Texas Business and Finance 6-12 (276)
questions and answers 2025\2026 A+ Grade
When a company is trying to regulate its spending and track incoming funds, the accountant should
prepare an income statement once
- correct answer every month.
A lending company will review a borrower's accounting documentation to evaluate
- correct answer creditworthiness.
Which of the following doctrines prevents a person from insuring a neighbor's house?
- correct answer Doctrine of subrogation
Which of the following inventory systems is designed to record the actual costs associated with the
inventory using a physical count?
- correct answer The perpetual inventory system
In which of the following sections of the balance sheet is prepaid insurance recorded?
- correct answer Assets
Which of the following statements is generally true about the purchasing function today?
- correct answer Purchasing is evolving into strategic supply management.
The owner of a small boat rental company opened the business as a sole proprietorship but has since
decided to bring a friend into the business. It is best for the owner, who is concerned about the cost of
changing the form of the company's organization, to change the business structure to a
- correct answer partnership.
Kim, a young college student, has decided to start a business. She does not have much capital but
believes the business can generate capital through an initial public offering (IPO). An IPO is categorized
as
- correct answer equity.
, The marketing department of a small business wants to obtain information about how and why a
product continues to be successful after many years. Which of the following research techniques will be
most effective?
- correct answer Requesting user surveys
Which of the following best describes management practices that promote adaptability in a global
business environment?
- correct answer Changing strategies to accommodate local conditions
Which of the following types of compensation has the greatest positive effect on employee motivation
and productivity?
- correct answer Varied and attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must
- correct answer conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of ethics with the
Securities and Exchange Commission and ensure that its senior financial officers are aware of the policy.
Which of the following mandates this requirement?
- correct answer Sarbanes-Oxley Act
Which of the following advertising claims is most likely to prompt an inquiry by the Federal Trade
Commission?
- correct answer Using our cream guarantees no more wrinkles.
In which of the following situations has a tort occurred?
- correct answer A firework spark lands on a neighbor's tree and burns it down.
Which of the following policies will most likely increase foreign trade?
- correct answer Establishing free-trade zones
Which of the following statements regarding the taxation and international business operations of a
company in its residence and source states is true?
- correct answer The residence state mitigates the tax.
questions and answers 2025\2026 A+ Grade
When a company is trying to regulate its spending and track incoming funds, the accountant should
prepare an income statement once
- correct answer every month.
A lending company will review a borrower's accounting documentation to evaluate
- correct answer creditworthiness.
Which of the following doctrines prevents a person from insuring a neighbor's house?
- correct answer Doctrine of subrogation
Which of the following inventory systems is designed to record the actual costs associated with the
inventory using a physical count?
- correct answer The perpetual inventory system
In which of the following sections of the balance sheet is prepaid insurance recorded?
- correct answer Assets
Which of the following statements is generally true about the purchasing function today?
- correct answer Purchasing is evolving into strategic supply management.
The owner of a small boat rental company opened the business as a sole proprietorship but has since
decided to bring a friend into the business. It is best for the owner, who is concerned about the cost of
changing the form of the company's organization, to change the business structure to a
- correct answer partnership.
Kim, a young college student, has decided to start a business. She does not have much capital but
believes the business can generate capital through an initial public offering (IPO). An IPO is categorized
as
- correct answer equity.
, The marketing department of a small business wants to obtain information about how and why a
product continues to be successful after many years. Which of the following research techniques will be
most effective?
- correct answer Requesting user surveys
Which of the following best describes management practices that promote adaptability in a global
business environment?
- correct answer Changing strategies to accommodate local conditions
Which of the following types of compensation has the greatest positive effect on employee motivation
and productivity?
- correct answer Varied and attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must
- correct answer conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of ethics with the
Securities and Exchange Commission and ensure that its senior financial officers are aware of the policy.
Which of the following mandates this requirement?
- correct answer Sarbanes-Oxley Act
Which of the following advertising claims is most likely to prompt an inquiry by the Federal Trade
Commission?
- correct answer Using our cream guarantees no more wrinkles.
In which of the following situations has a tort occurred?
- correct answer A firework spark lands on a neighbor's tree and burns it down.
Which of the following policies will most likely increase foreign trade?
- correct answer Establishing free-trade zones
Which of the following statements regarding the taxation and international business operations of a
company in its residence and source states is true?
- correct answer The residence state mitigates the tax.
