ISOM Final (chapters 13-16)

The benefits from capital expenditures extend beyond one year's time. T or F

True

Collecting data over a period of time and then processing that data all at the same time is called ______ processing. off-line on-line auxiliary batch

batch

Many companies use _____ to connect two or more private networks over a public network, such as the Internet. multi nets extranets virtual private networks wireless local networks

virtual private networks

A network that connects computers at different sites via telecommunications media is called a(n): local area network Web-based network long distance communications system wide area network

wide area network

Financial managers focus on _____, the inflow and outflow of cash. financial flows sales revenues cash flows revenue streams

financial flows

Accounting provides a framework for looking at: past performance current financial health possible future performances a and b b and c all of the above

all of the above

A group of two or more computer systems linked together by communications channels to share data and information is called a computer: database network mainframe combination

network

Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the: reserve requirement prime monetary percentage discount requirement interest rate average

reserve requirement

_____ are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services. Commercial Banks Thrift Institutions Federal Reserves Finance Companies

Commercial Banks

_____ 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

Credit terms

_____ is cash held in the form of coins and paper money A time deposit Capital Revenue Currency

Currency

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

Depreciation

Goodwill and brand loyalty are examples of intangible assets. T or F

False

Knowledge management is much easier than information management. T or F

False

Sales made, but for which payment has not yet been collected, are called accounts payable. T or F

False

The Federal Deposit Insurance Corporation (FDIC) only insures deposits at commercial banks. T or F

False

Which federal agency is responsible for processing and clearing checks between financial institutions? Financial Clearing House Publisher's Clearing House U.S. Treasury Department Federal Reserve

Federal Reserve

This type of network connects computers at one site and enables their users to exchange data and share hardware and software from a variety of computer manufacturers. WAN PAN SAN LAN

LAN

The _____ system is the first electronic-based stock market and the largest over-the-counter market. AMEX NASDAQ AMC NYSE

NASDAQ

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called case_______ maintenance capitalization targeting management

management

A computer program that copies itself into other software and can spread to other computer systems is called a virus. T or F

True

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

True

Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization. T or F

True

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

True

In finance, the opportunity for a profit is called return. T or F

True

Retained earnings are the amounts of left over from profitable operations since the firm's beginning. They are equal to total profits minus all dividends paid to stockholders. T or F

True

The Sarbanes-Oxley Act redefines the public corporation-auditor relationship and restrict the types of services auditors can provide to clients. T or F

True

Another term for owner's equity is: assets liabilities net worth leverage

net worth

A(n) ______ is a service company that buys and maintains software on its servers and distributes it through high-speed networks to subscribers for a set period of time and a predetermined price. batch processor application service provider extranet intranet

application service provider

One of the important decisions managers have to make is whether to buy and commit to upgrading its computer equipment every couple of years. One way of avoiding having to buy costly upgrades, which can quickly become obsolete, is to use: a software infrastructure Web sharing and Internet warehouse application service providers

application service providers

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

are accurately described by all of the above

Customer records containing names, addresses, phone numbers, and purchase histories would be most likely stored in: customer relational networks database management systems spreadsheets information processing networks

database management system

Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy? insuring credit card balances providing tax refunds distributing currency loaning money to consumers

distributing currency

The _____ characteristic of money is revealed by the fact that a dollar can be converted into four quarters or ten times. portability durability scarcity divisibility

divisibility

Intranets are essentially mini-Internets that operation behind a(n) _____ that prevents unauthorized access network barrier communications buffer modem synthesizer flux capacitor firewall

firewall

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as: accounting rules and standards principled accounting procedures comparable accounting standards generally accepted accounting principles

generally accepted accounting principles

_____refers to all of the equipment and techniques needed to manage and process information. A data processing system A transaction system Information technology A relational network

information technology

Weeds, sand, and paper clips would not make good mediums of exchange because they lack the key characteristic of: portability divisibility durability scarcity

scarcity

A loan that requires the borrower to pledge specific assets as collateral is called a(n) _____ loan. promissory commercialized amortized secured

secured

Payments in the form of more stock to existing stockholders are called: warrants rights offerings stock dividends stock offerings

stock dividends