UGBA 104 Module 1 Practice Test Exam Latest Questions and Answers

UGBA 104 Module 1 Practice Test Exam Latest Questions and Answers 1) Alonzo is an experienced CPA who has been hired for a professional position at PWC to advise corporations on mergers. Which of the following terms BEST describes Jose's capacity as an accountant? A) noncertified public accountant B) private accountant C) forensic accountant D) accountant providing management advisory services E) management accountant - CORRECT ANSWER-Answer: D See page 221, paragraph 2 of custom textbook 2) The Federal Reserve has a Dual Mandate as discussed in lecture, meaning it has two main goals in conducting monetary policy. Which one of the following is not part of the "Fed's" dual mandate? a) to limit inflation b) to increase stock prices c) to minimize unemployment d) All of the above are included in the Fed's dual mandate - CORRECT ANSWERAnswer: B Explanation: The Federal Reserve's dual mandate was determined by Congress in 1977. It is to promote maximum sustainable employment and price stability. Price stability is usually interpreted as low and stable inflation. The dual mandate was shown in lecture on the overhead projector. 3) Which of the following statements is TRUE? A) As common practice, a prospective equity investor in a firm receives information from the firm's financial accounting system. B) As common practice, a prospective equity investor in a firm receives information from the firm's managerial accounting system. C) As common practice, a prospective equity investor in a firm receives information from both the firm's managerial accounting system and its financial accounting system. D) As common practice, a prospective equity investor in a firm receives information from the firm's revenue accounting system. E) As common practice, a prospective equity investor in a firm does not receive any information from the firm's accounting system. - CORRECT ANSWER-Answer: A Explanation: A) The financial accounting system is concerned with external users. 4) Suppose General Motors owns an automobile plant in Brazil. How much of the total value of goods and services produced by the plant will be included in US GNP? a) All of the value of goods and services produced b) The profits earned by the plant c) The salaries paid to the Brazilian workforce d) None of the value - CORRECT ANSWER-Answer: B. Explanation: Inclusion in GNP depends on ownership of the factors - the US ownership of GM leads to the product of the capital factor (profit) to be included. See page 21 of custom textbook. Use the following information to answer the next 2 questions: Mark's Pizza pays $900 fixed rent per month and each pizza costs $4 in ingredients and hourly paid labor. Pizzas sell for $7 per pizza. 5) What is the break even number of pizzas for Mark's pizza? a) 225 pizzas b) 300 pizzas c) 667 pizzas d) 900 pizzas - CORRECT ANSWER-Answer: B Calculation: Unit CM = $7 - $4 = $3 Q_breakeven = F/Unit CM = $900/$3 = 300 units Mark's Pizza pays $900 fixed rent per month and each p