Texas Business and Finance 6-12 (276) questions with
correct answers
When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once CORRECT ANSWER every
month.
A lending company will review a borrower's accounting documentation to evaluate
CORRECT ANSWER creditworthiness.
Which of the following doctrines prevents a person from insuring a neighbor's
house? CORRECT ANSWER Doctrine of subrogation
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count? CORRECT ANSWER The
perpetual inventory system
In which of the following sections of the balance sheet is prepaid insurance
recorded? CORRECT ANSWER Assets
Which of the following statements is generally true about the purchasing function
today? CORRECT ANSWER Purchasing is evolving into strategic supply
management.
The owner of a small boat rental company opened the business as a sole
proprietorship but has since decided to bring a friend into the business. It is best for
the owner, who is concerned about the cost of changing the form of the company's
organization, to change the business structure to a CORRECT ANSWER
partnership.
, Kim, a young college student, has decided to start a business. She does not have
much capital but believes the business can generate capital through an initial public
offering (IPO). An IPO is categorized as CORRECT ANSWER equity.
The marketing department of a small business wants to obtain information about
how and why a product continues to be successful after many years. Which of the
following research techniques will be most effective? CORRECT ANSWER
Requesting user surveys
Which of the following best describes management practices that promote
adaptability in a global business environment? CORRECT ANSWER Changing
strategies to accommodate local conditions
Which of the following types of compensation has the greatest positive effect on
employee motivation and productivity? CORRECT ANSWER Varied and
attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must
CORRECT ANSWER conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of
ethics with the Securities and Exchange Commission and ensure that its senior
financial officers are aware of the policy. Which of the following mandates this
requirement? CORRECT ANSWER Sarbanes-Oxley Act
Which of the following advertising claims is most likely to prompt an inquiry by
the Federal Trade Commission? CORRECT ANSWER Using our cream
guarantees no more wrinkles.
correct answers
When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once CORRECT ANSWER every
month.
A lending company will review a borrower's accounting documentation to evaluate
CORRECT ANSWER creditworthiness.
Which of the following doctrines prevents a person from insuring a neighbor's
house? CORRECT ANSWER Doctrine of subrogation
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count? CORRECT ANSWER The
perpetual inventory system
In which of the following sections of the balance sheet is prepaid insurance
recorded? CORRECT ANSWER Assets
Which of the following statements is generally true about the purchasing function
today? CORRECT ANSWER Purchasing is evolving into strategic supply
management.
The owner of a small boat rental company opened the business as a sole
proprietorship but has since decided to bring a friend into the business. It is best for
the owner, who is concerned about the cost of changing the form of the company's
organization, to change the business structure to a CORRECT ANSWER
partnership.
, Kim, a young college student, has decided to start a business. She does not have
much capital but believes the business can generate capital through an initial public
offering (IPO). An IPO is categorized as CORRECT ANSWER equity.
The marketing department of a small business wants to obtain information about
how and why a product continues to be successful after many years. Which of the
following research techniques will be most effective? CORRECT ANSWER
Requesting user surveys
Which of the following best describes management practices that promote
adaptability in a global business environment? CORRECT ANSWER Changing
strategies to accommodate local conditions
Which of the following types of compensation has the greatest positive effect on
employee motivation and productivity? CORRECT ANSWER Varied and
attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must
CORRECT ANSWER conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of
ethics with the Securities and Exchange Commission and ensure that its senior
financial officers are aware of the policy. Which of the following mandates this
requirement? CORRECT ANSWER Sarbanes-Oxley Act
Which of the following advertising claims is most likely to prompt an inquiry by
the Federal Trade Commission? CORRECT ANSWER Using our cream
guarantees no more wrinkles.
