BA 1301 FINAL Ch.13-14

Keisha Hunter keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Hunter is a(n) _____ manager.

financial

Electronic communications networks (ECNs) *hint* what market did it create

have permitted the creation of the fourth market

Managerial accounting provides all of the following financial information EXCEPT:

income statements

Securities Investor Protection Corporation (SIPC) insures:

insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure

General Electric saves $1.6 billion per year by using its private corporate network that links its 340,000 employees. Another name for this network that operates behind a firewall is a(n):

intranet

By dividing costs of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

For which of the following assets would a wholesale company use depreciation? -gasoline used to power delivery trucks -patented computer tracking equipment -warehouses -accounts receivable -inventory of unsold merchandise

it's warehouses

A network that connects computers at one site is called a(n):

local area network

Which of the following is NOT really a financial ration though it is often used to measure a firm's overall liquidity? -earnings per share -net profit margin -return on equity -net working capital -current ratio

net working capital

The most frequently used and the most flexible tool that the Federal Reserve has that it can use to change the economic environment is:

open market operations

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?

operating expense

Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:

reserve requirement

The funds that are reinvested in the firm out of profits and after dividends are paid are called:

retained earnings

In finance, the opportunity for profit is called:

return

Weeds, sand, and paper clips would not make good mediums of exchange because they lack the key characteristics of:

scarcity

Capital Budgeting: -analyzes production costs -selects asset proposals for maximum profitability -helps select new products -combines all budgets into a master budget -allows managers to analyze profit and loss statements

selects asset proposals for maximum profitability

T/F: A mortgage loan is a long-term loan that uses real estate as collateral.

True

T/F: All publicly held companies must include a statement of cash flows in their financial reports to stockholders.

True

T/F: An enterprise portal is an internal Web site that provides proprietary corporate information to a defined user group.

True

T/F: Depository financial institutions include commercial banks, thrift institutions, and credit unions.

True

T/F: Securities are investments certificates issued by corporations or governments.

True

T/F: The NYSE and NASDAQ are vying for supremacy in the U.S. securities markets.

True

T/F: The internet is essentially a worldwide area network (WAN)

True

T/F: The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

True

Tracy Lefteroff is the global managing parnter for PricewaterhouseCoopers. She said that her company is eager to invest in newly created biotech companies because the U.S. has an aging population that will need new medications and treatments. Wha kind of equity capital would Lefteroff be likely to provide?

Venture Capital

The cost of inventory to the firm includes all of the following EXCEPT: -ordering costs -handling costs -purchase costs -selling costs -insurance costs

selling costs

Payments in the form of more stock to existing stockholders are called:

stock dividends

Business loans available from commercial banks with terms generally 5-12 years and secured or unsecured are called _____ loans

term loans

Financial managers constantly strive for a balance between:

the opportunity for a profit and the potential for loss

Haley Optics manufactures lenses used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. It depreciated assets during the year by $200,000. The Earnings before interest and taxes was calculated to be $120,000. On an income statement, an accountant would classify the remaining $160,000 as:

(COGS) Cost of good sold

The U.S. Money supply is composed of (3):

1. currency 2. demand deposits 3. time deposits

The three major categories of applications supplied by the application service providers are:

1. enterprise applications 2. collaborative applications 3. applications for personal use

The 3 main types of unsecured short-term loans are:

1. trade credit 2. bank loans 3. commercial paper

_____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

Accrued expenses

_____ is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value.

Capital budgeting

In 2004, a large department store chain in Germany was forced to withdraw customer loyalty cards when the press discovered that the company had secreted radio-frequency identification (RFID) tags in the plastic. Even when enclosed in a wallet or purse, these cards can transmit information over distances of about a meter, and the stores planned to used them to track which departments the customer visited. At issue was which data security issue?

Consumer Privacy

Australia's Health Insurance Commission processes 300 million health claims and makes annual payments of $8 billion of payments to clients. The company would store all of its more than three gigabytes of information in a(n) _____ to support management decision making.

Data warehouse

_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.

Depreciation

Academic advisement is unevenly provided in many high schools and colleges. There is a plan to provide advice to high school students and to college freshman that are seeking a potential major. The on-demand consultation gathers information about a student's grades, interests, test scores, interests and aptitudes. It assesses student qualifications for a variety of majors. The _____ will then recommend six majors for them to consider and provide further information sources about the major.

Expert

T/F: A brokerage firm is an example of a depository financial institution

False

T/F: A computer program that copies itself into other software and can spread to other computer systems is called infestation.

False

T/F: A term loan is a loan with a maturity of less than a year

False

T/F: Durability and simplicity are two important characteristics of money

False

T/F: In finance the potential for loss is called probability

False

T/F: Intranets, VPNS, and extranets are forms of LANs.

False

T/F: Lines of credit are short-term loans that are secured by collateral.

False

T/F: Of all the forms of equity capital, venture capital is the easiest to obtain.

False

T/F: Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

False

T/F: Profitability ratios measure how well a firm uses its assets.

False

T/F: The $350 charged to the homeowner for electrical work performed one month ago is an example of a note receivable.

False

T/F: Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities

False

T/F: dividends and intereest payment are both tax-deductible

False

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

Financial

Which of the following statements does NOT describe an advantage inherent in equity financing? -the company is not required to repay equity -interest is tax-deductibe -equity has no maturity date -a firm has no obligation to pay dividends -equity owners have residual claim on income

Interest is tax-deductible

_____ management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation.

Knowledge

The most important function of the Federal Reserve System is carrying out _____ policy.

Monetary

Any object or objects that a group of people use to buy and sell goods and services is called:

Money

When Magna Manufacturing sells hand on screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. This type of unsecured loan is called _____ credit.

Trade

Which of the following statements about computer viruses is true? -another name for computer viruses is worms -there is no way to protect against computer viruses -viruses copy themselves onto other software -viruses cannot hide on your computer -span is unrelated to viruses

Viruses copy themselves onto other software.

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement? -a manufacturer of integrated circuits -a Christmas tree farm -a poultry producer -an envelope manufacturer -a manufacturer of health and beauty aids

a Christmas tree farm

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the parst year and its prospects for the future.

annual report

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

are accurately described by all of the above

Collecting data over a period of time an dthen processing that data all at the same time is called _____ processing.

batch

Financial managers focus on _____, the inflow and outflow of cash.

cash flows

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:

collateral

When compared to a wired LAN, the wireless LAN is:

faster and more reliable

Sullins Cleaning Service has purchased a new pressure washer for $18,000. Sullins Cleaning is allowed to charge a portion of the company's cost during its useful life against the profits it generates. This practice is called:

depreciation

The acceptable turnover ratio is:

different for each industry

Maysteel, which makes components for electric utilities has created a(n) _____ that allows its six plant managers in Wisconsin and Ireland to access customized information about the costs and sales at the other plants. The only people who can access this information are its managers.

enterprise portal

T/F: U.S. banks provide loans to foreign governments

true