MGT 311 FINAL EXAMS
1) In her work in the publishing industry, Vera seeks out new authors whom she considers promising. In the past 2 years she has found a number of new writers whose work she thought was exceptional, and immersed herself in the task of helping them shape their manuscripts for submission to her managers for publishing. Although she was extremely proud of the results, none of the authors she worked with were chosen for publication. Vera believes that the decision not to publish these authors was based on personal rivalries within management, rather than the quality of her writers work. She is extremely frustrated, dreads coming into work each morning, and is seriously thinking of resigning. How can Vera s job attitude best be described?
2) Julia works as a receptionist at a real estate company. Her boss just came in the door and yelled at her, telling her that the front office was a mess and that she needed to get up and clean it immediately. After her boss left the room, Julia grabbed three magazines and violently slammed them into the trash can. Which of the following best describes Julia s action?
3) Erin works on a software help desk. After being yelled at by a customer about the state of her company s software, she becomes angry, and has to take a short break to calm down. What makes her anger an emotion, rather than a mood?
4) Any incompatibility between two or more attitudes or between behavior and attitudes results in what?
5) What is the degree to which a person identifies with his or her job, actively participates in it, and considers his or her performance as being important to self worth?
6) What term is used for those emotions that an organization requires workers to show and considers appropriate for a given job?
7) Janet needs to assign a very important advertising account to one of her writers. First she reviewed each writers work load, then she studied the sales data of the products for the last three campaigns of each writer, then she reviewed each writer s annual review to familiarize herself with their goals. Finally, she gave the account to Paula, a very creative, efficient writer who has had high sales results with her last three clients products. What is Janet s management style is based on?
8) Basing managerial methods on the best available scientific evidence is called what?
9) The manager at a construction site observes that he is spending a great deal of time interviewing prospective employees. This is due to the large amount of absenteeism and turnover among his skilled workers. While questioning exiting employees, he discovers that many of them quit because they feel the work place is too dangerous. In particular, several foremen have stated that the need to get the job done quickly is more important than a few rules, and have gone as far as to mock the courage of workers who question this attitude. What is the best way for the manager to control the deviant behavior of the foremen?
10) Phil loves sales. He has been a stellar sales person since he was 12. Recently he was awarded a full paid trip for two to Puerto Rico for breaking a company sales record. Phil is so motivated to work, he has set a new goal to break his old record in the coming year. Taking into account self determination theory, why did the company recognition and award, an extrinsic reward, motivate Phil?
11) Tony loves programming. He was on the ground level of the computer revolution. This year his boss has set personal goals for each of the programmers, one of which includes a presentation from each programmer about a project. Tony is very annoyed because he has a tremendous amount of work to do and he will have to spend the weekend, his personal time, preparing the presentation. Taking into account self determination theory, why did his manager s goals and the presentation reduce Tony s motivation?
12) Glendon has a degree in business and worked for 2 years at an international firm in Spain. When the firm suffered cutbacks and Glendon returned home, he took a job at a nonprofit agency mentoring at risk Spanish speaking children. Glendon earns a third of what he earned in the business world, but has decided that his new goal is to acquire a larger case load and continue to use his Spanish to help people. Which theory explains why Glendon is happy with a much smaller external reward for his work?
13) Today Marci s boss entered her cubicle and told her that her work has been fantastic, and that because of her last project the client is going to give the company all of their business. Marci s boss continued to talk about what a great job she s doing. When her boss left, Marci felt very confident and satisfied with herself and her job. Marci s boss uses communication in which of the following functions?
14) What can managers do to make sure that important information is not withheld from them through silence?
15) When Neal Patterson, CEO of Cerner Corporation, sent his seething e mail to 400 managers, he erred by selecting the wrong
16) Araceli is a team member in a large corporation. She never speaks in the team meetings because she has seen members talk behind each others backs outside of the meetings. Members are constantly monitoring the other member s work, looking for a mistake to point out in a meeting. According to the information provided, which contextual factor is most likely hindering the success of Araceli s team?
