Question

61. The law that specifically prohibits payments to foreign officials in order to attain business is known as ________.

Group of answer choices

A) FCPA

B )BICPA

C) SOX

D) IFRS

62. The managers of an organization are responsible for performing several broad functions. They are ________.

Group of answer choices

A)planning, controlling, and selling

B)directing, controlling, and evaluating

C)planning, controlling, and evaluating

D)planning, evaluating, and manufacturing

63. The stockholders of a company are:

Group of answer choices

A)the owners

B)responsible and liable for the financial well-being of the company

C)operating within the company as independent shareholders

D)policy setters

78. Variable costs are expenses that ________.

Group of answer choices

A) remain constant on a per-unit basis and remain constant in total regardless of activity level

B) remain constant in total regardless of activity level within a relevant range

C) remain constant on a per-unit basis but change in total based on activity level

D) decrease on a per-unit basis as activity level increases

64 Which of the following represents the components of the income statement for a manufacturing business?

Group of answer choices

A) Service Revenue - Operating Expenses = gross profit

B) Sales Revenue - Cost of Goods Manufactured = gross

C) Sales Revenue - Cost of Goods Sold = gross profit

D) Service Revenue - Cost of Goods Manufactured = gross profit

Answer 1

61. Answer is A)

The US Foreign Corrupt Practices Act is the law which specifically prohibits the payments to foreign officials in order to attain business. The SOX is for regulation of securities related transactions which has made stricter provisions for violations. IFRS is International financial reporting standards which issues standards for financial reporting. BICPA is not the answer. Hence answer is FCPA

62. Answer is C)

Managers are responsible for planning, controlling and evaluating. Planning is to plan for future, controlling is comparison of actual with budgets and evaluation is appraisal. Selling and manufacturing are not the answer. Evaluating and controlling are one and the same. The answer for this question is planning, directing and controlling, but the answer option is not available.

63. Answer is A)

The Stockholders are the owners of the company who have common shares of the firm. They are not responsible for the financial well being of the firm instead it is the management team which is responsible for the well being of the firm. They are not policy setters as they do not set any policies. Stockholders do not operate within the company

78. Answer is C)

Variable cost is the cost which is constant at per unit level. For example: Direct material, direct labor. They change in total based on the production or sales level. The reason being the per unit cost is multiplied by the total production or sales volume. The amount which remains constant at overall level is fixed cost and fixed cost per unit changes as per variation in volume levels or activity levels.

64. Answer is C)

A manufacturing entity has finished goods inventory. It has cost of goods sold. Cost of goods sold is computed by opening stock + Cost of goods manufactured less closing stock. It is deducted from sales revenue to get gross profit. A manufacturing company does not render service hence it does not have service revenue.