BUS250 Exam 2

If a firm has assets of 1,000,000 and liabilities of $250,0000, what is the owners' equity in the firm?

$750,000

The Ray family owns a family business. Currently, the business's assets are $100,000, and its liabilities are $125,000. What is the Rays' owners' equity?

-$25,000

Which of the following best describes an organizational chart?

A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow.

Which of the following is a primary risk of a virtual​ organization?

A lack of competitive distinctions

What is the difference between a profitability ratio and a liquidity ratio?

A profitability ratio shows how well a company is generating profits, whereas a liquidity ratio measures a firm's ability to pay its short-term obligations.

Izumi works for a small clothing store. Her duties include tracking the income and expenses of the store and creating financial reports at regular intervals. In this scenario, which of the following activities is performed by Izumi?

Accounting

__________ is the system a business uses to identify, measure, and communicate financial information to others, inside and outside the organization.

Accounting

Diminished employee loyalty is a potential disadvantage of what kind of an organization?

An unstructured organization

Which of the following equations is an accurate representation of the accounting​ equation?

Assets​ = liabilities​ + owners' equity

Solo, a public accountant, is hired by Jack's Sporting Goods to review and evaluate the accuracy of the financial reports of the company. Which of the following activities is performed by Solo for Jack's Sporting Goods?

Auditing

__________ is the area of accounting responsible for reviewing and evaluating the accuracy of financial reports.

Auditing

What must be obtained before becoming eligible to conduct financial​ audits?

CPA licensing

________ involves setting​ decision-making powers at the highest levels of a company.

Centralization

Which of the following represents a conduit for the flow of power in a company and connects various levels and groups of people within that​ company, thereby allowing for efficient function and separation of​ tasks?

Chain of command

Which of the following connects employees with similar professional interests together in a virtual​ community?

Community of practice

Which of the following happens during the storming stage of a team's development?

Conflict and disagreement often arise as members jockey for position or form coalitions to promote their own perceptions of the team's mission.

Which team formation involves individuals from different functional areas and​ expertise?

Cross-functional teams

​___________ drives​ decision-making power downward to the lower sections of a company in order to influence increased receptiveness within the company.

Decentralization

__________ involve(s) organizing employees within a company into categories and then by various functions and units.

Departmentalization

What tool allows for sharing accounting transactions with all of the participants in a​ marketplace?

Distributed ledger

Which of the following consists of organizing units of a company with regard to similarity of​ products, procedures,​ consumers, and​ locations?

Divisional structure

Which of the following represents a specialized area of accounting dedicated to assessing a​ business's operations and the monetary consequences of strategic choices such as​ pricing, employee​ benefits, and business​ acquisitions?

Financial analysis

Which of the following is a disadvantage of a functional​ structure?

Focus on departmental goals

People who play the socioemotional role in teams do which of the following?

Focus on people needs rather than getting things done

Which of the following represents a specialized area of accounting devoted to linking accounting and investigating abilities to contribute to lawful and criminal​ concerns?

Forensic accounting

Which of the following involves employee categorization based on comparable skill​ sets, utilization of​ resources, and​ expertise?

Functional structure

Which of the following helps safeguard uniformity in financial reporting for U.S.​ firms?

GAAP

Which of the following accounting standards systems do most U.S. firms use?

Generally Accepted Accounting Principles (GAAP)

Which of the following represents the total funds that are left over after the cost of goods sold is subtracted from net​ sales?

Gross profit

Which of the following is a disadvantage to working in a​ team?

Groupthink

Which of the following is a potential disadvantage of working in teams?

Groupthink

Which is true of teams?

Groupthink is a potential disadvantage of teams.

Which of the following is NOT a potential benefit for firms of the unstructured​ organization?

Higher fixed costs

Which of the following are the three major initial decisions a firm needs to make in conjunction with designing an organization structure?

Identifying the firm's core competencies, job responsibilities, and chain of command

Which of the following represents a measurement for the length of time a company utilizes to convert goods it is holding into​ sales?