17) Ayesha is leading a group to develop a prototype for a new product. She has chosen three people to work with her. Ben and Tom are good friends and socialize on the weekend. They are both very creative. Julian is older than Ben and Tom, but they have worked together before and been quite productive. Julian is organized. Ayesha has never worked with any of the men, but knows the product well. She brings the highest level of expertise. Which of the following statements best describes Ayesha s group?
18) Irma does not like a few of the standard operating procedures adapted for the new project. However, she discussed the items with the team and told them that she realized she was in the minority and that she would adapt the new procedures to maintain smooth operations within the team. What is this type of intention called?
19) Angelina feels that her cubicle neighbor talks too loudly on the phone, but in other ways she is a great neighbor. Angelina gets annoyed every time her neighbor s phone rings, but she has decided it is simply not worth the trouble to talk to her neighbor. What is Angelina s conflict intention called?
20) For process conflict to be productive, it must be
21) The right inherent in a managerial position to give orders and expect orders to be obeyed is termed
22) ________ are consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees.
23) What is the process through which employees are adapted to an organization s culture?
24) If there is a basic conflict between the individual s expectations and the reality of working in an organization, the employee is most likely to be disillusioned and quit during which stage of socialization?
25) When your superior offers you a raise if you will perform additional work beyond the requirements of your job, he or she is exercising ________ power.
26) Political behaviors usually
27) Regardless of the composition of a group, managers can leverage diversity to achieve superior performance by which of the following approaches?
28) Effective workforce programs that encourage diversity have three distinct components. First, they inform managers about the legal framework for equal employment opportunities and encourage fair treatment. Second, they teach managers how a diverse workforce will be better able to serve a diverse market of customers and clients. Third, they
29) If individuals resisting change are included in making change decisions in an attempt to gain their support, what is this approach called?
30) Which tactic to overcome resistance to change is a relatively easy way to gain the support of adversaries, but may backfire if the targets become aware of the tactic?
1) Which of the following is NOT considered cash for financial reporting purposes?
2) What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet?
3) Which of the following items should NOT be included in the Cash caption on the balance sheet?
4) Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense?
5) Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does NOT make the balance sheet misleading because
6) Which of the following methods of determining bad debt expense does NOT
properly match expense and revenue?
7) The accountant for the Orion Sales Company is preparing the income statement for 2007 and the balance sheet at December 31, 2007. Orion uses the periodic inventory system. The January 1, 2007 merchandise inventory balance will appear
8) Belle Co. received merchandise on consignment. As of March 31, Belle had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31 would be
9) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inven tory results in
10) The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its
11) All of the following costs should be charged against revenue in the period in which costs are incurred EXCEPT for
12) Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?
13) In no case can market in the lower-of-cost-or-market rule be more than
14) An item of inventory purchased this period for $15.00 has been incorrectly written down to its current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is NOT true?
15) When valuing raw materials inventory at lower-of-cost-or-market, what is the meaning of the term market ?
16) The retail inventory method is based on the assumption that the
17) In 2006, Lucas Manufacturing signed a contract with a supplier to purchase raw materials in 2007 for $700,000. Before the December 31, 2006 balance sheet date, the market price for these materials dropped to $510,000. The journal entry to record this situation at December 31, 2006 will result in a credit that should be reported
18) When the conventional retail inventory method is used, markdowns are commonly ignored in the computation of the cost to retail ratio because
19) Which of the following is NOT a major characteristic of a plant asset?
20) If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on
21) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to
22) The period of time during which interest must be capitalized ends when
23) Which of the following costs are capitalized for self-constructed assets?
24) When computing the amount of interest cost to be capitalized, the concept of avoidable interest refers to
25) When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the
26) When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds NOT needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be
27) Construction of a qualifying asset is started on April 1 and finished on December 1. The fraction used to multiply an expenditure made on April 1 to find weighted-average accumulated expenditures is
28) Which of the following most accurately reflects the concept of depreciation as used in accounting?
