BUS 475 Capstone Final Exam Part 2 Answers on UOP E Tutors

<strong>BUS</strong> <strong>475</strong> <strong>Capstone</strong>
<strong>Final</strong> <strong>Exam</strong>ination
<strong>Part</strong> 2
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<strong>BUS</strong> <strong>475</strong> <strong>Capstone</strong> <strong>Final</strong> <strong>Exam</strong>ination <strong>Part</strong> 2
(Lattest)
1) Which of the following is not a current liability on December 31, 2014?
A lawsuit judgment to be decided on January 10,2015
A Note Payable due December 31 2015
Accrued salaries payable from 2014
An Accounts Payable due January 31,2015
2) Continuous monitoring, in the contemporary approach, is beneficial
because_____________.
it increases the time it takes to detect changes in the competitive
environment
organization response time is increased
organizational flexibility is reduced
It reduces time lags
3) The acquisition of treasury stock by a corporation:
requires that a gain or loss be recognized on the income statement.
increases its total assets and total stockholders’ equity.
has no effect on total assets and total stockholders’ equity.
decreases its total assets and total stockholders’ equity.

4) 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%
5) __________involves ensuring proper strategic controls and organizational
designs.
Corporate governance
Strategy implementation
Business-level strategy
Corporate-level strategy
6) A post-closing trial balance will show:
only income statement accounts
zero balances for balance sheet accounts
only balance sheet accounts
zero balances for all accounts
7) The preparation of adjusting entries is:

straightforward because the accounts that need adjustment will be out of
balance
needed to ensure that the expense recognition principle is followed.
only required for accounts that do not have a normal balance.
optional when financial statements are prepared.
8) 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
0
+1
-1
9) The fraud triangle applies to:
U.S. and Canadian companies, but not other international companies.
U.S companies but not international companies.
U.S and international companies.
international companies but not U.S. companies.
10) According to value-chain analysis, which of the following would be
considered part of the general administration in a firm?
information systems
procurement
technology development
human resource management
11) Which of the following can be represented by a discrete random
variable?
The circumference of a randomly generated circle
The number of defective light bulbs in a sample of five

The time of a flight between Chicago and New York
The average distance achieved in a series of long jumps
12) What is an advantage of the correlation coefficient over the
covariance?
It falls between 0 and 1.
It falls between -1 and 1.
It falls between -1 and 1; and it is a unit free measure, therefore making it
easier to interpret.
It is a unit-free measure, therefore making it easier to interpret.
13) GAAP, compared to IFRS, tends to be more:
rules-based
simple in accounting requirements
principles-based
simple in disclosure requirements
14) The resource-based view (RBV) of the firm combines two
perspectives:
the internal analysis of the firm and the external analysis of the industry
and competitive environment
the primary and support activities of the firm
the industry and the competitive environment
the interrelationships among the primary activities of the firm and
corporate management
15) Sarbanes Oxley applies to:

U.S and international companies.
U.S. and Canadian companies but not other international companies.
U.S companies but not international companies.
international companies but not U.S. companies.
16) Is it possible for a data set to have no mode?
No, unless there is an odd number of observations
Yes, if two observations occur twice
Yes, if there are no observations that occur more than once
No, if the data set is nonempty, there is always a mode
17) Under the accrual basis of accounting:
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.
cash must be received before revenue is recognized.
net income is calculated by matching cash outflows against cash inflows.
18) Which trial balance will consist of the greatest number of accounts?
Trial balance
Adjusted trial balance
Balance
Post-closing trial balance

19) Vertical analysis is a technique that expresses each item in a financial
statement:
in dollars and cents.
as a percent of a base amount.
as a percent of the item in the previous year.
starting with the highest value down to the lowest value.
20) Cost allocation of an intangible asset is referred to as:
accretion
amortization
depreciation
capitalization
21) According to the text, the triple bottom line approach to corporate
accounting includes three components:
financial, environmental, and social
financial, organizational, and customer
financial, environmental, and customer
financial, organizational, and psychological
22) 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

23) 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
24) 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 organizations are solely responsible to local citizens
the idea that businesses are responsible to maintain a healthy social
climate for their employees
25) Expenditures that maintain the operating efficiency and expected
productive life of a plant asset are generally:
expensed when incurred.
not recorded until they become material in amount.
debited to the Accumulated Depreciation account.
capitalized as a part of the cost of the asset.
26) For both qualitative and quantitative data, what is the difference
between the relative frequency and the percent frequency?

The relative frequency equals the percent frequency multiplied by 100.
The percent frequency equals the relative frequency multiplied by 100
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.
27) 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 leveraging core
competencies to achieve economies of scope
using related diversification to achieve value by pooling negotiating power
to achieve market power
using related diversification to achieve value by integrating vertically in
order to attain economies of scope
using related diversification to achieve value by integrating vertically in
order to acquire market power
28) Which of the following can be represented by a continuous random
variable?
The average temperature in Tampa, Florida, during the month of July
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

29.) 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?
An accounting policies manual
Tracing any debit memorandums from the bank to the company's records
A review of the cash budget
The use of pre-numbered checks
30.) A SWOT analysis is a framework for analyzing a firm’s environments.
A SWOT is made up of
Internal environmental analysis of threats and weaknesses.
Internal strengths and weaknesses; external threats and opportunities.
Internal threats and weakness and external strengths and opportunities.
External analysis of strengths and opportunities.
31.) Trumpeting Trumpets has the following inventory data:
July 1: Beginning inventory 30 units at $120
July 5: Purchases 180 units at $112
July 14: Sale
120 units
July 21: Purchases 90 units at $115
July 30: Sale
84 units

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