Computers/Accounting MATS Study
What is the interest on a $1,000 note for 1 month at an 8% annual interest rate? Answer
$6.67
Which of the following are input devices for a computer? 1-Mouse 2-Keyboard 3-Printer 4-Modem Answer
1, 2, and 4 only
Examples of vertical market software would be: 1-Microsoft Office 2-The Funeral Director's Assistant 3-Microsoft PowerPoint 4-Funeral Directors Management System (FDMS 2000) Answer
2 and 4 only
Which of the following lists the proper order of accounting procedures? 1-Financial Statements 2-Journal 3-Ledger 4-Trial Balance Answer
2, 3, 4, 1
The accounting expression "3/15, n/30" means a: Answer
3% discount if paid in 15 days, with full payment due 30 days from date of invoice
A funeral home shows the following balances: sales = $1,000,000 sales discounts = $100,000 cost of goods sold = $600,000 The gross profit percentage is: Answer
33%
The following information is taken from the financial statement of Joan's Video Shop: Total current assets $48,000 Property, plant, and equipment 5,000 Current liabilities 12,000 Long-term liabilities 3,000 Owner's equity 38,000 Beginning inventory 30,000 Ending inventory 32,000 Cost of goods sold 150,000 Net income 40,000 The inventory turnover of Joan's Video is:
4.8
A funeral home has $90,000 of accounts receivable. $50,000 of that is current, $10,000 is in the 30 to 60 day column, $20,000 is in the 60 to 90 day column, and $10,000 is over 90 days. What percent of the accounts receivable is past due? Answer
44%
96 megabytes would be roughly equivalent to: Answer
96 million characters
All of the following are examples of electronic databases except which one? Answer
A collection of country-music CD's
Which of the following best defines a partnership? Answer
A voluntary association of two or more persons to carry on, as co-owners, a business for profit
The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing the data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the: Answer
Accounting cycle
A debit to the purchases account would have a corresponding credit in which of the following accounts? Answer
Accounts payable
A transaction in which caskets are bought on account from a supplier should be recorded as a credit to: Answer
Accounts payable
Compared with a traditional card catalog, which of the following is an advantage of an electronic card catalog? Answer
Allows sophisticated search strategies
Computer software for accounts receivable: Answer
Allows the user almost instant access to customer balances
Anything of value owned is considered: Answer
An asset
The things of value owned by a business are called: Answer
Assets
The basic accounting equation is: Answer
Assets = Liabilities + Capital
A duplicate of an original program or data made as a precaution against loss or damage of the original is called: Answer
Backup
The difference between the total debits and the total credits in an account is the: Answer
Balance
The financial statement that shows the financial position of a company on a particular date: Answer
Balance Sheet
Which term refers to the speed at which information is telecomputed? Answer
Baud rate
The computer part that performs all the controlling, calculating, and processing functions is the: Answer
CPU
The portion of the computer that controls the functions of the system and is composed of the 3 sub-units called the control unit, arithmetic unit, and memory unit is the: Answer
CPU
Which is not a peripheral? Answer
Central processing unit
What is a picture that is saved to a diskette and can be pasted into a document? Answer
Clip art
An electronic device that can accept data, perform instructions on the data, and deliver the results of the processed data is called (a):
Computer
Break-even analysis is a method of showing the relationship between sales revenue and: Answer
Cost of producing that revenue
An example of a non-financial incentive for employees is: Answer
Creative challenge
The right-hand amount column of a standard two-column ledger account form is called the: Answer
Credit column
When a net profit is closed to capital, the capital account is: Answer
Credited
A business or individual to whom a debt is owed is a: Answer
Creditor
The left side of a standard account is called the: Answer
Debit side
If the operator does not assign values in computer operations, the computer automatically can assign: Answer
Default values
The process of allocating the cost of plant and equipment to the periods expected to benefit from the use of these assets is called:
Depreciation accounting
Telecomputing involves the transmission of all of the following except which one? Answer
Disks
The terms hard and floppy describe types of: Answer
Disks
Which one of the following is the computer equivalent of a FAX? Answer
Form W-4 is a(n): Answer
Employee's withholding allowance certificate
Management theory holds that an employee's authority should be: Answer
Equal to his/her responsibility
A plastic disc on which data can be stored magnetically is called a: Answer
Floppy Disk
The use of written policies, budgets, and job descriptions is most closely associated with which of the following stages of growth? Answer
Formal organization
To erase and prepare a diskette for use in a computer requires the operator to: Answer
Format the diskette
Which of the following illustrates the management function of planning? Answer
Formulating policies
Bryan has created a 10-page story but wants to print only the first two pages. Which printer command should he select?
