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WorksheetsFINANCE CLUSTER EXAM
Total questions: 93
Worksheet time: 47mins
Business expenses that do not vary with changes in sales volume are called __________ expenses.
direct
net
fixed
variable
What two elements are necessary for effective two-way communication to take place?
Sharing and understanding
Telling and informing
Words and meaning
Sharing and caring
The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price for the day, the net change, and the
price-earnings ratio.
earnings per share.
stockholder's equity.
net income.
As opposed to financial accountants, managerial accountants primarily
report externally.
hire internally.
hire externally.
report internally.
Which of the following businesses best represents an innovative entrepreneurial endeavor:
Opening a new pizza franchise
Developing and selling a new wood-cutting device
Starting a clothing business online
Buying a small local coffee shop from its founder
A well-prepared new employee orientation program should
outline the employer's specific financial goals.
set aside time to negotiate the employees' salary requirements.
communicate the employer's philosophy and expectations.
verify the new employees' job qualifications.
Tank's Trucking Company is focusing on eliminating waste and creating more value with fewer resources. Which of the following methodologies is Tank's Trucking Company using:
Sustainability
Six sigma
Lean
Activity-based costing
Which of the following best describes the purpose of corporate governance:
To create a favorable image for the company
To make hiring and firing decisions for entry-level employees
To improve relations with company stockholders
To ensure that companies are held to high ethical standards
Tom runs a company that produces pencils. To stay in business, Tom must
have a distribution plan.
make a profit.
employ a sales force.
order more machinery.
Which of the following would help Erica effectively communicate her self-confidence during a job interview:
Speaking in a very low tone of voice
Making appropriate eye contact with the interviewer
Listening to the interviewer without interrupting
Wearing casual clothes to the interview
Which of the following job tasks is most likely to fall within the finance industry:
Advertising products
Growing a business
Investigating fraud
Planning a vacation
Using Customer Relationship Management (CRM) technology and an effective CRM strategy can increase a business's revenues by
raising prices of products.
allowing for a larger sales staff.
lowering prices of products.
providing better customer service.
Even when things are not going well for Mark, he still believes everything will work out all right. Mark has a(n) ______ attitude.
positive
indifferent
superior
negative
The Farside Corporation wants to encourage its workforce to better achieve governance objectives. Which tactic should the company use to motivate its employees and improve the distribution of wealth throughout the corporation?
Cash incentives
Profit-sharing
Flexible scheduling
Team building
A real rate of return on an investment is different from a nominal rate of return in that a real rate of return
less accurately measures investment performance.
does not subtract taxes and inflation.
adjusts profit for the effects of inflation.
is often higher than a nominal rate of return.
Which of the following is a project that might need to be monitored:
Fixing up your car
Developing your professional skills
Becoming a better person
Improving customer service
A person who is a high achiever is often positively viewed by others as a
leader.
risk-taker.
follower.
show-off.
When Gabriela's parents passed away, their assets were transferred to her. Those assets were taxed by the federal government according to their current market value. This is an example of a(n) __________ tax.
A. estate
B. sales
C. income
D. excise
We need creativity in communication because
not everyone communicates the same way.
people get tired of the usual communication methods.
email makes communication very difficult.
most people don't know how to communicate.
Employees who serve customers efficiently help control expenses by
decreasing volume.
reducing complaints.
improving morale.
increasing returns.
Why is it important for a person pursuing any type of business career to develop self-confidence?
The business field is very competitive.
Managing others requires leadership skills.
It helps a person become trustworthy.
Complex financial concepts are challenging to learn.
Which of the following is a type of credit card that can be used to make purchases from a variety of participating businesses:
Retail store
Bank
Hotel
Petroleum
What should you do if a financial client reports a problem with their portfolio?
Waive the client's fees for their next five transactions.
Apologize and resolve the problem immediately.
Call the client back later after they have calmed down.
Ask the manager to return the client's call.
Which of the following is a loss prevention technique that a hotel might use to protect itself against theft:
Crisis management plans
Fire sprinklers
Security cameras
Carbon monoxide detectors
Which of the following is a common challenge for financial-information management:
Managerial accountants prepare financial information for use by external stakeholders.
