Question 1 (1 point)Of the following, which wouldnot be a fixed asset for the Sprocket and Widget Manufacturing Company?
a
Plastic extruding equipment with a 15-year lifespan
b
A 10,000-square-foot factory
c
$10,000 in T-bills
d
Furniture
e
Molds for plastic with lifespan of five years
Question 2 (1 point)What are the fundamentals of the accounting process?
a
Journals and ledgers
b
Ledgers and financial statements
c
The accounting equation and the double-entry bookkeeping system
d
The accounting equation and the accounting cycle
e
Double-entry bookkeeping and the accounting cycle
Question 3 (1 point)If a nationwide sandwich shop company introduces a new sandwich in the Midwest to try out its marketing strategy before offering the product across the country, it is using:
a
concept testing.
b
idea screening.
c
test marketing.
d
menu experimentation.
e
commercialization.
Question 4 (1 point)Why was the World Bank formed?
a
Because national banks sometimes lack sufficient cash reserves.
b
To act as a global policing service.
c
Because developed nations realized that developing nations do not have any banks.
d
To loan money to underdeveloped and developing countries.
e
To help developed nations obtain money to start businesses.
Question 5 (1 point)Human resources departments strive to:
a
fire employees because of their race, religion, gender, or age.
b
minimize losses due to separations and transfers.
c
maximize separations and transfers.
d
maximize losses due to separations and transfers.
e
minimize promotions and transfers.
Question 6 (1 point)A trade advantage with the best chance of surviving is one based on:
a
a monopoly of a resource
b
worker knowledge.
c
lack of a resource.
d
technology.
e
production efficiency.
Question 7 (1 point)Frederick Taylor:
a
assumed workers knew the best way to do the job.
b
used special bonuses for workers.
c
proposed health insurance benefits for workers.
d
analyzed jobs to improve efficiency.
e
proposed free tuition programs to motivate workers.
Question 8 (1 point)Do-It-Yourself Home Repair Shop started the accounting period with $10,000 worth of shovels in inventory. During the accounting period, it purchased $5,000 worth of shovels and sold $7,500 worth. What is its cost of goods sold?
a
$7,500
b
$2,500
c
$5,000
d
$15,000
e
$10,000
Question 9 (1 point)What did the Hawthorne studies reveal?
a
That nothing will motivate an employee who is unmotivated to work.
b
That managers who understand the needs, beliefs, and expectations of people will have the greatest success motivating workers.
c
That changing physical conditions will improve employee productivity.
d
That money is truly the only motivator.
e
That supervisors should view their employees as unmotivated individuals who must be forced to do their jobs.
Question 10 (1 point)Which of the following equations is equivalent to the accounting equation?
a
Revenues – expenses = net income
b
Profit = sales – revenues
c
Owners’ equity = assets – liabilities
d
Net income = expenses – revenues + taxes
e
Equity = liabilities – assets
Question 11 (1 point)Private accountants do all of the followingexcept:
a
take part in internal planning and decision making.
b
have titles such as controller or internal auditor.
c
work for a corporation, government, or other organization to prepare and analyze its financial information.
d
express an official unbiased opinion regarding the accuracy of a client’s financial statements.
e
prepare and interpret a firm’s financial statements.
Question 12 (1 point)An interview is:
a
a chance to exchange information with the candidate.
b
when the interviewer may administer a polygraph test.
c
always a source of true information from the potential candidate.
d
when the interviewer should talk a lot.
e
the best way to gather verifiable data about a candidate.
Question 13 (1 point)What most consumers want is not a product, but:
a
symbols of prestige.
b
a way to get a job done, solve a problem, or gain some enjoyment.
c
low prices.
d
a high-quality service.
e
a unique idea.
Question 14 (1 point)An income statement shows:
a
the company’s status at a particular point in time.
b
assets, liabilities, and equity.
c
how much income each employee earned.
d
revenues, expenses, and net income over a period of time.
e
how much income the CEO earned.
Question 15 (1 point)The Federal Reserve provides all of the following servicesexcept:
a
managing regional and national check clearing.
b
managing the deposit insurance of banks in the Federal Reserve System.
c
regulating financial institutions.
d
using monetary policy to control the money supply.
e
offering certificates of deposit for interested individuals.