Inventory turnover ratio

Which is true of an unstructured organization?

It doesn't rely on conventional organizational structures to assemble the resources needed to pursue business goals.

Which of the following is a potential advantage of an unstructured organization?

It has increased agility.

Which of the following statements is true of accounting?

It helps evaluate a business's current and expected financial status.

Which of the following is true of a divisional structure?

It is a grouping of departments according to similarities in products, processes, customers, or geography.

Which of the following best describes working capital?

It is an indicator of liquidity because it represents a firm's current assets remaining after the payment of all of its current liabilities.

Which of the following best describes goodwill?

It is an intangible asset that includes a company's reputation, brand awareness and recognition, workforce skills, management talent, and even customer relationships.

Which of the following best describes the Public Company Accounting Reform and Investor Protection Act?

It is designed to improve the integrity and accountability of financial information.

What is the matching principle?

It is the principle requiring that expenses incurred in producing revenue be deducted from the revenues they generate during an accounting period.

Which of the following best describes GAAP (Generally Accepted Accounting Principles)?

It refers to standards and practices used by publicly held corporations in the United States and a few other countries in the preparation of financial statements.

Which of the following did the Public Company Accounting Reform and Investor Protection Act (Sarbanes-Oxley) do in 2002?

It required CEOs and CFOs to sign statements attesting to the accuracy of their financial statements.

Which of the following statements is true of the matching principle?

It requires that expenses incurred in producing revenue be deducted from the revenues they generate during an accounting period.

Which of the following forms a clear line of authority from the top of the organization down and ensures members of an organization are aware of to whom they are to report and what their daily tasks​ entail?

Line organization

Which of the following is defined as organizing accurate price​ evaluations, profitability​ statements, financial​ plans, and other information which is vital to company decision​ makers?

Management accounting

Which of the following is the major difference between management accounting and financial accounting?

Management accounting is used by employees inside an organization to make decisions while financial accounting is used by interested parties outside an organization to make decisions.

Which of the following is used to generate a financial statement that offers an accurate picture of a​ firm's profitability?

Matching principle

Which term defines an organizational structure where individuals from functional departments form teams to pool their specialized​ expertise?

Matrix

Of the following​ terms, which offers a graphical representation of a​ company's lines of communication and illustrates a formal strategy for achieving​ objectives?

Organization chart

Which of the following is defined as having a significant impact on decision making within a company by offering managers an outline for distributing tasks and​ decision-making power and coordinating a​ company's workload?

Organization structure

A group of employees assembled to find ways of improving quality, efficiency, or other performance measures on a short-term or long term basis is an example of what kind of team?

Problem-solving team

Which of the following is a type of divisional​ structure?

Process divisions

Which of the following is a profitability ratio?

Return on sales

Which of the following enters and receives records and creates database​ reports?

Robotic process automation

Which of the following is incurred through marketing and distributing a​ product?

Selling expenses

__________ refers to comprehensive U.S. legislation designed to improve the integrity and accountability of financial information.

Sox (Sarbanes-Oxley)

Which of the following is required by law for all publicly traded​ firms?

Statement of cash flow

In which stage of team development do group members begin to show their character and attempt to establish their individual roles within the​ group, often causing friction and disagreements with other group​ members?

Storming

As a team​ member, Juanita focuses exclusively on the means by which the team can best meet its goals. Which team role is Juanita​ assuming?

Task-specialist role

What is a software agent that can be programmed to handle a variety of routine tasks?

Taskbot

Which of the following is a software agent that can be programmed to handle a variety of routine​ operations?

Taskbot

Which of the following are the three major financial statements of a firm?

The balance sheet, the income statement, and the statement of cash flows

Which of the following must the members of a team agree on for a win-win strategy to work during a conflict?

The members must agree that the other party can be trusted.

Team members who focus on getting things done rather than people needs play which role in teams?

The task-specialist role

Which of the following is true of effective teams?

They have a clear sense of purpose.

Which of the following give people in rural areas greater access to job​ opportunities?

