6

Question 1

noncallable bonds Vs callable bonds

Answer 1

noncallable bonds - less risky, should have lower yeild

Question 2

debt to Equity =

Answer 2

total debt / (total assets - total debt)

Question 3

Return on investment =

Answer 3

Income / Capital

Question 4

(Income / Sales) x (Sales / Capital)

Answer 4

identifies processes and workflows, analyzes processes and workflows, and designs processes and workflows

Question 5

Throughput costing:

Answer 5

New method - relegates all product costs except direct materials to period cost (expense) status.

Question 6

In a large database system maintained on a mainframe computer, the most common medium for data files for the database is the :

Answer 6

hard disk

Question 7

The management of a company would do which of the following to compare and contrast its financial information to published information reflecting optimal amounts?

Answer 7

benchmarking

Question 8

Effective rate

of interest =

Answer 8

int paid / useable funds

Question 9

Business continuity means:

Answer 9

providing the ability for a firm to engage in continuous operation.

Question 10

true interest rate =

Answer 10

effective interest rate

Question 11

call option purchases when;

Answer 11

you expect price to increase

Question 12

call option purchases when;

Answer 12

you expect price to decrease

Question 13

The term “mutual interdependence” relates to:

Answer 13

the fact that the outcome of pricing decisions in an oligopoly is dependent upon the reactions of organization’s rivals.

Question 14

What would Fed Reserve do in an expansion policy?

Answer 14

lower discount rates

Question 15

Usable funds=

Answer 15

Loan amount - discounted interest - compensating balance

Question 16

In the modern world economy, balance-of-payments deficits and surpluses can be eliminated:

Answer 16

through the market mechanism of flexible exchange rates.

Question 17

breakeven in units

Answer 17

total fixed cost / (selling - variable cost)

Question 18

external environment in business includes:

Answer 18

1. limitations
2. threats
3. opportunities

Question 19

A flexible budget is developed using:

Answer 19

using the static budget standards for any activity level within the relevant range.

Question 20

electronic vaulting;

Answer 20

the process of electronically transmitting and storing back ups at a remote location