Business Intelligence Professional Certification Test

The ______________ is a group that is in charge of making business decisions for a corporation.

• Staff

• Board of Directors

• Management

• Proprietors

A type of business that moves goods from the manufacturer to the consumer.

• Marketer

• Extractor

• Manufacturer

• Wholesaler

Which of the following is an activity performed by businesses?

• Generating ideas

• Raising capital

• Keeping records

• All of the above

The parent company of a franchise is known as:

• Franchisee

• Franchisor

• Manufacturer

• All of the above

A form of production that makes a product to fit the needs of individual consumers is __________.

• Mass Production

• Bulk Manufacturing

• Custom Manufacturing

• Marketing

A business that takes natural resources and converts them into a consumer good is a/an__________.

• Extractor

• Manufacturer

• Marketer

• Wholesaler

In this type of business, the owner is responsible for all debts. What type of business is this?

• Corporation

• Sole-Proprietorship

• Partnership

• Cooperative

A form of business that can have many owners and issue stock is a __________.

• Corporation

• Sole-proprietorship

• Partnership

• Cooperative

_____________ is the taking into public ownership of private businesses.

National government raises money through general _________ and ________.

_____________________ occurs when an organisation that was previously owned and managed by the state has been sold to the private sector.

The ___________ sector consists of those organisations which are owned and controlled by either local or national government.

The usual cycle of objectives is ________________.

• What the business is trying to achieve, how it is aiming to get there, what specific actions it can take to help it get there, how it will measure its success/progress, how it will set new targets

• What the business is trying to achieve, how it is aiming to get there, determining whether there is enough money, what the market ratings are and how it will set new targets.

• What the business is trying to achieve, how it is aiming to get there, what specific actions it can take to help it get there, who to employ to do the planning, how much it will all cost.

The most effective business objectives meets all five (5) criterion. Indicate which grouping is correct.

• Specific, meaningful, agreed, rational, time specific.

• Special, measurable, agreed, realistic, time specific.

• Specific, measurable, agreed. realistic. time specific.

A mission statements tells that the business is ________________.

• Taking a journey to set up business elsewhere

• Clear about it vision and values and enables employees, managers, customers and suppliers to understand the basis for its actions.

• Precise about where it intends to go in the future with its products and services

Which of the following best describes the aim of a business?

• It states the values which the buinsess holds.

• It is where the business wants to go in the future.

• It is the practice of hitting the mark.

Rules of conduct established by the government to maintain stability and justice are called __________.

• ethics

• golden rules

• amendments

• laws

A guarantee that goods are free of financial obligation, or lien, is called a ________________.

• Limited warranty

• Warranty of merchantibility

• Warranty of privity

• Warranty of title

Oral statements made before signing a written contract are not admissible as evidence under the ________________.

• doctrine of equitable estoppel

• statute of frauds

• parol evidence rule

• Written Evidence Act

In a criminal proceeding, the government is referred to as the ________________.

• Defendant

• Offender

• plaintiff

• protagonist

A substitution of one contract for another is ________________.

• substantial performance

• tender of performance

• Satisfactory performance

• accord and satisfaction

Standard-form, written contracts prepared by the seller for the buyer to sign are called ________________.

• adjudicatory contracts

• adhesion contracts

• Executory contracts

• cohesive contracts

A partnership that is formed simply by the way two or more people conduct their business is called ________________.

• Partnership by estoppel

• partnership by proof of existence

• apparent partnership

• limited partnership

A contract that at first appears to bind both parties, but really binds no one is ________________.

• Unconscionable

• illusory

• gratuitous

• promissory estoppel

Goods must be fit for ordinary purposes under the implied warranty of ________________.

• Merchantibility

• title

• fitness for a particular purpose

• privity

The doctrine stating that an employer can fire an employee at any time for any reason is known as ________________.

• Wrongful discharge

• loyment-at-will

• collective bargaining

• grievance procedure

At the bottom level of the federal court system are the federal __________.

• Small claims courts

• district courts

• Municipal courts

• appellate courts

Charging more than the maximum legal interest rate is __________.

