Accounting final 3

Which of the following businesses would normally be classified as a "service provider"? Choose all that apply.

A health maintenance organization An accounting firm A shipping company

3: Choose ALL the TRUE statements from those listed below.

Accounting information systems track both monetary and non-monetary information. Correct. The sales and cash receipts cycle will not only capture monetary information such as the sale amount, but will also capture non-monetary information about the customer such as his address, phone number and prior purchasing habits. Correct Answer Information from the inventory and warehousing system ties directly into the sales and cash receipts system.

What is the most important output of an accounting information system?

Useful information that internal and external users can evaluate to help them make decisions.

What is the most important output of an accounting information system? Correct!

Useful information that internal and external users can evaluate to help them make decisions.

Use the business model drop-down lists as provided to classify each company noted below: Company A purchases farm fresh produce from farmers across the US and then sells it to a variety grocery store chains in California. [ Select ] ["Service provider", "Manufacturer", "Retailer", "Wholesaler"] Company B provides voice lessons to students after school for $20 a lesson. [ Select ] ["Wholesaler", "Hybrid", "Service provider", "Manufacturer"] Company C produces automobiles, sells them directly to consumers and provides them loans with which to buy the automobiles.Hybrid Company D sells candy in bulk at a street corner downtown.Retailer

-Wholesaler -Service provider -Hybrid -Retailer

Assume Company A regularly produces defective products. In which of the following phases of the management cycle, would the real work be performed that would help eliminate, duplicate, or possibly ignore, the defects.

Improve

Choose ALL the TRUE statements from those listed below.

Information from the inventory and warehousing system ties directly into the sales and cash receipts system. The payroll and personnel cycle does not directly affect the cash account. Correct! Accounting information systems track both monetary and non-monetary information.

A company's cash account is directly linked to all of the following financial transaction cycles EXCEPT:

Inventory and warehousing

What is the most important benefit to the management cycle of having a good accounting information system?

It provides management with the information needed to carry out the phases of the management cycle.

Match the financial transaction cycle on the left with its cash impact on the right.

Purchases and payments Results in cash payments being made to suppliers for purchases of product. Correct!Inventory and warehousing Results in an indirect affect on cash. Correct!Sales and cash receipts Results in cash increasing when customers make their required payments. Correct!Capital acquisition and repayment Can result in cash payments for principle and interest made to banks in relation to amounts the company borrowed.

Match the business type on the left with the best description of it on the right.

Service provider A company that sells its expertise and time to customers. Correct!Manufacturer A company that takes raw materials, labor and non-direct costs to produce a product. Correct!Wholesaler, Distributor A company that purchases products from one company and sells it to another company. Correct!Retailer A company that sells products to the end consumer. Correct!Hybrid A company that utilizes multiple business model types to deliver goods and services to customers.

Use the business model drop-down lists as provided to classify each company noted below: Company A provides voice lessons to students after school for $20 a lesson.Service provider Company B produces automobiles, sells them directly to consumers and provides them loans with which to buy the automobiles. [ Select ] ["Manufacturer", "Retailer", "Wholesaler", "Hybrid"] Company C sells candy in bulk at a street corner downtown. [ Select ] ["Hybrid", "Retailer", "Manufacturer", "Service provider"] Company D purchases farm fresh produce from farmers across the US and then sells it to a variety of grocery store chains in California. [ Select ] ["Wholesaler", "Manufacturer", "Service provider", "Government"]

Service provider Correct. This company provides voice lessons as a service to its customers. Answer 2:Correct!Hybrid Correct. Because it combines two or more business models, a manufacturer, a retailer, and a loan service provider, it is known as a "hybrid". Answer 3:Correct!Retailer Correct. A retailer is a business that sells products directly to the end consumer. Answer 4:Correct!Wholesaler

Use the business model drop-down lists as provided to classify each company noted below: Company A purchases farm fresh produce from farmers across the US and then sells it to a variety grocery store chains in California. [ Select Company B provides voice lessons to students after school for $20 a lesson. [ Select Company C produces automobiles, sells them directly to consumers and provides them loans with which to buy the automobiles. [ Select Company D sells candy in bulk at a street corner downtown. [ Select

Wholesaler Service provider Hybrid Retailer

Use the business model drop-down lists as provided to classify each company noted below: Company A purchases farm fresh produce from farmers across the US and then sells it to a variety grocery store chains in California. [ Select ] ["Service provider", "Retailer", "Wholesaler", "Manufacturer"] Company B provides voice lessons to students after school for $20 a lesson. [ Select ] ["Wholesaler", "Hybrid", "Service provider", "Manufacturer"] Company C produces automobiles, sells them directly to consumers and provides them loans with which to buy the automobiles. [ Select ] ["Retailer", "Manufacturer", "Hybrid", "Wholesaler"] Company D sells candy in bulk at a street corner downtown. [ Select ] ["Service provider", "Retailer", "Manufacturer", "Hybrid"]

Wholesaler Correct. A wholesaler purchases finished products from a manufacturer (the farmer in this case) and then resells them to a retailer (the grocery stores in this case). Answer 2:Correct!Service provider Correct. This company provides voice lessons as a service to its customers. Answer 3:Correct!Hybrid Correct. Because it combines two or more business models, a manufacturer, a retailer, and a loan service provider, it is known as a "hybrid". Answer 4:Correct!Retailer

The key purpose of the management cycle is to:

help an organization achieve its objectives.

A company's cash account is directly linked to which of the following accounts? (Choose all that apply)

Capital acquisition and repayment Correct. The cash account is directly used to pay for capital acquisitions. Correct! Sales and cash receipts Correct. The cash account directly receives cash from sales. Correct! Purchases and payments

A company's cash account is normally INCREASED by transactions recorded in (choose all that apply).

