CVJI 55.doc

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Question 15
Garnishes, Inc. has sales for the year of $46,300 and cost of goods sold of $21,700. The firm carries an average inventory of $4,800 and has an average accounts payable balance of $4,400. What is the inventory period?
a. 12.39 days
b. 18.68 days
c. 31.29 days
d. 80.74 days
e. 91.36 days
Question 16
What is the future value of $20 a week for 10 years at 6 percent APR? Assume the first payment occurs at the end of this week.
a. $14,239.14
b. $14,361.08
c. 14,727.15
d. $15,003.14
e. $15,221.80
Question 17
The corporate annual report is prepared by the:
a. company’s auditors.
b. company’s management.
c. Securities & Exchange Commission.
d. Financial Accounting Standards Board.
Question 18
Generally accepted accounting principles [GAAP] are established in the USA by:
a. the FAF
b. FASB
c. GASB
d. the IASB
e. the SEC
Question 19
XBRL is:
a. a method which allows financial statement data to be transmitted in computer- readable form.
b. developed by an international consortium
c. required by the SEC.
d. all of these are true.
Question 20
The best kind of audit opinion is the:
a. adverse opinion
b. disclaimer
c. qualified opinion
d. unqualified opinion
Question 21
Non-operating activities on the income statement are:
a. continuing activities done on the side (not the main source of revenue for the firm).
b. continuing activities that are the main source of revenue for the firm.
c. non-continuing activities that generated a significant one-time revenue or loss.
d. non-continuing activities that generated an insignificant one-time revenue or loss.
Question 22
Changes in other comprehensive income are:
a. certain unrealized (meaning an incomplete transaction) gains or losses.
b. usually reported in the USA in the statement of owners’ equity.
c. reported under IFRS in a separate financial statement
d. all of these are true.
Question 23
Normally, the first note to the financial statements is:
a. a discussion of subsequent events
b. management’s discussion and analysis
c. the auditor’s report
d. the summary of significant accounting policies
Question 24
Consolidated financial statements are:
a. a financial statement combining all months of the year
b. a summary of the four financial statements
c. the financial statements of the parent corporation combined with those of its subsidiaries.
d. the four financial statements combined into a single document
Question 25
Which of the following is true?
a. Financial accounting focuses on reporting historical, past information, while managerial accounting looks at both the past and the future
b. Financial accounting is very detailed; managerial accounting focuses only on the big picture
c. Managerial accounting focuses on external reporting and financial accounting focuses on internal financial decision making
d. Managerial accounting is heavily regulated, but financial accounting is more flexible
Question 26
Which of the following pairs of costs are both relevant in decision making?
a. Allocated costs and sunk costs
b. Allocated costs and opportunity costs
c. Opportunity costs and out-of-pocket costs
d. Opportunity costs and sunk costs
Question 27
The experience of Boeing building its Dreamliner indicates that just-in-time inventory management:
a. can create serious problems if suppliers are unreliable
b. creates significant cost savings
c. necessitates total quality management
d. requires the implementation of kaizen management
Question 28
What is the difference between fixed and variable costs?
a. Fixed costs are not predictable; variable costs are predictable because of set price contracts
b. Fixed costs are predictable because of set price contracts; variable costs are not predictable
c. Fixed costs stay the same regardless of production levels; variable costs vary with production
d. Fixed costs vary with production; variable costs stay the same regardless of production levels
Question 29
According to the handout, The Time Value of Money in the Bible and Church History, interest:
a. is legitimate at any rate
b. is legitimate if it’s not too high
c. should not be charged to other Christians
d. should not be charged by Christians
Question 30
The payback method asks the question:
a. How does the project’s return compare to the targeted hurdle rate of interest?
b. How long will it take for this purchase to pay for itself?
c. What is the average return on investment, using accrual-based accounting?
d. What is the return on investment, using cash flow analysis?
Question 31
Planning how to optimally use the scarce resources of the company—in particular, the resource of cash—is called:
a. capital budgeting
b. economizing
c. financial planning
d. project planning
Question 32
Nonquantitative factors to consider in decision making include all of the following except:
a. customer reliability
b. differential cash flows
c. employee morale
d. supplier reliability