ACIS 2116 FINAL EXAM PRACTICE QUESTIONS
1. Which of the following should be ignored when making decisions?: Sunk costs
2. Differential costs are always: Relevant costs
3. When making volume trade off decisions, managers should focus on which
of the following?: Contribution margin per unit of the constraining resource
4. When making volume trade off decisions, managers should: never produce more of
a product than is demanded by customers
5. Which of the following capital budgeting methods considers cash flows, but
not the time value of money?: The payback method
6. Which of the following statements is true regarding the payback period?: It
measures the length of time that it takes for a project to recover its initial cost from the NET CASH INFLOWS that it
generates
7. The term capital budgeting describes how companies: plan significant investments in
projects that have long term implications
8. Which of the following statements is true regarding the initial rate of return?-
: It represents the rate of return earned by an investment project
9. The internal rate of return method consider the time value of
money and consider cash flows: does, does
10. Which of the following is the basic equation for asset accounts?: Beginning balance
+ debits - credits = ending balance
11. Which of the following cash flows relates to a company's investing activities?-
: Selling property, plant, and equipment
12. Which of the following statements is true with respect to the direct and
indirect methods?: They are two identical ways to compute the net cash provided by (used in) OPERATING
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1. Which of the following should be ignored when making decisions?: Sunk costs
2. Differential costs are always: Relevant costs
3. When making volume trade off decisions, managers should focus on which
of the following?: Contribution margin per unit of the constraining resource
4. When making volume trade off decisions, managers should: never produce more of
a product than is demanded by customers
5. Which of the following capital budgeting methods considers cash flows, but
not the time value of money?: The payback method
6. Which of the following statements is true regarding the payback period?: It
measures the length of time that it takes for a project to recover its initial cost from the NET CASH INFLOWS that it
generates
7. The term capital budgeting describes how companies: plan significant investments in
projects that have long term implications
8. Which of the following statements is true regarding the initial rate of return?-
: It represents the rate of return earned by an investment project
9. The internal rate of return method consider the time value of
money and consider cash flows: does, does
10. Which of the following is the basic equation for asset accounts?: Beginning balance
+ debits - credits = ending balance
11. Which of the following cash flows relates to a company's investing activities?-
: Selling property, plant, and equipment
12. Which of the following statements is true with respect to the direct and
indirect methods?: They are two identical ways to compute the net cash provided by (used in) OPERATING
1/3
