Small business final except ch. 12

Which of the following ratios is better when it is a lower number?

Debt to assets ratio

Checking and savings accounts are the most common forms of ______

Demand deposits

_______Make up most of the non-currency cash which is available immediately.

Demand deposits

Regular and systematic reduction in income that transfers assets value to expenses overtime is called

Depreciation

There are three general types of events that cause business risk. Which of the following is not one of these three general types of events

Events related to the competitors of the business

Contingency fees are a fixed amount paid for certain task

False

Expenses are the value given up to obtain something that the owner wants

False

Expenses are the value given up to retain some thing that the owner wants

False

Formal summaries of the content of an accounting system records of transactions are called financial instruments.

False

Illegal obligation to pay money in the future is called equity capital.

False

In the case of mediation, the dispute spoke to a neutral third-party who has the power of a judge.

False

Small businesses never experience any cash flow problems

False

That I don't go on a business negotiation is for one side t win in the other side to lose

False

_____ Refers to the filing made with the state in which the business operates disclosing the trade name or assume name of the business along with the owners of the business.

Fictitious name filing

_____ Repay employers for loss is caused by dishonest or negligent employees

Fidelity bonds

_______ Is a measure of the amount of debt relative to total investment

Financial leverage

The OSHA is a commission established in force the provisions of the equal employment opportunity act

Flass

Josh, the owner of a software company, is facing cash flow problems. To control the cash out flow he avoids paying the bills to his vendors. After much Dilley he sent a check and payment but intentionally forgets to sign the check. Cheaper than the cash from going out of his business, Josh is applying the strategy of

Gaming the payment process

Which of the following ratios measures the percentage of sales revenue available to pay operating costs and to provide profits after paying for inventory?

Gross margin ratio

In the lease agreement signed by Arthur Fraser, a_____clause exempt him from paying any restitution in cases he causes accidental damage on the property. Which of the following types of contractual clauses protects Arthur Fraser from paying for such damages?

Hold harmless

Which of these is a disadvantage of a corporation?

Incurs relatively high incorporation fees and high taxes

Which of the following arguments would be helpful in deflecting vicarious liability?

Independent contractor argument

Someone who uses intellectual property without the permission of the owner is referred to as

Infringer

In the context of accounting functions, Which of the following is true of accounts receivable?

It records provisions of credit to customers.

Which of the following is true of coinsurance

It requires that an owner carry insurance equal to a stated minimum percentage of the market value of the property

Walter Bradham the owner of bradham corporation muddled his personal finances with his business accounts. Which of the following courses is the court most likely to take in this case

It will dissolve the corporation into a sole partnership under bradham

Which of the following statements is true regarding the balance sheet?

It's values are considered as historical values

_______ Ratios measure the relative risk that a business that that could cause bankruptcy.

Leverage

_______ Is the most common kind of coverage on Chi persons of a business

Life insurance

According to the definition provided by the US dollars federal reserve bank which of the following is one of the primary purposes of money?

Making exchanges

An accounting method that is specifically intended to be used for planning directing and controlling a business is called

Managerial accounting

A comprehensive budget is also referred to as the

Master budget

Profits are not____. Profits or information that is useful and predicting when and how much money you make collect.

Money

Which of the following is true about trade names?

Most states the allow several firms to use the same trade name as long as the firms are in different lines of business

Which of the following government agencies was created to him for safety in the workplace

OSHA

Which of the following statements is true regarding the OSHA act?

OSHA - defined low hazard industries are exempt from the recordkeeping requirements of the regulations.

Which of the following accounting sections ensures that the employment taxes are kept current?

Payroll records

______ Are the accounts of assets liabilities and owners equity excluding accounts for revenue and expenses.

Permanent accounts

The best negotiation strategy is to use four steps to structure a negotiation to achieve a winning solution for you in the other party. Which of the following is not one of those for negotiation steps?

Principals

The amount that revenue exceeds expenses is referred to as

Profit

Susan, who has a florist, purchases her flowers on credit. Lucy a customer takes eight bouquets and promises to pay Susan within two weeks. The amount that Lucy oh Susan is termed___.

