Question 1

An accounting firm provides services for a client and sends the client a bill.This is an example of a(n):

Accepted Answer

A) operating activity 
B) investing activity 
C) financing activity 
D) planning activity 
A) operating activity 
B) investing activity 
C) financing activity 
D) planning activity

Question 2

When a manufacturing plant of Hays Corporation ships its finished goods the company's retail stores this is part of its

Accepted Answer

A) financing activities 
B) operating activities 
C) investing activities 
D) planning activites 
A) financing activities 
B) operating activities 
C) investing activities 
D) planning activites

Question 3

Ethan Fromme is the Purchaser for Hardware Hut,a company with several hardware stores.He prepares purchase orders for merchandise and places the orders with manufacturers.Although he does not physically receive the merchandise,he is responsible for checking the invoice against the purchase order and authorizing payment of the invoice.Describe internal control this arrangement causes.

Accepted Answer

Because Mr.Fromme is responsible for bot

Question 4

Which of the following businesses would have the longest customer response time?

Accepted Answer

A) Dell Computers 
B) General Motors Company 
C) Furniture Manufacturer 
D) Apple Grower 
A) Dell Computers 
B) General Motors Company 
C) Furniture Manufacturer 
D) Apple Grower

Question 5

Extreme Enterprises,which manufactures mountain climbing tools,engaged in the following activities.Identify the subprocess in operating process the following activities are associated with.Use (MS)for marketing/sales/collection/customer service,(P)for purchase/human resources/payment,and (C)for conversion.
______ (a.) Purchased raw materials for production.
______ (b.) Factory employees worked in production.
______ (c.) Sold $10,000 of its product to EMS on account, terms 2/10, n/30.
______ (d.) Clips were installed on belts in the production process.
______ (e.) Paid $5,000 for an advertisement in a trade journal.
______ (f.) Requisitioned raw materials for production.
______ (g.) Received $9,800 payment from EMS (see above).
______ (h.) Belts were finished and sent to the warehouse.
______ (i.) Paid the cost to repair a machine used in production.
______ (j.) Paid the president's salary.

Accepted Answer

(a.) P
(b.) C
(c.) M

Question 6

Morland Corp purchased a building that will house its new manufacturing plant.This is part of Morland's

Accepted Answer

A) operating activities 
B) investing Activities 
C) financing Activities
D.planning Activities 
A) operating activities 
B) investing Activities 
C) financing Activities
D.planning Activities

Question 7

The controller of Allitron,Inc.is one of two individuals in the company allowed to sign checks.This is an application of which of the following internal controls:

Accepted Answer

A) separating incompatible duties 
B) maintaining adequate documents and records 
C) requiring proper authorization 
D) physically controlling assets and documents 
A) separating incompatible duties 
B) maintaining adequate documents and records 
C) requiring proper authorization 
D) physically controlling assets and documents

Question 8

Billing customers is part of which of the following?

Accepted Answer

A) Capital Resources Process 
B) Marketing/sales/collection/customer service subprocess 
C) Conversion subprocess 
D) Credit Sales Process 
A) Capital Resources Process 
B) Marketing/sales/collection/customer service subprocess 
C) Conversion subprocess 
D) Credit Sales Process

Question 9

Which of the following ratios is not part if the Internal Perspective?

Accepted Answer

A) Accounts Receivable Turnover 
B) Inventory Turnover 
C) Quick Ratio 
D) Accounts Payable Turnover 
A) Accounts Receivable Turnover 
B) Inventory Turnover 
C) Quick Ratio 
D) Accounts Payable Turnover

Question 10

Which of the following is not part of an internal control system?

Accepted Answer

A) Providing independent checks 
B) Separating incompatible duties 
C) Physically controlling assets 
D) Designing produce that meet the customers needs 
A) Providing independent checks 
B) Separating incompatible duties 
C) Physically controlling assets 
D) Designing produce that meet the customers needs

Question 11

A bank reconciliation will identify all of the following except?

Accepted Answer

A) Unrecorded bank service charges 
B) Double Payment of a bill 
C) Outstanding Check 
D) Deposits in Transit 
A) Unrecorded bank service charges 
B) Double Payment of a bill 
C) Outstanding Check 
D) Deposits in Transit

Question 12

On a bank reconciliation,which of the following will reduce the company's cash balance?

Accepted Answer

A) Outstanding check 
B) Deposit in transit 
C) Non-sufficient funds check 
D) Bank error 
A) Outstanding check 
B) Deposit in transit 
C) Non-sufficient funds check 
D) Bank error

Question 13

Which of the following is part of the conversion subprocess?

Accepted Answer

A) purchase of merchandise for resale 
B) payment of wages to sales people 
C) purchase of building 
D) requisition of raw materials 
A) purchase of merchandise for resale 
B) payment of wages to sales people 
C) purchase of building 
D) requisition of raw materials

Question 14

At May 31,Allegro Company had a general ledger cash balance of $7,400.At the end of May,the bank statement had a balance of $7,500.Deposits in transit amounted to $1,000 and there was a service charge of $10.Outstanding checks totaled $1,110.What is the correct amount of cash?