Many financial data are stored in custom, task-specific software and are not easily accessible.
Financial-information management's focus is on protection of customer financial data.
Financial managers typically use Microsoft Office applications for financial recordkeeping.
Lower premiums and the ability to control the claims process are advantages of
traditional liability insurance policies.
standard insurance companies.
reinsurance carriers.
captive insurance companies.
Which of the following is an example of an internal control mechanism impacting an organization's governance:
Compliance laws
Regulatory guidelines
Union contracts
Segregation of duties
A company does not emphasize the importance of fairness and respect. Which of the following risks is most likely to occur?
Employees will be at risk of injury.
Unhappy employees might leave the company.
The company might go bankrupt.
Important details might slip through the cracks.
Why do stock prices tend to fall during a recession?
Sponsorships become more common.
Unemployment decreases.
Profits are expected to drop.
Bonds are a less stable investment.
When a customer complains about a product, the employee should
ask the manager to answer the complaint.
ask another employee to handle the situation.
handle the complaint according to company policy.
defend themselves.
Which of the following is categorized as owner's equity on a company's balance sheet:
Capital equipment
Accounts receivable
Inventory
Retained earnings
When a business uses its budget to monitor and avoid excessive spending, it is using the budget as a(n)
financial control tool.
business plan.
operating plan.
performance evaluation.
An insurance company is different from a bank in that an insurance company
accepts short-term deposits and makes long-term loans.
is not considered a financial institution.
is part of a centralized clearing and payment system.
insures its customers against certain risks.
By installing firewalls on its computer networks, a business can protect its online customers' credit card information from
investment scams.
tax evasion.
trade barriers.
identity theft.
Which of the following is an example of an uninsurable risk:
Fire
Business interruption
Customer buying habits
Personal injury
By using a central data repository for financial information, companies receive
up-to-date data.
slower responses to queries.
less predictability.
inconsistent data.
Zoe is looking to save some money so that she can purchase a $600 camera in 2 years. With her current account, she earns 3% quarterly interest. How much should Zoe invest so she can buy the camera in 2 years?
$565
$637
$574
$715
What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production?
Purchase price
Material yield
Selling price
Fixed overhead
Peyton asks Ann to write a letter of recommendation to a potential employer. Which of the following networking techniques is Peyton using:
Opportunistic
Organizational
Grapevine
Referral
Which of the following tasks falls under the scope of compliance:
Meeting clients' financial needs
Creating financial legislation
Advertising new financial products
Designing organizational controls
A student group suggests that a university raise money for a new recreational facility by holding a concert featuring a controversial band that has been banned from some venues. What form of risk management should the university undertake in this situation?
Transfer liability through a contract holding the band liable
Cover the risk in the event budget
Purchase insurance that transfers the risk to the insurance company
Avoid the risk by contracting with another band
Corporate governance is primarily concerned with __________ desires.
CEO
competitor
vendor
stakeholder
An employee accidentally learns that several coworkers will be fired in the near future. What should the employee do with that information?
Report it to managers
Tell the coworkers
Verify the information
Keep it confidential
Which of the following is an example of an indirect cost:
A. Insurance
B. Wages
C. Commission
D. Materials
The main objective of using marginal analysis in decision-making is to determine whether a business activity will result in a
net revenue smaller than marginal revenue.
net revenue larger than marginal revenue.
marginal revenue equal to or greater than marginal cost.
marginal expense that is greater than marginal cost.
Which of the following is an ethical issue resulting from internal risks:
Selecting an insurance company that considers paying fines a cost of doing business
Boycotting the use of an insurance company that has a reputation for not correcting its mistakes
Providing incomplete data for audits
Revealing discounted expenses
Which of the following statements about a board of directors is true:
Internal board members are not usually paid extra for their work with the board.
A board of directors is nominated by shareholders.
A board member won't be removed for breaking foundational or corporate rules.
Every private company must have a board of directors.
Which of the following is a true statement about stock information resources:
It is very difficult to find stock information.
There are very few stock information sources.
Only wealthy investors have access to stock information.
It has never been easier to find stock information.
