1. Which of the following is not considered as emerging trends in MAS?*

a. Global risk management solution, transaction services, and financial advisory services

b. Project Finance and Privatization, valuation services, and business recovery services

c. Financial assurance services, tax planning, and development of legal strategies

d. Dispute analysis and investigations, computer risk management, and application software

2. Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

a. Decision making.

b. Planning

c. Directing operational activities

d. Controlling

3. Management of a company is attempting to build a reputation as a world-class manufacturer of quality products. Which of the following measures would not be used by the firm to measure quality?

a. The percentage of shipments returned by customers because of poor quality.

b. The number of defective parts per million.

c. The number of parts shipped per day.

d. The percentage of products passing quality tests the first time.

4. The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. All of the following are critical success factors commonly focused upon in the balanced scorecard, except:

a. Competitor business strategies

b. Employee innovation and learning

c. Financial performance measures

d. Internal business processes

5. The source of standards that uses the best performance measures anywhere is

a. Benchmarking

b. Historical data

c. Market expectations

d. Activity analysis

6.. In comparing the current ratios of two companies, why is it invalid to assume that the company with the higher current ratio is the better company?

a. The current ratio includes assets other than cash

b. A high current ratio may indicate inadequate inventory on hand

c.A high current ratio may indicate inefficient use of various assets and liabilities

d.The two companies may define working capital in different terms

7. The relationship of the total debt to the total equity of a corporation is a measure of

a. liquidity b. profitability c. creditor risk d. solvency

8. A firm earning a profit can increase its return on investment by*

a. increasing sales revenues and operating expenses by the same peso amount b. Decreasing sales revenues and operating expenses by the same percentage c. Increasing investment and operating expenses by the same peso amount d. Increasing sales revenues and operating expenses by the same percentage

9. When using a contribution margin format for internal reporting purposes, the major distinction between segment manager performance and segment performance is

a. Unallocated fixed cost

b. Direct variable costs of producing the product

c. Direct fixed cost controllable by the segment manager

d. Direct fixed cost controllable by others

10. The segment margin of the Care Division of Learner Corporation should not include

a. Fixed selling expenses of the Care Division

b. Variable selling expenses of the Care Division

c. The Care Division's fair share of the salary of Learner Corporation's president

d. Net sales of the Care Division

11. The basic purpose of a responsibility accounting system is a. motivation b. authority c. variance analysis d. budgeting

12. Responsibility accounting defines an operating center that is responsible for revenue and costs as a(n)

a. profit center b. revenue center c. division d. operating unit

13. A segment of an organization is referred to as service center if it has a. Responsibility for developing markets and selling the output of the organization b. Responsibility for combining the raw materials, direct labor and other factors of production into a final output c. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply d. Authority to provide specialized support to other units within the organization