Missouri Can Corporation (MCC) manufactures and sells a variety of can types, such as
soft drink cans, oil cans and many others. MCC has adopted a functional organization
structure that includes departments for accounting, marketing, manufacturing, human
resources and information systems. Which of the following departments deal with
support activities in Porter’s value chain?
A. information systems and human resources
B. marketing and manufacturing
C. information systems and marketing
D. human resources and manufacturing
Just before preparing financial statements, an inexperienced accountant recorded the
use of supplies by debiting supplies expense $100 and debiting supplies $100. Which of
the following is most true?
A. The transaction was recorded correctly.
B. The unadjusted trial balance will be an effective internal control for detecting any
error.
C. The adjusted trial balance will be an effective internal control for detecting any error.
D. Sequential transaction numbering will be an effective internal control for detecting
any error.
Internal control relates to an organization’s achievement of objectives in three major
categories. Which of the following best pairs one of the categories with a specific
example?
A. Operations, fulfilling the requirements of the Foreign Corrupt Practices Act
B. Operations, listing appropriate assets at their current market value
C. Reporting, fulfilling the requirements of the Foreign Corrupt Practices Act
D. Reporting, listing appropriate assets at their current market value
Refer to the following case as you respond to the question:
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year.
30 days before the start of each calendar quarter, Celebration prepares advertising for
the productions in the upcoming quarter. They advertise on their web site, via e-mail to
their season subscribers and via direct mail and brochures to others.
Patrons can buy tickets for a single play; alternatively, they can subscribe to all three
plays each quarter. Quarterly subscriptions offer a 25% discount from the prices of
single tickets. Patrons may purchase tickets over the phone, at the box office or via the
theatre’s web site. All tickets are held at the box office where they can be picked up as
early as one week prior to the performance. The theatre has an “open seating” plan, so
patrons do not reserve a specific seat at any performance.
If tickets are purchased in person at the box office, non-subscribers may pay with cash
or a major credit card; subscribers can pay with cash, major credit card or check. All
tickets purchased over the phone or via the web site must be paid for with a major credit
card. Celebration maintains an electronic database to track all ticket sales; paper tickets
are printed at least ten days prior to a performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are
sold on a “first-come, first-serve” basis at a 50% discount.
Refer to the previously presented set of flowcharting symbols labeled Symbol A
through Symbol J. Which of the following would best determine whether to use Symbol
G or Symbol I to represent the process of selling tickets at the box office?
A. Whether the process is completed manually or with information technology
B. Whether the flowchart will be read by someone who understands the process of
selling tickets
C. Whether the tickets are sold to a subscriber or a non-subscriber
D. Any of these could be used to make that determination.
John and Gus Rigas are associated with:
A. international postal reply coupons
B. Bernie Madoff
C. Adelphia Communications Corporation
D. none of these
Which of the following statements best applies a characteristic of a professional in the
context of accounting?
A. Raul, a licensed CPA, learned to speak a foreign language in preparation for his
firm’s expansion into Europe.
B. Paula, a corporate accountant, studied the roles men and women play in business in
Egypt.
C. Both Raul, a licensed CPA, learned to speak a foreign language in preparation for his
firm’s expansion into Europe and Paula, a corporate accountant, studied the roles men
and women play in business in Egypt.
D. Neither Raul, a licensed CPA, learned to speak a foreign language in preparation for
his firm’s expansion into Europe nor Paula, a corporate accountant, studied the roles
men and women play in business in Egypt.
McDonald identified four criteria to be considered a professional. One of them requires
accounting professionals to adopt the ___ school of ethical thought.
A. utilitarian
B. ethical egoism
C. professional
D. none of these
Consider the following table as you respond to the questions:
Which of the following is the best choice for Item B in the table?
A. Inherent and residual
B. High
C. Reduce, accept, avoid, share
D. Expectancy, valence, instrumentality
Consider the flowcharting symbols shown below and the flowchart depicted above as
you answer the question?
The symbol labeled “approve purchase order” would be appropriately replaced in the
flowchart with which of the following:
A. Symbol A
B. Symbol B
C. Symbol C
D. Symbol D
As a form of internal control, pre-numbered documents can be related to which steps in
the sales/collection process?
A. First
B. Fifth
C. Both first and fifth
D. Neither first nor fifth
The “X” in XBRL stands for extensible. Which of the following can an individual
company extend when using XBRL?
A. Instance documents
B. Taxonomies
C. Specifications
D. All of these
Claudia borrowed money from her bank, signing a five-year note payable. She then
calculated the monthly payment needed to pay off the loan within three years. Based on
the definition of an accounting information system provided in the text, the five-year
note payable could be considered: (i) an input, (ii) an output, (iii) a document.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III