Timothy is taking a personal finance class at school. For homework one day, he is instructed to set a short-term financial goal for himself. Which of the following would be most relevant as a short-term goal for a high school student like Timothy:
Put $10,000 into a college savings account
Save $50 for Christmas presents for his family
Plan to become a senior-level executive by age 30
Set $5,000 aside per year for retirement
Dmitri is building a new website. Which of the following does he need to register to obtain a web address for his new site:
Site builder
Domain name
Street address
Web host
Accepting blame for failure and credit for success is an indication of a person's
interpersonal skills.
consideration.
responsibility.
initiative.
Employees from different departments participate in a group to solve problems related to the company's production processes. This is an example of a
standing committee.
product team.
quality circle.
short-term committee.
What must a business be organized to do to be able to contribute to society?
Preserve the environment
Sell an idea
Hire an advisor
Earn a profit
Objective setting, risk assessment, and risk response are all components of
enterprise risk management.
channel-management plans.
asset allocation strategies.
conflict resolution policies.
Which of the following is a technique that a business could use to analyze its customer financial information:
Determining who exceeded sales quotas
Discovering which products sold the most
Comparing profit ratios by region
Tracking average product shipping delays
Which of the following most accurately describes the overall purpose of accounting:
To estimate and pay taxes
To keep track of expenses
To maintain financial information
To keep track of income
Which of the following is a true statement about carrying out scanning activities:
Information obtained from TV is unreliable.
You must focus only on relevant information.
You should avoid using surveys and focus groups.
All information should be obtained in a formal manner.
Troy is a finance manager for a small firm in town. Last night, he attended a cookout at his neighbor’s house and met Melissa, who is the owner of a large financial-planning company. Troy and Melissa exchanged business cards, and they set up an appointment for the following week to discuss business opportunities. In what type of situation did Troy and Melissa form a professional business relationship?
Formal event
Social gathering
Corporate environment
Educational setting
XRT Corporation uses a computer software application to measure how efficiently its management is using accounts receivable, inventory, and capital goods to generate sales. What type of financial ratio is the software calculating?
Profitability
Asset utilization
Market value
Liquidity
Which of the following is an important step to take to ensure a protest is peaceful and effective:
Argue against any opponents to your protest.
Demonstrate your importance by using harsh, insulting language.
Obtain your senator’s permission before assembling the protest.
Avoid violence and vandalism during the protest.
Patents, trademarks, and copyrights are all used to protect an individual or a company's
intellectual property.
business equipment.
tangible assets.
financial assets.
When determining if it will approve a customer's loan application, a financial institution evaluates the customer's
employment opportunities.
payment plan.
credit score.
personal goals.
Managerial accounting is different from financial accounting because managerial accounting
is a requirement for all companies.
prepares reports for external users.
takes a future approach.
provides more general results.
Which of the following is a specific goal:
Increasing sales
Reducing costs by 5%
Improving customer satisfaction
Finding more customers
Molly has money to invest, but she wants to be sure she doesn't lose her hard-earned money in a scam. Which of the following opportunities should Molly avoid:
The stock market
Ponzi scheme
Roth IRA
401k
Jonas is a data scientist at a research firm. Part of his responsibilities include looking through his firm's databases and eliminating redundant data. Jonas is performing
data filtering.
information scanning.
data normalization.
digital analysis.
Why should an independent business consultant avoid using email to share a negative evaluation of an IT company with a client?
Using email can create reputational risk for them if it is shared with others.
It is illegal to share negative information about other businesses via email.
The email would legally be considered intentional slander or defamation.
The email would make them appear negative and judgmental.
Self-control can help you develop a positive attitude by helping you
dwell on the fact that life is full of difficulties.
substitute positive thoughts with negative ones.
think before you make a response.
eliminate negative ways of thinking.
Publicly traded companies are required by law to provide
stock research.
yearly newsletters.
company report cards.
financial statements.
Which of the following represents a primary business activity:
Supervising
Marketing
Scheduling
Designing
If a leader takes ownership of a problem, makes sure it is fixed, and takes steps to prevent it from happening again, they are demonstrating
flexibility.
responsibility.
social awareness.
adaptability.
What does “equity” refer to in a statement of changes in equity?