29) Which of the following principles best describes the conceptual rationale for the methods of matching depreciation expense with revenues?
30) The term depreciable cost, or depreciable base, as it is used in accounting, refers to
31) Lennon Company purchased a depreciable asset for $200,000. The estimated salvage value is $10,000, and the estimated useful life is 10,000 hours. Lennon used the asset for 1,100 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset?
32) Prentice Company purchased a depreciable asset for $200,000. The estimated salvage value is $20,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?
33) Pine Company purchased a depreciable asset for $360,000. The estimated salvage value is $24,000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?
34) Under current accounting practice, intangible assets are classified as
35) Factors considered in determining an intangible assets useful life include all of the following EXCEPT
36) Which of the following methods of amortization is normally used for intangible assets
37) Mining Company acquired a patent on an oil extraction technique on January 1, 2006 for $5,000,000. It was expected to have a 10 year life and no residual value. Mining uses straight-line amortization for patents. On December 31, 2007, the expected future cash flows expected from the patent were expected to be $600,000 per year for the next eight years. The present value of these cash flows, discounted at Minings market interest rate, is $2,800,000. At what amount should the patent be carried on the December 31, 2007 balance sheet?
38) Twilight Corporation acquired End-of-the-World Products on January 1, 2008 for $2,000,000, and recorded goodwill of $375,000 as a result of that purchase. At December 31, 2008, the End-of-the-World Products Division had a fair value of $1,700,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $1,450,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2008?
39) General Products Company bought Special Products Division in 2006 and appropriately booked $250,000 of goodwill related to the purchase. On December 31, 2007, the fair value of Special Products Division is $2,000,000 and it is carried on General Products books for a total of $1,700,000, including the goodwill. An analysis of Special Products Divisions assets indicates that goodwill of $200,000 exists on December 31, 2007. What goodwill impairment should be recognized by General Products in 2007?
40) Easton Company and Lofton Company were combined in a purchase transaction. Easton was able to acquire Lofton at a bargain price. The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton. After revaluing noncurrent assets to zero, there was still some negative goodwill. Proper accounting treatment by Easton is to report the amount as
42) The reason goodwill is sometimes referred to as a master valuation account is because
43) Which of the following items is a current liability?
44) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT
45) Stock dividends distributable should be classified on the
46) A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2007. Historically, 10% of customers mail in the rebate form. During 2007, 4,000,000 packages of light bulbs are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?
47) A company offers a cash rebate of $1 on each $4 package of batteries sold during 2007. Historically, 10% of customers mail in the rebate form. During 2007, 6,000,000 packages of batteries are sold, and 210,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?
48) Wellman Company self insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1,000,000 per year. The company estimates that on average it will incur losses of $800,000 per year. During 2007, $350,000 worth of losses were sustained. How much total expense and/or loss should be recognized by Wellman Company for 2007?
49) A contingency can be accrued when
50) Which of the following contingencies need NOT be disclosed in the financial statements or the notes thereto?
51) Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has sustained from the fire. Ward appears inclined to accept the Railroads offer. The Railroads 2007 financial statements should include the following related to the incident:
52) If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be
53) An example of an item which is NOT a liability is
54) Bonds for which the owners names are NOT registered with the issuing corporation are called
55) Which of the following best describes current practice in accounting for leases?
56) Minimum lease payments may include a
57) Which of the following is a correct statement of one of the capitalization criteria?
58) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income
59) In order to properly record a direct-financing lease, the lessor needs to know how to calculate the lease receivable. The lease receivable in a direct-financing lease is best defined as
60) The amount to be recorded as the cost of an asset under capital lease is equal to the
1) An accrued expense can best be described as an amount
2) When an item of revenue is collected and recorded in advance, it is normally called a(n) ___________ revenue.
