1) Alonzo is an experienced CPA who has been hired for a professional position at
PWC to advise corporations on mergers. Which of the following terms
... [Show More] BEST describes
Jose's capacity as an accountant?
A) noncertified public accountant
B) private accountant
C) forensic accountant
D) accountant providing management advisory services
E) management accountant - CORRECT ANSWER-Answer: D
See page 221, paragraph 2 of custom textbook
2) The Federal Reserve has a Dual Mandate as discussed in lecture, meaning it has
two main goals in conducting monetary policy. Which one of the following is not part of
the "Fed's" dual mandate?
a) to limit inflation
b) to increase stock prices
c) to minimize unemployment
d) All of the above are included in the Fed's dual mandate - CORRECT ANSWERAnswer: B
Explanation: The Federal Reserve's dual mandate was determined by Congress in
1977. It is to promote maximum sustainable employment and price stability. Price
stability is usually interpreted as low and stable inflation. The dual mandate was shown
in lecture on the overhead projector.
3) Which of the following statements is TRUE?
A) As common practice, a prospective equity investor in a firm receives information from
the firm's financial accounting system.
B) As common practice, a prospective equity investor in a firm receives information from
the firm's managerial accounting system.
C) As common practice, a prospective equity investor in a firm receives information from
both the firm's managerial accounting system and its financial accounting system.
D) As common practice, a prospective equity investor in a firm receives information from
the firm's revenue accounting system.
E) As common practice, a prospective equity investor in a firm does not receive any
information from the firm's accounting system. - CORRECT ANSWER-Answer: A
Explanation: A) The financial accounting system is concerned with external users.
4) Suppose General Motors owns an automobile plant in Brazil. How much of the total
value of goods and services produced by the plant will be included in US GNP?
a) All of the value of goods and services produced
b) The profits earned by the plant
c) The salaries paid to the Brazilian workforce
d) None of the value - CORRECT ANSWER-Answer: B.
Explanation: Inclusion in GNP depends on ownership of the factors - the US ownership
of GM leads to the product of the capital factor (profit) to be included. See page 21 of
custom textbook.
Use the following information to answer the next 2 questions:
Mark's Pizza pays $900 fixed rent per month and each pizza costs $4 in ingredients and
hourly paid labor. Pizzas sell for $7 per pizza.
5) What is the break even number of pizzas for Mark's pizza? a) 225 pizzas
b) 300 pizzas
c) 667 pizzas
d) 900 pizzas - CORRECT ANSWER-Answer: B
Calculation: Unit CM = $7 - $4 = $3 Q_breakeven = F/Unit CM = $900/$3 = 300 units
Mark's Pizza pays $900 fixed rent per month and each pizza costs $4 in ingredients and
hourly paid labor. Pizzas sell for $7 per pizza.
If Mark's sells 400 pizzas, what is the total contribution margin and what is the profit
(ignore taxes)?
Contribution margin Profit
a) $2100 $1200
b) $1200 $700
c) $1600 $300
d) $1200 $300 - CORRECT ANSWER-Answer: D
Total_CM = $3 x 400 = $1200
Profit = volume x CMPU - fixed_cost = Total_CM - fixed_cost = $1200 - 900 = $300
Which environment is NOT an important dimension of a business organization's
external environment?
A) the political-legal environment
B) the sociocultural environment
C) the technological environment
D) the corporate cultural environmen [Show Less]