60.Isokari agreed to sell a cocoa plantation to Niger Cocoa Processing Industry Plc ("Niger") for N25 million. Just a few weeks after the agreement, the price of cocoa increased globally. Isokari decided not to sell the cocoa plantation to Niger any longer. Instead, Isokari formed Isokari Global Merchandising Limited ("Iso Global") and sold the plantation to it. Isokari and his wife are the only shareholders of Iso Global.

Required: As the Company Secretary of Niger, explain the legal issues and remedy to the board of directors of Niger

61.Which of the following is a financial report that financial institutions often review to decide if they will

approve applicants' requests for business loans:

A. Payment voucher C. Petty-cash summary

B. Corporation charter D. Cash-flow statement

62. The accounting system used to report a business's financial position that is intended for internal users is

the __________ accounting system.

A. financial C. computerized

B. management D. manual

63. In relation to recording business transactions, a primary difference between the cost and accrual

accounting systems is

A. complexity. C. frequency.

B. scope. D. timing.

64. Which of the following is essential to the identification of trends in financial data for a horizontal analysis:

A. Data in a Statement of Cash Flows

B. Data from the most recent financial report

C. Data in financial reports from multiple time periods

D. Data from a zero-based budget

65. By analyzing a customer's financial information, a finance professional should be able to

A. protect the security of the customer's financial information.

B. declare Chapter 11 bankruptcy for the customer.

C. develop a financial strategy to help the customer.

D. determine the customer's newest target market.

66. Before approving a loan application, a bank is likely to analyze the applicant's

A. debt ratio. C. brand preferences.

B. inflation rate. D. performance goals.

SAMPLE FINANCE EXAM

7

67. Which of the following is an example of a businessperson making a business decision by analyzing

financial data:

A. William asks the staff accountant to prepare the company's profit-and-loss statement for next

Tuesday's executive board meeting.

B. After reviewing sales forecasts and income statements, Angela determines that the company has

enough money to hire a new employee.

C. Timothy obtains a copy of the business's credit rating report from a credit bureau.

D. So she can prepare the company's tax return, Kate obtains the necessary financial documents

and forms.

68. A financial analysis indicates that a small business's customer base and its profitability have steadily

increased over the past six months. What decision is the business most likely to make with this

information?

A. Obtain a loan for equipment repairs C. Liquidate major assets

B. Hire an additional salesperson D. Monitor industry trends

69. One of the procedures for orienting new employees often involves

A. providing specialized training. C. developing a compensation package.

B. reviewing previous education. D. scheduling a periodic review.

70. Overall, what does marketing allow us to do?

A. Limit our spending C. Live our daily lives

B. Stop buying online D. Feel better about shopping

71. Which of the following is a benefit that businesses receive from using the Internet:

A. Easier use of satellite radio C. Faster connections with suppliers

B. Improved methods of manufacturing D. The ability to call employees on the road

72. An advantage to a business that uses intranet capabilities is that it allows employees to share the

business's information with

A. customers. C. each other.

B. competitors. D. former employees.

73. Ingrid is able to access information from her desktop publishing software, word-processing software, and

spreadsheet software at the same time on her personal computer. This is an example of an operating

system with __________ capabilities.

A. multiprocessing C. multitasking

B. multi-user D. multithreading

74. Melanie is putting a copy of each valuable business record in a building far away from her company. She

is practicing which part of disaster planning?

A. Establish a system for record keeping C. Keep potential lawsuits in mind

B. Store information off site D. Computerize valuable business information

75. Which of the following is a type of business record that a firm can use to track its customers' buying

habits:

A. Forecast C. Marketing budget

B. Invoice D. Annual report