Receivables

Martin, an employee at a boutique store, is required to handle store displays and also ensure that all the sales records tally at the end of each business day. However, he committed fraud by recording fake sales and then keeping the products to himself. Which of the following managerial concepts would've helped the store avoid this deception?

Separation of duties

Julia recently set up a factory that manufacture shoes. To ensure that her business complies with the basic OSHA regulations which of the following steps should she take?

She must provide medical examinations for all her employees

Direct reductions in the amount of taxes that must be paid depending upon meeting some legal criteria is referred to as

Tax credjfs

Which of the following accounting concepts has roots in the mesopotamians who lived and kept records 5000 years ago?

The accounting equation

Which of the following statements is true and setting up your accounting system?

The actual task of setting up an accounting system is quite easy if you understand accounting a bit.

Insurance value is defined as

The amount of an asset for what your company will write an insurance policy

Brandon wants to sue fitness east, a leading provider of fitness equipment's for negligence. He approaches Arthur Bailey group a law firm which has good experience and handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charge is Brandon using a retainer?

The attorney would take a monthly fee in additional see if circumstances change

Juan has an accounting philosophy according to what she kept the loans borrowed from the business separate from the loans he takes from banks for his own purposes. Which of the following basic accounting hard surfaces reflected in Hondas accounting philosophy?

The business entity idea

Which of the following statements concerning the income statement is true?

The characteristics that someone make the income statement hard to understand also provide temptation to fudge the numbers

An implication of the bounded rationality models of management is that

The more information available to be included into the decision process the less efficient the process will be

Which of the following is true of using internal audits to manage risk

The owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit

Which of the following is true of using internal audits to manage risk?

The owner should provide sufficient authority to the auditor to ensure that here she can accomplish the goals of the audit

Which of the following is true of ensuring the property of a business?

The value of the historical significance of a building often cannot be insured.

______ Insurance is normally included in insurance on physical assets

Theft

Which of the following is true of financing small businesses?

There are several resources available for financing start ups.

Which of the following is an advantage of corporations?

They are better equipped and raising large amounts of money

Adverse possession occurs when an RN or a real property does not enforce property rights in an allows a non-owner to use the property as if it was his or her own

True

Borrowing money for capital investment in Hanses the potential for higher rates of return for the owners

True

Chris from loss of key personnel informal employees setting up competition against your business can be managed by negotiating employment contracts with those key employees

True

Identifying rest is the first hast to do completed before a comprehensive insurance program can be developed for a business

True

The first step and budgeting is to make a forecast of your future sales

True

The total liability issue in general partnership's is similar to that sole proprietor ships

True

Titans are essentially monopolies granted to inventors by the US government giving Patten owners the exclusive rights to make use her cell that invention for a certain period of time.

True

In managing risk from violation of tax regulations, small business owner should make paying taxes their first financial priority

Trye

________ is collected by the IRS and state agencies as a percentage of tax upon payroll

Unemployment insurance

Which of these is an advantage of sole proprietor ship?

Unique tax advantages

Which of the following countries is one of the most litigious societies in the world?

United States

Today the biggest risk to most businesses comes from _____

Using computers

The process of determining the effect of price and quantity changes on revenues and expenses refers to

Variance analysis

______ Is an accounting method which assigns cost based on the different types of work a business does in order to sell a particular product or service.

Activity base cost estimates

_____ Is a dispute resolution process held instead of court cases in which both sides present their case to a legal professional.

Arbitration

Commercial papers issue to be paid to the_____of the note, unless it's fully transferable.

Bearer

General partnerships are similar to limited partnerships in that

Both dissolve when their respective partnership mix changes

Regardless of your business is size, the one essential element of an accounting system is _______that is accurate easy to understand and tracks all checks written and all deposits made.

Cash accounting

Cash that commuting from stocks bonds land buildings or equipment that a business is called

Cash flow from investing

Which of the following is an example of a cash equivalent?

Commercial paper

Tammy has just opened a donut shop called the rabbit hole. Given that the rabbit hole is it start up fees which of these would be Tammys immediate financial management need?

Conserving what little money the business has

Exclusive rights given to the creator of the literacy or artistic work to make use of that work is called a

Copyright

Which of the following ratios is used to estimate the liquidity of a business?

Current rario