Business Administration #4
In a(n) funds transfer system, transactions are sent directly from one computer to another.
electronic
An important factor in enforcing ethics codes is selecting a(n) .
ethics, officer
Financial control is a process through which a firm periodically compares its budget to which of the following?
expenses revenues costs
How much money a firm will borrow often depends on how long it takes to convert inventory into .
revenue
What is the term for all resources that come into the firm from operating activities?
revenue
The money supply term that includes accounts that can be accessed quickly and easily and most savings accounts, mutual funds, and Certificates of Deposit is .
M-2
How long does copyright protection for published works last?
Life of author, plus 70 years
refers to how fast an asset can be converted into cash.
Liquidity
The money supply term that refers to money that can be accessed quickly and easily is .
M-1
What type of law includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances?
Statutory law
are shares of ownership in a company.
Stocks
Items that may back a secured bond include ______.
machinery and equipment real estate
Compliance-based ethics codes focus on:
penalizing wrong-doers increasing control
The statement of cash flows is a financial statement that shows ______.
cash receipts and disbursements
Customers can have access to most banking functions electronically, wherever the customer is located through the use of banking.
online
Rent, salaries, supplies, utilities, and insurance are examples of expenses that are general expenses.
operating
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ______.
operating expenses
Stockholders are the of a public corporation.
owners
The major categories of the balance sheet are assets, liabilities, and ______.
owners' equity
What is the difference between assets and liabilities?
owners' equity
Which of the following is included in the M-1 money supply?
checks
The check function of the Federal Reserve enables banks to settle demand deposits between member banks.
clearing
A term-loan agreement is a promissory note that requires the borrower to ______.
pay specified amount in installments pay interest on a loan
Which are considered to be nonbank financial institutions?
pension funds insurance companies brokerage firms
An accountant's time is freed up to do more important tasks such as financial analysis due to the assistance provided by using ______.
computerized accounting programs
Corporate social responsibility is based on a
concern for the welfare of society
A lasts for the lifetime of the author or artist plus 70 years and can be passed on to the creator's heirs.
copyright
A common form of cheating in schools today that cuts and pastes information from the internet without giving credit is .
plagiarism
Jayleen works for her firm preparing and analyzing its financial statements. She would be called a(n) ______ accountant.
private
The of measures the cost of merchandise the firm sells or the materials and supplies used to manufacture them for sale.
cost, goods, sold
Common law is the body of law that comes from:
decisions handed down by courts
Which type of accountant would be available to businesses or individuals on a fee basis?
public accountant
The formula for the costs of goods sold is ______.
purchase price + freight charges + storage costs
An accounting system is used to ______.
record and summarize accounting data into reports
The is a percentage of commercial banks' checking and savings accounts they must keep in the bank.
reserve, requirement
Accumulated earnings from a firm's profitable operations that are reinvested in the business and not paid to stockholders are .
retained, earnings
The profit a firm keeps and reinvests in the firm is referred to as .
retained, earnings
A(n) bond is one that is backed by assets which may be claimed if the bond's interest is not paid.
secured
A -term forecast is usually for one year or less.
short
A checking account is also referred to as a ______.
demand deposit
Cash flow analysis is especially important for which of the following?
small businesses
Many companies believe they have a role in promoting , so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.
social, justice
Cash receipts and disbursements related to operations, investments, and financing are reported on the ______.
statement of cash flows
An IPO is the first public offering of a corporation's .
stock
In a public corporation, the ownership is held by .
stockholders
Which are considered to be the working areas of accounting?
tax accounting government and not-for-profit accounting auditing managerial accounting financial accounting
Government and nonprofit accounting involves working for organizations whose purpose is to serve ______.
taxpayers ratepayers
Users of managerial accounting information include ______.
the Chief Financial Officer department managers
To issue stock, a public corporation must meet the requirements of ______.
the SEC (Securities and Exchange Commission) various state agencies
Stockholders, or owners' equity represents ______.
the value of the business that belongs to owners
Corporate social responsibility is a business's concern for:
the welfare of society
A firm that buys goods and services on a given day, but pays for them later is using a(n) credit.
trade
When the Federal Reserve buys and sells government bonds it is ______.
