MBA EXIT STUDY GUIDE 2026 TEST PAPER
QUESTIONS AND 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.
QUESTIONS AND 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.
