ACC/543 Sample Questions for Midterm and Final Examinations
The sample exam below is a representation of the Midterm and Final Examinations your students will take in Weeks Three and Six of this course. As in the sample exam below, the Midterm and Final Examinations will include questions that assess the course objectives. Although the sample exam contains one question per objective, the Midterm and Final Examinations will contain three questions per course objective.
Refer to the questions in the sample exam below as a representation of the type of questions your students will be asked in the Midterm and Final Examinations. Refer your students to the weekly readings and content outlines for each week as study references for the final exam.
The questions contained in the Sample Examination, Midterm and Final Examinations were selected from Operations Management for Competitive Advantage, Fundamental Financial & Managerial Accounting Concepts, and Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues.
Week One: Managerial Accounting and Capital Budgeting
Objective: Determine the present value of future cash flows from an investment.
1. Torvald's Hardware paid a contractor $45,000 to expand the store. The investment increased annual cash inflows by $8,000 per year six years. Torvald's has a desired rate of return of 10%. The net present value of this investment is which of the following? (round to the nearest dollar)
A) ($10,160)
B) ($3,000)
C) $34,842
D) $(9,207)
Objective: Differentiate among various capital budget evaluation techniques.
2. Which capital budgeting technique defines returns in terms of income instead of cash flows?
A) the internal rate of return technique
B) the net present value technique
C) the unadjusted rate of return method
D) the payback period