engaging in open market operations
A firm that does not want to pay back a loan will use ______ financing. A firm that does not want to give up ownership will use ______ financing.
equity; debt
A summary of all the financial transactions that have occurred over a particular period is referred to as a ______.
financial statement
A company's effectiveness and financial performance are most affected by responsible management.
human, resource
Nike suffered criticism due to its violations in their overseas manufacturing facilities.
human, right
Executives at Enron and Tyco were found guilty of behavior that damaged their companies' reputations.
illegal
What inventory management procedure helps a firm to control inventory costs?
implementing a just-in-time inventory control method
The saying "too much money chasing too few goods," is used to refer to ______.
inflation
Managerial accounting is used to provide information ______.
inside the firm
The use of private information about a company by an employee for personal financial gain is:
insider trading
A(n) ethics code creates an environment which supports ethically sound behavior by stating an organization's guiding values, shared responsibilities, and accountability.
integrity, based
A willful act that results in injury is called a(n):
intentional tort
A(n) is a record book or computer program where accounting data are first entered.
journal
A tax accountant has specialized and learned tax and is responsible for preparing tax returns.
law
Information in the journal is transferred to the , so managers can find all the information about a single account in one place.
ledger
What are the major categories on the balance sheet?
liabilities assets owners' equity
A patent is protected for years.
20
Anything that can be used for payment of goods and services is defined as .
money
Defenders of CSR argue that it makes more for investors in the long run.
money
The first public offering of a corporation's stock is called ______.
an initial public offering (IPO)
Stakeholders who want to look at detailed financial information on whether a company is profitable, is able to pay its bills, and how much debt it owes will look at the firm's ______.
annual report
Reviewing and evaluating records used to prepare a company's financial statements is referred to as ______.
auditing
The key working areas of accounting include managerial accounting, financial accounting, tax accounting, government and nonprofit accounting, and .
auditing
The line is another name for net income after taxes.
bottom
Ethical problems such as influence peddling and bribery:
occur in many countries
Why can loans obtained from families and friends be problematic?
because all parties may not understand cash flow
When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n) as the basis for making decisions.
budget
law is written law that includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances.
Statutory
A business should be managed ethically because
businesses with good reputations attract customers it reduces the likelihood of lawsuits by employees or customers it reduces employee turnover
A firm that makes a major investment in a long-term asset has made a(n) expenditure.
capital
The dimension of social responsibility known as responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.
corporate
The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:
corporate policy
During tough economic times, customers are happy when firms extend for purchases.
credit
When implementing a new ethics program, businesses must also communicate the changes to outside parties such as:
customers
The function of acquiring and managing funds within a firm is referred to as .
finance
Because they indicate a firm's financial health and stability, the use of ______ are key factors in management decision making.
financial statements
Open-market operations consist of the buying and selling of ______.
government bonds
Where is accounting data first entered?
in a journal
Which financial statement summarizes revenues, costs, and expenses for a specific period?
income statement
Firms will leverage (raise needed funds through borrowing) because it will ______.
increase a firm's rate of return on ownership's investment
A condition characterized by a continual rise in prices for goods and services is termed ______.
inflation
An important reason for a company to maintain its ethical reputation is
it attracts and retains customers
The branch of government oversees the legal system through a system of courts.
judicial
Accounts payable, notes payable, and bonds payable are all common ______.
liability accounts
It is better to go to banks instead of family and friends for business loans because ______.
loans from family can hurt family relationships banks can assist the business in analyzing problems
When considering - financing options a financial manager must consider the organization's financial goals and objectives.
long, term
As a result of the Great Depression, Congress established deposit insurance to ______.
make sure depositors did not lose money in a bank failure
Forms of commercial paper that are transferable among businesses and individuals and represent a promise to pay a specified amount are called:
negotiable instruments
The emergence of the green movement has affected businesses by
offering consumers more product choices
What are the three most common reasons firms fail financially?
poor control over cash flow inadequate expense control undercapitalization
Often called "thrifts," this financial institution primarily offers checking and savings accounts and makes long-term loans for residential mortgages.
savings and loan association
Which institutions are members of the U.S. banking system?
