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• Sample Question #1
On an income statement, net sales minus cost of goods sold equals:
A. operating income.
B. net income.
C. gross profit.
D. pretax profit.
Answer: C
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• Sample Question #2
Company B has the following summarized Statement of Cash Flows for the year. Company B is MOST
likely in what stage of the business life-cycle?
A. Start-up - fast growing
B. Profitable - moderate growth
C. Mature - no growth
D. Declining - shrinking
Answer: B
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• Sample Question #3
Company A is a large passenger airline. As part of their annual internal budget process they do a sensitivity analysis of their
revenue forecast over their existing routes and schedules. The analysis evaluates the impact of a three percent decline in passenger
revenue compared to a three percent increase. Which of the following expenses would show the largest change in the analysis?
A. Aircraft maintenance expense
B. Salary expenses for flight crew
C. Depreciation and amortization expense
D. Income tax expense
Answer: D
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• Sample Question #4
In which situation would it be appropriate to use time-series data?
A. To study changes in the unemployment rate
B. To compare unemployment rates for various education levels
C. To relate unemployment rates in various countries
D. To analyze the unemployment rate for different age groups
Answer: A
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