Hrm 531 Week 1 Quiz
Week 1 Quiz.
Two points each
1. In a corporation, the Chief Financial Officer (CFO) usually reports to the:
a. Treasurer
b. Controller
c. Chief Operating Officer (COO)
d. VP of Financial Planning
2. The primary factor that separates the corporate form of business from partnerships and sole proprietorships is:
a. Corporations are larger than partnerships and sole proprietorships
b. The owners of the corporations get to keep all of the profit
c. The owners of corporations run the business and have unlimited liability
d. Corporations are “legal persons” separate and distinct from their owners.
3. The primary goal of a publicly-owned firm interested in serving its stockholders should be to
a. Maximize expected total corporate profit. …show more content…
Expected Earnings per Share during the coming year
c. Book Value (or Net Worth) as recorded on the balance sheet
d. The price of the firm's stock on the open market
6. Consider the following:
Net Income
Stock Price at
Beg of Year
End of Year
Firm A:
$10,000,000
$20
$10
Firm B:
$(10,000,000)
$10
$20
a. The manager of Firm A is doing a better job than B
b. The manager of Firm B is doing a better job than A
c. Neither manager is doing a good job
d. Both managers are doing a good job
7. The practice of locating a U.S. Firm’s corporate headquarters in Bermuda because Bermuda does not have a corporate income tax is:
a. Illegal
b. Irresponsible
c. Definitely unethical
d. Legal, but might be considered unethical by some
8. In corporations, the goals of management and the goals of the stockholders are
a. Always the same
b. Always different
c. Might be different
d. Must be different
9. The corporate website for McDonalds Corporation is:
a. www.mickie-d's.com
b. www.mcdonalds.com
c. www.bigmacattack.com
d. www.mcdonaldscorp.com
10. The CEO of McDonalds Corporation is:
a. Mr. Jim Skinner
b. Mr. Ray Kroc
c. Mr. Don Thompson d Mr. Steve Easterbrook
e. Mr. Fred …show more content…
The area of accounting called Financial accounting deals with:
a. producing financial statements for the organization
b. costs, budgets, production rates, labor rates, prices, and so on
c. providing third party reviews of other firms’ financial statements
d. maximizing the wealth of the firm’s owners
12. GAAP stands for: a Guaranteed Accounting Accuracy Program
b. Global Access to Accounting Processing
c. Government Accountability And Payment
d. Generally Accepted Accounting Principles
13. Assume Macy’s sells $20,000 worth of men’s suits in December 2013. The customers all put the purchases on their Macy’s charge accounts and pay for the suits in January, 2014. If Macy’s uses Accrual Accounting how much in Sales will they record in December 2013?
a. 0
b. 10,000
c. 20,000
d. 40,000
14. On a company’s balance sheet, Total Liabilities plus Total Equity always equals Total Assets
a. True
b. False
15. Family Market bought 1000 cases of beans in 2012 that it still has in a warehouse. The amount spent for the beans would be recorded on Family’s 2012 income statement as inventory expense.
a. True
b. False
16. The Retained Earnings account on the balance sheet lists wages that have been earned by employees that have not yet been paid to
Two points each
1. In a corporation, the Chief Financial Officer (CFO) usually reports to the:
a. Treasurer
b. Controller
c. Chief Operating Officer (COO)
d. VP of Financial Planning
2. The primary factor that separates the corporate form of business from partnerships and sole proprietorships is:
a. Corporations are larger than partnerships and sole proprietorships
b. The owners of the corporations get to keep all of the profit
c. The owners of corporations run the business and have unlimited liability
d. Corporations are “legal persons” separate and distinct from their owners.
3. The primary goal of a publicly-owned firm interested in serving its stockholders should be to
a. Maximize expected total corporate profit. …show more content…
Expected Earnings per Share during the coming year
c. Book Value (or Net Worth) as recorded on the balance sheet
d. The price of the firm's stock on the open market
6. Consider the following:
Net Income
Stock Price at
Beg of Year
End of Year
Firm A:
$10,000,000
$20
$10
Firm B:
$(10,000,000)
$10
$20
a. The manager of Firm A is doing a better job than B
b. The manager of Firm B is doing a better job than A
c. Neither manager is doing a good job
d. Both managers are doing a good job
7. The practice of locating a U.S. Firm’s corporate headquarters in Bermuda because Bermuda does not have a corporate income tax is:
a. Illegal
b. Irresponsible
c. Definitely unethical
d. Legal, but might be considered unethical by some
8. In corporations, the goals of management and the goals of the stockholders are
a. Always the same
b. Always different
c. Might be different
d. Must be different
9. The corporate website for McDonalds Corporation is:
a. www.mickie-d's.com
b. www.mcdonalds.com
c. www.bigmacattack.com
d. www.mcdonaldscorp.com
10. The CEO of McDonalds Corporation is:
a. Mr. Jim Skinner
b. Mr. Ray Kroc
c. Mr. Don Thompson d Mr. Steve Easterbrook
e. Mr. Fred …show more content…
The area of accounting called Financial accounting deals with:
a. producing financial statements for the organization
b. costs, budgets, production rates, labor rates, prices, and so on
c. providing third party reviews of other firms’ financial statements
d. maximizing the wealth of the firm’s owners
12. GAAP stands for: a Guaranteed Accounting Accuracy Program
b. Global Access to Accounting Processing
c. Government Accountability And Payment
d. Generally Accepted Accounting Principles
13. Assume Macy’s sells $20,000 worth of men’s suits in December 2013. The customers all put the purchases on their Macy’s charge accounts and pay for the suits in January, 2014. If Macy’s uses Accrual Accounting how much in Sales will they record in December 2013?
a. 0
b. 10,000
c. 20,000
d. 40,000
14. On a company’s balance sheet, Total Liabilities plus Total Equity always equals Total Assets
a. True
b. False
15. Family Market bought 1000 cases of beans in 2012 that it still has in a warehouse. The amount spent for the beans would be recorded on Family’s 2012 income statement as inventory expense.
a. True
b. False
16. The Retained Earnings account on the balance sheet lists wages that have been earned by employees that have not yet been paid to