savings and loans nonbanks that offer financial services commercial banks credit unions
A firm that issues a bond backed by assets that may be claimed upon default has issued a(n) bond.
secured
A loan backed by collateral, something valuable like property, is called a loan.
secured
Short-term financing is more important to a small business than long-term financing because ______.
small businesses are more concerned with funding day to day operations
The is a systemic evaluation of an organization's progress toward implementing socially responsible and responsive programs.
social, audit
A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is .
social, media
Shares of ownership in a company are called ______.
stocks
A accountant is trained in tax law and is responsible for preparing tax returns or developing tax strategies.
tax
Retained earnings are the ______.
profits the company keeps
The original purpose of a savings and loan association was to ______.
promote consumer thrift and home ownership
A business that does not need a full-time accountant, would most likely use a ______ accountant in which services are exchanged for a fee.
public
An IPO is ______.
the first public offering of a corporation's stock
Elements of an integrity-based ethics code include
trust and shared accountability clear guiding values
Which of the following are examples of green jobs that cannot be outsourced offshore?
Weatherizing existing buildings Installing solar panels to existing buildings
Which are questions financial managers ask when considering long-term financing?
What sources of long-term funding (capital) are available, and which will best fit our needs? What are the organization's long-term goals and objectives? What funds do we need to achieve the firm's long-term goals and objectives?
- ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. - ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.
Compliance, based, Integrity, based
Identify which of the following would classify as Internet plagiarism.
Copying full article content from Internet sites and presenting it as your own Cutting and pasting information from a website without giving proper credit Buying research papers online and submitting them as your own
______ financing involves borrowing money. ______ financing is selling part of the company or reinvesting retained earnings in the company.
Debt; Equity
Which of the following are examples of outside stakeholders that must be told about a company's ethics program?
Distributors Suppliers Customers
and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.
Government
What is product liability?
Holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market
The amount a business borrows and for how long depends on which of the following?
How quickly it can resell the merchandise it purchases with the funds The type of business and industry it is in
Which of the following is correct about an intentional tort?
Intentional torts include acts that harm other persons. The required intent for intentional torts is the desire to cause harm. Intentional torts include acts that harm property.
What are some benefits of using computers for accounting purposes?
It frees accountants' time for more important tasks. Information can be posted from journals instantaneously. Software can help if no strong accounting support is available.
Which statements are true about factoring accounts?
It is the accounts receivable of a firm sold for a discount. Small businesses often use it for financing in the short term. The firm that buys the accounts receivable collects the amount due.
Which statements are true regarding trade credit?
It is the most widely used source of short-term funds It is usually more convenient than bank loans It is used by large and small businesses
The money supply term that includes readily available cash, checking and savings accounts, individual money market funds, and Certificates of Deposit is ______.
M-2
funds are typically needed to manage day to day needs of a business as well as acquiring needed inventory.
Operating
True or false: A budget is a tool for financial planning.
True
True or false: A patent is protected for 20 years.
True
True or false: Consumerism is a social movement that seeks to increase and strengthen the rights of buyers in relation to sellers.
True
True or false: Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand.
True
True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.
True
True or false: The Financial Accounting Standards Board defines the generally accepted accounting principles that accountants must follow.
True
Advantages of using a credit card in small business financing include that ______.
cards are accepted in many places they save time
It's possible for a business to increase its sales and profits yet still suffer problems.
cash, flow
Which of the following would be included in the M-2 money supply?
certificates of deposit money market accounts savings accounts
Top U.S. retail banks allow customers to access their accounts online so they can ______.
check account balances pay bills transfer funds
A demand deposit is the technical name for a(n) account since it is a means of paying for almost any purchase or transaction.
checking
Which three activities are part of the function of accounting?
classifying financial transactions interpreting financial transactions recording financial transactions
The Federal Reserve banks serve as the national ________ for checks.
clearinghouses
The asset that backs a secured loan is called .
collateral
Which is a profit seeking organization that has both depositors and borrowers and is equally responsible to both?
commercial banks
The two primary categories of written codes of ethics are -based and -based.
compliance, Integrity
Ethics codes that emphasize control and punishment of wrong-doers are - ethics codes.
