Read 'Chapter 1: Financial Statements, the Sarbanes-Oxley Act, and Corporate Governance' & answer the following question(s): |

1. | Which of the following is NOT true? The objectives of financial reporting are to provide information |

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2. | Other revenue does NOT include |

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3. | The basic financial statements include a |

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4. | Net income shown on the income statement is added to the beginning balance of retained earnings in the |

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5. | Revenue is the increase in capital arising from the sale of merchandise and |

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6. | Intangible assets are rights that arise from a right granted by |

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7. | Which of the following is the typical way to date an income statement? |

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8. | The statement of cash flows presents the sources and uses of cash and is a basis for |

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9. | A statement of cash flows is to be presented in general purpose external financial statements by which of the following? |

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10. | A statement of cash flows is intended to help users of financial statements |

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11. | ______________________________ includes all of the following items: investing,, operating activities, and financial activities. |

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12. | Sections in the annual report include: The highlights, review of operations, ____________, supplementary schedule, and auditor’s report. |

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13. | When a severe scope of limitations exists, the auditor may decide to offer |

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14. | A segment is reportable if any one of the following conditions exist EXCEPT |

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15. | Groups impacted by the Sarbanes-Oxley Act (SOX) include: CPA’s CPA firms auditing publicly companies, public traded companies, their employees, officers, owners, attorneys who work for clients at publicly traded companies and |

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16. | In periods when workers are prevented from buying or selling company stock in their pension or 401(k)s corporate officials will also be |

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17. | ___________________ is NOT one of the issue(s) addressed by the Sarbanes-Oxley Act of 2002: |

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18. | Regulatory bodies responsible for monitoring and enforcing the Sarbanes-Oxley Act are |

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Read 'Chapter 2: How to Evaluate and Improve a Company’s Financial Performance' & answer the following question(s): |

19. | Factors that an investor considers in evaluating a firm’s stock include all EXCEPT |

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20. | Which of the following is an example of liquidity ratio? |

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21. | If the debt ratio is 0.5 what is the debt-equity ratio? |

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22. | Given the following data: Sales = 2000; Cost of goods sold = 1500; Average receivables = 100, calculate the average collection period: |

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23. | Which of the following is an example of leverage ratios? |

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24. | Division of Q for Mott Company has a rate of return on investment of 28% and an asset turnover of 1.4. What is the profit margin? |

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25. | Margins may be increased by all EXCEPT |

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26. | Rate of Return on Investment (ROI) can be enhanced by the following actions |

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27. | The performance measure of a cost center is |

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28. | Return on investment (ROI) equals net income divided by |

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Read 'Chapter 3: Internal Accounting Applications for Your Company' & answer the following question(s): |

29. | Economic value added (EVA) is also known as |

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30. | Improving Economic Value Added (EVA) can be achieved by |

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31. | Residual income is a better measure for performance evaluation of an investment center manager than return on investment (ROI) because |

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32. | To measure the effectiveness of marketing employees you can compute the following ratios such as: revenue and/or net income per employee and |

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33. | The production budget process usually begins with the |

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34. | The major feature of zero-base budgeting (ZBB) is that it |

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35. | Performance reports based on analysis of variances follow the principle of |

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36. | In a standard cost system, the materials price variance is obtained by multiplying the |

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37. | An unfavorable price variance occurs because of |

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38. | Under a standard cost system, the unfavorable materials price variances are usually the responsibility of the |

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39. | How is labor price variance computed? |

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40. | An accounting system that collects financial and operating data on the basis of the underlying nature and extent of the cost drivers is |

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41. | Cost drivers are |

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42. | Life-cycle costing, the value chain is a set of activities required to design, develop, produce, market, and service a product or service and can be characterized as |

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43. | A binding constraint can |

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44. | ______________ is a pricing method that involves (1) identifying the price at which a product will be competitive in the marketplace, (2) defining the desired profit to be made on the product, and (3) computing the target cost for the product by subtracting the desired profit from the competitive market price. |

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45. | Non-financial performance task measures do NOT include |

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46. | Using the balanced scorecard approach, a company evaluates managerial performance based on |

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Read 'Chapter 4: Cost-Profit-Volume Analysis, Operating Leverage, and Discounting Analysis' & answer the following question(s): |

47. | The difference between sales and total variable costs is |

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48. | Cost-volume-profit (CVP) analysis allows management to determine the relative profitability of a product by |

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49. | When used in cost-volume-profit analysis, “what-if” (sensitivity) analysis |

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50. | The concept of “The Time value of Money” refers to: |

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51. | The ordinary annuity is defined as a series of payments or receipts |

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52. | Present value of $110,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is |

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53. | The cost of capital is also called |

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54. | Which of the following tables would show the largest value for an interest rate of 5% for six periods? |

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55. | Future value involves |

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56. | Investment income received from ___________________ is NOT an example of an annuity. |

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57. | Each ordinary payment is assumed to occur |

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58. | The present worth of future sums of money is |

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Read 'Chapter 5: Capital Budgeting' & answer the following question(s): |

59. | The capital budget is a(n) |

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60. | Capital budgeting techniques are least likely to be used in evaluating the |

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61. | In order to grow, companies make all but one of the following investment decisions |

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62. | A method of evaluating investment projects does NOT include: |

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63. | Which of the following is called the discounted cash flow (DCF) method? |

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64. | Which of the following does NOT affect the present value of an investment? |

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65. | The technique that recognizes the time value of money by discounting the cash flows for a project over its life to time period zero using the company’s minimum rate of return is the |

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66. | The technique that reflects the time value of money and is calculated by dividing the present value of the future cash inflows that have been discounted at the desired cost of capital by the initial cash outlay for the investment is the |

