MBA EXIT FINAL PAPER 2026
CERTIFICATION EVALUATION QUESTIONS
AND SOLUTIONS GRADED A+
●● accelerated depreciation method.
Answer: allows asset own to take greater amounts of 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: variability in the firm's reported values for NI and net worth
that results from changes in exchange rates
●● accounting rate of return.
Answer: capital-budgeting criterion that relates the returns generated by
the project, as measured by average accounting profits AFTER tax, to
,avg dollar size of the investment required; AKA simple ROR or
unadjusted ROR
●● accounts receivable turnover.
Answer: annual credit sales/ avg A/R
●● acid test ratio.
Answer: (CA-inv)/CL. more stringent measure of liquidity than current
ratio. AKA quick ratio
●● activity-based costing (ABC).
Answer: system that accumulates costs on the basis of production or
service activities at a firm. Assigns costs by activity and links them to
specific products
●● Activity-based management (ABM).
Answer: system-wide, integrated approach that focuses mgmt's attn on
activities with the objectives of improving customer value and the profit
achieved by providing this value. ABC is major source of info for this
●● advertising.
Answer: any paid form of non personal communication designed to gain
acceptance of the advertiser's message
,●● advertising research.
Answer: carried on as an aid or support function to the advertising
manager
●● after-tax cash flow.
Answer: the net cash flow (cash rev- cash exp) after taxes have been
subtracted. CF generated from operations
●● 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: establishment of aggregate production and inventory levels
over a medium range time horizon
●● american terms.
Answer: method of exchange-rate quotation that gives the value of a
foreign currency in USD
●● amortized loan.
Answer: loan that's paid off in periodic 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 std
costs and actual costs. variance favorable if actual costs < std costs.
unfavorable if actual costs > std costs. need to investigate unfavorable
variances further to determine causes, so corrective action can be taken
●● 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: computer software written specifically to process data in an IS.
Performs tasks and solves problems applicable to a manager's work
●● appreciation.
Answer: increase in value of one currency in terms of another currency.
when dollar appreciates, can be exchanged for greater amounts of
foreign currencies
●● arbitrage-pricing model (APM).
Answer: theory that relates stock returns and risk. maintains that security
returns vary from their expected amounts when there are unanticipated
changes in basic economic forces (unexpected changes in industrial
CERTIFICATION EVALUATION QUESTIONS
AND SOLUTIONS GRADED A+
●● accelerated depreciation method.
Answer: allows asset own to take greater amounts of 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: variability in the firm's reported values for NI and net worth
that results from changes in exchange rates
●● accounting rate of return.
Answer: capital-budgeting criterion that relates the returns generated by
the project, as measured by average accounting profits AFTER tax, to
,avg dollar size of the investment required; AKA simple ROR or
unadjusted ROR
●● accounts receivable turnover.
Answer: annual credit sales/ avg A/R
●● acid test ratio.
Answer: (CA-inv)/CL. more stringent measure of liquidity than current
ratio. AKA quick ratio
●● activity-based costing (ABC).
Answer: system that accumulates costs on the basis of production or
service activities at a firm. Assigns costs by activity and links them to
specific products
●● Activity-based management (ABM).
Answer: system-wide, integrated approach that focuses mgmt's attn on
activities with the objectives of improving customer value and the profit
achieved by providing this value. ABC is major source of info for this
●● advertising.
Answer: any paid form of non personal communication designed to gain
acceptance of the advertiser's message
,●● advertising research.
Answer: carried on as an aid or support function to the advertising
manager
●● after-tax cash flow.
Answer: the net cash flow (cash rev- cash exp) after taxes have been
subtracted. CF generated from operations
●● 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: establishment of aggregate production and inventory levels
over a medium range time horizon
●● american terms.
Answer: method of exchange-rate quotation that gives the value of a
foreign currency in USD
●● amortized loan.
Answer: loan that's paid off in periodic 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 std
costs and actual costs. variance favorable if actual costs < std costs.
unfavorable if actual costs > std costs. need to investigate unfavorable
variances further to determine causes, so corrective action can be taken
●● 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: computer software written specifically to process data in an IS.
Performs tasks and solves problems applicable to a manager's work
●● appreciation.
Answer: increase in value of one currency in terms of another currency.
when dollar appreciates, can be exchanged for greater amounts of
foreign currencies
●● arbitrage-pricing model (APM).
Answer: theory that relates stock returns and risk. maintains that security
returns vary from their expected amounts when there are unanticipated
changes in basic economic forces (unexpected changes in industrial
