BUS/475 Capstone Final Examination Part 2 (47/50)
1. Which of the following is not a current liability on December 31, 2014?
• A lawsuit judgment to be decided on January 10,2015

2. Continuous monitoring, in the contemporary approach, is beneficial because_____________.
• It reduces time lags

3. The acquisition of treasury stock by a corporation:
• decreases its total assets and total stockholders’ equity.

4. You work in marketing for a company that produces work boots. Quality control has sent you a memo detailing the length of time before the boots wear out under heavy use. They find that the boots wear out in an average of 208 days, but the exact amount of time varies, following a normal distribution with a standard deviation of 14 days. For an upcoming ad campaign, you need to know the percent of the pairs that last longer than six months-that is, 180 days. Use the empirical rule to approximate this percent.
• 97.5%
• %

5. __________involves ensuring proper strategic controls and organizational designs.
• Strategy implementation

6. A post-closing trial balance will show:
• only balance sheet accounts

7. The preparation of adjusting entries is:
• needed to ensure that the expense recognition principle is followed.

8. In a simple linear regression model, if the plots on a scatter diagram lie on a straight line, what is the standard error of the estimate?
• 0

9. The fraud triangle applies to:
• U.S and international companies.

10. According to value-chain analysis, which of the following would be considered part of the general administration in a firm?
• information systems

11. Which of the following can be represented by a discrete random variable?
• The number of defective light bulbs in a sample of five

12. What is an advantage of the correlation coefficient over the covariance?
• It falls between -1 and 1; and it