BUS 475 CAPSTONE FINAL

EXAMINATION PART 2
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Examination Part 2 Answers Assignments
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This is the latest BUS/475 Capstone Final

Examination Part 2 (100%)
1. Which of the following is not a current liability on
December 31, 2014?

A lawsuit judgment to be decided on January 10,2015

A Note Payable due December 31 2015

Accrued salaries payable from 2014

An Accounts Payable due January 31,2015

2. Continuous monitoring, in the contemporary approach, is

beneficial because_____________.

it increases the time it takes to detect changes in the

competitive environment

organization response time is increased

organizational flexibility is reduced

It reduces time lags

3. The acquisition of treasury stock by a corporation:

Requires that a gain or loss be recognized on the income

statement.

Increases its total assets and total stockholders equity.

Has no effect on total assets and total stockholders

equity.

Decreases its total assets and total stockholders equity.

4. What is an advantage of the correlation coefficient over

the covariance?

It falls between 0 and 1.

It falls between -1 and 1.

It falls between -1 and 1; and it is a unit free measure,

therefore making it easier to interpret.

It is a unit-free measure, therefore making it easier to

interpret.

5. GAAP, compared to IFRS, tends to be more:

rules-based

simple in accounting requirements

principles-based

simple in disclosure requirements

6. The resource-based view (RBV) of the firm combines two

perspectives:

the internal analysis of the firm and the external analysis

of the industry and competitive environment

the primary and support activities of the firm

the industry and the competitive environment

the interrelationships among the primary activities of the

firm and corporate management

7. Which trial balance will consist of the greatest number of

accounts?

Trial balance

Adjusted trial balance

Balance

Post-closing trial balance

8. Vertical analysis is a technique that expresses each item

in a financial statement:

In dollars and cents.

As a percent of a base amount.

As a percent of the item in the previous year.

Starting with the highest value down to the lowest value.

9. Which of the following controls would best help detect

the removal of a blank check by an employee from the
back of a company's checkbook for subsequent
misappropriation of funds?

An accounting policies manual

Tracing any debit memorandums from the bank to the

company's records

A review of the cash budget

The use of pre-numbered checks

10.
A SWOT analysis is a framework for analyzing a
firms environments. A SWOT is made up of

Internal environmental analysis of threats and

weaknesses.

Internal strengths and weaknesses; external threats and

opportunities.

Internal threats and weakness and external strengths and

opportunities.

External analysis of strengths and opportunities.

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