BA 453 Accreditation Exam: Practice

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of:
-arbitration.

Linda files a suit against Kiley. Kiley denies Linda’s charges and sets forth his own claim that Linda breached their contract and owes Kiley money for the breach. This is:
-a counterclaim.

When companies reward employees who report valid claims of corporate unethical conduct, what are they clearly encouraging?
-whistle blowing Which of the following statements is true? When a firm records depreciation it:
-Reduces its assets

During its first month of operations, a company had credit sales of $100,000 and collected $60,000 cash from customers. The company also purchased inventory for $70,000 and had $30,000 of inventory remaining at the end of the month. The company should report a gross profit of:
-$60,000

Assume that a corporation reports the same amount of positive net income every year and does not pay-off any of its debts over time. The corporation does not pay out dividends and does not buy or sell its own stock. Which of the following is most likely to be true:
-The corporation’s return on assets will decline over time

A company has provided the following data:
If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will:
-increase by $11,000. Regarding the Eight Types of Waste that must be eliminated to implement a Just-In-Time production system, manufacturing an item before it is needed is part of which general waste category?
-Over-production

Which of the following statements is NOT correct regarding the sample correlation coefficient? -It