Management Test 3

profitability

Which of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange? scarcity durability divisibility profitability portability

True

By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy. True False

return

In finance, the opportunity for profit is called: return potential risk value maximization

True

Independent accountants who serve organizations and individuals on a fee basis are called public accountants. True False

True

The nation's insurance companies are major suppliers of funds to the U.S. financial system. True False

maximize the value of the firm to its owners

The primary goal of the financial manager is to: maximize the value of the firm to its owners concentrate on short-term growth strategies develop new goods and services for the company make sure all employees get paid on a regular schedule pay off all debt as quickly as possible

Money

is anything (regardless of form) that is acceptable as payment for goods and services. Shareholders' equity Capital Money A fixed asset Revenue

Common

stock is a security that represents an ownership interest in a corporation and has voting rights. Preferred Common Par value Treasury Equity

Firewall

Intranets are essentially mini-Internets that operate behind a(n) _____ that prevents unauthorized access. network barrier communications buffer insulated connector modem synthesizer firewall

True

U.S. banks provide loans to foreign governments. True False

Knowledge workers

contribute to and benefit from information that use in performing, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions. Knowledge workers Knowledge shareholders Information technicians Information monitors Transactional processors

Network of computer systems that share the use of software and hardware

A LAN is a: word processing software system type of modem network of computer systems that share the use of software and hardware graphic design system processing control unit

Time

Money market deposit accounts and certificates of deposit are officially called ______ deposits. demand time investor income diversified

Private accountants

Accountants employed within organizations are called: public accountants public auditors private auditors private accountants tax consultants

True

Data marts are special subsets of a data warehouse that deals with a single area of data, which are organized for quick analysis True False

True

Equity is the owner's investment in the businesses. True False

True

Financial management is the art and science of managing a firm's money so the firm can meet its goals. True False

one year

Fixed assets are property and buildings that a firm expects to use for more than: one month six months one year two years five years

Decision support

If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system. decision support transaction processing operating expert information reporting

Credit terms

are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed. Credit credentials Credit terms Revolving accounts Liability procedures Sales terms

False

A brokerage firm is an example of a depository financial institution. True False

Summarizing

Accounting involves the _____ of the financial activities for firms. delegating summarizing creation empowering planning

True

Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization. True False

True

Accounts receivable or inventory usually secures short-term secured loans. True False

Doing all of these

Computers can enhance accounting by: preparing tax returns handling general ledger functions controlling purchase orders providing a means to control inventory doing all of these

True

One of the trends in information technology is digital forensics. True False

Financial

management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals. Operations Financial Accounting Corporate Money

True

Money is anything that is acceptable as payment for goods and services. True False

are accurately described by all of the above

Credit cards: are sometimes referred to as plastic money do not replace money are used as a substitute for cash and checks defer payment to a later point in time are accurately described by all of the above

False

Knowledge management is much easier than information management. True False

Do none of the above

Long-term debt would be used to: pay employees' salaries buy new tablecloths for a restaurant replace broken glass in a window provide customer with a cash discount do none of the above

A middle manager of the company

Managerial accounting provides information that would probably be most beneficial to: the IRS financial analysts a lending officer of the bank a middle manager of the company shareholders

False

Sales made, but for which payment has not yet been collected, are called accounts payable. True False

accounts receivable and inventory

Secured short-term loans are usually secured by: accounts payable and accounts receivable buildings and equipment equipment and inventory inventory and raw material accounts receivable and inventory

True

Securities are investment certificates issued by corporations or governments. True False

marketable credits

Short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by checking accounts are: management vehicles corporate securities marketable credits corporate equities negotiable securities

Restricts the types of nonaudit services auditors can provide audit clients

The Sarbanes-Oxley Act: set national requirements for becoming a practicing CPA restricts the types of nonaudit services auditors can provide audit clients dealt with accounting issues relevant to NAFTA members mandated the use of international accounting standards made fraudulent financial reporting illegal

currency, demand deposits, and time deposits

The U.S. money supply is composed of: coins, paper money, and treasury bills currency, demand deposits, and checking accounts checking accounts, bonds, and savings accounts currency, demand deposits, and time deposits stocks, demand deposits, and checking accounts

False

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year. True False

False

The final figure or bottom line on an income statement is called the net revenue. True False

Database

The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. This _____ will be used for solving crimes. criminal relational network database spreadsheet information processing network transactional network

False

The income statement is a snapshot of the firm's financial position at a certain point in time. True False

monetary

The most important function of the Federal Reserve System is carrying out ______ policy. fiscal tax monetary spending inflationary

False

The shift to virtual workers has been a disappointing trend that is gradually vanishing.

True

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity. True False

lower the reserve requirement

To stimulate the economy, the Federal Reserve can: lower the reserve requirement raise the prime rate raise the discount rate sell government bonds on the open market buy stocks listed on the New York Stock Exchange

Connect two or more private networks using a public network

Virtual private networks (VPNs): Require a significant investment in Internet infrastructure in order to operate efficiently connect two or more private networks using a public network can dramatically increase a company's communications cost are least useful to people who regularly work outside of the office are accurately described by none of the above

Discount

When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate. prime discount commercial bank going reserve

False

When a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system. True False

All of the above

When a firm goes public, it must reveal such information as: financing plans product details financial data operating data all of the above

Federal Reserve

Which federal agency is responsible for processing and clearing checks between financial institutions? Financial Clearing House U.S. Treasury Department Federal Reserve U.S. Comptroller of Currency U.S. National Bank

A computer network is a group of two or more computers linked together by communications channels to share data and information.

Which of the following statements about computer networks is true? A computer network is a group of two or more computers linked together by communications channels to share data and information. A LAN is a logistical analog network. Computer networks can only be used to connect computers at one site. Enterprise software cannot be run on computer networks Today's networks only have the capability to link 20 or fewer computers together.

Accountants are typically classified as private or public accountants.

Which of the following statements about the accounting profession is true? Accountants are typically classified as private or public accountants. Accountants cannot legally offer management consulting services. Private accountants serve individuals and organizations on a fee basis. Public accountants work for local, state, and national agencies. All of the above statement about the accounting profession are true.

deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales

Net sales: is determined by adding total sales for the accounting period is calculated once profit after all expenses are paid is determined once profit after cost of goods sold is deducted deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales is calculated by deducting revenues from gross sales

Money owed to utility companies

Which of the following is an example of a liability that might be owned by an antique mall? an expensive Chinese urn with a small crack the sales prices paid by customers promotional signs money owed to utility companies accounting and inventory software