Business 101 midterm 2
Production management
All the activities managers do to help firms create goods.
fixed-position layout
Allows workers to congregate around the product (airplane) (big)
What is the accounting equation? assets= liabilities - equity assets= liabilities + equity assets= equity * liability
Assets = Liabilities + Owner's Equity
What kind of technology is used to help with operations management? -Robot employees -Both computer-aided design and manufacturing -Computed-aided design -Computer-aided manufacturing
Both computer-aided design and manufacturing
What are 4 ways you can invest?
Build a new factory increase capacity increase automation increase plant and equipment
What is JIT
Just In Time inventory management system. -Ensures that the exact level of inputs arrive in the business only as needed. -This offers cost savings, flexibility in customisation and reduces inventory losses.
All the activities managers do to help firms create goods.
Product management
inputs> production control> outputs
Production process
What is PERT
Program Evaluation and Review Technique used to estimate activity duration.
What is the term for the monetary value of all resources that come into the firm from operating activities? Multiple choice question. gross sales revenue profit net sales
Revenue
Process manufacturing
The part of production that physically or chemically changes materials.
production
The process of creating goods and services
Which concept states, "A dollar today is always worth more than a dollar tomorrow." The time value of money None of the above The prediction of money The future of money
The time value of money
Who is ISO
a non-governmental organization established to promote the development of world standards to facilitate the international exchange of world goods and services
What are bonds
borrowed money from the market, long term= 10 years bonds and interest rates are inverse
the physical arrangement of resources, including people, to most efficiently produce goods and provide services.
facility layout
Primary market:
firms sell new issues of security publicly for the first time to investment bankers
Earnings per share
net income divided by # of shares
lean manufacturing
using less resources to mass produce
Reviewing and evaluating records used to prepare a company's financial statements is referred to as Blank______. Multiple choice question. bookkeeping accounting reporting auditing
auditing
What is true about debt financing? There is never any interest It is considered to be 'free' money It is a contract and the terms do not change It is a contract and the terms can change
It is a contract and the terms do not change
Siz Sigma Quality
allows 3.4 defects per million oppurtunity
The debt a firm owes to others is called a(n) Blank______. Multiple choice question. expense revenue liability asset
liability
What are the three most common reasons firms fail financially? Multiple select question. inaccurate sales forecasts undercapitalization poor control over cash flow inadequate expense control too many customers
undercapitalization poor control over cash flow inadequate expense contro
What are some benefits of using computers for accounting purposes? Multiple select question. It frees accountants' time for more important tasks. Information can be posted from journals instantaneously. They can make good financial decisions automatically. Software can help if no strong accounting personnel is available.
It frees accountants' time for more important tasks. Information can be posted from journals instantaneously. Software can help if no strong accounting personnel is available.
Why does it make more sense to make the top shell of a hot tub in the United States rather than in another country? Group of answer choices -Parts are cheaper in the -U.S.Transportation in the U.S. is much less expensive. -It has lots of small pieces. -Labor is cheaper in the U.S.
U.S.Transportation in the U.S. is much less expensive
The income statement shows: Multiple choice question. a firm's assets, liabilities, and stockholders equity a firm's profit (or loss) after costs, expenses, and taxes the basic accounting equation inflows and outflows of cash
a firm's profit (or loss) after costs, expenses, and taxes
Operation Management
a specialized area in management that converts or transforms resources into goods and services -inventory managemnet -quality control -production summary -follow up services
The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the Blank______ equation. Multiple choice question. income accounting profit equity
accounting
Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of Blank______ helps managers make good decisions about the firm's operations. Multiple choice question. accounting investing finance management
accounting
Layout options include: -Modular layout -Fixed-position layout -Assembly line layout -All of the above
all of the above
what is a balance sheet?
assets, liabilities, owners equity
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______. Multiple choice question. business operations investment markets tax laws market fluctuations
business operations
As a function of financial management, financial managers must understand tax regulations because ______. Multiple select question. accounting data should be the only data used in decisions businesses want to minimize taxes they must consider the tax implications of major decisions they prepare the ledgers and journals
businesses want to minimize taxes they must consider the tax implications of major decisions
A firm that makes a major investment in a long-term asset has made a(n) _______ expenditure.
