business
Which statement estimates when, where, and how much money will into and out of a business next year?
Cash flow statement
Operations activities vary depending on a business's
product
The foundation of the operations function is
production planning
What accounting record would summarize a business's profit or loss for a previous year?
Income statement
To keep communication flowing with other departments, the finance function depends on
Information systems
How does the finance function relate to company spending?
It plans and controls spending.
Which of the following is a requirement for a good accounting system:
It should provide needed information quickly.
The process of keeping the financial records of a business is known as
accounting
Money the business owes is known as
accounts payable
Money owed to the business is known as
accounts receivable
For an accounting system to be useful to the business, the accounting information it contains must be
accurate and up to date.
Operations managers must work closely with managers and employees in
all other parts of the business.
A creditor is most likely to examine a business's financial accounting records if the business is
applying for a bank loan.
A clothing manufacturer builds quality into its operating system, placing responsibility on each employee. This process is known as quality
assurance
The finance function is usually responsible for which of the following processes:
budgeting
Determining which projects a business should invest in is known as
capital budgeting
The overall purpose of accounting is to
control the finances of the business
Maintenance and repairs is an operations activity that includes
custodial work
The operations function consists mainly of activities that are performed on a __________ basis.
daily
Operations managers have two main goals in mind—efficiency (keeping costs low) and
effectiveness
Which of the following is an example of one of a business's inputs:
employee
Selling shares in the company to raise money for a new venture is referred to as __________ funding.
equity
Which of the following is a capital investment decision:
how to finance investments
Riley works for the federal govt studying the financial reports of major businesses in an industry. Her purpose is to
identify trends in the industry.
The finance function ensures that the company's financial goals are
in line with organizational products
The difference between service providers' and manufacturers' operations activities is that service providers produce __________ outputs.
intangible
The administration of assets refers to decisions about
investments
Because operations managers control so much of a business's money, they must focus on
keeping costs low
Deciding how to transport goods is part of which operations activity?
logistics
Running out of inventory can result in
lost sales
Which of the following is not a main factor in a business's site selection decision:
media
Finance is the business function that involves managing
money
The finance function would definitely be involved in a decision regarding
new business projects and strategies.
Accounting is distinct from finance because its main focus is on
recordkeeping activities
The goals of the finance function are to ensure profitability and
reduce risks
An operations manager must determine the sequence materials will take through the production process. This activity is known as
routing
Complying with environmental laws is part of which operations activity?
safety and security
Checks, receipts, invoices, and purchase orders are examples of
source documents
125,000 in sales revenue, 50,000 in cash sales, and credit sales of 75,000 accounted for a business is an example of
the accrual method of accounting.
A company's current balance of assets and liabilities falls under the focus of
working capital management
What type of accounting method would most likely be used by a small business owner who does not offer credit?
Cash M
Which of the following makes comparisons of the financial conditions at multiple organizations possible:
Accounting standards
A business has a large number of outstanding loans and customer charge accounts. What accounting method would be used?
Accrual method
Decisions about financing refer to the
Acquisition of funds
Which of the following presents the first three steps in the accounting cycle in the correct order:
Analyze, journalize, and post
Which of the following categories of information are found on a balance sheet:
Assets, liabilities, owner's equity
If a bank feels that you would not be able to make a montly payment and won't grant credit thay have reviewed:
Balance sheet
Which of the following is a true statement:
Bookkeeping records business transactions.
Two employees stole $50,000 from the a business using their computerized accounting systerm. What did the system lack?
Protection from theft and fraud
Which of the following groups makes regular use of a business's managerial accounting information
Supervisors
Why are accurate accounting records important to a business?
They show how the business is doing.