compliance, based
Written ethics codes can be categorized as
compliance-based integrity-based
The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called:
corporate responsibility
The concern businesses have for the welfare of society, not just for their owners is:
corporate social responsibility based on a commitment to integrity and respect
The judiciary is the branch of government chosen to oversee the legal system through a system of .
courts
A nonprofit, member-owned financial cooperative that offers the full variety of banking services to their members is called a ______.
credit union
In the United States are nonprofit, member-owned cooperatives that offer most banking services to their members.
credit, unions
Which type of bond is not backed by any specific collateral, such as land or equipment?
debenture bonds
A _______ card serves the same function as a check by withdrawing funds from a checking account.
debit
A card is a(n) electronic check that withdraws money from a checking account.
debit
In the United States, many employees report that they are unethical at work because they:
goof off violate safety standards
The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by .
greed
The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:
greed the wish to inflate their own earnings
Although definitions and means of measuring a carbon footprint aren't yet clear, many companies try to become more by claiming to reduce it.
green
Increasing public concern for the environment created by the movement has more businesses looking for environmentally friendly ways to do business.
green
The movement has had a positive impact on the U.S. labor force by creating jobs in new industries such as the manufacture of solar panels.
green
The amount of goods and services you can buy with a dollar in the global market ______.
increases with a rising dollar value
Responsible business behavior depends on the responsible behavior of each ______ in the business world.
individual
If the Federal Reserve suddenly vastly increased the amount of money in circulation, it could lead to ______.
inflation
The economic condition that results from a continual rise in prices is .
inflation
The unethical and illegal activity in which investors use private company information to further their own fortunes or those of their family and friends is called:
insider trading
The use of private company information by an employee for personal financial gain is called .
insider, training
The discount rate is the ______.
interest rate that the Federal Reserve charges for loans to member banks
Careful control of a firm's costs allows it to maintain correct levels of stock and product.
inventory
Unethical behavior by financial and real estate businesses has led to
lack of trust in the free market system
The reason for creating the Sherman Antitrust Act was that
large companies in oil, railroads, and steel dominated the economy
Enforcement in a timely manner is the and most critical step in the development of an ethics code program.
last
Transactions that are entered in the journal are then posted to specific categories in a(n) ______.
ledger
What is the term given to a specialized accounting book or computer program in which information is transferred into specific categories, so managers can find all the information about a single account in one place?
ledger
The primary users of government and nonprofit accounting information are ______.
legislative bodies taxpayers special interest groups
U.S. standards for ethics and social responsibility tend to be stricter than many of those in developed countries.
less
Raising needed funds through borrowing to increase a firm's rate of return is called .
leverage
Debts, known for accounting purposes as , are what the business owes to others.
liabilities
The debt a firm owes to others is called a(n) ______.
liability
The ease with which an asset can be converted to cash is called ______.
liquidity
Needs for operating funds include ______.
making capital expenditures acquiring needed inventory controlling credit operations
The leadership and example set by strong helps to instill ethical corporate values in employees.
managers
Economist Milton Friedman believed that a business's only social responsibility was to make for its owners and that anything else was socialism.
money
In the past, objects such as salt, feathers, fur pelts, stones, rare shells, tea and horses have served as ______.
money
Money is considered to have a time value because ______.
money has more value in your possession today than at a later point in the future
When submitting a patent application, the fees for a patent dealing with complex technology usually cost ______ a patent dealing with simpler concepts.
more than
Debt financing refers to funds that ______.
must be repaid
Dimitri owns stock in a U.S. publicly traded company. As a stockholder, Dimitri is a(n) ______ of the corporation.
owner
A CPA must ______.
pass a series of exams meet a state's requirements for education and experience
Select those items that are considered to be a capital expenditure.
patents and copyrights buildings and equipment land
Financial accounting and managerial accounting differ in terms of who uses the information. Financial accounting provides information primarily for ______.
people outside the organization
Using information from the internet or other sources without giving credit to the author is:
plagiarism
Corporate policy refers to the position a firm takes on and issues.
political, social
Is it more common for a firm to fail due to lack of sales or poor financial management?
poor financial management
S&Ls were originally set up to ______.
