BUS 475 Capstone Final Examination Part 2
1. Which of the following is the most important factor that affects a firm's
financing mix?
a) The predictability of cash flows
b) The number of shares that are outstanding
c) The amount of EPS
d) The amount of operating income
2. When an accountant makes an adjusting entry for accrued expenses, which
statement best reflects what the accounts look like before the adjustment?
a) Assets overstated; expenses understated
b) Assets understated; revenues understated
c) Expenses understated; liabilities understated
d) Liabilities overstated; revenues understated
3. Which account will have a zero balance after a company has journalized and
posted closing entries?
a) Accumulated Depreciation
b) Prepaid Insurance
c) Service Revenue
d) Supplies
4. A __________ is an articulation of a simple criterion or characterization of what
the leader sees the company must become to establish and sustain global
leadership.
a) mission
b) leader's principle
, BUS 475 Capstone Final Examination Part 2
c) leader's vision
d) strategic intent
5. The market opportunities most relevant to a particular company are those that
a) Offer the best growth and profitability.
b) Provide avenues for taking market share away from close rivals.
c) Hold the most potential for product innovation.
d) Provide a strong defense against threats to the company's profitability..
6. Internal control is used in a business to enhance the accuracy and reliability of
its accounting records and to
a) Analyze financial statements.
b) Create a system of audit review.
c) Safeguard its assets.
d) Protect investments by the public.
7. What principle dictates that efforts (expenses) be recorded with results
(revenues)?
a) Periodicity principle
b) Expense recognition principle
c) Cost principle
d) Revenue recognition principle
8. The Oviedo Thespians are planning to present performances of their Florida
Revue on two consecutive nights in January. It will cost them $5,000 per night for
theater rental, event insurance, and professional musicians. The theater will also
, BUS 475 Capstone Final Examination Part 2
take 10% of gross ticket sales. How many tickets must they sell at $10.00 per
ticket to break even?
a) 1,223 tickets
b) 1,112 tickets
c) 1000 tickets
d) There is not enough information.
9. Which of the four basic financial statements adds net income and subtracts
dividends to arrive at its key data element at the end of each period?
a) Balance Statement
b) Retained Earnings Statement
c) Income Statement
d) Statement of Cash Flows
10. H&R Block wants to analyze its clients’ tax returns over the past 10 years for
each of the client’s tax filings. The type of data generated will be ______________.
a) time series data
b) observation data
c) meta data
d) cross-sectional data
11. A distribution center for a chain of electronics supply stores fills and ships
orders to retail outlets. A random sample of orders is selected as they are
received and the dollar amount of the order (in thousands of dollars) is recorded,
and then the time (in hours) required to fill the order and have it ready for
shipping is determined. A scatterplot showing the times as the response variable
1. Which of the following is the most important factor that affects a firm's
financing mix?
a) The predictability of cash flows
b) The number of shares that are outstanding
c) The amount of EPS
d) The amount of operating income
2. When an accountant makes an adjusting entry for accrued expenses, which
statement best reflects what the accounts look like before the adjustment?
a) Assets overstated; expenses understated
b) Assets understated; revenues understated
c) Expenses understated; liabilities understated
d) Liabilities overstated; revenues understated
3. Which account will have a zero balance after a company has journalized and
posted closing entries?
a) Accumulated Depreciation
b) Prepaid Insurance
c) Service Revenue
d) Supplies
4. A __________ is an articulation of a simple criterion or characterization of what
the leader sees the company must become to establish and sustain global
leadership.
a) mission
b) leader's principle
, BUS 475 Capstone Final Examination Part 2
c) leader's vision
d) strategic intent
5. The market opportunities most relevant to a particular company are those that
a) Offer the best growth and profitability.
b) Provide avenues for taking market share away from close rivals.
c) Hold the most potential for product innovation.
d) Provide a strong defense against threats to the company's profitability..
6. Internal control is used in a business to enhance the accuracy and reliability of
its accounting records and to
a) Analyze financial statements.
b) Create a system of audit review.
c) Safeguard its assets.
d) Protect investments by the public.
7. What principle dictates that efforts (expenses) be recorded with results
(revenues)?
a) Periodicity principle
b) Expense recognition principle
c) Cost principle
d) Revenue recognition principle
8. The Oviedo Thespians are planning to present performances of their Florida
Revue on two consecutive nights in January. It will cost them $5,000 per night for
theater rental, event insurance, and professional musicians. The theater will also
, BUS 475 Capstone Final Examination Part 2
take 10% of gross ticket sales. How many tickets must they sell at $10.00 per
ticket to break even?
a) 1,223 tickets
b) 1,112 tickets
c) 1000 tickets
d) There is not enough information.
9. Which of the four basic financial statements adds net income and subtracts
dividends to arrive at its key data element at the end of each period?
a) Balance Statement
b) Retained Earnings Statement
c) Income Statement
d) Statement of Cash Flows
10. H&R Block wants to analyze its clients’ tax returns over the past 10 years for
each of the client’s tax filings. The type of data generated will be ______________.
a) time series data
b) observation data
c) meta data
d) cross-sectional data
11. A distribution center for a chain of electronics supply stores fills and ships
orders to retail outlets. A random sample of orders is selected as they are
received and the dollar amount of the order (in thousands of dollars) is recorded,
and then the time (in hours) required to fill the order and have it ready for
shipping is determined. A scatterplot showing the times as the response variable
