Which of the following are included in the IMA Statement of Ethical Professional Practice? Professional Competence, Integrity, Credibility, Confidentiality Accuracy, Reliability, Objectivity, Independence Honesty, Transparency, Accountability, Fairness Compliance, Ethics, Responsibility, Trust

Professional Competence, Integrity, Credibility, Confidentiality

What are the three main types of manufacturing (product) costs? Direct Labor, Indirect Materials, Administrative Costs Variable Costs, Fixed Costs, Mixed Costs Direct Materials, Direct Labor, Manufacturing Overhead Direct Materials, Indirect Labor, Fixed Costs

Direct Materials, Direct Labor, Manufacturing Overhead

What costs include all costs outside the factory such as selling, general, and administrative costs? Variable Costs Manufacturing Overhead Nonmanufacturing (Period) Costs Direct Costs

Nonmanufacturing (Period) Costs

Materiality and relevance are both defined by what influences or makes a difference to a decision maker. Which of the following best describes this concept? The accuracy of financial statements The timeliness of reporting The significance of financial information The consistency of accounting methods

The significance of financial information

How does accounting help the capital allocation process allocate investment capital? By ensuring tax compliance By providing relevant and reliable information By reducing operational costs By increasing market share

By providing relevant and reliable information

The objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity. Which of the following best describes this objective? To provide financial information about the reporting entity To maximize shareholder wealth To minimize financial risk To ensure compliance with tax regulations

To provide financial information about the reporting entity

The common set of accounting standards and procedures are called _____? Financial accounting standards Accounting standards updates International financial reporting standards Generally accepted accounting principles

Generally accepted accounting principles

What is the relationship between risk and return in financial investments? A higher risk should lead to a higher expected return A lower risk should lead to a higher expected return Risk and return are unrelated A higher risk should lead to a lower expected return

A higher risk should lead to a higher expected return

How do we calculate the price of a security, such as stocks and bonds? Both stocks and bonds are priced based on market supply and demand Stocks are priced based on market supply and demand, while bonds use the present value of future cash flows Both stocks and bonds are priced using the present value of future cash flows Stocks are priced using the present value of future cash flows, while bonds are based on market supply and demand

Stocks are priced based on market supply and demand, while bonds use the present value of future cash flows

What is the connection between interest rates and security prices, particularly for bonds? When interest rates rise, security prices fall, especially for bonds When interest rates fall, security prices fall, especially for bonds Interest rates and security prices are unrelated When interest rates rise, security prices rise, especially for bonds

When interest rates rise, security prices fall, especially for bonds

What are the components of liquidity in financial terms? Cash, long-term investments, marketable securities, and accounts payable Cash, cash equivalents, marketable securities, and inventory Cash, cash equivalents, long-term debt, and accounts receivable Cash, cash equivalents, marketable securities, and accounts receivable

Cash, cash equivalents, marketable securities, and accounts receivable

What is core inflation, and what does it exclude? Core inflation excludes all goods and services Core inflation covers all goods and services except food and fuel prices Core inflation covers only food and fuel prices Core inflation includes all goods and services including food and fuel prices

Core inflation covers all goods and services except food and fuel prices

How do changes in interest rates affect economic growth? Higher interest rates make borrowing cheaper, accelerating economic growth Lower interest rates make borrowing more expensive, slowing economic growth Higher interest rates make borrowing more expensive, slowing economic growth Interest rates have no effect on economic growth

Higher interest rates make borrowing more expensive, slowing economic growth

What is the difference between a company's payout ratio and retention ratio, and which line items are impacted? Payout ratio is dividends to net income; retention ratio is additions to retained earnings to net income Payout ratio is net income to dividends; retention ratio is net income to additions to retained earnings Payout ratio is net income to additions to retained earnings; retention ratio is dividends to net income Payout ratio is dividends to retained earnings; retention ratio is net income to dividends

Payout ratio is dividends to net income; retention ratio is additions to retained earnings to net income

What is a firm's capital structure, and why is it important? The mix of debt and equity used to finance operations and growth The total amount of equity a company has The company's cash flow management strategy The total amount of debt a company has

The mix of debt and equity used to finance operations and growth

What is the weighted average cost of capital (WACC), and how is it used? WACC is the total cost of equity financing only WACC is the total cost of debt financing only WACC calculates the cost of a company's capital, considering both equity and debt WACC is the average interest rate on a company's loans

WACC calculates the cost of a company's capital, considering both equity and debt

Which of the following is considered a current liability? Current portion of long-term debt Prepaid expenses Sales discounts Accumulated depreciation

Current portion of long-term debt

Who typically is responsible for providing the fringe benefit 'health insurance'? Both the employee and the employer Only the employee Only the employer Neither the employee nor the employer

Both the employee and the employer

Which statement is true about the Future value in reference to the time value of money? It is always the Value It is always both the Value and the Cash Flow It can be either the Value or the Cash Flow It is always the Cash Flow

It can be either the Value or the Cash Flow

An annuity is defined as: Cash flows of equal amounts over time periods of equal length. A single cash flow earning interest over time periods of equal length. Cash flows of equal amounts paid at random times during the period. Cash flows of any amount over time periods of equal length.

Cash flows of equal amounts over time periods of equal length.

With an installment note, after each payment, what happens to the amount of interest charged? The payment amount decreases. The principal owed remains unchanged. The amount of interest charged remains unchanged. The amount of interest charged decreases.

The amount of interest charged decreases.

The company issues a 10-year, 6%, $100,000 semiannual bond. The issue price was $99,500. Which statement is true? The company received $100,000. The company will pay a total of $99,500 over the life of the bond. The company's interest payments are $2,985. The company's interest payments are $3,000.

The company's interest payments are $3,000.

When determining the issue price of the bond, which of the following is true? The face amount and interest payments are: Future valued using the market interest rate. Present valued using the market interest rate. Present valued using the stated interest rate. Future valued using the stated interest rate.

Present valued using the market interest rate.

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