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BUSINESS-ENVIRONMENT-AND-CONCEPTS Exam Questions & Answers

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BUSINESS-ENVIRONMENT-AND-CONCEPTS Exam Questions & Answers

Vendor: Test Prep

Certifications: Test Prep Certifications

Exam Code: BUSINESS-ENVIRONMENT-AND-CONCEPTS

Exam Name: Certified Public Accountant (Business Environment & Concept)

Updated: Sep 30, 2024

Q&As: 530

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BUSINESS-ENVIRONMENT-AND-CONCEPTS Online Practice Questions and Answers

Questions 1

Leslie, Kelly, and Blair wanted to form a business. Which of the following business entities does not require the filing of organization documents with the state?

A. Limited partnership.

B. Joint venture.

C. Limited liability company.

D. Subchapter S corporation.

Show Answer
Questions 2

Which one of the following statements pertaining to the return on investment (ROI) as a performance measurement is incorrect?

A. When the average age of assets differs substantially across segments of a business, the use of ROI may not be appropriate.

B. ROI relies on financial measures that are capable of being independently verified while other forms of performance measures are subject to manipulation.

C. The use of ROI may lead managers to reject capital investment projects that can be justified by using discounted cash flow models.

D. The use of ROI can make it undesirable for a skillful manager to take on trouble-shooting assignments such as those involving turning around unprofitable divisions.

Show Answer
Questions 3

A company plans to tighten its credit policy. The new policy will decrease the average number of days in

collection from 75 to 50 days and will reduce the ratio of credit sales to total revenue from 70 to 60 percent.

The company estimates that projected sales would be five percent less if the proposed new credit policy is

implemented. If projected sales for the coming year are $50 million, calculate the dollar impact on accounts

receivable of this proposed change in credit policy.

Assume a 360-day year.

A. $3,817,445 decrease.

B. $6,500,000 decrease.

C. $3,333,334 decrease.

D. $18,749,778 increase.

Show Answer More Questions

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