23SP - BUSN 110 Introduction to Business - Week 8 Quiz (Final)

_____ is the system used to record a firm's financial transactions in a routine and clerical process. Accounting Record keeping Bookkeeping Auditing Financial management

Bookkeeping

_____ is the company's ability to expense fixed assets over their useful life. Amortization Acceleration Depreciation Capital budgeting

Depreciation

______ refers to a shared enthusiasm and devotion to the group. Overcoming objections Empower yourself Esprit de corps Being politically savvy K-I-N-D technique

Esprit de corps

Which of the following statements does NOT describe an advantage inherent in equity financing? The company is not required to repay equity. Interest is tax-deductible. Equity has no maturity date. A firm has no obligation to pay dividends. Equity owners have residual claim on income.

Interest is tax-deductible.

_____ offer companies a more cost-effective way to link computers than linking terminals to a mainframe computer. Intranets Extranets Virtual private networks Local area networks Linking networks

Local area networks

Which of the following is the fifth step of the planning process? Compare Alternatives Acquire Knowledge Choose a Strategy Make a Commitment Stay Flexible

Make a Commitment

Which of the following statements about the Federal Deposit Insurance Corporation (FDIC) is true? The ceiling on the size of account insured by the FDIC is $10,000. The FDIC bank examiner looks at banks' loan quality, management practices, earnings, liquidity, and whether the bank has enough equity to safely support its activities. Only state banks, not national banks, are required by law to be insured by the FDIC. The FDIC charges each bank the same flat rate for deposit insurance. All of the above statements about the FDIC are true.

The FDIC bank examiner looks at banks' loan quality, management practices, earnings, liquidity, and whether the bank has enough equity to safely support its activities.

Ennis Worth has a six-month loan for $7,500 that he used to refurbish the fishing boat he uses to earn his living. This loan is an example of: a current liability owners' equity a long-term liability a current asset a fixed asset

a long-term liability

The U.S. money supply is composed of: coins, paper money, and treasury bills currency, demand deposits, and checking accounts checking accounts, bonds, and savings accounts currency, demand deposits, and time deposits stocks, demand deposits, and checking accounts

currency, demand deposits, and time deposits

If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system. decision support transaction processing operating expert information reporting

decision support

Net sales: is determined by adding total sales for the accounting period is calculated once profit after all expenses are paid is determined once profit after cost of goods sold is deducted deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales is calculated by deducting revenues from gross sales

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

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is called: bartering collateralizing factoring countertrading buying on the short

factoring

Intranets are essentially mini-Internets that operate behind a(n) _____ that prevents unauthorized access. network barrier communications buffer insulated connector modem synthesizer firewall

firewall

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n): stockbroker investment banker transfer agent commercial banker public distributor

investment banker

Short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by checking accounts are: management vehicles corporate securities marketable credits corporate equities negotiable securities

marketable credits

A bank chartered by the Comptroller of Currency, a branch of the U.S. Treasury Department, is called a _____ bank. federal national state fiscal central

national

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 conglomerate

network

Which of the following is NOT one of the six steps in the accounting cycle? analyzing business transaction documents recording business transactions in journal preparing a trial balance paying accounts payable preparing the financial statements

paying accounts payable

The funds that are reinvested in the firm out of profits and after dividends are paid are called: retained earnings stock equity investor earnings secondary earnings convertible bonds

retained earnings

Items that groups of people use as money must be _____ to be acceptable mediums of exchange. scarce, divisible, portable, and durable portable, sortable, profitable, and divisible compatible, durable, universal, sortable distributable, durable, comparable and valuable valuable, durable, compatible and scarce

scarce, divisible, portable, and durable

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

scarcity

Financial managers constantly strive for a balance between: the opportunity for profit and the potential for loss cash and marketable securities economic responsibility and social responsibility common and preferred stock dividends paid out and interest payments

the opportunity for profit and the potential for loss

The three main types of unsecured short-term loans are: treasury bills, certificates of deposit, and accounts payable accounts payable, notes payable, and loans payable trade credit, accounts payable, and bank loans trade credit, bank loans, and commercial paper commercial paper, accounts payable, and trade credit

trade credit, bank loans, and commercial paper

The two main types of operating expenses are: production and general and administrative production and selling selling and general and administrative office and selling maintenance and production

selling and general and administrative

Liquidity ratios measure: earnings per share long-term financial stability short-term financial stability annual sales and profits ability to pay dividends

short-term financial stability

Which of the following way(s) helps you to determine what keywords are appropriate for your industry and job? Look through recent job postings online. Talk to people in the career field you are targeting Research specific company websites that appeal to you in terms of getting a job with that specific organization Visit professional association websites, and read the content carefully All of these

All of these

_____ stock is a security that represents an ownership interest in a corporation and has voting rights. Preferred Common Par value Treasury Equity

Common

A(n) _____ is an internal Web site that provides proprietary corporate information to a defined user group. work station internal network virtual network enterprise portal knowledge manager

enterprise portal

The idea behind _____ is to take the massive amounts of idle capacity sitting on desktops and in server farms and put it to use performing complex calculations that would otherwise have to be done on very large parallel supercomputers that would cost millions of dollars. grid computing virtual application providers network servers expert systems executive decision systems

grid computing

Accounting involves the _____ of the financial activities for firms. delegating summarizing creation empowering planning

summarizing

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity? earnings per share net profit margin return on equity net working capital current ratio

net working capital

_____ is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value. Capital evaluation Capital allocation Budget analysis Capital budgeting Budget allocation

Capital budgeting

Which of the following is (are) a way(s) help you learn how to concentrate? Make a to-do list Avoid food Take short, frequent breaks Choose a workplace All of these

Choose a workplace

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals. Operations Financial Accounting Corporate Money

Financial

Which of the following statements about computer viruses is true? Another name for computer viruses is worms. There is no way to protect against computer viruses Viruses copy themselves onto other software. Viruses cannot hide on your computer Spam is unrelated to viruses.

Viruses copy themselves onto other software.

A(n) _____ is the collective term that describes the methods and the equipment used to provide information about all aspects of a firm's operation. information processing system information network management information system transaction processing system customer relational network

management information system

A(n) _______ is a method or process worked out in advance that leads to the achievement of some goal. organization KIND technique conflict plan mission statement

plan

Which of the following statements about international banking is true? International banks are extremely risk-aversive. East Asian countries have proven one of the most profitable areas for U.S. banks. It is illegal for U.S. banks to provide loans to foreign governments. Foreign banks are subject to fewer regulations than U.S. banks. All of the above statements about international banking are true.

Foreign banks are subject to fewer regulations than U.S. banks.

When conflicts occur, try the K-I-N-D technique. Where I stands for: Impaired Initiate Informed Indirect Improve

Informed

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash. Accounts receivable Owners' net contribution margins Notes payable Marketable securities Marketable receivables

Marketable securities