promote home ownership
Advantages of using a credit card in small business financing include that it ______.
provides a line of credit saves time and is convenient
Accepting credit cards can be useful to small businesses by
providing ease of payment for customers providing the business with payment more quickly
Studies have shown that what most influences a company's effectiveness and financial performance is:
responsible management of human resources
Profits the company keeps and reinvests in the firm are called ______.
retained earnings
The role of an auditor is to ______.
review and evaluate a company's financial information
The /return trade-off means that, the greater the risk a lender makes in making a loan, the higher the interest rate.
risk
The idea that the greater the risk a lender assumes in making a loan, the higher the interest rate is called the / trade off.
risk, return
If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:
setting a good example
Unethical behavior in business, especially in the real estate and banking industries, has resulted in
severe financial crises lack of trust in the free market system
Select the items that are inputs to the accounting system?
shipping documents payroll records sales documents
Small business managers are more concerned with ______-term funds.
short
A(n) ______ forecast predicts revenues, costs, and expenses for a period of one year or less.
short-term
A device that can take the place of a credit card, debit card, driver's license, and other personal information is called a(n) .
smart, card
Many companies believe they have a role in promoting ______ ______ that goes way beyond simply "giving back."
social justice
A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is
social media
A systematic evaluation of a company's progress toward implementing socially responsible programs is known as a(n) .
social, audit
U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered:
socialism
Corporate social responsibility (CSR) is based on the belief that businesses should be concerned with the welfare of and not only of their owners.
society
When it comes to ethics, sets the standards for moral behavior, that is behavior defined as right or wrong.
society
The results of the weakness of the banking system in the early days of the United States included the fact that ______.
some local governments issued their own currency the barter system was common it made business and trade more difficult
Determinants of how much money a firm should borrow include the ______.
speed with which they can turn the borrowed funds into cash seasonal environment of the business cash flow forecasts
When implementing an ethics code, it is important to share it with all because pressure to act unethically often comes from the outside.
stakeholders
What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service?
tax accountant
The "bottom line" is ______.
the last line on the income statement net income or loss after taxes
In the United States, the Federal Reserve is in charge of ______.
the money supply
In factoring, the discount given depends on ______.
the nature of the business the condition of the economy the age of the accounts receivable
The reserve requirement is ______.
the percentage amount of a bank's checking and savings that must be kept in the bank
The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as ______.
the reserve requirement
The value of money is the idea that money in your possession today is worth more than money that will be in your possession in the future.
time
A bond that is backed only by the reputation of the issuer is known as a(n) bond.
unsecured
A debenture bond—a bond that is not backed by collateral, is also known as a(n) bond.
unsecured
Companies that try to act in a socially responsible way are likely to focus on such activities as
using recyclable packaging increasing the diversity of their workforce providing safety equipment and training for their workers
Money invested in new or emerging companies that investors believe have great profit potential is:
venture capital
Bankruptcy can be either:
voluntary or involuntary
In bankruptcy, the debtor applies for bankruptcy, whereas in bankruptcy, the creditors start legal action against the debtor.
voluntary, involentary
Bankruptcy can be either or .
voluntary, involuntary
When a debtor applies for bankruptcy it is called versus an bankruptcy where the creditors start legal action against the debtor.
voluntary, involuntary
About one out of four adults in the U.S. chooses to take responsibility for the communities they live in through work.
volunteer
A(n) guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
warranty
An employee who reported her boss to the SEC for insider trading would be considered a(n) protected by law.
whistleblower
Insiders, such as lower-level employees, who report concerns about a company's accounting or auditing practices are called:
whistleblowers
A comprehensive commercial law that covers sales laws and other commercial laws is called the:
Uniform Commercial Code
The is a comprehensive commercial law that covers sales laws and other commercial law.
Uniform, Commercial, Form
The anti-trust division of the U.S. Justice Department is the watchdog for maintaining
free competition in markets access to markets for new competitors
are forms of commercial paper that are transferable among businesses and individuals and represent a promise to pay a specified amount. Listen to the complete question
Negotiable, Instruments
A guarantee that the product sold will be acceptable for the purpose for which the buyer intends to use it is called a:
warranty
______ is a promissory note that requires the borrower to repay the loan with interest in specified monthly or annual installments.