3) When an item of expense is paid and recorded in advance, it is normally called a(n)
4) A common set of accounting standards and procedures are called
5) One objective of financial reporting is to provide
6) The information provided by financial reporting pertains to
7) The Financial Accounting Foundation
8) The major distinction between the Financial Accounting Standards Board (FASB) and its predecessor, the Accounting Principles Board (APB), is
9) The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the
10) Limitations of the income statement include all of the following except
11) The income statement reveals
12) Which of the following would represent the least likely use of an income statement prepared for a business enterprise?
13) The process of formally recording or incorporating an item in the financial statements of an entity is
14) Which of the following is not a reason why revenue is recognized at time of sale?
15) Which of the following is not an accurate representation concerning revenue recognition?
16) One criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is
17) The basis for classifying assets as current or noncurrent is conversion to cash within
18) The correct order to present current assets is
19) If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the
20) Events that occur after the December 31, 2008 balance sheet date (but before the balance sheet is issued) and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be
21) The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?
22) The MD&A section of an enterprises annual report is to cover the following three items:
23) If the financial statements examined by an auditor lead the auditor to issue an opinion that contains an exception that is not of sufficient magnitude to invalidate the statement as a whole, the opinion is said to be
24) Which of the following best characterizes the difference between a financial forecast and a financial projection?
25) Theoretically, in computing the receivables turnover, the numerator should include
26) Which of the following ratios measures long-term solvency?
27) The rate of return on common stock equity is calculated by dividing
28) The primary purpose of the statement of cash flows is to provide information
29) The first step in the preparation of the statement of cash flows requires the use of information included in which comparative financial statements?
30) To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by
31) The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)
32) In determining net cash flow from operating activities, a decrease in accounts payable during a period
33) In reporting extraordinary transactions on a statement of cash flows (indirect method), the
34) Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value of the asset obtained or liability owed at the date of incurrence?
35) Which of the following tables would show the smallest value for an interest rate of 5% for six periods?
36) Which table would show the largest factor for an interest rate of 8% for five periods?
1. The process by which a financial transaction is recorded so that its flow through the system can be followed is called: a) Financial shadowing b) Managerial trace technique c) Concatenation d) Audit trail
2. Justifying expenditures for new technologies is especially difficult because: a) You do not know how many jobs will be affected b) Expenses are often recurring and are difficult to estimate c) Many benefits are intangible and are not easily known or measured d) Justifying a new technology is no different from any other capital budgeting problem
3. The essential steps in performing a systems study are (in order of occurrence): a) Analysis, design, implementation and initial operation, follow up b) Design, planning, follow up, analysis, and implementation c) Planning, system specification, analysis, production, implementation d) Planning, analysis, design, implementation, and follow up
4. What is the first step to be performed by most organizations in their accounting cycles? a) Recording business transactions in a journal b) Preparing a trial balance c) Recording closing entries in a journal d) Preparing transaction source documents e) none of the above
5. Which systems study step is normally performed first? a) Design b) Initial operation c) Follow up d) Analysis e) none of the above
6. The purpose of a company firewall is to: a) Guard against spoofing b) Assist the IETF c) Deny computer hackers access to sensitive data d) all of the above
7. The term data encryption refers to: a) Storing data in safe places called “crypts” b) Transforming data into secret codes c) Scrambling data in random ways that cannot be unscrambled d) none of these
8. An advantage of an extranet is that: a) It can disseminate information corporate wide b) It can be accessed by selected trading partners c) Users can employ common web browsers to access information in them d) all of the above
9. Another name for an Internet domain address is its: a) URL b) ISP c) email address d) IETF
10. Business process reengineering efforts sometimes fail because: a) Management gets too involved in the process b) Management is too optimistic regarding its expectations from its implementation c) Management support can never overcome employee resistance d) Employees will never accept change
11. The sales process begins with: a) Placing an order with a vendor b) A customer order for goods or services c) Production of goods or services d) Delivery of goods or services
