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CCI - Consulting Case Interview - Dump Information

Vendor : Consultant
Exam Code : CCI
Exam Name : Consulting Case Interview
Questions and Answers : 50 Q & A
Updated On : Click to Check Update
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CCI Questions and Answers


Question: 46

Which of the following transactions have a negative impact on cash?

  1. A decrease in supplies on hand

  2. Proceeds from selling equipment used in the business

  3. A loss on selling equipment used in the business

  4. Dividends declared and paid

  5. An increase in income taxes payable

Answer: D

Dividends declared and paid has a negative impact on cash. The other transactions all have a positive impact on cash.

Key Takeaway: A positive impact on cash cannot only be a source of cash, but an increase in cash or a positive amount on the statement of cash flows. A negative impact on cash cannot only be cash that is used, but a decrease in cash or a negative amount on the statement of cash flows.

Question: 47

If equipment is used by a corporation in its operations and is sold at a loss, under which section on the statement of cash flows is this reported?

  1. Operating

  2. Investing

  3. Financing

  4. Supplemental

  5. It is not reported on the statement of cash flows. Answer: A

The loss on the sale of equipment is reported in the operating section of the statement of cash flows.

Key Takeaway: The loss (proceeds from the sale less the book value of the equipment) is reported under Operating Activities on the statement of cash flows. The loss appeared on the income statement, but did not actually reduce cash, although it did reduce net income.

Question: 48

The purchase of treasury stock would be shown under which section on the statement of cash flows?

  1. Operating

  2. Investing

  3. Financing

  4. Supplemental

  5. It is not reported on the statement of cash flows. Answer: C

The purchase of treasury stock would be reported under the financing section on the statement of cash flows.

Key Takeaway: Treasury stock is the corporation’s own stock that it is reacquiring, thus it is a financing activity. Changes in stockholder’s equity and long term liabilities are both shown in the financing portion of the statement.

Question: 49

What is the difference between a balance sheet and a trial balance?

  1. A trial balance does not show profit, a balance sheet does.

  2. A trial balance is used at month end and a balance sheet at year end.

  3. A trial balance is used to determine profit, a balance sheet to determine net assets.

  4. A trial balance is used to close accounts, a balance sheet to open accounts.

  5. A trial balance is an internal document, a balance sheet is an external document.

Answer: E

A trial balance is a tool used internally to check that credits and debits are equal, the balance sheet is an external document to show the financial position of the company.

Key Takeaway: The trial balance is a working document used by the accounting department. It is usually not seen anywhere else within the company. The purpose of the trial balance is to help eliminate mathematical errors and ensure that debits and credits are equal. The balance sheet is one of the four financial statements used by a business. It is a snapshot of the business’s financial position, and thus is used both internally and externally by the business.

Question: 50

Cartman’s Cats shows the following balances: Cash: $20,000 Accounts Receivable: $60,000 Inventory: $80,000 Accounts Payable: $60,000 Wages Payable : $60,000 What is the quick ratio for the business?

A. 0.2 : 1

B. 0.4 : 1

C. 0.7 : 1

D. 0.8 : 1

E. 0.6 : 1

Answer: C

The quick ratio is 0.7 : 1 and is calculated by: (Cash + Temporary Investments + Accounts Receivable) / (Accounts Payable + Wages Payable) (20,000 + 0 + 60,000) / (60,000 = 60,000) 80,000 / 120,000 0.667 Rounded to 0.7, it is

expressed as 0.7 : 1.

Key Takeaway: The quick ratio, also called the acid test ratio, is a financial ratio used to gauge a company’s liquidity. The quick ratio compares the total amount of cash, marketable securities, and accounts receivable to the amount of current liabilities.

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DOUG SCHOEN: POWAY SYNAGOGUE taking pictures CALLS US TO motion -- ANTI-SEMITISM CANT BE A POLITICAL soccer within the two years due to the fact that Austrian Chancellor Sebastian Kurz become elected, he has taken a number of crucial steps to reverse the troubling vogue of elevated anti-Semitism, as well because the general hesitancy in Austria to utterly come clean with its function within the Holocaust. in the past year, Kurz led a convention titled An end to Anti-Semitism and invited Holocaust survivors to a parliamentary commemoration of the 80th anniversary of Kristallnacht an evening of widespread lethal violence in opposition t Jews in Nazi Germany and Austria, together with attacks on over 1,000 synagogues and about 7,500 Jewish-owned companies. finally, the answer to how we may fight lack of knowledge in regards to the Holocaust and to an extent, the pervasiveness of anti-Semitism and neo-Nazism is thru complete, necessary schooling. whereas the Jewish neighborhood is encouraged by using the steps Kurz has taken in opposition t anti-Semitism, many people are involved about his close connections to the some distance-right Freedom celebration, which has been accused of praising Adolf Hitler and calling Jews subhuman. in reality, the freedom birthday party became founded by way of a former Nazi SS officer, Anton Reinthaller, who reached the rank of major conventional for his management all the way through the Nazi annexation of Austria. 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This figure itself is stunning, however peculiarly stark in comparison to the 50 % of Austrians who consider there are lots of neo-Nazis in the u.s. today. finally, the reply to how we might combat lack of awareness in regards to the Holocaust and to an extent, the pervasiveness of anti-Semitism and neo-Nazism is through complete, mandatory training. happily, as we saw within the U.S. and Canada, a majority of Austrians trust that it is critical to teach about the Holocaust partly so there is never an additional Holocaust. in the end, the common acceptance of these beliefs underscores a normal consensus that if we don't seem to be dutifully vigilant and lively in combating anti-Semitism by means of improving Holocaust schooling, the probability of one other hateful atrocity isn't some distance off. click on here TO GET THE FOX information APP it's vital that nations everywhere expand teacher training and administer standardized lesson plans overlaying a vast range of topics. although many might also agree that fewer people care in regards to the Holocaust than they used to, it is not too late to reverse this vogue. 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