Archives: Quiz

The system of accounting in which every transaction affects at least two accounts is called the double-entry system. Interest is generally stated as a monthly rate. Answer: FALSE The net realizable value of Accounts Receivable is calculated by subtracting Bad […]

Under the perpetual inventory system, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise Inventory account. The Salaries Payable account is a permanent account. Answer: TRUE The system of accounting […]

The use of MACRS is acceptable for financial reporting under GAAP. The Common Stock account is increased by a debit. Answer: FALSE A company is uncertain whether a complex transaction should result in an asset being recorded at $100,000 or […]

The three sections of the statement of cash flows report only activities that involve cash. Using the effective-interest amortization method, the calculation for the amount of premium amortization is the difference between the cash paid and the calculated interest expense. […]

The balance in the Bonds Payable account is a credit of $16,500. The balance in the Premium on Bonds Payable account is a credit of $1,000. The balance sheet will report the bond balance as $15,500. A source document provides […]

A company purchased machinery by issuing a long-term note payable. This is an example of a non-cash investing and financing activity for the statement of cash flows. Enterprise resource planning systems are software systems that can integrate all of a […]

An overstatement of ending merchandise inventory in the current period results in an understatement of net income in the current period. Cash dividends cause a decrease in both assets and stockholders’ equity of the corporation. Answer: TRUE The lump-sum amount […]

Petty cash is a fund containing a small amount of cash that is used to pay for minor expenditures. The process by which businesses allocate a natural resource’s cost over its usage is known as depreciation. Answer: FALSE Data from […]

The Social Security system is funded by contributions from both the employer and employee. Held-to-maturity investments are categorized as long-term assets on the balance sheet, regardless of the maturity date. Answer: FALSE The current portion of notes payable is the […]

Under the last-in, first-out (LIFO) method, the cost of goods sold is based on the oldest purchases. The maturity value of a note is the sum of the principal minus interest due at maturity. Answer: FALSE For the vertical analysis […]

The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company then sells the inventory to a customer. When using the periodic inventory system, there is no need to record an […]

After posting the journal entries from the journal to the ledger, the accounting equation should be in balance. The last two columns generally found on the right side of the worksheet are the income statement columns. Answer: FALSE Liabilities are […]

In a multi-step income statement, interest revenue and interest expense are included in operating income. An amount that a merchandiser earns by selling its inventory is known as sales revenue or sales. Answer: TRUE Warranties pose an accounting challenge because […]

Preferred stockholders receive a dividend preference over common stockholders. Sales on account are recorded in a cash receipts journal. Answer: FALSE The income from continuing operations helps investors make predictions about the company’s past performance. Answer: FALSE Metro Auto Parts […]

A method of accounting for uncollectible receivables in which the company estimates bad debts expense instead of waiting to see from which customers the company will not be able to collect is known as the allowance method. Estimated Warranty Payable […]

A study of the external environment allows a manager to understand the ________ and ________ for the organization. A) threats; weaknesses B) strengths; weaknesses C) strengths; opportunities D) opportunities; threats A disadvantage of using professional recruiting organizations is ________. A) […]

The universality of management means that ________. A) all managers in all organizations perform the four management functions B) all managers in all organizations perform the same quantity of managerial functions C) all managers in all organizations perform managerial functions […]

A firm that is ‘stuck in the middle” cannot develop ________. A) a cost or differentiation advantage B) a functional strategy C) a leadership strategy D) a competitive advantage Which of the following is a physical symptom of stress? A) […]

Helen investigates an incident involving a shooting in her workplace. She wants to take measures to control its effects. By doing this she is exerting ________ control over the incident. A) feedback B) concurrent C) reactive D) feedforward Brooke has […]

Which of these statements is an argument in favor of creating a hierarchical structure in an organization? A) Organizations function better when there’s a hierarchy in place. B) Someone must monitor crowdsourcing efforts. C) Managers need to control how employees […]

According to the path-goal model, when Greg consults with the employees for suggestions prior to making a decision, he displays which of the following leadership styles? A) considerate B) supportive C) participative D) democratic Elmo Research & Development has been […]

The process of dividing work activities into separate job tasks is known as ________. A) work specialization B) organizational design C) differentiation D) span of control In the job characteristics model, the dimension of ________ refers to the degree to […]

The top management of the company asks Earl to make use of a rating scale that will rate the employees’ actual job behaviors. The managers are asking Steve to use a ________. A) 360-degree feedback B) management by objective method […]