A term-loan agreement
agencies are federal or state institutions and other government organizations created by Congress or state legislatures with delegated power to create rules and regulations within their given area of authority.
Administrative
CPA exams are established by the of Certified Public Accountants.
American, Insitute
The Act requires that patent applications be made public after 18 months, regardless of whether a patent has been awarded. Listen to the complete question
American, Inventor's, Protection
The provides information about a company's financial status to company managers, owners, government agencies, and the general public.
Annual, Report
Jim claims that Tom breached a contract. What can a judge do?
Award damages, cancel a contract, or direct a party to do or not to do an act
What is the legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court?
Bankruptcy
can be either voluntary or involuntary.
Bankruptcy
What type of law refers to the rules, statutes, codes, and regulations that provide a legal framework for the conduct of commerce and that are enforceable by court action?
Business law
If an individual passes a rigorous examination established by the AICPA and meets a state's educational and experience requirements, they can be recognized as a(n) ______.
CPA
Which statements about commercial banks are true?
Commercial banks make loans from the deposits of its customers. Commercial banks are equally responsible to their depositors and borrowers.
What is the body of law that comes from decisions handed down by courts?
Common law
are a form of financing where the merchant accepts payment immediately from the bank and the customer agrees to repay the bank.
Credit, cards
financing is funding raised through various forms of borrowing that must be repaid.
Debt
True or false: Financial accounting provides information to people inside of an organization, whereas managerial accounting provides information to people outside of an organization.
False
The organization/person in charge of the money supply in the United States is the ______.
Federal Reserve
The is the organization that has the most power over the currency in the United States.
Federal, Reserve
The principles, defined by FASB, that accountants must follow to assure that a firm's accounting information is accurate are abbreviated as ______.
GAAP
What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?
Greed
Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets?
Influence peddling Bribery
Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?
Integrity-based ethics codes
A major problem during the Great Depression created by a weak banking system was ______.
a run on and closure of many banks
Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:
allows them to reach specific groups more directly reaches broad and diverse groups allows them to connect directly with customers
What is the branch of government chosen to oversee the legal system through the court system?
Judiciary
What were the effects of the lack of a banking system in early America?
Land banks were created. The barter system was commonplace. Local governments often would issue currency.
means to raise funds through borrowing to increase a firm's rate of return.
Leverage
_____ cards serve many different financial and personal functions using an electronic chip.
Smart
Who sets the standards of right and wrong as defined by ethics?
Society
What role did banks play in the banking crisis of 2008?
They did not take creditworthiness into account when making loans.
What do strong managers help instill into the corporation when setting examples of ethical behavior?
Values
are insiders who report illegal or unethical behavior (answer is one word).
Whistleblowers
Many businesses believe that they should have an influential and important role in:
building communities
Select the steps in financial planning.
forecasting short term needs establish financial controls develop budgets
Generally speaking, commercial banks grant loans based on ______.
a borrower's creditworthiness
Another name for an electronic check is ______.
a debit card
The income statement shows ______.
a firm's profit after costs, expenses, and taxes
Corporate social responsibility is when businesses are concerned
about being fair and honest with their stakeholders for the welfare of society as a whole
Recording, classifying, summarizing, and interpreting financial events in an organization is referred to as ______.
accounting
The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the _______ equation.
accounting
What are the three common liability accounts recorded on a balance sheet?
accounts payable notes payable bonds payable
What are retained earnings?
accumulated earnings not paid out to stockholders
A demand deposit (checking account) is known as that because ______.
funds may be withdrawn at any time by its owner
Copyrights last for the lifetime of the author or artist plus years.
70
What is a copyright?
A document that protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons
Which statement about a falling dollar value in the global market is correct?
A falling dollar value means you cannot buy as many goods and services in the global market.
What is a contract?
A legally enforceable agreement between two or more parties
What is a warranty?
A promise made by a seller about the quality or performance of goods for sale
banking allows customers the ability to complete most transactions electronically without leaving home.
Online
Which of the following represent examples of how corporations set positive standards of ethical behavior?