capital
Which of the following falls under Assets? Long term Debt Cash Liabilities Current Debt
cash
Mass customization is made possible by
computer-aided design
Mass customization is only poissble by...
computer-aided designs (CAD)
An accountant's time is freed up to do more important tasks such as financial analysis due to the assistance provided by using Blank______. Multiple choice question. computerized accounting programs a trial balance the accounting cycle double-entry accounting
computerized accounting programs
Needs for operating funds include Blank______. Multiple select question. increases in stock price controlling credit operations acquiring needed inventory making capital expenditures
controlling credit operations acquiring needed inventory making capital expenditures
During tough economic times, customers are happy when firms extend mBlank 1Blank 1 ________, for purchases.
credit
Blank______ funds are typically needed to manage day to day needs of a business as well as acquiring needed inventory. Multiple choice question. Capital Commercial Operating Inventory
operating
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of Blank______. Multiple choice question. revenue accounts operating expenses liabilities assets
operating expenses
A specialized area in management that converts or transforms resources into goods and services.
operations management
Book Value equation
owners equity divided by # of shares
The income statement shows income only .the net worth of the business .the value of the company's assets .the amount of long-term debt a company has. profit or loss over a given period of time.
profit or loss over a given period of time.
Whats operations management job
provide high quality goods and services in response to customer demand. MAXIMIZE PROFIT
The formula for the costs of goods sold is Blank______. Multiple choice question. purchase price + returns - allowances purchase price + freight charges + taxes purchase price + freight charges + storage costs purchase price -returns-freight and storage charges
purchase price + freight charges + storage costs
An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called Blank______. Multiple choice question. return on sales the current ratio return on equity earnings per share
return on equity
Whats an auditor?
reviewing and evaluating the info used to prepare a compnays financial statements
secondary market:
subsequent owners trade previously issued shares of stovk and bonds.
On a balance sheet, assets may include Blank______. Multiple select question. tangible resources retained earnings intangible resources goodwill bonds payable
tangible resources intangible resources goodwill
What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service? Multiple choice question. management accountant private accountant certified internal auditor tax accountant
tax accountant
modular layout
teams of workers combine to produce more complex units of the final product (furniture) (medium)
The practice of buying goods and services now and paying for them later is termed ....
trade credit
Building an airplane is a good example of a fixed position layout. True or False
true
Production is the creation of goods using land, labor, materials, capital, entrepreneurship, and knowledge (factors of production). True or False
true
The assembly process is the part of production that puts together components. True or False
true
Uses of sensors to control manufacturing processes include: multiple answers measuring humidity framing a house the measurement of the thickness of material handcrafting a pair of shoes
-the measurement of the thickness of material -measuring humidity
What is the highest possible rating for a bond? AB AA AAA AAA+
AAA
What is considered to be the "language of business"? Multiple choice question. operations investing finance
Accounting
What are four main types of financial ratios used in ratio analysis? Multiple select question. Debt ratios Income ratios Tax ratios Profitability ratios Liquidity ratios Activity ratios
Debt ratios Profitability ratios Liquidity ratios Activity ratios
______ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm. Multiple choice question. Rent Sales Interest Revenue
Revenue
Operations Management is responsible for determining: -Facility location and layout -Material requirement planning and purchasing -All of the above -Inventory and quality control
all of the above
Net income or loss is: Multiple choice question. is gross profit plus operating expenses and taxes all revenue minus all expenses and taxes is operating expenses minus taxes is net sales minus cost of goods sold
all revenue minus all expenses and taxes
The first step in the accounting cycle is to Blank______. Multiple choice question. take a trial balance record transactions in journals analyze source documents perform an internal audit
analyze source documents
Which are steps in the accounting cycle? Multiple select question. analyze transactions record transaction in the journal build a budget determine investment opportunities prepare a trial balance
analyze transactions record transaction in the journal prepare a trial balance
Stakeholders who want to look at detailed financial information on whether a company is profitable, is able to pay its bills, and how much debt it owes will look at the firm's Blank______. Multiple choice question. tax returns annual report financial transactions budgets
annual report
What is debit financing?
borrowed money from a financial institution or borrowed money from the market. higher the risk, higher the interest rate it is a contrast, so terms of the contract do not change.
