Professional Documents
Culture Documents
You work in marketing for a company that produces work boots. Quality control has
sent you a memo detailing the length of time before the boots wear out under heavy
use. They find that the boots wear out in an average of 208 days, but the exact amount
of time varies, following a normal distribution with a standard deviation of 14 days.
For an upcoming ad campaign, you need to know the percent of the pairs that last
longer than six months-that is, 180 days. Use the empirical rule to approximate this
percent.
97.5%
95%
2.5%
5%
Corporate governance
Strategy implementation
Business-level strategy
Corporate-level strategy
straightforward because the accounts that need adjustment will be out of balance
In a simple linear regression model, if the plots on a scatter diagram lie on a straight
line, what is the standard error of the estimate?
Infinity
+1
-1
information systems
procurement
technology development
It falls between -1 and 1; and it is a unit free measure, therefore making it easier to interpret.
rules-based
principles-based
the internal analysis of the firm and the external analysis of the industry and competitive
environment
the interrelationships among the primary activities of the firm and corporate management
events that change a company's financial statements are recognized in the period they occur
rather than in the period in which cash is paid or received.
the ledger accounts must be adjusted to reflect a cash basis of accounting before financial
statements are prepared under generally accepted accounting principles.
Trial balance
Balance
accretion
amortization
depreciation
capitalization
According to the text, the triple bottom line approach to corporate accounting
includes three components:
An analyst believes the probability that U.S. stock returns exceed long-term corporate
bond returns over a 5-year period is based on personal assessment. This type of
probability is best characterized as a(n) ____________.
Subjective probability
Objectivity probability
Empirical probability
A priori probability
Green, Inc. had 200,000 shares of common stock outstanding before a stock split
occurred and 800,000 shares outstanding after the stock split. The stock split was:
2-for-8
1-for-8
8-for-1
4-for-1
Firms must be aware of goals other than short-term profit maximization. One area of
concern should be social responsibility which is:
the expectation that business will strive to improve the overall welfare of society
the fact that court costs could impact the financial bottom line
the idea that businesses are responsible to maintain a healthy social climate for their
employees
Expenditures that maintain the operating efficiency and expected productive life of a
plant asset are generally:
For both qualitative and quantitative data, what is the difference between the relative
frequency and the percent frequency?
As opposed to the relative frequency, the percent frequency is divided by the number of
observations in the data set.
As opposed to the percent frequency, the relative frequency is divided by the number of
observations in the data set.
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials
by producing much of its own polypropylene fiber, a key input to its manufacturing
process. This is an example of _______________.
using related diversification to achieve value by pooling negotiating power to achieve market
power
The number of customers who visit a department store between 10:00 a.m. and 11:00 a.m.
on Mondays
The number of students who will get financial assistance in a group of 50 randomly selected
students
The number of typos found on a randomly selected page of this test bank
Which of the following controls would best help detect the removal of a blank check
by an employee from the back of a company's checkbook for subsequent
misappropriation of funds?
Tracing any debit memorandums from the bank to the company's records
30 units at $120
180 units at $112
120 units
90 units at $115
84 units
Assuming that a periodic inventory system is used, what is the cost of goods sold on a
FIFO basis?
$23,088
$11,022
$10,992
$23,118
It points out the need to maintain a differentiation advantage and a low cost advantage
simultaneously.
Trends suggested by the market life cycle model are generally not reversible or repeatable.
It has important implications for company generic strategies, functional areas, value-creating
activities, and overall objectives.
Part of the power of the market life cycle is its ability to serve as a short-run forecasting
device.
Cost of goods sold is an expense for service enterprises but not for merchandising
companies.
Merchandising companies generally have a longer operating cycle than service enterprises.
A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six males chosen at random, without regard to age.
A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people who volunteer for the sample.
A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people chosen at random, without regard to age.
A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include two people chosen at random under the age of 25 and four people
chosen at random over 25.
WellPoint Health Network states: WellPoint will redefine our industry: through a new
generation of consumer-friendly products that put individuals back in control of their
future. This is an example of a:
Vision statement
Strategic objective
If a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the
annual net cash cost of this borrowing if the income tax rate is 30%?
$400,000
$120,000
$4,000,000
$280,000
implies that receivables with different characteristics should be reported as one unsegregated amount.
requires that receivables with different characteristics should be reported as one unsegregated amount.
Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows.
Indicate where, if at all, accounts receivable collected would be classified on the
statement of cash flows.
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials
by producing much of its own polypropylene fiber, a key input to its manufacturing
process. This is an example of _______________.
using related diversification to achieve value by pooling negotiating power to achieve market
power
In multiple regression, plot the residuals against ____ to detect changing variability.
Collinear variables
On March 1st, Candy, Inc. had supplies on hand of $1,500. During the month, Candy
purchased supplies of $2,900 and used supplies of $2,800. The March 31st balance
sheet should report what balance in their supplies account?
$2,800
$1,500
$1,600
$2,900
Which of the following requirements about internal controls were enacted under the
Sarbanes Oxley Act:
Companies must assess the functionality of internal controls only when a violation occurs.
Internal auditors replace independent outside auditors when evaluating the level of internal
control.
The four key attributes of strategic management include the idea that:
Which financial statement would best indicate whether the company relies on debt or
stockholders equity to finance its assets?
Income statement
Balance sheet
The manager of Weiser is given a bonus based on net income before taxes. The net
income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The
bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted
instead of LIFO?
$12,600
$9,000
$6,300
$1,800
Computer assembly
The owner of a company has recently decided to raise the salary of one employee,
who was already making the highest salary, by 20%. Which of the following is(are)
expected to be affected by this raise?
Median only
Mean only