Reevaluating its ethics codes based on the input of its customers. Periodically asking every employee to evaluate the company's ethics performance.
is the term for resources that come into the firm from operating activities.
Revenue
Various state agencies and the ______ have regulations on the issuing of stock.
Securities and Exchange Commission
Which of the following are methods that companies use to implement ethical standards?
The enforcement of controls The education of employees
How do cash flow problems usually start?
The firm uses up its credit.
Under Chapter , a company can reorganize in order to recover from a loss.
11
Which of the following does a trademark legally protect?
Design Symbol Name
What was the purpose of the 1984 Bankruptcy Amendments and Federal Judgeships Act?
It allowed a person who is bankrupt to keep part of the equity in a house and car, as well as some other personal property.
The Bankruptcy Amendments and Federal Judgeships Act of allows a person who is bankrupt to keep part of the equity (ownership) in a house and car, as well as some other personal property.
1984
Allowing a person who is bankrupt to keep part of the equity in a house and car, and some other personal property was the purpose of the:
1984 Bankruptcy Amendments and Federal Judgeships Act
According to recent U.S. Census Bureau research volunteerism is at an all time high, but
3 out of 4 citizens do not give any time to the communities in which they live
Which of the following is true in regards to a patent application fee?
Patents dealing with complex technology will cost more than a patent dealing with simpler technology.
What three elements do individuals use to legally protect their ideas?
Patents, copyrights, and trademarks
Which of the following is a possible remedy if one party fails to follow the terms of a contract?
Payment of damages Discharge of obligations The party who violated the contract may be required to live up to the agreement if money damages would not be adequate.
liability holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market.
Product
Which of the following is true about venture capitalists?
They have assisted many major companies during start-up They invest in businesses with high potential
How are U.S. companies likely to pressure foreign companies to change their standards of ethics and social responsibility?
They may choose to cancel orders when there are environmental abuses. They may choose to cancel orders when there are human rights abuses.
Which of the following are reasons a business should be managed ethically?
To attract customers To avoid lawsuits To maintain a good reputation
Which is part of the Federal Reserve?
advisory councils
The is the yearly statement of the firm's financial condition, progress, and expectations provided to stakeholders.
annual, report
Which three components make up the fundamental accounting equation?
assets liabilities owners' equity
The information and analysis that comes from managerial accounting is used to ______.
assist managers inside the organization with their decision making
Studies show that companies with reputations for good corporate social responsibility
attract and retain better employees
Commercial banks, savings and loans, credit unions, and non-banks are all considered to be a part of the U.S. system.
banking
The check clearing role of the Federal Reserve allows ______.
banks to settle the check payments between banks in different parts of the country
In some countries, people have paid their energy bills with items like milk or sausage. This practice is referred to as ______.
bartering
The exchange of goods and services for other goods and services is referred to as ______.
bartering
Attracting and retaining better employees is an example of a corporate social responsibility:
benefit
Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets.
bribery
A company that takes out a loan from a bank is using which type of financing?
debt financing
Borrowing money the company has a legal obligation to repay is ______.
debt financing
Nonbanks are financial organizations that accept no but offer many of the services provided by regular banks.
deposits
The interest rate the Fed charges for loans to member banks is called the rate.
discount
The interest rate the Federal Reserve charges for loans made to its member banks is called the _____ rate.
discount
Research has shown that companies engaged in corporate social responsibility (CSR):
draw more customers retain better employees enjoy greater employee loyalty
A smart card is an electronic funds transfer tool that can serve as a(n) ______.
driver's license credit card debit card
A way to send transactions directly from one computer to another instead of using a paper check is through the use of ______.
electronic funds transfer (EFT) debit cards
The most forceful way to communicate the importance of an ethics code is to:
enforce it
The three steps in the financial planning process are to forecast the firm's short- and long-term needs, develop budgets, and ______.
establish financial controls
An organization's managers instill corporate values and in employees by the examples they set.
ethics
People learn their organizational from observing the standards, values, and behaviors of leaders and other employees.
ethics
Societies set the standards for moral behavior, known as .
ethics
A financial institution or commercial bank that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) ______.
factor
In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis?