12. The primary objective in processing revenues is to: a) Sell as many goods as possible b) Achieve timely and efficient cash collection c) Maximize an organization’s sales orders d) Only sell goods to customers who can pay their bills
13. An important input to the sales process is: a) A customer sales order b) The cash forecast c) Aged accounts receivable information d) A receiving report
14. Which of the following is not an example of a source document? a) Receiving report b) Purchase order c) Sales order d) Aging report
15. Inputs to transaction processing systems: a) Are always in hard copy b) Are best when input in a graphical format c) May be in an electronic format when an EDI system is used d) May never be audio
16.Integrated accounting software programs generally include all of the following, except: a) Graphic reporting capabilities b) Internet connectivity c) One standardized chart of accounts d) The ability to handle multiple companies
17. Enterprise-wide AISs: a) Almost never pay for themselves b) Do not include many more features than middle-range accounting software packages c) Are seldom used by multinational organizations d) Integrate an organization’s financial functions with its other functional areas
18. Training and change management activities: a) Take place just before the go live stage of implementation b) Are most effective when conducted throughout design, go live, and post-implementation follow-up c) Include technical training only d) Do not include the design of user interfaces 19. Which of the following software packages is not an example of a middle-range AIS? a) Great Plains Dynamics b) MAS 90 c) SAP R/3 d) Solomon 20. Many organizations purchased new AISs during the 1990’s: a) Because of the need for Year 2000 compliance b) Because they wanted Internet connectivity c) In order to take advantage of opportunities for reengineering d) all of the above
ACC 310 Final Exam
Submit a paper on one of the major topics listed below and incorporate at least two other related articles of your choice: How does the firm use “Cost-Volume-Profit Analysis” to assess performance? How would you use such a system to measure how costs change as production changes? How do you develop a “break even analysis” for a given firm and how would you use it? What is “Activity Based Costing” and how does it work? What does it do for a firm employing such a system? How do you go about developing such a system in a firm? What are the steps? What would an example look like? Why is cost accounting so important to the success of the firm? What are the various methods of cost accounting and how are they used? How does an operating budget work to discipline a firm’s management? What are the elements of a budget? How are budgets constructed? What
1) Which of the following statements is true? 2) Notes to the financial statements include which of the following: 3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities? 4) If the retained earnings account increases from the beginning of the year to the end of the year, then 5) If services are rendered on account, then 6) An investment by the stockholders in a business increases 7) Using accrual accounting, expenses are recorded and reported only: 8) A small company may be able to justify using a cash basis of accounting if they have: 9) Stockholders’ equity can be described as claims of 10) Common stock is reported on the 11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 12) On July 1 the Fisher Shoe Store paid $15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. 13) Use the following data to determine the total dollar amount of assets to be classified as current assets. 14) Use the following data to calculate the current ratio. KoonceOffice Supplies Balance Sheet December 31, 2012 Cash $130,000 Accounts Payable $140,000 Prepaid Insurance 60,000 Salaries Payable 20,000 Accounts Receivable 100,000 Mortgage Payable 160,000 15) In horizontal analysis, each item is expressed as a percentage of the 16) When a change in depreciation method occurs: 17) Which of the following statements is true with respect to financial statement reporting for all cases when a company changes from one acceptable accounting method to another? 18) Which of the following would be considered a change in accounting principle? 19) From an internal control standpoint, the asset most susceptible to improper diversion and use is 20) A very small company would have the most difficulty in implementing which of the following internal control activities? 21) The reconciliation of the cash register tape with the cash in the register is an example of 22) Deposits in transit 23) Which of the following items on a bank reconciliation would require an adjusting entry on the company’s books? 24) Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: 25) Why do pension and mutual funds invest in debt and equity securities? 26) Which of the following is a debt security? 27) Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to 28) Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. Assume Holmes pays interest semiannually and the July 1 entry was done correctly. The journal entry at December 31, 2012 would include a credit to 29) A company that owns more than 50% of the common stock of another company is known as the 30) If a parent company has two wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company?