Property
Earnings
Debt
Expenses
What usually decreases when the economy is experiencing a period of contraction?
Interest rates
Consumer spending
Cost of living
Unemployment
Shireen is reviewing an article to determine if the data contained in it is accurate and current. In other words, Shireen is evaluating the
research procedure.
hardware application.
quality of information.
type of statistics.
Which of the following statements regarding convergence and consolidation in the finance industry is true:
Financial companies often enjoy higher earnings as a result of convergence and consolidation.
When multiple financial firms merge, they often end up with less capital to invest.
A desire for lower costs has slowed the pace of convergence and consolidation.
Technological advancements have increased the costs of offering new and different products.
Which of the following technologies is frequently used to provide a source for master data management in the finance industry:
ERP (Enterprise Resource Planning)
SuitExpense Application
Accounting systems
Databases
Which of the following has accelerated the globalization of financial markets:
An expansion of protectionism practices
The movement toward fixed exchange rates
The reduction of government regulations
A decrease in foreign access to domestic markets
What do bond yields typically do during an economic expansion?
Remain unchanged
Gradually decrease
Drop to near zero
Increase
Lynnette works at Main Street Bank. Her primary job responsibility is to determine if the bank should lend funds to the bank’s customers. Lynnette is working as a
bank agent.
collections officer.
chartered financial consultant.
credit analyst.
Andreas is listening to his coworker Calliope present her idea for a marketing campaign to their manager. What could Andreas do to encourage and support Calliope during her presentation?
Avoid eye contact and act preoccupied
Laugh and smile at everything Calliope says
Nod, smile, and maintain eye contact
Look down at the papers in front of him
In 1970, the average college-educated worker in the United States made about 7,000peryear.Thissalarywasconsideredenoughtobuildacomfortablelifeforafamily.Today,however,thepovertylineinmoststatesandprovincesiswellabove 7,000—meaning that the average person would be practically homeless if the only income they had was $7,000 a year! What can account for this massive change in buying power over time?
Interest rates
Deflation
Compound interest
Inflation
Which of the following is a cost driver that could affect the cost of internet service in a coffee shop:
Number of direct labor hours
Number of ingredients per product
Number of customers
Number of products sold
Which of the following technologies has proven very successful in creating "what-if" scenarios in the finance industry:
Account reconciliation
Digital dashboards
Financial reporting and consolidation
Time value of money calculators
Mapping, analyzing, redesigning, acquiring resources, and implementing are the steps companies follow when attempting to
start an advertising campaign.
educate the public on their work.
attract more talented workers.
streamline work processes.
One activity of professional organizations and trade associations is to
develop wage regulations.
test products.
influence legislation.
establish customer trends.
At the annual staff meeting, the company's sales manager announces that the bonus system is being suspended due to poor performance and profits. What communication style is the manager using?
Indirect
Casual
Formal
Grapevine
Your boss asks you to prepare a report about current market trends. Which of the following is the most efficient way to obtain the needed information:
Customer interviews
Online research
A customer survey
Library research
A main goal of customer experience management is creating
higher employee salaries.
word-of-mouth promotion.
new products.
innovative technology.
Which of the following statements contains the most relevant information to include in a business report about the specific market share of computer manufacturers during a particular time frame:
Pear Computers held the fifth highest share of the computer market in 2024.
The CPU Company, Best Desktop, Pear, and Bell sold more computers in 2024 than other computer manufacturers.
In 2024, The CPU Company held 27.6% of the market share, followed by Best Desktop, which held 24.3%.
In 2024, The CPU Company shipped more computers than Best Desktop or Pear.
Whenever Nasra has to make a difficult decision, she considers how her actions might affect other people and their feelings. As a result, she has developed higher
ethics.
wages.
productivity.
profit margins.
Which of the following is an example of information that a manufacturing company keeps about its customers:
Expense reports
Invoices
Tax returns
Payroll reports
How can you make it easier to start the budgeting process by arranging and making sense of financial data?
Use budgeting software.
Track transactions on paper.
Refrain from involving others.
Focus on the big picture.
One method a business can use to prevent theft by employees and customers is to
establish a floor limit.
hire security guards.
purchase liability insurance.
take frequent inventories.