From _______ to _______
Adding the beginning merchandise inventory to the purchases for the period yields: Answer
Goods available for sale
Beginning inventory plus purchases for the period yields: Answer
Goods available for sale
For a social studies report, Fred needs to illustrate the products of North Carolina with pictures and comparison graphs. He would most likely use what software programs? Answer
Graphing and clip art
What general term describes the physical equipment of a computer system, such as its video screen, keyboard, and storage devices? Answer
Hardware
Theory X and Y are associated with what school of management? Answer
Human relations
What is the interest on a $1,000 note for 3 months at a 9% annual interest rate? Answer
$22.50
A sole proprietor Answer
assumes all losses of the business
A stockholder in a Subchapter S corporation Answer
cannot be a nonresident alien
Looking to the future, strategic alliances represent _____ for small entrepreneurial firms. Answer
great promise
A key characteristic of a partnership is that each partner Answer
is capable of legally contracting
A corporation Answer
is chartered under state laws
A corporate charter should be Answer
prepared by an attorney
Large manufacturers have been known to form strategic alliances with small manufacturers in order to benefit from the smaller firms' Answer
product and development efforts.
The type of ledger that contains all of the accounts shown on the trial balance is known as a(n): Answer
General ledger
The most rudimentary form of business organization among small businesses is the Answer
sole proprietorship
A trial balance of the general ledger accounts taken after the temporary owner's equity accounts have been closed is referred to as: Answer
Postclosing trial balance
A liquidity ratio that measures the ability of a firm to meet its current debt on short notice is called the: Answer
Quick asset ratio
A word processor would most likely be used to do which of the following? Answer
Type a biography
Permission to incorporate a business comes from the Answer
government, usually through a secretary of state
The owner of a sole proprietorship Answer
owns the business
A son or daughter begins to act as a part-time employee in the family business during the: Answer
Introductory functional stage
Which of the following is the correct sequence of accounting procedures? Answer
Journal, ledger, trial balance, financial statements
Output devices that fuse dry ink to paper with pressure and heat are: Answer
Laser printers
The two main classifications of claims against a firm's assets are: Answer
Liabilities and owner's equity
The legal obligation of a business to pay a debt is called a(n): Answer
Liability
Which of the following accounts normally has a credit balance? Answer
Liability
Assets that are easily converted into cash are termed: Answer
Liquid
A popular software package that uses electronic spreadsheets for entry of numbers is: Answer
Lotus 1-2-3
Which is the most crucial part of a new business plan? Answer
Market analysis
Which of the following is a part of the CPU of a computer? Answer
Memory Chip
Which of the following is a computer output device? Answer
Monitor/display
A circuit board that contains most of the electronic components of the system unit is called the:
Motherboard
If the total of expenses is smaller than the total of revenues, the difference is termed: Answe
Net profit
Gross sales minus sales returns and allowances and minus discounts on sales, yields: Answer
Net sales
When cash is spent in the acquisition of an asset, the net worth of the business is: Answer
Not affected
Employers are required by the following law to provide a workplace free from harmful hazards: Answer
Occupational Safety and Health Act
Which of the following legal forms of an organization allows owners to contribute no capital but still play a part in managing the business and share in its profits? Answer
Partnership
What is the PRIMARY function of word-processing software? Answer
Producing written documents
The process of determining whether the amount of cash, both on hand and in bank, is the same as amount entered in the accounting records is called: Answer
Proving the cash
A primary benefit of the strength of family businesses is the willingness of family members to:
Sacrifice salaries and dividends when necessary
Which of the following best describes uploading information? Answer
Sending information to a host computer
Software programs that allow you to legally copy them, and/or give them away at no cost are known as what software type? Answer
Shareware
FICA refers to what taxes? Answer
Social Security
Before selecting a computer for use in a funeral home, you should determine the correct: Answer
Software
A funeral home determines the amount of supplies used by which of the following methods?
Subtracting the cost of supplies on hand from the balance in the supplies account
Size is commonly used to classify computer systems into basic categories: Answer
Supercomputers, mainframes, minicomputers, microcomputers
Which of the following entities is liable for a corporation's debts? Answer
The corporation itself
What is the function of a disk drive? Answer
To read from or write information to a floppy disk
Income received in advance is: Answer
Unearned
An increase in proprietorship as a result of a business transaction is considered: Answer
Income
Money paid for the use of money is called: Answer
Interest
In a partnership, each partner has agency power, which means that Answer
a partner can legally bind all members of the firm.
A disadvantage of a sole proprietorship is Answer
the lack of limits on personal liability
