MBA EXIT EXAM 2026 BUSINESS
ADMINISTRATION COMPREHENSIVE TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ accelerated depreciation method. Answer: allows asset own to
take greater amounts of depreciation during early years of asset's
life, defers some of the taxes until later years
◉ acceptable quality level (AQL). Answer: quality standard that
allows for a prespecified number of defects
◉ acceptance. Answer: an assent to an offer in accordance with its
terms
◉ accounting exposure. Answer: variability in the firm's reported
values for NI and net worth that results from changes in exchange
rates
◉ accounting rate of return. Answer: capital-budgeting criterion that
relates the returns generated by the project, as measured by average
accounting profits AFTER tax, to avg dollar size of the investment
required; AKA simple ROR or unadjusted ROR
,◉ accounts receivable turnover. Answer: annual credit sales/ avg
A/R
◉ acid test ratio. Answer: (CA-inv)/CL. more stringent measure of
liquidity than current ratio. AKA quick ratio
◉ activity-based costing (ABC). Answer: system that accumulates
costs on the basis of production or service activities at a firm.
Assigns costs by activity and links them to specific products
◉ Activity-based management (ABM). Answer: system-wide,
integrated approach that focuses mgmt's attn on activities with the
objectives of improving customer value and the profit achieved by
providing this value. ABC is major source of info for this
◉ advertising. Answer: any paid form of non personal
communication designed to gain acceptance of the advertiser's
message
◉ advertising research. Answer: carried on as an aid or support
function to the advertising manager
◉ after-tax cash flow. Answer: the net cash flow (cash rev- cash exp)
after taxes have been subtracted. CF generated from operations
,◉ agency relationship. Answer: consensual arrangement between 2
persons whereby one agrees to act for the benefit of and under
control of the other person
◉ aggregate production planning. Answer: establishment of
aggregate production and inventory levels over a medium range
time horizon
◉ american terms. Answer: method of exchange-rate quotation that
gives the value of a foreign currency in USD
◉ amortized loan. Answer: loan that's paid off in periodic equal
installments and includes varying portions of principal and interest
during its term
◉ analysis of variances (variance analysis). Answer: analysis and
investigation of causes for variances between std costs and actual
costs. variance favorable if actual costs < std costs. unfavorable if
actual costs > std costs. need to investigate unfavorable variances
further to determine causes, so corrective action can be taken
◉ annual report. Answer: audited document issued annually by all
publicly listed corporations to their SH in accordance with SEC
regulations. contains info on financial results and overall
, performance of the previous fiscal year and comments on future
outlook
◉ application program. Answer: computer software written
specifically to process data in an IS. Performs tasks and solves
problems applicable to a manager's work
◉ appreciation. Answer: increase in value of one currency in terms
of another currency. when dollar appreciates, can be exchanged for
greater amounts of foreign currencies
◉ arbitrage-pricing model (APM). Answer: theory that relates stock
returns and risk. maintains that security returns vary from their
expected amounts when there are unanticipated changes in basic
economic forces (unexpected changes in industrial production,
inflation rates, terms structure of interest rates, and diff between
interest rates of high and low risk bonds)
◉ area sampling. Answer: may be used for market research when
population lists are not available. blocks selected at random and
residents are interviewed either in total or randomly (part of market
research
◉ artificial intelligence (AI). Answer: thinking and reasoning
software based on info inputted into it by a human expert. reasoning
process involves self-correction. significant data are evaluated and
ADMINISTRATION COMPREHENSIVE TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ accelerated depreciation method. Answer: allows asset own to
take greater amounts of depreciation during early years of asset's
life, defers some of the taxes until later years
◉ acceptable quality level (AQL). Answer: quality standard that
allows for a prespecified number of defects
◉ acceptance. Answer: an assent to an offer in accordance with its
terms
◉ accounting exposure. Answer: variability in the firm's reported
values for NI and net worth that results from changes in exchange
rates
◉ accounting rate of return. Answer: capital-budgeting criterion that
relates the returns generated by the project, as measured by average
accounting profits AFTER tax, to avg dollar size of the investment
required; AKA simple ROR or unadjusted ROR
,◉ accounts receivable turnover. Answer: annual credit sales/ avg
A/R
◉ acid test ratio. Answer: (CA-inv)/CL. more stringent measure of
liquidity than current ratio. AKA quick ratio
◉ activity-based costing (ABC). Answer: system that accumulates
costs on the basis of production or service activities at a firm.
Assigns costs by activity and links them to specific products
◉ Activity-based management (ABM). Answer: system-wide,
integrated approach that focuses mgmt's attn on activities with the
objectives of improving customer value and the profit achieved by
providing this value. ABC is major source of info for this
◉ advertising. Answer: any paid form of non personal
communication designed to gain acceptance of the advertiser's
message
◉ advertising research. Answer: carried on as an aid or support
function to the advertising manager
◉ after-tax cash flow. Answer: the net cash flow (cash rev- cash exp)
after taxes have been subtracted. CF generated from operations
,◉ agency relationship. Answer: consensual arrangement between 2
persons whereby one agrees to act for the benefit of and under
control of the other person
◉ aggregate production planning. Answer: establishment of
aggregate production and inventory levels over a medium range
time horizon
◉ american terms. Answer: method of exchange-rate quotation that
gives the value of a foreign currency in USD
◉ amortized loan. Answer: loan that's paid off in periodic equal
installments and includes varying portions of principal and interest
during its term
◉ analysis of variances (variance analysis). Answer: analysis and
investigation of causes for variances between std costs and actual
costs. variance favorable if actual costs < std costs. unfavorable if
actual costs > std costs. need to investigate unfavorable variances
further to determine causes, so corrective action can be taken
◉ annual report. Answer: audited document issued annually by all
publicly listed corporations to their SH in accordance with SEC
regulations. contains info on financial results and overall
, performance of the previous fiscal year and comments on future
outlook
◉ application program. Answer: computer software written
specifically to process data in an IS. Performs tasks and solves
problems applicable to a manager's work
◉ appreciation. Answer: increase in value of one currency in terms
of another currency. when dollar appreciates, can be exchanged for
greater amounts of foreign currencies
◉ arbitrage-pricing model (APM). Answer: theory that relates stock
returns and risk. maintains that security returns vary from their
expected amounts when there are unanticipated changes in basic
economic forces (unexpected changes in industrial production,
inflation rates, terms structure of interest rates, and diff between
interest rates of high and low risk bonds)
◉ area sampling. Answer: may be used for market research when
population lists are not available. blocks selected at random and
residents are interviewed either in total or randomly (part of market
research
◉ artificial intelligence (AI). Answer: thinking and reasoning
software based on info inputted into it by a human expert. reasoning
process involves self-correction. significant data are evaluated and