Capital acquisition and repayment cycle Correct. When capital is acquired, such capital is often cash, thus directly increasing the company's cash account. Correct! Sales and cash receipts cycle

A company's cash account is normally DECREASED by transactions recorded in (choose all that apply).

Capital acquisition and repayment cycle Personnel and payroll cycle

Which of the following businesses is LEAST likely to be classified as a "service provider"?

Clothes store

Which of the following businesses is MOST likely to be classified as a "manufacturer"?

Fishing Company

Choose the TRUE statement from the list provided below.

Management by exception is used during the control phase of the management cycle.

Use the business model drop-down lists as provided to classify each company noted below: Company A purchases plastic pellets, melts them down, injects them into molds to produce chew toys for dogs. [ Select ] ["Manufacturer", "Service provider", "Retailer", "Wholesaler"] Company B charges its customers $100 to prepare and submit their tax returns for them.Service provider Company C sells swimsuits at the local shopping mall. [ Select ] ["Service provider", "Manufacturer", "Hybrid", "Retailer"] Company D purchases fresh tuna fish from the fisherman and then sells the fish to the local grocery stores.Wholesaler

Manufacturer Correct. Manufacturer produce something using raw materials, labor and overhead and then sell it to a customer. Answer 2:Correct!Service provider Correct. A service provider charges customers a fee in exchange for providing assistance of some kind. Answer 3:Correct!Retailer Correct. A retailer is a business that sells products directly to the end consumer. Answer 4:Correct!Wholesaler

Use the business model drop-down lists as provided to classify each company noted below: Company A purchases plastic pellets, melts them down, injects them into molds to produce chew toys for dogs. [ Select ] ["Service provider", "Manufacturer", "Retailer", "Wholesaler"] Company B charges its customers $100 to prepare and submit their tax returns for them. [ Select ] ["Wholesaler", "Hybrid", "Retailer", "Service provider"] Company C sells swimsuits at the local shopping mall. [ Select ] ["Hybrid", "Retailer", "Service provider", "Manufacturer"] Company D purchases fresh tuna fish from the fisherman and then sells the fish to the local grocery stores. [ Select ] ["Hybrid", "Service provider", "Manufacturer", "Wholesaler"]

Manufacturer Correct. Manufacturer produce something using raw materials, labor and overhead and then sell it to a customer. Answer 2:Correct!Service provider Correct. A service provider charges customers a fee in exchange for providing assistance of some kind. Answer 3:Correct!Retailer Correct. A retailer is a business that sells products directly to the end consumer. Answer 4:Correct!Wholesaler

Match the phase of the management cycle on the left with its summary description on the right.

Plan here mgmnt develops objectives and plans to achieve them. Correct!Direct the day-to-day process mgmnt uses to ensure effective and efficient business operations. Correct!Control process that mgmnt uses to discover areas performing contrary to plan. Correct!Improve process by which companies make continuous improvements throughout the organization's production, services and employee abilities. Correct!Decide process by which mgmnt reviews available alternatives to solve problems, chooses best alternative to stay on plan toward its objectives. Correct!Tax This is not one of the phases of the management cycle

Use the business model drop-down lists as provided to classify each company noted below: Company A teaches people how to play tennis and charges $50 per each 30 minute lesson.Service provider Company B purchases fresh tuna fish from the fisherman and then sells the fish to the local grocery stores. [ Select ] ["Hybrid", "Manufacturer", "Service provider", "Wholesaler"] Company C sells swimsuits at the local shopping mall. [ Select ] ["Hybrid", "Retailer", "Service provider", "Manufacturer"] Company D produces children's books and sells them directly to children. [ Select ] ["Wholesaler", "Manufacturer", "Hybrid", "Retailer"]

Service provider Correct. A service provider charges customers a fee in exchange for providing assistance of some kind. In this example, the service provided is a tennis lesson. Answer 2:Correct!Wholesaler Correct. A wholesaler (also known as a distributor or a middleman) purchases finished products from a manufacturer and then resells them to a retailer. Answer 3:Correct!Retailer Correct. A retailer is a business that sells product or services directly to the end consumer. In this case, the company is selling swimsuits directly to consumers. Answer 4:Correct!Hybrid

Use the business model drop-down lists as provided to classify each company noted below: Company A provides voice lessons to students after school for $20 a lesson. [ Select ] ["Service provider", "Hybrid", "Manufacturer", "Wholesaler"] Company B produces automobiles, sells them directly to consumers and provides them loans with which to buy the automobiles. [ Select ] ["Hybrid", "Wholesaler", "Manufacturer", "Retailer"] Company C sells candy in bulk at a street corner downtown. [ Select ] ["Service provider", "Retailer", "Hybrid", "Manufacturer"] Company D purchases farm fresh produce from farmers across the US and then sells it to a variety of grocery store chains in California. [ Select ] ["Manufacturer", "Wholesaler", "Government", "Service provider"]

Service provider Correct. This company provides voice lessons as a service to its customers. Answer 2:Correct!Hybrid Correct. Because it combines two or more business models, a manufacturer, a retailer, and a loan service provider, it is known as a "hybrid". Answer 3:Correct!Retailer Correct. A retailer is a business that sells products directly to the end consumer. Answer 4:Correct!Wholesaler

If a company needed to conserve cash (i.e. save cash) in which of the following cycles could it delay cash payments? Choose all that apply.

capital acquisition and repayment Correct Answer Purchases and payments Correct Answer Personnel and payroll

Choose the three financial transaction cycles below that normally result in the largest cash OUTFLOWS in a given year?

capital acquisition and repayment Purchases and payments Correct. The cash payments required to pay suppliers for purchases made during a year tend to result in significant cash outflows for most companies. Correct Answer Personnel and payroll