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BUS475 Capstone Final Examination part 2

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1. Sampling is used heavily in manufacturing and service settings to ensure high-quality products. In which of the following areas would sampling be inappropriate? Custom cabinet making Computer assembly Technical support by phone Cell phone manufacturing 2. The preparation of adjusting entries is: needed to ensure that the expense recognition principle is followed. straightforward because the accounts that need adjustment will be out of balance optional when financial statements are prepared. only required for accounts that do not have a normal balance. 3. What is an advantage of the correlation coefficient over the covariance? It falls between -1 and 1. It is a unit-free measure, therefore making it easier to interpret. It falls between -1 and 1; and it is a unit free measure, therefore making it easier to interpret. It falls between 0 and 1. 4. Interest may be included in the acquisition cost of a plant asset: during the construction period of a self-constructed asset. if the asset acquisition is financed by a long-term note payable. if the asset is purchased on credit. if it is a part of a lump-sum purchase. 5. Which trial balance will consist of the greatest number of accounts? Balance Adjusted trial balance Trial balance Post-closing trial balance 6. Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally: capitalized as a part of the cost of the asset. not recorded until they become material in amount. expensed when incurred. debited to the Accumulated Depreciation account. 7. 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. External analysis of strengths and opportunities. Internal threats and weakness and external strengths and opportunities. Internal strengths and weaknesses; external threats and opportunities. 8. GAAP, compared to IFRS, tends to be more: simple in disclosure requirements simple in accounting requirements principles-based rules-based 9. Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is: 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 the expectation that business will strive to improve the overall welfare of society the fact that court costs could impact the financial bottom line 10. Which of the following can be represented by a continuous random variable? The number of typos found on a randomly selected page of this test bank The number of students who will get financial assistance in a group of 50 randomly selected students The number of customers who visit a department store between 10:00 a.m. and 11:00 a.m. on Mondays The average temperature in Tampa, Florida, during the month of July 11. According to value-chain analysis, which of the following would be considered part of the general administration in a firm? procurement technology development information systems human resource management 12. Which of the following can be represented by a discrete random variable? The number of defective light bulbs in a sample of five The average distance achieved in a series of long jumps The circumference of a randomly generated circle The time of a flight between Chicago and New York 13. Sarbanes Oxley applies to: U.S and international companies. international companies but not U.S. companies. U.S. and Canadian companies but not other international companies. U.S companies but not international companies. 14. Vertical analysis is a technique that expresses each item in a financial statement: as a percent of the item in the previous year. starting with the highest value down to the lowest value. in dollars and cents. as a percent of a base amount. 15. The owner of a company has rece

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