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TEXAS BUSINESS & FINANCE 6-12 PRACTICE TEST
QUESTIONS AND ANSWERS GRADED A+ LATEST UPDATE.
Which of the four functions of management consists of monitoring and evaluating
employees?
a.Organizing
b.Leading
c.Planning
d.Controlling - ANS >> d.
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When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once
a.every month.
b.every two months.
c.every six months.
d.every year. - ANS >> Option A is correct because income statements are usually
produced once a month to ensure expense review and control.
Which of the following best identifies the use of debt financing to raise capital?
a.Convertible securities
b.Direct stock offerings
c.Promissory notes
d.Initial public offerings - ANS >> Option C is correct because a promissory note
would indicate a loan and debt financing to raise capital.
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Which of the following occurs after a customer withdraws money from an automated
teller machine?
a.The customer's access privileges are checked.
b.The debit is posted to the account.
c.The connection to the server is established.
d.The system verifies that the customer has an account. - ANS >> Option B is correct
because after the customer has withdrawn money from the account via the ATM, the
amount is deducted from the customer's account balance.
A lending company will review a borrower's accounting documentation to evaluate
a. creditworthiness.
b.current assets to past liabilities.
c.the expenses in terms of employee risk management.
d.the aggregate statistics relating to the likelihood that a competitor will enter the
market. - ANS >> Option A is correct because credit-worthiness is the key
determinant of how likely it is that the loan will be repaid
Which of the following doctrines prevents a person from insuring a neighbor's house?
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a.Doctrine of contribution
b.Doctrine of subrogation
c.Doctrine of indemnification
d.Doctrine of insurable interest - ANS >> Option D is correct because doctrine of
insurable interest means that a person will suffer financial or other kinds of loss when
they lose or damage a particular property.
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count?
a.The periodic inventory system
b.The perpetual inventory system
c.The temporary inventory system
d.The just-in-time inventory system - ANS >> Option B is correct because the
perpetual inventory system is designed to record the actual costs affiliated with
inventory using a physical count.
Which of the following valuations is used to calculate the straight-line depreciation of an
asset?
a.Market value
mailto:https://www.stuvia.com/en-us/user/techgrades
TEXAS BUSINESS & FINANCE 6-12 PRACTICE TEST
QUESTIONS AND ANSWERS GRADED A+ LATEST UPDATE.
Which of the four functions of management consists of monitoring and evaluating
employees?
a.Organizing
b.Leading
c.Planning
d.Controlling - ANS >> d.
mailto:https://www.stuvia.com/en-us/user/techgrades
,mailto:https://www.stuvia.com/en-us/user/techgrades
When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once
a.every month.
b.every two months.
c.every six months.
d.every year. - ANS >> Option A is correct because income statements are usually
produced once a month to ensure expense review and control.
Which of the following best identifies the use of debt financing to raise capital?
a.Convertible securities
b.Direct stock offerings
c.Promissory notes
d.Initial public offerings - ANS >> Option C is correct because a promissory note
would indicate a loan and debt financing to raise capital.
mailto:https://www.stuvia.com/en-us/user/techgrades
,mailto:https://www.stuvia.com/en-us/user/techgrades
Which of the following occurs after a customer withdraws money from an automated
teller machine?
a.The customer's access privileges are checked.
b.The debit is posted to the account.
c.The connection to the server is established.
d.The system verifies that the customer has an account. - ANS >> Option B is correct
because after the customer has withdrawn money from the account via the ATM, the
amount is deducted from the customer's account balance.
A lending company will review a borrower's accounting documentation to evaluate
a. creditworthiness.
b.current assets to past liabilities.
c.the expenses in terms of employee risk management.
d.the aggregate statistics relating to the likelihood that a competitor will enter the
market. - ANS >> Option A is correct because credit-worthiness is the key
determinant of how likely it is that the loan will be repaid
Which of the following doctrines prevents a person from insuring a neighbor's house?
mailto:https://www.stuvia.com/en-us/user/techgrades
, mailto:https://www.stuvia.com/en-us/user/techgrades
a.Doctrine of contribution
b.Doctrine of subrogation
c.Doctrine of indemnification
d.Doctrine of insurable interest - ANS >> Option D is correct because doctrine of
insurable interest means that a person will suffer financial or other kinds of loss when
they lose or damage a particular property.
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count?
a.The periodic inventory system
b.The perpetual inventory system
c.The temporary inventory system
d.The just-in-time inventory system - ANS >> Option B is correct because the
perpetual inventory system is designed to record the actual costs affiliated with
inventory using a physical count.
Which of the following valuations is used to calculate the straight-line depreciation of an
asset?
a.Market value
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