Accepted Answer

A) $7,390 
B) $7,000 
C) $6,390 
D) $6,380 
A) $7,390 
B) $7,000 
C) $6,390 
D) $6,380

Question 15

Which is an example of an event that takes place in the operating process?

Accepted Answer

A) purchase of a bulldozer by a construction company 
B) purchase of a computer by an accounting firm 
C) payment of dividends 
D) payment of wages 
A) purchase of a bulldozer by a construction company 
B) purchase of a computer by an accounting firm 
C) payment of dividends 
D) payment of wages

Question 16

Which of the following are the three phases of a business?

Accepted Answer

A) start-up,development and decline 
B) operating,investing and financing 
C) planning,performing and evaluating 
D) revenue,expenditure and conversion 
A) start-up,development and decline 
B) operating,investing and financing 
C) planning,performing and evaluating 
D) revenue,expenditure and conversion

Question 17

Which of the following strategies focuses mainly on reduction of cost?

Accepted Answer

A) Flexible strategy 
B) Organic strategy 
C) Decentralized strategy 
D) Efficiency Strategy 
A) Flexible strategy 
B) Organic strategy 
C) Decentralized strategy 
D) Efficiency Strategy

Question 18

Match between columns
                        Premises: A collection of activities that takes one or more kinds of input and creates an output that is valued by customers.
The set of policies and procedures that promotes operational efficiency,accurate accounting information, and compliance with laws and regulation.
A structure in which activities and people are arrange by functions.
A company's long-term plan for using its resources both physical and human.
Activities that involve the purchase and sale of long-term assets and other major items to achieve the business's strategy.
The profit-making activities of a business enterprise.
Activities that involve obtaining the cash or other resources as means to pay for long-term assets, to repay borrowed funds, and provide a return to owners.
A structure in which activities and people are arrange in cross-functional teams.

Accepted Answer

The Answer of Mechanistic organizational structure and Business process and is...

Question 19

Which of the following strategies focuses mainly on developing new products to meet rapidly changing consumer demand?

Accepted Answer

A) Flexible strategy 
B) Organic strategy 
C) Efficiency strategy 
D) Decentralized strategy 
A) Flexible strategy 
B) Organic strategy 
C) Efficiency strategy 
D) Decentralized strategy

Question 20

All the checks used by Graphics,Inc.to pay its bills are prenumbered.This is an application of which of the following internal controls:

Accepted Answer

A) maintaining adequate documents and records 
B) physically controlling assets and documents 
C) requiring proper authorization 
D) separating incompatible duties 
A) maintaining adequate documents and records 
B) physically controlling assets and documents 
C) requiring proper authorization 
D) separating incompatible duties

An accounting firm provides services for a client and sends the client a bill.This is an example of a(n):

When a manufacturing plant of Hays Corporation ships its finished goods the company's retail stores this is part of its

Which of the following businesses would have the longest customer response time?

Morland Corp purchased a building that will house its new manufacturing plant.This is part of Morland's

The controller of Allitron,Inc.is one of two individuals in the company allowed to sign checks.This is an application of which of the following internal controls:

Billing customers is part of which of the following?

Which of the following ratios is not part if the Internal Perspective?

Which of the following is not part of an internal control system?

A bank reconciliation will identify all of the following except?

On a bank reconciliation,which of the following will reduce the company's cash balance?

Which of the following is part of the conversion subprocess?

At May 31,Allegro Company had a general ledger cash balance of $7,400.At the end of May,the bank statement had a balance of $7,500.Deposits in transit amounted to $1,000 and there was a service charge of $10.Outstanding checks totaled $1,110.What is the correct amount of cash?

Which is an example of an event that takes place in the operating process?

Which of the following are the three phases of a business?

Which of the following strategies focuses mainly on reduction of cost?

Which of the following strategies focuses mainly on developing new products to meet rapidly changing consumer demand?

All the checks used by Graphics,Inc.to pay its bills are prenumbered.This is an application of which of the following internal controls:

Accounting and Business

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 2: Business Processes and Accounting Information

An accounting firm provides services for a client and sends the client a bill.This is an example of a(n):

When a manufacturing plant of Hays Corporation ships its finished goods the company's retail stores this is part of its

Which of the following businesses would have the longest customer response time?

Morland Corp purchased a building that will house its new manufacturing plant.This is part of Morland's

The controller of Allitron,Inc.is one of two individuals in the company allowed to sign checks.This is an application of which of the following internal controls:

Billing customers is part of which of the following?

Which of the following ratios is not part if the Internal Perspective?

Which of the following is not part of an internal control system?

A bank reconciliation will identify all of the following except?

On a bank reconciliation,which of the following will reduce the company's cash balance?

Which of the following is part of the conversion subprocess?

At May 31,Allegro Company had a general ledger cash balance of $7,400.At the end of May,the bank statement had a balance of $7,500.Deposits in transit amounted to $1,000 and there was a service charge of $10.Outstanding checks totaled $1,110.What is the correct amount of cash?

Which is an example of an event that takes place in the operating process?

Which of the following are the three phases of a business?

Which of the following strategies focuses mainly on reduction of cost?

Which of the following strategies focuses mainly on developing new products to meet rapidly changing consumer demand?

All the checks used by Graphics,Inc.to pay its bills are prenumbered.This is an application of which of the following internal controls:

Accounting and Business

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters