Gateway Test 2

_____ is the process in which a firm continuously collects and evaluates information about its external environment.

Environmental scanning

is a private organization that is responsible for establishing financial accounting standards used in the United States.

Financial Accounting Standards Board (FASB)

The _____ is based on the five P's.

marketing mix

_____ is the division of markets into different groups

Market segmentation

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

Marketable securities

_____ is a strategy that focuses on forging long-term partnerships with customers

Relationship Marketing

Lee Robi has developed an electronic lice comb that tells whether head lice are present by emitting an audible sign. Robi has mailed promotional flyers on the lice comb to all the school districts in the nation. He has also run ads in several different women's magazine. This describes the _____ strategy that Robi used.

promotion

Independent accountants who serve organizations and individuals on a fee basis

public accountants

Customer satisfaction:

refers to the customer's feeling that a product has met or exceeded expectations

Which of the following is an example of an asset that might be owned by a minor league baseball team? a. salaries owed to its players b. the cost of getting tickets printed c. reputation as a winning team d. the price made for advertising on local radio

reputation as a winning team

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

all of the above

Liquidity ratios measure:

short-term financial stability

The _____ is a specific group of consumers toward which a firm directs its marketing efforts.

target market

a yearly document that describes a firm's financial status

annual report

Diapers is a product category in the maturity stage of its product life cycle. This means that the manufacturers of diapers:

are creating product line extensions

Things of value owned by a firm are called its:

assets

the process of reviewing the records used to prepare financial statements, is an important responsibility of public accountants.

auditing

an accountant must complete an approved bachelor's degree program and pass a test prepared by the American Institute of CPAs (AICPA)

certified public accounting (CPA)

There are two types of expenses recorded on the income statement. They are:

cost of goods sold and operating expenses

focuses on preparing external financial reports that are used by outsiders; that is, people who have an interest in the business but are not part of the company's management

financial accounting

Financial intermediation is the process in which:

financial institutions act as intermediaries between the suppliers and demanders of funds

To ensure accuracy and consistency in the way financial information is reported, accountants in the United States follow

generally accepted accounting principles (GAAP)

_____ is a summary of what a company has earned and spent over a given period.

income statement

The Federal Deposit Insurance Corporation (FDIC):

insures deposits in commercial banks

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

intangible assets

provides financial information that managers inside the organization can use to evaluate and make decisions about current and future operations

managerial accounting

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

net loss

deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales

net sales

_____ is arrived at by subtracting current liabilities from current assets.

net working capital

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

pricing

Accountants employed to serve one particular organization

private accountants

The Financial Accounting Standards Board (FASB) is a:

private organization that is responsible for establishing financial accounting standards in the United States

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _____ strategy.

product

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio?

2 times

Which of the following statements about the accounting profession is true? a. Most CPAs first work for public accounting firms and later become private accountants or financial managers. b. Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program. c. Private accountants are also called corporate accountants. d. All of the above statement about the accounting profession are true.

All of the above statement about the accounting profession are true.

Managerial accounting provides information that would probably be most beneficial to:

a middle manager of the company

the process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities.

accounting

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

acid-test

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

debt-to-equity

The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?

demographic

Financial institutions can be divided into two broad categories. These are ______ institutions.

depository and nondepository

_____ is the company's ability to expense fixed assets over their useful life.

depreciation

The ratio of net profit to the number of shares of common stock outstanding is called the:

earnings per share

Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:

reserve requirement

The marketing concept:

satisfies customer wants and needs legally and responsibly