Online Access Free C1 Practice Test

The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer's payment is received on April 5th. The payment clears the bank and shows on Alpha's account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?

• A.April 5th
• B.April 8th
• C.March 1st
• D.March 31st

How are the compensation communication needs of managers different from those of individual employees?

• A.They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
• B.They aren't. Managers are concerned about their compensation also.
• C.They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
• D.They are also responsible for merit increases, incentives and hiring so they have greater information needs.

Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?

• A.HR Director
• B.IT contractor
• C.Account executive
• D.Production worker

Regarding fixed and variable costs, what are Finance's primary concerns?

• A.Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
• B.Fixed costs and variable costs are equally important and both should be kept to a minimum.
• C.Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
• D.Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

What best describes what forecasting helps the organization to do?

• A.Recognize possible issues and concerns that will drive budget planning
• B.Withhold payroll taxes for all elements of compensation
• C.Prepare quarterly and annual reports and their associated statements
• D.Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle