An example of an internal failure cost is.
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1 .The economic resources measurement focus and accrual basis of accounting would be most appropriate for which fund as used in the fund financial statements?
A Capital projects fund. B Internal service fund. C Permanent fund. D General fund.
2 .A massive earthquake and tsunami seriously damaged the productive capabilities of auto manufacturers in Japan. As a result, workers at U.S. parts manufacturing firms dedicated to supplying the Japanese manufacturers are furloughed because the parts produced in the U.S. plants are temporarily unneeded. The negative impact of the Japanese earthquake and tsunami on these U.S. parts manufacturers is best described as.
A Economic risk. B Transaction risk. C Global sourcing complications. D A shift in the economic balance of power.
3 .On January 1, year 1, a company issued its employees 10,000 shares of restricted stock. On January 1, year 2, the company issued to its employees an additional 20,000 shares of restricted stock. Additional information about the company’s stock is as follows.Date Fair value of stock (per share)January 1, year 1 USD 20December 31, year 1 22January, year 1 25December 31, year 2 30The shares vest at end of a four year period. There are no forfeitures, what amount should be recorded as compensation expense for the 12-month period ended December 31 year 2?
A USD 500,000 B USD 175,000 C USD 225,000 D USD 205,000
4 .The benefits of a just-in-time system for raw materials usually include.
A Maximization of the standard delivery quantity, thereby lessening the paperwork for each delivery. B Elimination of nonvalue adding operations. C Decrease in the number of deliveries required to maintain production. D Increase in the number of suppliers, thereby ensuring competitive bidding.
5 .Stanton College, a not-for-profit organization, received a building with no donor stipulations as to its use. Stanton does not have an accounting policy implying a time restriction on donated assets. What type of net assets should be increased when the building was received?I. Unrestricted.II. Temporarily restricted.III. Permanently restricted.
A II or III. B II only. C I only. D III only.
7 .A public college had tuition and fees of USD 20,000,000. Scholarships, for which no services were required, amounted to USD 1,000,000. Employee discounts, which were provided in exchange for services, amounted to USD 2,000,000. The amount to be reported as net tuition and fees by public college would be
A USD 20,000,000 B USD 19,000,000 C USD 18,000,000 D USD 17,000,000
8 .If a nation has many rival domestic firms which are all competitive in the global marketplace for a product, which of the four major factors that Michael Porter has indicated impact the global competitive environment would allow this nation to fare better with respect to global competitive advantage?
A Related and supporting industries. B Conditions of domestic demand. C Firm strategy, structure, and rivalry. D Conditions of the factors of production.
9 .Eagle and Falk are partners with capital balances of USD 45,000 and USD 25,000, respectively. They agree to admit Robb as a partner. After the assets of the partnership are revalued, Robb will have a 25% interest in capital and profits, for an investment of USD 30,000. What amount should be recorded as goodwill to the original partners?
A USD 7,500 B USD 5,000 C USD 20,000 D USD 0
10 .Anson Industries, a vertically integrated producer and retailer of high end audio visual equipment has mapped out its overall business process as beginning with product development followed by product testing then raw materials purchasing then manufacturing and assembly, and, finally, sales and service. Finance staff at Anson Industries are trying to evaluate the efficiency and the effectiveness of each process and the relationship between each process. This evaluation is often referred to as.
A Value chain analysis. B Continuous quality improvement. C Process improvement. D Benchmarking.
