Peregrine Academic Services Test Bank Questions Undergraduate Level, CPC-COMP Exam

3261 When a business erroneously records expenses as assets, it has violated the measurement issue of

A. communication.

B. classification.

C. valuation.

D. recognition.

E.

3302 A dividend will reduce which of the following accounts?

A. Dividends

B. Retained Earnings

C. Common Stock

D. Accounts Payable

E.

3342 Unearned revenues are recorded by companies that

A. receive money in advance of the performance of a service.

B. pay money at the time the performance of a service is complete.

C. receive money at the time the performance of a service is complete.

D. pay money in advance of the performance of a service.

E.

Peregrine Academic Services Test Bank Questions

Undergraduate Level, CPC-COMP Exam

Topic: Business Ethics

Subtopic:Business Ethics

3072 Lying by omission involves intentionally

A. withholding material facts.

B. creating “noise” within the communication that knowingly confuses or deceives the receiver.

C. using highly technical language that the receiver does not understand.

D. trying to not hurt someone’s feelings.

E. telling “white lies.”

3074 Conflicts of interest exist when 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.

E. report an unethical coworker.

3077 Which of the following is not an ethical issue in the area of communications?

A. Concealed facts in advertising

B. Bribery

C. False or deceptive advertising

D. Ambiguous statements in advertising

E. Lying

Peregrine Academic Services Test Bank Questions

Undergraduate Level, CPC-COMP Exam

Topic: Business Finance

Subtopic:Business Finance

3139 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 as reported on the income statement should be equal to its free cash flow.

E. Retained earnings as reported on the balance sheet represent cash and, therefore,

are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers.

3151 A corporate bond currently yields 8.3%. Municipal bonds with the 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%

C. 25.98%

D. 42.17%

E. 29.01%

3408 One problem with ratio analysis is that relationships can sometimes be manipulated. I.E, if our current ratio is greater than 1.5 then borrowing on a short-term basis & using the funds to build up our cash account would cause the current ratio to INCREASE

A. True

B. False

C.

D.

E.

Peregrine Academic Services Test Bank Questions

Undergraduate Level, CPC-COMP Exam

Topic: Business Integration

Subtopic:Business Integration

2514 Firms implementing cost leadership strategies often sell no-frills standardized goods or services to the industry’s most typical customers.

A. True

B. False

C.

D.

E.