Archives: Quiz

A processed-meat manufacturer is moving downstream in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company? A.Forward vertical integration B.Related diversification C.Backward integration D.Unrelated diversification Volvo’s emphasis on safety, […]

Which of the following is a limitation of the growth-share matrix? A.Since the matrix uses multiple variables as a basis for categorizing a firm’s business, it is complex to understand. B.Outcomes of this analysis are highly sensitive to variations in […]

In order to expand, Medio.com (an e-tailer) pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers. This is an example of expansion […]

Which of the following is a primary objective of mass-market penetration strategies? A.Recoup development and commercialization costs as soon as possible. B.Maintain leading share position in target segment. C.Maximize number of triers and adopters in target segment. D.Maximize number of […]

Which of the following is an appropriate share-growth strategy in a relatively homogeneous market with respect to customers’ needs and purchase criteria? A.Guerrilla attack B.Encirclement C.Flank attack D.Frontal attack Identify the demographic trend that influences market attractiveness. A.Fitness and nutrition […]

Strategic withdrawal is most likely when: A.a firm is unable to defend itself adequately in all segments due to competitors having more resources. B.a firm’s primary objective is to capture a large share of new customers who may prefer something […]

The shakeout stage in a product life cycle is signaled by: A.an expansion of the product line to attract new segments. B.limited purchase of the product due to lack of awareness. C.a drop in the overall growth rate and substantial […]

In some labor-intensive industries, a business can achieve a cost advantage, at least in the short term, by gaining access to inexpensive labor. This is an example of the _____ method used to obtain a sustainable cost advantage. A. no-frills […]

_____ refers to the division of tasks and activities across positions within the organizational unit. A. Formalization B. Centralization C. Specialization D. Orientation Which of the following is the reason why early entrants into newly emerging industries, particularly industries based […]

Consider the following short case as you respond to the question: When the CEO of NTL Corporation resigned, the board of directors hired a recruitment firm to look for a replacement. The recruitment firm prepared several job announcements, then presented […]

According to Bell, a professional integrates knowledge from many disciplines. Accounting information systems integrates knowledge from: A. Accounting and finance. B. Management and computer information systems. C. Both accounting and finance and management and computer information systems. D. Neither accounting […]

What feature of XBRL is indicated by the highlighted phrase in each of the following items? (Do not limit yourself to the five key terms discussed in the text.) a. A bank would use a different set of XBRL tags […]

The risk of disclosure of confidential information is most closely related to which category in Carter’s taxonomy? A. Target B. Instrumentality C. Both target and instrumentality D. Neither target nor instrumentality Consider the following partially completed risk/control matrix as you […]

The purpose of the conversion process is to transform material, labor and overhead into a finished product. To accomplish that purpose, organizations can use one of three systems. Which of the following pairs includes examples of products that would use […]

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 […]

Consider the following short case as you respond to the next nine questions: ABC Consulting’s employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. […]

The last generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS. A. General B. Field work C. Reporting D. Documentation Ray has worked in the mailroom at MNG Corporation for […]

An accounting information system captures data that are eventually grouped by account, and then used to prepare general purpose financial statements. The system could be described as: A. A view-driven AIS. B. An event-driven AIS. C. Either a view-driven AIS […]

In which stage of Steps for Better Thinking should a decision maker interpret and organize information? A. Identifying B. Exploring C. Prioritizing D. Envisioning SSAE 16 includes three broad types of SOC Reports. SOC 1 reports on: A. ERP systems. […]

Consider the following independent situations as you answer the questions: a. Irene, a freshman accounting major, thought she would benefit from reading an intermediate accounting text while taking introductory financial accounting. b. Bradley developed a plan to study for all […]

Which modules in an ERP system are likely to contain information about a company’s plant assets? A. Supply chain management B. Financial management C. Both supply chain management and financial management D. Neither supply chain management nor financial management Please […]

Accounting information systems have five generic parts. Outputs of the acquisition/payment process can include: A. Schedule of accounts payable. B. Checks. C. Both schedule of accounts payable and checks. D. Neither schedule of accounts payable nor checks. Consider the statements […]

In accounting, ethics issues can arise in: A. Revenue recognition. B. Earnings smoothing. C. Both revenue recognition and earnings smoothing. D. Neither revenue recognition nor earnings smoothing. Consider the following short case as you respond to the question: Scott and […]

The CEO and CFO of TNS Corporation wanted to expand into e-business, but the company’s board of directors was unwilling to approve their plan. Which of the following theories will best help the CEO and CFO persuade the board of […]

Courses intended for freshmen at a local university are numbered from 100 to 199, while courses intended for seniors at the same university are numbered from 400 to 499. Which coding system is the university using? A. Sequential B. Block […]