finance
Which of the following are considered disciplines within the accounting profession?
financial accounting tax accounting managerial accounting
In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget?
financial control
The best way to understand a firm's financial health and stability is to look at its ______.
financial statements
accounting generates financial information for people outside the firm, while accounting generates financial information for people inside the firm.
financial, managerial
The federal reserve system has major parts.
five
If financial management is the heartbeat of competitive businesses, what keeps that heartbeat stable?
accounting information
The first step in the accounting cycle is to ______.
analyze source documents
The legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court is called .
bankruptcy
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______.
business operations
The rules, statutes, codes, and regulations that provide a legal framework for the conduct of business and that are enforceable by court action are called .
business, law
Negotiable instruments are forms of that are transferable among businesses and individuals and represent a promise to pay a specified amount.
commercial, paper
The U.S. Justice Department's antitrust division is charged with maintaining in markets.
competition
A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers is called .
consumerism
A(n) is a legally enforceable agreement between two or more parties.
contract
A(n) protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons.
copyright
Creator's rights to materials such as books, photos, and paintings are protected by a ______.
copyright
The protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons.
copyright
Chapter 11 is supposed to help both the and the by giving a company the opportunity to become solvent again
creditors, debtors
The purpose of the Financial Accounting Standards Board is to ______.
define generally accepted accounting principles
Bank, travel, and entertainment records will be found in which segment of the accounting system?
inputs
Administrative agencies are federal or state institutions and other government organizations that are created by .
legislatures
A document that gives inventors exclusive rights to their inventions for 20 years is called a(n):
patent
A is a document that gives inventors the exclusive right to their inventions.
patent
People can legally protect their ideas through (gives inventors exclusive rights to their inventions), (protects a creator's rights to materials such as books), and (protects name, symbol, or design).
patents, copyrights, trademarks
The purpose of the American Inventors Protection Act is to
prevent submarine patents prevent intentionally dragging out of patent applications make patent applications public after 18 months
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed to the total number of bankruptcy filings and to decrease the perceived ease of filing.
reduce
Bankruptcy is the legal process by which a person, business, or government entity, unable to meet financial obligations is:
relieved of those debts by a court
Patent owners have the right to or the use of their patent to others.
sell, license
A journal is the place where ______.
transactions are first recorded
In order to reduce the total number of bankruptcy filings and eliminate the perceived ease of filing for bankruptcy congress passed the:
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
The act that makes it illegal to create a monopoly or stifle competition is the:
Sherman Antitrust Act of 1890
Sales, purchasing, and shipping documents are all considered examples of to an accounting system.
inputs
A(n) is a willful act that results in injury.
intentional, tort
Business law consists of a framework with rules, statutes, codes, and regulations that provide information for conduct of businesses.
legal
Most bankruptcies are:
voluntary
Statutory law, also called law, includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances.
written
Statutory law is also referred to as:
written law
Congress passed the Act in 1890 to stop large organizations from stifling competition.
Sherman, Antitrust
What type of law is referred to as a written law?
Statutory law
Which of the following laws was passed to address critics who argued that some inventors intentionally delayed or dragged out a patent application because they expected others to eventually develop similar products or technology?
The American Inventor's Protection Act
Who has the right to sell or license the use of a patent to others?
The patent owners
What was the purpose of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
To reduce the total number of bankruptcy filings and to eliminate the perceived ease of filing.
What legally protects a name, symbol, or design of a good/service?
Trademark
What is the difference between voluntary and involuntary bankruptcy?
Voluntary bankruptcy is when the debtor applies for bankruptcy; involuntary bankruptcy is when the creditors start legal action against the debtors.
Once a petition has been filed for Chapter 11 relief for a business, can the debtor continue to be able to manage the business?
Yes, under court protection while a payment plan is worked out
The method used to record and summarize accounting data into reports is called a(n) system.
accounting
Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of ______ helps managers make good decisions about the firm's operations.
accounting
What is considered to be the "language of business"?
accounting
The body of law that comes from decisions handed down by courts is called .
common, law
The cost of a patent depends on its .
complexity
A person can legally protect their ideas by obtaining a(n)
copyright patent trademark