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67. | Conditions under which mutually exclusive investments create contrary rankings include all EXCEPT: |

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68. | The internal rate of return (IRR) method of capital budgeting assumes that cash flows are reinvested at |

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69. | The ________________ is used widely in ranking projects competing for limited funds. |

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70. | Which of the following methods does NOT consider the investment’s profitability? |

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71. | MACRS rule stands for |

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72. | Which of the following methods uses accrual accounting income data rather than net cash flows as a basis for calculations? |

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Read 'Chapter 6: Assets Management, Financing Techniques, and Portfolio Theory' & answer the following question(s): |

73. | Working capital is the difference between |

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74. | During the year, Mason Company’s current assets increased by $120, current liabilities decreased by $50, and working capital |

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75. | A change in credit terms has caused an increase in sales, an increase in discounts taken, a reduction in the investment in accounts receivable, and a reduction in the number of doubtful accounts. Based upon this information, we know that |

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76. | Risk and return are ___________ related. |

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77. | _____________ is NOT one of the strategies used to accelerate cash receipts. |

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78. | ________________________ looks at the direction and magnitude of the market in determining when or what to buy or sell. |

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79. | The returns you would expect from your investments could be |

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80. | ____________ involves computing daily the net advancing or declining issues of a broad range of securities from the New York Stock Exchange. |

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81. | When purchasing temporary investments, which one of the following best describes the risk associated with the ability to sell the investment in a short period of time without significant price concessions? |

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82. | ____________________________is an example of non-diversifiable risks. |

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83. | Which of the following is the risk inherent in a firm’s operations that excludes financial risk? |

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84. | __________________________ is the risk that reflects a lack of diversification in the portfolio. |

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85. | What is the odd-lot trading indicator? |

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86. | Assume that required rate of return stay the same but that the future dividends are expected to grow over the long run. As a result of the growth in dividends, the company’s stock price should |

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87. | The market value of a firm’s outstanding common shares will be higher, everything else equal, if |

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88. | By using the dividend growth model, estimate the cost of equity capital for a firm with a stock price of $30, an estimated dividend at the end of the first year of $3.00 per share, and an expected growth rate of 10%. |

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89. | A company uses portfolio theory to develop its investment portfolio. If you wish to obtain optimal risk reduction through the portfolio effect, it should make its next investment in |

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90. | The Capital Asset Pricing Model (CAPM) computes the expected return on a security by adding the risk-free rate of return to the incremental yield of the expected market return, which is adjusted by the company’s beta. Assume that rf=6%, and rm=10% If a stock has a beta of 1.5. The stock’s expected rate of return is. |

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91. | Beta does NOT measure the following: |

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92. | The arbitrage pricing model (APM) explains asset returns in terms of multiple macroeconomic factors. Assume the macroeconomic variables are the gross domestic product (RP1), inflation (RP2), and real interest rates (RP3). The expected return on ABC Stock is given as follows: r = 0.05 + b1(0.03) + b2(0.04) + b3(0.07). The beta coefficient (bj) for each variable are given as: Variable 1, b1 = 0.5; Variable 2, b2 = 0.3; Variable 3, b3 = 0.3. What is ABC's expected return? |

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Read 'Chapter 7: Decision Making with Statistics and Forecasting' & answer the following question(s): |

93. | Which of the following is NOT true regarding moving averages? |

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94. | Which method uses the mean (or average) for a specified set of values to forecast the next period? |

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95. | _______________________ is a smoothing constant. |

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96. | Which method continually revises a forecast in the light of more recent experience? |

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97. | The following computer printout was generated using the least squares method for use in estimating sales: Slope = 74; Intercept = 16600; Correlation coefficient = .95; Independent variable = Advertising. The sales forecasting equation would be |

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98. | The following computer printout was generated using the least squares method for use in estimating sales: Slope = 74; Intercept=16600; Correlation coefficient = .95; Independent variable=Advertising. An estimate of sales if an advertising expense is $100 would be |

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99. | The following computer printout was generated using the least squares method for use in estimating sales: Slope = 74; Intercept=16600; Coefficient of determination = .95; Independent variable=Advertising. What percentage change in sales can be explained by changes in advertising? |

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100. | If the independent variable is production volume and the dependent variable is cost, a coefficient of determination of .89 indicates |

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101. | Table t value, based on a degree of freedom and level of significance, is NOT used |

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102. | Multiple regression analysis is used to |

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103. | The general causes for a low R2 include |

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104. | When there is a high correlation between independent variables where these variables interfere with each other, then |

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105. | Ways to measure forecasting accuracy are |

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106. | The Durbin-Watson statistic provides the standard test for |

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Read 'Chapter 8: Making Use of Quantitative Decision Making' & answer the following question(s): |

107. | What is a decision matrix? |

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108. | An “expected value” is defined as |

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109. | A “decision tree” is |

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110. | Linear programming assumes |

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111. | An objective function |

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112. | Which one of the following is NOT an ingredient in linear programming? |

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113. | __________________ shows decision alternatives, states of nature, probabilities attached to the state of nature, and conditional outcomes (benefits and losses). . |

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114. | The carrying costs associated with inventory management include |

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115. | The order costs associated with inventory management include |

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116. | The purpose of the quantity discount model is to |

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117. | The economic order quantity (EOQ) will rise due to |

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118. | The economic order quantity (EOQ) formula assumes that |

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119. | The arrival time follows which probability distribution? |

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Read 'Chapter 9: Glossary' & answer the following question(s): |

Read 'Chapter 10: Summary' & answer the following question(s): |