COSO has published integrated frameworks for both internal control and for enterprise risk management. Which of the following statements about the frameworks is most true? A. The internal control framework is more useful than the enterprise risk management framework. B. […]

The risk/control matrix illustrated in the chapter contains five columns. Which of the following is not one of them? A. Risk B. Risk category C. COSO category D. Internal control Consider the following partially completed flowchart as you respond to […]

Consider the table below as you answer the questions: Which of the following is generally capable of interpreting the XBRL tags in the table? A. Excel B. Internet Explorer C. Both Excel and Internet Explorer D. Neither Excel nor Internet […]

The COSO enterprise risk management framework can be useful in: A. Systems audits. B. Investigative audits. C. Both systems audits and investigative audits. D. Neither systems audits nor investigative audits. As the term is used in the Audit Clarity Project, […]

DRH Corporation’s conversion process is highly automated; computers and other forms of information technology are used to prepare raw materials for production and to move partially completed units through the factory. Which of the following statements is most true? A. […]

Consider the following systems flowchart as you respond to the question: Which of the following statements about documents in the flowchart is most true? A. “Purchase order” and “approved purchase order” should not be shown separately since they refer to […]

Consider the following REA diagram as you respond to the question: Which of the following statements about the REA model is least true? A. A purchase of supplies can occur with no purchasing agent involvement. B. A purchasing agent may […]

Consider the flowchart below as you respond to the question: Which of the following statements is most true based on the systems flowchart above? A. The credit approval process is completely automated. B. The type and nature of documents used […]

SBL Corporation’s accounting records were destroyed in a fire. In reconstructing them: A. Human judgment will be important, but information technology will not. B. Information technology will be important, but human judgment will not. C. Both human judgment and information […]

A line in a data flow diagram represents: A. A data flow B. An external entity C. A database D. A business process Fill in the blanks below based on the principles of REA modeling. a. ___ events focus on […]

The terms target, instrumentality, incidental and associated from Carter’s taxonomy are most closely associated with which form of risk from Brown’s taxonomy? A. Human error B. Liquidity C. Systems D. Market As a form of internal control, transaction limits are […]

An ERP system is a sophisticated form of relational database software; within each module, data are stored in tables. In which modules would you expect to find “employee ID” as a field in one or more tables: (i) customer relationship […]

Which of the following terms best explains the idea that anyone can add to XBRL? A. Extensible B. Specification C. Taxonomy D. Namespace Which of the following elements of the conceptual framework fit within the same category? A. Economic entity, […]

Which of the following balance sheet items is least likely to be associated with the acquisition/payment process? A. Cash B. Accounts payable C. Raw materials D. Treasury stock COSO has published integrated frameworks for both internal control and for enterprise […]

The purpose of the conversion process is to transform material, labor and overhead into a finished product. To accomplish that purpose, organizations can use one of three systems. Which of the following pairs includes examples of products that would use […]

Cloud computing involves: A. delivering hosted services over the Internet. B. only a few business processes in most organizations. C. no human intervention. D. fewer internal controls than traditional computing. One mark of a professional is adherence to a code […]

SSAE 16 is a form of ___ with respect to an ASP. A. internal control B. information technology C. Both internal control and information technology D. Neither internal control nor information technology Consider the following case as you respond to […]

The chapter discussed four infamous ethics cases in accounting: (a) Charles Ponzi, (b) Adelphia Communications Corporation, (c) Enron/Arthur Andersen and (d) Bernie Madoff. Indicate which case is most closely associated with each of the following items. 1> Created from a […]

Consider the following short case as you respond to the question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working […]

The third generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS. A. General B. Field work C. Reporting D. Environmental Which of the following statements about database tables and REA […]

Accounting information systems have five basic elements. Which of the following is an output of the human resources process? A. A payroll check B. A written performance evaluation C. Both a payroll check and a written performance evaluation D. Neither […]

The accounting cycle comprises ten steps. In which step is an XBRL taxonomy first likely to be used? A. Post from the journal to the ledger. B. Record the transactions in a journal. C. Prepare financial statements. D. Close the […]

Consider the flowchart below as you respond to the question: Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. Which of the following statements about the systems flowchart above is most true? A. Symbol […]

In contrast with other areas of accounting, AIS more frequently involves problems with non-deterministic answers. Which questions in the list below have non-deterministic answers? a. How do you calculate depreciation using the straight-line method? b. How many accountants should ITI […]

Bumble Beasley remarked: “The only way to be an accounting professional is to earn a CPA license.” Which of the following statements is most true? A. There are many ways to be an accounting professional. B. All accounting professionals have […]