BA 101 Midterm #2 Frequently Missed Questions

In the process of selling goods or services, a business incurs operating expenses such as:

utilities rent salaries

The ______ ______ provides information about a company's financial status to company managers, owners, government agencies, and the general public

Annual Report

________-____ layout refers to workers who do only a few tasks at a time

Assembly-line

__________ __________ planning helps to solve issues related to facility layout, facility location, and inventory control

Operations Management

_____________ ratios measure how effectively a firm is using its various resources to achieve profits

Profitability

What is the term given to a summary of all financial data to make certain the figures are correct and balanced?

Trial balance

Choose the service type that demonstrates mass customization

Vacation package from a travel agency

The ratios that measure the effectiveness of a firm's management in using the assets that are available are called:

activity ratios

The three main types of budgets in financial management include _______ budgets, ____ budgets, and ______ budgets

capital ; cash ; master

Problems selling on credit include that:

collecting credit accounts can be time consuming it ties up assets in accounts receivable knowing a customer's credit history requires research

Using machines with computers to implement sensor controlled baking in a cookie shop is an example of ________-_____ _____________

computer-aided manufacturing

The ____ of _____ ____ measures the cost of merchandise the firm sells or the materials and supplies used to manufacture them for sale

cost of goods sold

There is a maturity date for ____ financing whereas there is no maturity date for ______ financing

debt ; equity

A type of problem that operations management planning helps to solve as it relates to manufacturing is:

facility layout

While a loan must be repaid, ________ is the selling of accounts receivable

factoring

Land, labor, capital, entrepreneurship, and knowledge are all ______ to the production process

inputs

Sales, purchasing, and shipping documents are all considered examples of ______ to an accounting system

inputs

The process exemplified when production runs are short and machines are changed frequently to make different products is the ____________ process

intermittent

Ways that commercial paper is different from bank loans include that it:

is sold to investors, not banks is unsecured carries a lower interest rate than commercial bank loans

The key working areas of accounting include:

managerial accounting auditing financial accounting tax accounting government and not-for-profit accounting

When providing a service the goal of __________ __________ is to create a good experience for the customer

operations management

A CPA must:

pass a series of exams meet a state's requirements for education and experience

Physically or chemically changing materials like turning sand into glass is a part of _______ manufacturing

process

A promise to pay a person or firm a certain amount at a specified time is a __________ ____

promissory note

Finding the highest quality material resources, the best suppliers, and then negotiating the best prices are all responsibilities of someone in a __________ role

purchasing

The task of __________ involves the buying of all materials needed by the organization; also called procurement

purchasing

Revenue is defined as:

sales plus other money coming into the firm

A time deposit is the formal name for a _______ account

savings

A firm that has placed an asset into a loan contract, agreeing to give the bank possession if the loan is defaulted, has applied for a _______ loan by offering __________

secured ; collateral

A _______ facility layout, such as that in a hospital, is usually designed to increase efficiency

service

A financial forecast that is for one year or less is considered a _____-____ forecast

short-term

A firm that has a promissory note that requires the borrower to repay the loan with interest in specified monthly or annual installments has a ____ loan

term

_______ assets are items that can or will be converted into cash within one year

Current

____ is a planning tool for projects, while a _____ chart is a tracking tool for measuring production progress

PERT ; Gantt

3D printing is a production process also known as ________ manufacturing

additive

Sarbanes-Oxley prohibits accounting firms from providing consulting services to companies that they:

audit

A _______ _____ reports the firm's financial condition on a specific date

balance sheet

A firm that makes a major investment in a long-term asset has made a _______ expenditure

capital

The idea of improving quality states that it is a __________ process and not just one step in the production process

continuous

Assets that can or will be converted into cash within one year are termed:

current assets

The birth of information technology such as texting and email is giving firms and employees increased flexibility to choose _________ while staying competitive

locations

What are two critical issues in the United States today that depend on the ready availability of money?

Economic growth and the creation of jobs

When project managers create bar graphs showing production managers what projects are being worked on and what stage they are in at any given time, they are applying what tool to operations management?

Gantt chart

Bank, travel, and entertainment records will be found in which segment of the accounting system?

Inputs

_______ is the term for resources that come into the firm from operating activities

Revenue

Select all that are true:

Revenue may include rent received and interest earned For most firms, most revenue comes from sales

Which of the following are quality of life issues that must be considered by companies when choosing a facility location?

Schools Crime Climate

Which of the following is true about venture capitalists?

They have assisted many major companies during start-up They invest in businesses with high potential

Long production runs that turn out finished goods over time, as in the case of a conveyor belt constantly lowering eggs into boiling water and then lifting them out after three minutes is an example of __________ _______ manufacturing

continuous process

Financial ______ is a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget

control

Customers are happy when firms extend ______ for purchases

credit

The steps of the financing planning process include:

developing budgets to meet the firm's needs forecasting the firm's short- and long-term needs establishing financial controls

A certified management accountant:

must pass a qualifying exam and be certified