What form of financing takes place when the merchant accepts payment immediately from the bank and the customer agrees to repay the bank? Multiple choice question. Factoring Equity financing Secured loan Credit cards
credit cards
quick/acid ratio =
current assets - investments divided by current liabilities
current ratio =
current liabilities divided by current liabilities
Select the steps in financial planning. Multiple select question. recruit employees develop budgets forecasting short term needs establish financial controls define the firms organizational chart
develop budgets forecasting short term needs establish financial controls
yeild equation
dividended divided by price
Functions of financial management do NOT include Blank______. Multiple choice question. arranging for funding from a bank collection of money due to the firm limiting of bad debts ensuring employees are paid fairly
ensuring employees are paid fairly
The three steps in the financial planning process are to forecast the firm's short- and long-term needs, develop budgets, and Blank______. Multiple choice question. predict market downturns establish financial controls maximize retained earnings prepare financial statements
establish financial controls
When using human laborers, it is a bad idea to locate production in an area with low-cost labor. True or False
false
profit is the same as cash, true or false?
false
true or false Financial management is only concerned with items involving cash.
false
In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis? accounting operations production finance
finance
In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget? Multiple choice question. forecasting financial control benchmarking operational control
financial control
Because they indicate a firm's financial health and stability, the use of Blank______ are key factors in management decision making. Multiple choice question. financial statements tax returns annual reports ledger entries
financial statements
The best way to understand a firm's financial health and stability is to look at its Blank______. Multiple choice question. financial statements trial balance sheet tax returns banking records
financial statements
what calculation occours to find the break even?
fixed costs / price- variable costs
How do you get the sales forecast ?
forecast market demand this year x market share (%)
Which are considered to be the working areas of accounting? Multiple select question. government and not-for-profit accounting bank accounting auditing financial accounting tax accounting managerial accounting
government and not-for-profit accounting auditing financial accounting tax accounting managerial accounting
CPI (consumer price index) does what
how the state control inflation and deflation
Which three activities are part of the function of accounting? Multiple select question. interpreting financial transactions prioritizing financial transactions planning financial transactions classifying financial transactions recording financial transactions
interpreting financial transactions classifying financial transactions recording financial transactions
Which three activities are part of the function of accounting? Multiple select question. interpreting financial transactions recording financial transactions classifying financial transactions prioritizing financial transactions planning financial transactions
interpreting financial transactions recording financial transactions classifying financial transactions
Select those items that are considered to be a capital expenditure. land patents and copyrights inventory and materials buildings and equipment
land patents and copyrights buildings and equipment
Technological changes have had such a great impact on the ______ -services industry -electronics industry -banking and finance industry -manufacturing industry
manufacturing industry
If a company has a goal of Blank______, it might choose to locate its facilities to an area that has access to major highways, ports, railways, and airports. -having more inventory on hand -replacing a labor force with machinery -eliminating economies of scale -reducing time to market
reducing time to market
Which part of the cash flow circle involves turning inventory into cash? inventory cash production sales
sales
MRP is a computer based operations management system that uses Blank______ to make sure that needed parts and materials are available at the right time and place. -customer feedback -inventory records -daily accounting reports -sales forecasts
sales forecasts
Intermittent proccess
short, and continuous proccess is long and over the course of time
What does the balance sheet do?
tells the story of working capital and investing. Tracks money flow
The _______ value of money is the idea that money in your possession today is worth more than money that will be in your possession in the future.
time
market determines the distribution of resources (Free market)
what is capitilist
the government decides (like Russia)
what is communism
Assembly line layout
workers do only a few tasks at a time (factorys) (small)
