Question 1

A contingency approach to leadership specifying that the leader's responsibility is to increase subordinates' motivation by clarifying the behaviors necessary for task accomplishment and rewards is called:

Accepted Answer

The description provided matches the definition of the path-goal theory of leadership, which emphasizes that the leader's responsibility is to increase subordinates' motivation by clarifying the behaviors necessary for task accomplishment and rewards. This theory suggests that there are different leadership styles (directive, supportive, participative, and achievement-oriented) that can be effective in different situations based on the characteristics of the task, the followers, and the environment.

Question 2

The process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance is called:

Accepted Answer

The accounting cycle is a process that begins with the analysis and journalizing of transactions, continues with the posting of those transactions to the ledger, and ends with the preparation of the post-closing trial balance. The other options listed (income statement, source cycle, statement of cash flows) are all financial statements that may be prepared as a result of the accounting cycle but are not synonymous with the entire process.

Question 3

A leader who clarifies subordinates' role and task requirements, initiates structure, provide rewards, and displays consideration for subordinates is known as:

Accepted Answer

A leader who clarifies subordinates' roles and task requirements, initiates structure, provides rewards, and displays consideration for subordinates is a Transactional leader. This leader uses rewards and punishments to motivate their employees and focus on achieving specific goals. They also provide structure and clarity to their employees in terms of their roles and expectations within the organization.

Question 4

To be considered reliable, accounting information must NOT posses which of the following quality?

Accepted Answer

Comparability is not a quality that directly affects the reliability of accounting information; it is more related to the usefulness of information for decision-making. Reliability focuses on verifiability, faithfulness, and neutrality.

Question 5

__________ is the unit of measurement for reporting uniform financial data and reports.

Accepted Answer

Money is the standard unit of measurement used in financial reporting to ensure uniformity and comparability of financial data.

Question 6

An information system that provides reports to stakeholders about the economic activities and condition of a business is called:

Accepted Answer

Accounting is the information system that collects, records, processes, and communicates financial information to stakeholders about the economic activities and condition of a business. It provides reports such as balance sheets, income statements, and cash flow statements, which are used by investors, creditors, and management to assess the financial position and performance of a company. Financing and investment are related to accounting but are not the same thing, and bookkeeping is a subset of accounting that involves recording financial transactions.

Question 7

The use of influence to motivate employees to achieve organizational goals is called:

Accepted Answer

The use of influence, such as through inspiration, direction or coaching, to motivate employees to achieve organizational goals is a primary function of leading. Planning involves setting objectives and determining the actions required to achieve them, organizing involves arranging resources and activities to reach objectives, and controlling involves monitoring progress and making adjustments.

Question 8

In _____________ leadership, the leader consults with his or her subordinates about decisions.

Accepted Answer

Participative leadership, also known as democratic or consultative leadership, involves the leader seeking input and suggestions from their subordinates before making decisions. This type of leadership can lead to increased job satisfaction and motivation among employees, as they feel valued and have a voice in the decision-making process.

Question 9

______________ has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

Accepted Answer

A flat structure is characterized by having a wide span, being horizontally dispersed, and having fewer hierarchical levels than tall structures. Decentralized structures may or may not be flat, and centralized structures are often tall. Therefore, the best choice is C.

Question 10

The process, managers use to transfer authority and responsibility to positions below them in the hierarchy is called:

Accepted Answer

Delegation is the process of transferring authority and responsibility from a higher-level position to a lower-level position. This allows for more efficient decision-making and allows managers to focus on higher-level tasks. Allocation, assignment, and deputation are not specifically related to transferring authority and responsibility.

Question 11

Power that results from characteristics that command subordinates' identification with, respect and admiration for, and desire to emulate the leader is called:

Accepted Answer

Referent power is based on the leader's personal characteristics that inspire subordinates to admire and emulate them. This type of power results from the leader's charisma, personality, and reputation rather than their position or authority.

Question 12

Which information includes both historical and estimated data used by people in conducting daily operations, planning future operations, and developing overall business strategies?

Accepted Answer

Managerial accounting includes both historical data on past operations as well as estimated data used for future planning and strategy development. Financial accounting only deals with historical financial data, cost accounting primarily focuses on cost data, and supervisory accounting is not a recognized accounting term.

Question 13

Power that stems from a formal management position in an organization and the authority granted to it refers to:

Accepted Answer

Legitimate power is the power that comes from a person's formal position or role within an organization. This power is derived from the person's authority to make decisions, give orders, and allocate resources, and is recognized by others in the organization as being valid and appropriate. Reward power is based on the ability to provide incentives or rewards to others, while coercive power is based on the ability to threaten or punish others. Therefore, the best choice is A) Legitimate power.

Question 14

The number of employees reporting to a supervisor is called:

Accepted Answer

Span of control refers to the number of employees who report directly to a supervisor or manager.

Question 15

What limits the economic data in the accounting system to data related directly to the activities of the business?

Accepted Answer

The business entity concept requires that a business be treated as a separate economic unit from its owners, meaning that only data related directly to the activities of the business itself should be recorded and considered in the accounting system. This limits the economic data to be relevant to the business' financial performance and excludes any personal financial information of the owners.

Question 16

A contingency approach to leadership that links leader's behavioral style with the task readiness of subordinates is known as:

Accepted Answer

The contingency approach to leadership that links leader's behavioral style with the task readiness of subordinates is known as Situational theory. It suggests that a leader's effectiveness is heavily dependent upon the specific situation, and that leaders must adjust their style to the task readiness of their subordinates. This theory was extensively studied and popularized by Paul Hersey and Ken Blanchard in their Situational Leadership Model.

Question 17

A model of leadership that describes the relationship between leadership styles and specific organizational situations is known as:

Accepted Answer

The contingency approach is a model of leadership that involves matching the leadership style with the specific organizational situation, taking into account factors such as the task, the followers, and the environment. This approach recognizes that there is no one-size-fits-all leadership style and that effective leadership is contingent upon the situation. The other options - initiating approach, behavioral approach, and leadership approach - do not specifically address the relationship between leadership styles and organizational situations.

Question 18

The annual accounting period adopted by a business is known as its:

Accepted Answer

The answer of The annual accounting period adopted by a...

Question 19

What implies that errors, which could occur during journalizing and posting transactions, should be significant enough to affect the decision making process?

Accepted Answer

Materiality implies that errors need to be significant enough to affect the decision making process. Actuality refers to the actual occurrence of a transaction, equity refers to the residual interest in the assets of an entity after deducting liabilities, and mutuality refers to the concept of reciprocal rights and obligations between parties. None of these concepts entail the significance of errors in decision making.

Question 20

A situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors is called:

Accepted Answer

A neutralizer is a situational variable that inhibits a leader from displaying certain behaviors or being effective. For example, if a leader is highly authoritative but the situation requires a high level of teamwork and collaboration, the need for teamwork and collaboration may neutralize the leader's authoritative style.

Exam 1: Certified Business Manager