BUSINESS ADMINISTRATION SENIOR
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
/. When a business erroneously records expenses as assets, it has violated the
measurement issue of
A. communication
B. classification
C. valuation
D. recognition - Answer-✅B. classification
/.Accounting:
A dividend will reduce which of the following accounts
A. dividends
B. retained earnings
C. common stock
D. accounts payable - Answer-✅B. retained earnings
/.Business Communications:
Steve is trying to understand the concern of an angry customer, but the customer is so
irate Steve is having a difficult time. The customer's emotion is an example of
A. static
B. feedback
C. miscommunication
D. noise
E. channel deficiency - Answer-✅D. noise
/.Business Communications:
All of the following are true about the social process of communication except
A. it requires face-to-face interaction
B. it allows information exchange
C. it is not an instantaneous event
D. it involves two or more people
, E. it takes place over time - Answer-✅A. it requires face-to-face interaction
/.Business Ethics:
Lying by omission involves intentionally
A. withholding material facts
B.vcreating "noise" within the communication that knowingly confuses or deceives the
receiver
C. using highly technical language that the receiver does not understand
D. trying not to hurt someone's feelings - Answer-✅A. withholding material facts
/.Business Ethics:
Conflicts of interest exist what employees must choose whether to
A. advance their own interests, those of the organization, or those of some other group
B. advance the interests of the organization or those of society
C. accept bribes
D. carry out an assignment they perceive as unethical - Answer-✅A. advance their own
interests, those of the organization, or those of some other group
/.Business Finance:
Which of the following statements is CORRECT
A. free cash flow (FCF) is, essentially, the cash flow that is available for interest and
dividends after the company has made the investments in current and fixed assets that
are necessary to sustain ongoing operations
B. after-tax operating income is calculated as EBIT(1 - T) + depreciation
C. two firms with identical sales and operating costs but with different amounts of debt
and tax rates will have different operating incomes by definition
D. if a firm is reporting its income in accordance with generally accepted accounting
principles, then its net income is reported in the income statement should be equal to its
free cash flow - Answer-✅A. free cash flow (FCF) is, essentially, the cash flow that is
available for interest and dividends after the company has made the investments in
current and fixed assets that are necessary to sustain ongoing operations
/.Business Finance:
A corporate bond currently yields 8.3%. Municipal bonds with he same risk, maturity,
and liquidity currently yield 5.5%. At what tax rate would investors be indifferent
between the two bonds
A. 33.73%
B. 28.24%
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
/. When a business erroneously records expenses as assets, it has violated the
measurement issue of
A. communication
B. classification
C. valuation
D. recognition - Answer-✅B. classification
/.Accounting:
A dividend will reduce which of the following accounts
A. dividends
B. retained earnings
C. common stock
D. accounts payable - Answer-✅B. retained earnings
/.Business Communications:
Steve is trying to understand the concern of an angry customer, but the customer is so
irate Steve is having a difficult time. The customer's emotion is an example of
A. static
B. feedback
C. miscommunication
D. noise
E. channel deficiency - Answer-✅D. noise
/.Business Communications:
All of the following are true about the social process of communication except
A. it requires face-to-face interaction
B. it allows information exchange
C. it is not an instantaneous event
D. it involves two or more people
, E. it takes place over time - Answer-✅A. it requires face-to-face interaction
/.Business Ethics:
Lying by omission involves intentionally
A. withholding material facts
B.vcreating "noise" within the communication that knowingly confuses or deceives the
receiver
C. using highly technical language that the receiver does not understand
D. trying not to hurt someone's feelings - Answer-✅A. withholding material facts
/.Business Ethics:
Conflicts of interest exist what employees must choose whether to
A. advance their own interests, those of the organization, or those of some other group
B. advance the interests of the organization or those of society
C. accept bribes
D. carry out an assignment they perceive as unethical - Answer-✅A. advance their own
interests, those of the organization, or those of some other group
/.Business Finance:
Which of the following statements is CORRECT
A. free cash flow (FCF) is, essentially, the cash flow that is available for interest and
dividends after the company has made the investments in current and fixed assets that
are necessary to sustain ongoing operations
B. after-tax operating income is calculated as EBIT(1 - T) + depreciation
C. two firms with identical sales and operating costs but with different amounts of debt
and tax rates will have different operating incomes by definition
D. if a firm is reporting its income in accordance with generally accepted accounting
principles, then its net income is reported in the income statement should be equal to its
free cash flow - Answer-✅A. free cash flow (FCF) is, essentially, the cash flow that is
available for interest and dividends after the company has made the investments in
current and fixed assets that are necessary to sustain ongoing operations
/.Business Finance:
A corporate bond currently yields 8.3%. Municipal bonds with he same risk, maturity,
and liquidity currently yield 5.5%. At what tax rate would investors be indifferent
between the two bonds
A. 33.73%
B. 28.24%