• Fraud

• Usury

• Extortion

• Price-fixing

A business that prepares departmental margin statements for two departments should have ________________.

• No income summary accounts

• One income summary accounts

• two income summary accounts

• three income summary accounts

At the end of a fiscal period, a business must show how much rent received in advance has become ________________.

• An expense

• A revenue

• An asset

• A liability

Recording an adjusting entry for accrued interest income is an application of the accounting concept ________________.

• Objective Evidence

• Historical Cost

• Consistent Reporting

• Matching Expenses with Revenue

The amount withheld from employees' total earnings for federal income tax is determined ________________.

• By a percentage of total earnings

• from tax base tables

• From withholding tax tables

• By a percentage of total deductions

Purchases of equipment are an ________________.

• Operating activity and cash inflow

• Operating activity and cash outflow

• investing activity and cash inflow

• investing activity and cash outflow

If a company has a total revenue of $150,000, cost of goods sold of $59,600, and total expenses of $72,985, its gross profit is ________________.

• $77,315

• $17,415

• $132,585

• $90,400

The adjusting entry to record the estimated uncollectible accounts expense using the percentage of sales method is ________________.

• A debit to Uncollectible Accounts Expense and a credit to Allowance for Uncollectible Accounts

• A debit to Allowance for Uncollectible Accounts and a credit to Uncollectible Accounts Expense

• a debit to Uncollectible Accounts Expense and a credit to Accounts Receivable

• a debit to Allowance for Uncollectible Accounts and a credit to Income Summary

Which accounting concept is applied when it is stated that the earnings of a business must be satisfactory to continue operations?

• Adequate Disclosure

• Consistent Reporting

• Going Concern

• Materiality

In the entry to journalize the employer payroll taxes expense for a semimonthly period, the account debited would be the ________________ account.

• Salary Expense

• Payroll Taxes Expense

• Unemployment Tax Payable-Federal

• Cash

In the check register, the Bank Balance column indicates the ________________.

• Balance of cash in the checking account

• amount of the last credit to Cash

• amount of the last deposit to the checking account

• bank balance for reconciling the bank statement

The sales returns and allowances account is known as a ________________.

• Contra cost account

• Contra revenue account

• Contra sales discount account

• Departmental cost account

In estimating inventory using the retail method, the estimated inventory at cost equals the inventory at retail times a percentage that is determined by dividing the ________________.

• Net purchases at cost by the net purchases at retail

• Merchandise available for sale at cost by the merchandise available for sale at retail

• net sales at cost by the net sales at retail

• beginning inventory at cost by the beginning inventory at retail

If the departmental margins are 30% of net sales, the company's net income for the fiscal period will normally be ________________.

• 30% of net sales

• More than 30% of net sales

• Less than 30% of net sales

• Greater than the cost of merchandise sold

If the principal of a 90-day note is $5,000.00 and the interest due at maturity is $125.00, the interest rate on the note is ________________.  

• 9.0%

• 9.5%

• 10.0%

• 12.0%

If the cost of ending merchandise inventory is understated, the cost of merchandise sold will be ________________.

• understated

• overstated

• not affected

• Undetermined

Recording uncollectible accounts expense at the time the amount is actually known to be uncollectible is known as the ________________.

• Adjusting method of recording losses from uncollectible accounts

• allowance method of recording losses from uncollectible accounts

• bad debts method of recording losses from uncollectible accounts

• Direct write-off method of recording losses from uncollectible accounts

When an account that has been written off using the direct write-off method is collected, the revenue account used is ________________.

• Allowance of Uncollectible Accounts

• Collection of Uncollectible Accounts

• Resales

• Uncollectible Accounts Revenue

Responsibility accounting traces revenues, costs, and expenses to ________________.

• The accounting department

• Each employee

• The income statement

• Individual managers who are responsible for making decisions about those revenues, costs, and expenses

When a special payroll account is used, the balance after all payroll checks have been cashed is ________________.

• Zero

• The amount of payroll taxes due

• the total amount of deductions

• cannot be determined from the information given

Which of the following does not require an entry on the company's books?

• Sales of preferred stock

• sales of common stock

• Sales of stock by one investor to another investor

• Declaration of dividends