business final

Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of

depreciation

The process of spreading the costs of long-lived assets, such as buildings and equipment, over the total number of accounting periods in which they are expected to be used is called

depreciation

A company's assets include its liabilities

faulse

Net income is the amount on which a firm will pay taxes.

faulse

In the context of the marketing concept, which is the first step that a business must take?

find out what consumers desire

For most organizations, the ultimate objective is

for the produced outputs to be worth more than the cost of inputs.

Glen is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money he uses to purchase his tools and the electricity he uses to run his power saw are

inputs

Hannah borrowed money from a bank to start her new company. Her direct cost of borrowing this money is known as her ________ expenses.

interest

net income

is the amount of revenue left after subtracting all expenses, taxes and costs.

Benchmarking lets an organization

know where it stands competitively in its industry.

The capacity of a restaurant like Charleston's would be the

maximum number of customers who can be effectively served at any one particular time.

Mason Structures Inc. purchases cement, steel rods, and wooden panels to use in the construction of buildings, houses, and bridges. These inputs are considered as ________ inventory for a construction business.

raw materials

Materials that have been purchased to be used as inputs in making other products are included in ________ inventory.

raw materials

Accounting refers to the process of

recording, measuring, and interpreting financial information

An accounting term that is interchangeable with revenue is

sales

An income statement is the same thing as a profit and loss statement.

true

In which of the following scenarios is a business least likely to survive

when a business focuses only on customer satisfaction and not on its own objectives, such as boosting productivity

Which of the following statements is true of bookkeeping?

Bookkeeping is much more mechanical than accounting.

bookkeeping

day to day recordings of business transactions -much narrower and far more mechanical

In a balance sheet, assets may exceed liabilities plus owners' equity.

false

________ is the primary goal of business.

profit

Return on assets and return on equity are examples of ________ ratios.

profitability

Studies have found a direct relationship between social responsibility and ________ in business.

profitability

________ refers to money owed to a company by its clients or customers who have promised to pay for the products at a later date.

Accounts receivable

________ are the funds used to acquire the natural and human resources needed to provide products.

Capital resources

Which of the following scenarios reflects the capital-intensive nature of a manufacturer?

Coffee at Home mass produces coffee makers with multiple settings, so customers can choose whether they want to brew a cup, two cups, or an entire pot using the same machine.

Which of the following is true of the transformation process in operations management?

It is the conversion of resources, such as labor, money, materials, and energy, into goods, services, or ideas.

Ian got a loan from the Small Business Administration to start his own house contracting business. For Ian, this loan is

a liability

An income statement shows

an organization's profitability over a period of time.

owners equity

assets-liabilities (what you actually own

A crafts store displays various types of paper, stickers, glue sticks, yarn, canvases, paints, and other craft supplies on shelves. These items are examples of the company's

assets.

what is the accounting equation

assets=liabilities + owners equity

The ________ presents a snapshot of an organization's financial position at a given moment.

balance sheet

Mario Autos Inc. measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Mario Autos Inc. tries to cover that gap by imitating the best practices of these market leaders. This is known as

benchmarking

A hospital can effectively handle a maximum number of 300 patients at any one particular time. This is referred to as its

capacity.

liabilities

debts

Nonbusiness entities typically obtain revenue through

donations

assets

economic resources or items of value

Cole owns a large chain of grocery stores. A significant part of his job is determining the amount of income left after taxes and whether the company will retain this income or pay it out in dividends to its stockholders. The income in this scenario is ________ income.

net

For manufacturers, measuring productivity is fairly straightforward because

of the tangibility of their output.

The output of service providers must be consumed immediately, and only a few services can be saved, stored, resold, or returned. Which characteristic feature of services does this best illustrate?

perishability of outputs

Quality control refers to the

processes an organization uses to maintain its established quality standards.

The outcomes of a business's efforts are

products

balence sheet

shows assets and funding used to pay for these, such as bank debts or owners equity

cash flow

shows how cash changed from beginning to end of accounting period

income statement

shows profitability over a period of time

depreciation

spreading costs of long-lives assets over a total number of

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

statement of cash flows.