) | $20,832 |
| | B) | $22,147 |
| | C) | $21,969 |
| | D) | $22,903 |
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| 13 | |
A bank reconciliation will identify all of the following except? |
| | A) | Unrecorded bank service charges |
| | B) | Outstanding Check |
| | C) | Check written and recorded for the wrong amount |
| | D) | Deposits in Transit |
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| 14 | |
On a bank reconciliation, which of the following will increase the book's cash balance? |
| | A) | Outstanding check |
| | B) | Deposit in transit |
| | C) | Non-sufficient Fund Check |
| | D) | Company writes a check for the correct amount but records the amount of the check on the company's records for an amount greater than the check. |
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| 15 | |
Which of the following reflects a weakness in the internal control for cash? |
| | A) | Cash register generates receipt that documents the cash sale that is given to the customer. |
| | B) | Only one employee has access to a cash register in order to reduce chance of theft. |
| | C) | Person making out a check must get authorization before the check is sent. |
| | D) | The person receiving cash in the mail makes out the deposit ticket, deposits the cash and then records the deposit in the accounting records. |
| | E) | None of the above has an internal control weakness. |
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