business final
Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of
depreciation
The process of spreading the costs of long-lived assets, such as buildings and equipment, over the total number of accounting periods in which they are expected to be used is called
depreciation
A company's assets include its liabilities
faulse
Net income is the amount on which a firm will pay taxes.
faulse
In the context of the marketing concept, which is the first step that a business must take?
find out what consumers desire
For most organizations, the ultimate objective is
for the produced outputs to be worth more than the cost of inputs.
Glen is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money he uses to purchase his tools and the electricity he uses to run his power saw are
inputs
Hannah borrowed money from a bank to start her new company. Her direct cost of borrowing this money is known as her ________ expenses.
interest
net income
is the amount of revenue left after subtracting all expenses, taxes and costs.
Benchmarking lets an organization
know where it stands competitively in its industry.
The capacity of a restaurant like Charleston's would be the
maximum number of customers who can be effectively served at any one particular time.
Mason Structures Inc. purchases cement, steel rods, and wooden panels to use in the construction of buildings, houses, and bridges. These inputs are considered as ________ inventory for a construction business.
raw materials
Materials that have been purchased to be used as inputs in making other products are included in ________ inventory.
raw materials
Accounting refers to the process of
recording, measuring, and interpreting financial information
An accounting term that is interchangeable with revenue is
sales
An income statement is the same thing as a profit and loss statement.
true
In which of the following scenarios is a business least likely to survive
when a business focuses only on customer satisfaction and not on its own objectives, such as boosting productivity
Which of the following statements is true of bookkeeping?
Bookkeeping is much more mechanical than accounting.
bookkeeping
day to day recordings of business transactions -much narrower and far more mechanical
In a balance sheet, assets may exceed liabilities plus owners' equity.
false
________ is the primary goal of business.
profit
Return on assets and return on equity are examples of ________ ratios.
profitability
Studies have found a direct relationship between social responsibility and ________ in business.
profitability
________ refers to money owed to a company by its clients or customers who have promised to pay for the products at a later date.
Accounts receivable
________ are the funds used to acquire the natural and human resources needed to provide products.
Capital resources
Which of the following scenarios reflects the capital-intensive nature of a manufacturer?
Coffee at Home mass produces coffee makers with multiple settings, so customers can choose whether they want to brew a cup, two cups, or an entire pot using the same machine.
Which of the following is true of the transformation process in operations management?
It is the conversion of resources, such as labor, money, materials, and energy, into goods, services, or ideas.
Ian got a loan from the Small Business Administration to start his own house contracting business. For Ian, this loan is
a liability
An income statement shows
an organization's profitability over a period of time.
owners equity
assets-liabilities (what you actually own
A crafts store displays various types of paper, stickers, glue sticks, yarn, canvases, paints, and other craft supplies on shelves. These items are examples of the company's
assets.
what is the accounting equation
assets=liabilities + owners equity
The ________ presents a snapshot of an organization's financial position at a given moment.
balance sheet
Mario Autos Inc. measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Mario Autos Inc. tries to cover that gap by imitating the best practices of these market leaders. This is known as
benchmarking
A hospital can effectively handle a maximum number of 300 patients at any one particular time. This is referred to as its
capacity.
liabilities
debts
Nonbusiness entities typically obtain revenue through
donations
assets
economic resources or items of value
Cole owns a large chain of grocery stores. A significant part of his job is determining the amount of income left after taxes and whether the company will retain this income or pay it out in dividends to its stockholders. The income in this scenario is ________ income.
net
For manufacturers, measuring productivity is fairly straightforward because
of the tangibility of their output.
The output of service providers must be consumed immediately, and only a few services can be saved, stored, resold, or returned. Which characteristic feature of services does this best illustrate?
perishability of outputs
Quality control refers to the
processes an organization uses to maintain its established quality standards.
The outcomes of a business's efforts are
products
balence sheet
shows assets and funding used to pay for these, such as bank debts or owners equity
cash flow
shows how cash changed from beginning to end of accounting period
income statement
shows profitability over a period of time
depreciation
spreading costs of long-lives assets over a total number of
The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the
statement of cash flows.