Which of the following is considered the easiest way to increase organizational productivity? A) increasing the price of outputs B) increasing the amount of inputs C) hiring more employees D) decreasing the value of the products The centerpiece of the […]

In which of the following organizational designs are employees most likely to experience communication difficulties? A) team structures B) matrix structures C) project structures D) boundaryless structures The final three activities of the human resource management process ensure ________. A) […]

The two types of orientations are ________. A) job orientation and procedural orientation B) work unit orientation and organization orientation C) work unit orientation and group orientation D) organization orientation and group orientation The fact that Monica’s signature is required […]

Labor strikes are an example of which of the following internal change factors? A) workforce composition B) equipment C) employee attitudes D) organizational strategy Donald’s ability to complete activities efficiently and effectively with and through other people is known as […]

D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the “first mover” in the market, the company has built a strong market share over the years and is the best-known firm in […]

Team 3 has been working together for several years, implementing modifications to the company’s current product. None of the members of this team are at the same location. They utilize a variety of graphic-electronic technologies to view the product onscreen […]

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters. This group is highly adaptive in its structure. […]

In the context of Maslow’s hierarchy of needs theory, when a company names an “Employee of the Month” and “Employee of the Quarter,” the company is addressing employees’ ________ needs. A) safety B) self-actualization C) esteem D) psychological According to […]

According to Mintzberg’s managerial roles, the ________ roles are ones that involve people and other duties that are ceremonial and symbolic in nature. A) informational B) interpersonal C) technical D) decisional According to the path-goal theory, a manager who consults […]

Adam has to tell the members of his department that the office timings have changed from flexible timings to a strict nine-to-five day. He calls a meeting to explain the change. Participants begin arguing and asking multiple questions about the […]

According to Woodward’s studies, what type of production technology is best suited for a mechanistic structure? A) unit B) process C) product D) mass The managerial grid used the behavioral dimensions “concern for people” and ________ and evaluated a leader’s […]

People are going to be different. The focus of managers should be ________. A) to find ways to keep various groups within the workforce from creating conflict B) to find ways to develop strong relationships with and engage the entire […]

Strategic plans are usually ________. A) short term, directional, and standing B) short term, specific, and standing C) long term, directional, and single use D) long term, specific, and standing ________ are a temporary involuntary termination that can last from […]

An incentive system which appropriately recognizes team activities is an example of which of the following characteristics of effective teams? A) internal support B) unified commitment C) negotiating skills D) job design The major value-creating capabilities of the organization are […]

The ________ is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world. A) International Chamber of Commerce B) World Bank Group C) Organization […]

The manager of an apparel store estimates how much to order for the current spring season based on last spring’s sales figures. The store manager is operating under which of the following decision-making conditions? A) uncertainty B) risk C) structure […]

Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn’t worked out as well as hoped. Edgar decided to invest time and money in training for the new […]

The organizational chart shows titles such as front-line manager, plant manager, and vice president of operations. It is very likely this organization has a ________. A) traditional committee structure B) traditional pyramid structure C) modern matrix structure D) flexible structure […]

Don has been on the job only a few days. He still has a lot to learn but pays close attention whenever his job coach gives him tips. The best style for the job coach to use is ________. A) […]

In her next meeting with the senior management, Jane suggests that they should ignore the openings created by voluntary resignations and not hire any more people now. This would avoid much of the pain associated with workforce reduction in future. […]

Which of the following would make Mary realize that the company where she works has a strong culture? A) Values are limited to the top management. B) Upper management sends contradictory messages about what is important. C) Most employees are […]

Kay is the supervisor that the employees go to for general decisions. Kay holds ________ power. A) reward B) expert C) legitimate D) coercive The original source of an organization’s culture usually reflects ________. A) the present conditions in which […]

What can be said about a manager who believes that she can work hard and will meet the productivity goals of her organization despite unfavorable conditions? A) She has an external locus of control. B) She has a high ego […]

Sam, a human resources manager, wants to let potential candidates know about the minimum qualifications that they should possess in order to successfully perform the jobs they have applied for. What should he do? A) He should create a job […]

________ actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented. A) Idea champions B) Idea developers C) Idea generators D) Idea screeners Elaine wants to analyze her company’s ability to meet its current […]

Leadership is very important to effective teams. In most cases, effective team leaders act as ________. A) autocrats B) regulators C) controllers D) facilitators Which of the following motivating factors or concepts is important to all workers, regardless of their […]

Which of the following is an example of a formal group? A) people who assemble in the company library to read B) a group of employees attending a colleague’s wedding C) a functional department in an organization D) a group […]