MBA EXIT ACTUAL EXAM SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉Accelerated depreciation method. Answer: allows asset to take on
greater depreciation during early years of asset's life, defers some of
the taxes until later years
◉Acceptable Quality Level (AQL). Answer: quality standard that
allows for a prespecified number of defects
◉acceptance. Answer: an assent to an offer in accordance with its
terms
◉accounting exposure. Answer: The risk resulting from the effects
of changes in foreign exchange rates on the translated value of a
firm's financial statement accounts denominated in a given foreign
currency.
◉Accounting Rate of Return. Answer: annual after-tax net income /
annual average investment; AKA simple ROR or unadjusted ROR
,◉Accounts Receivable Turnover. Answer: annual credit sales/ avg.
accounts receivable
◉Acid Test Ratio. Answer: (Current Assets - Inventory) / Current
Liabilities. More stringent measure of liquidity than current ratio,
AKA quick ratio
◉Activity-based costing (ABC). Answer: A method of cost accounting
designed to identify streams of activity and then to allocate costs
across particular business processes according to the amount of
time employees devote to particular activities.
◉activity based management. Answer: Method of management
decision-making that uses activity-based costing information to
improve customer satisfaction and profitability.
◉After Tax Cash Flow (ATCF). Answer: net cash flow after taxes have
been subtracted
◉Agency relationship. Answer: consensual arrangement between 2
persons whereby one agrees to act for the benefit of and under
control of the other person
◉Aggregate Production Planning. Answer: balances production,
inventory, resources and demand
,◉American Terms. Answer: The foreign exchange rate quotation
that represents the number of American dollars that can be bought
with one unit of local currency.
◉Amortized Loan. Answer: a loan paid off in equal installments and
includes varying portions of principal and interest during its term
◉Analysis of variances (variance analysis). Answer: analysis and
investigation of causes for variances between standard costs and
actual costs. Variance is favorable if actual costs < standard costs
Variance is unfavorable if actual costs > standard costs
◉Annual report. Answer: audited document issued annually by all
publicly listed corporations to their SH in accordance with SEC
regulations. contains info on financial results and overall
performance of the previous fiscal year and comments on future
outlook
◉application program. Answer: the computer software designed to
process data in an IS. Performs tasks and solves problems applicable
to a manager's work
◉appreciation. Answer: An increase in the value of a currency
, ◉Arbitrage Pricing Model. Answer: Theory that relates stock returns
and risk. A security's return varies from expected amounts when
there are unanticipated changes in basic economic forces (industrial
production, inflation, interest rates, and high and low risk bonds)
◉Asset turnover. Answer: sales / assets; measure of efficiency of
asset management
◉assignable causes of variation. Answer: causes of poor quality that
pertain to materials, machines, or operators, which can be remedied
◉assignment problem. Answer: Problem of determining how the
assignments should be made in order to minimize total costs.
◉Attribute Mapping. Answer: A technique for identifying new
products by mapping product-line attributes; searching for
"attribute space" or possible new attribute combinations for new
products.
◉B2B e-commerce. Answer: using B2B trading networks, auction
sites, spot exchanges, online product catalogs, barter sites, and other
online resources to reach new customers, serve current customers
more effectively, and obtain buying efficiencies and better prices
QUESTIONS WITH SOLUTIONS GRADED A+
◉Accelerated depreciation method. Answer: allows asset to take on
greater depreciation during early years of asset's life, defers some of
the taxes until later years
◉Acceptable Quality Level (AQL). Answer: quality standard that
allows for a prespecified number of defects
◉acceptance. Answer: an assent to an offer in accordance with its
terms
◉accounting exposure. Answer: The risk resulting from the effects
of changes in foreign exchange rates on the translated value of a
firm's financial statement accounts denominated in a given foreign
currency.
◉Accounting Rate of Return. Answer: annual after-tax net income /
annual average investment; AKA simple ROR or unadjusted ROR
,◉Accounts Receivable Turnover. Answer: annual credit sales/ avg.
accounts receivable
◉Acid Test Ratio. Answer: (Current Assets - Inventory) / Current
Liabilities. More stringent measure of liquidity than current ratio,
AKA quick ratio
◉Activity-based costing (ABC). Answer: A method of cost accounting
designed to identify streams of activity and then to allocate costs
across particular business processes according to the amount of
time employees devote to particular activities.
◉activity based management. Answer: Method of management
decision-making that uses activity-based costing information to
improve customer satisfaction and profitability.
◉After Tax Cash Flow (ATCF). Answer: net cash flow after taxes have
been subtracted
◉Agency relationship. Answer: consensual arrangement between 2
persons whereby one agrees to act for the benefit of and under
control of the other person
◉Aggregate Production Planning. Answer: balances production,
inventory, resources and demand
,◉American Terms. Answer: The foreign exchange rate quotation
that represents the number of American dollars that can be bought
with one unit of local currency.
◉Amortized Loan. Answer: a loan paid off in equal installments and
includes varying portions of principal and interest during its term
◉Analysis of variances (variance analysis). Answer: analysis and
investigation of causes for variances between standard costs and
actual costs. Variance is favorable if actual costs < standard costs
Variance is unfavorable if actual costs > standard costs
◉Annual report. Answer: audited document issued annually by all
publicly listed corporations to their SH in accordance with SEC
regulations. contains info on financial results and overall
performance of the previous fiscal year and comments on future
outlook
◉application program. Answer: the computer software designed to
process data in an IS. Performs tasks and solves problems applicable
to a manager's work
◉appreciation. Answer: An increase in the value of a currency
, ◉Arbitrage Pricing Model. Answer: Theory that relates stock returns
and risk. A security's return varies from expected amounts when
there are unanticipated changes in basic economic forces (industrial
production, inflation, interest rates, and high and low risk bonds)
◉Asset turnover. Answer: sales / assets; measure of efficiency of
asset management
◉assignable causes of variation. Answer: causes of poor quality that
pertain to materials, machines, or operators, which can be remedied
◉assignment problem. Answer: Problem of determining how the
assignments should be made in order to minimize total costs.
◉Attribute Mapping. Answer: A technique for identifying new
products by mapping product-line attributes; searching for
"attribute space" or possible new attribute combinations for new
products.
◉B2B e-commerce. Answer: using B2B trading networks, auction
sites, spot exchanges, online product catalogs, barter sites, and other
online resources to reach new customers, serve current customers
more effectively, and obtain buying efficiencies and better prices