Unstructured organizations

__________ do not rely on conventional organizational structures to assemble the resources needed to pursue business goals.

Unstructured organizations

​____________ will NOT help a team successfully resolve conflict.

Withholding information

___________ is the extent to which business tasks are divided into individual​ positions, each accountable for a portion of a​ business's total tasks.

Work specialization

__________ is an indicator of liquidity because it represents a firm's current assets remaining after the payment of all of its current liabilities.

Working capital

The​ _________ stage of team development involves the resolution of issues and the dissolution of the team.

adjourning

If the goal of a company is to allow employees to react swiftly to customer needs and changes in the business​ environment, it should focus on developing​ a(n) ____ organization.

agile

​A(n) _______ involves all of the aspects of the accounting equation and illustrates the evenness among assets against liabilities and​ owners' equity combined to accurately portray a​ company's financial standing.

balance sheet

In ___________, each new transaction is captured and added to the previous transaction in a continuous chain.

blockchain

In using​ _________________, each new transaction is recorded and linked to the previous transaction to form a continuous ledger that all participants can verify.

blockchain

A​ ______________ team involves members from several different departments who have varying levels of knowledge and often involves some form of matrix structure.

cross-functional

In an​ organization, a task force is created to work on a specific activity with a specific end point. It is a format within the​ ________ type of team.

cross-functional

Organizing employees within a company into categories and then sorting them by various functions and units is called​ ________.

departmentalization

To evaluate a company's performance and profitability, prospective and current investors and creditors rely on __________.

financial accounting information

Sudipto is a manager who recently established several teams of employees within his company to tackle ongoing issues. Skeptical of this plan at​ first, he is now noticing that his employees are more motivated to contribute and come up with answers to problems and are eager to be a part of the company decision process. This scenario describes an advantage to teams involving​ _______.

increased commitment toward solutions and modifications

A __________ is the simplest chain of command system.

line organization

A​ ____________ consists of a system with a clear chain of command that allows various functional individuals to offer guidance and expert services.

line-and-staff organization

An organizational design in which employees from functional departments form teams to combine their specialized skills is a __________.

matrix structure

Another name for a virtual organization is a __________.

network structure

In a​ ____________, resources are coordinated inside and outside the company to form a cohesive whole.

network structure

During the __________ stage of a team's development, conflicts are resolved, and team harmony develops.

norming

In the​ __________ stage of team​ development, group disagreements are​ settled, members begin to recognize and appreciate each​ other, and a leader is established.

norming

A software capability that targets the​ high-volume issues such as processing customer orders is referred to as​ __________.

robotic process automation​ (RPA)

Organizations that have many hierarchical​ levels, typically with a small number of employees working under each​ manager, are known as​ ________ organizations.

tall

A __________ is a group of people from several departments who are temporarily brought together to address a specific issue.

task force

A​ ___________ involves provisionally forming a group consisting of employees from varying units in order to deal with specific company problems for a specified period of time.

task force

Shad's company is in trouble. He is part of a task force assigned to determine which divisions of his firm must be downsized prior to the next shareholder meeting. The members of the task force are each responsible for gathering statistics on different divisions by the following Monday. Roger, who is also a member of the task force, doesn't think he can gather the information in time because his wife is having heart surgery in a day or two. Shad asks Roger to get the project done anyway because he says he can work on it while his wife is undergoing the procedure. The role Shad is playing on the team is the __________.

task-specialist role

The number of employees a manager directly oversees is defined as​ ________.

the span of management

A(n) _____________ acquires skilled employees as required from the open market and often involves​ crowdsourcing, the use of digital​ technologies, and the utilization of highly specialized individuals for specific tasks.

unstructured organization

​_______ is measured by dividing a​ business's entire liabilities by​ owners' equity.

​Debt-to-equity ratio

Which of the following is the informal name of the Public Company Accounting Reform and Investor Protection​ Act?

​Sarbanes-Oxley

A​ __________ team is responsible for discovering techniques to enhance the organizational​ environment, efficiency, and quality.

​problem-solving