BA 1301 - Exam 4

A brokerage firm is an example of a depository financial institution.

False

A term loan is a loan with a maturity of less than a year

False

Software piracy relates to transferring programs and information from hard disks to floppy disks.

False

In finance, the opportunity for a profit is called return.

True

Retained earnings are the amounts left over from profitable operations since the firm's beginning. They are equal to total profits minus all dividends paid to stockholders.

True

"_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent."

Venture capitalists

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 long-term liability

Grainger Distribution Company sold Long Electronics ten circuit breakers for $179.00 each. Long Electronics will be allowed thirty days to pay the bill. Grainger will carry the $1790.00 on its books as a(n):

account receivable

Money is used as: -a medium of exchange -a standard of value -a store of value -a means of payment

all of the above

"In its role as lender to member banks, the Federal Reserve is called the:"

banker's bank

The acceptable turnover ratio is:

different for each industry

John Sgromolo works for the 20th-largest accounting firm in the United States, but he's not an accountant. He works with hard drives and various other types of computer equipment strewn across several desks. Sgromolo, spends his days culling together bits and pieces of data people think they have erased from existence months, even years, before. His findings have been used in cyber-crime cases and murder investigations. Sgromolo engages in:

digital forensics

"Cupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of:"

durability

Maysteel, which makes components for electric utilities, has created a(n) _____ that allows its six plant managers in Wisconsin and Ireland to access customized information about the costs and sales at the other plants. The only people who can access this information are its managers.

enterprise portal

Through the use of a(n) _____ physicians with patients at many hospitals can access and interact with multiple, disparate hospital information systems through a single, secure, Web-based application. Data that is accessible may include demographics, lab results, radiological images or other diagnostic data. In addition, physicians can use the technology to view patients' aggregated clinical data, electronically sign orders, and order medications and lab tests in both ambulatory and inpatient settings.

enterprise portal

U.S. Carburetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:

gross profit

NMCI is the name used for a large-scale effort to link Navy and Marine Corps computer systems on bases, boats, and in offices around the world. When completed, this internal WAN will use Internet technology to link soldiers in the field with support personnel on bases, etc. NMCI is an example of a(n):

intranet

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.

management

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:

marketable credits

A LAN is a:

network of computer systems that share the use of software and hardware

Which of the following is NOT one of the six steps in the accounting cycle?

paying accounts payable

Symantec Corp. has been granted a judgment totaling $3 million in a suit against a Maryland software firm accused of selling counterfeit copies of Symantec software, including Norton SystemWorks and Norton Antivirus. Symantec d won a legal judgment against the Maryland firm for:

software policy

Money market deposit accounts and certificates of deposit are officially called ______ deposits.

time

"Hal Silverstein has a savings account, also called a _____, at his local credit union. "

time deposit

A network that connects computers at different sites via telecommunications media is called a(n):

wide area network

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

intangible assets

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.

management information system

Victoria Secret maintains a large data warehouse in which it keeps track of inventory, buying patterns, and regional differences. An examination of information from a data warehouse subset that contained data from its Miami, Florida, stores showed that for every one black bra purchased ten ivory bras were purchased. This subset is referred to as a(n): -data mart -information network -data mine -information cluster -data nugget

NOT data mine

Long-term debts (liabilities) for corporations and governments are called:

bonds

Which of the following is an example of nondepository financial institutions?

commercial finance companies

The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:

an open market operation

On an income statement, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.

general and administrative

Larry's Kite Shack operates on the Florida beaches during the tourist season. Last year, Larry sold $25,000 worth of kites. His cost of goods was $7,000, and he paid himself a salary of $20,000. On an income statement, Larry's business would have a(n):

net loss

Which of the following statements about knowledge management is true? -Knowledge management is: the same as information processing. & involves collecting, processing, and condensing information. & more easily accomplished than information management. -While companies have the ability to manage knowledge, most cannot manage information. -All of the above

All of the above

"When bank examiners conclude that a bank has serious financial problems, the FDIC can:" -can designate the bank has a savings company -require the bank return all money to its depositors -launch a class action suit for bank depositors -require the bank to use new management practices or replace its managers -do any of the above

NOT do any of the above

"By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy."

True

"The Federal Deposit Insurance Corporation (FDIC) is an independent, quasi-public corporation backed by the full faith and credit of the United States government."

True

A local area network (LAN) connects computers at one site and enables their users to exchange data and share hardware and software from a variety of computer manufacturers.

True

A mortgage loan is a long-term loan that uses real estate as collateral.

True

The NYSE and NASDAQ are vying for supremacy in the U.S. securities markets.

True

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

True

Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May. Sales discounts amounted to $18,000. There were no returns. The difference, $102,000, is Nevada Silver's:

net sales

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within:

one year

U.S. banks have had no trouble competing successfully against foreign banks.

False

The Securities Investor Protection Corporation (SIPC): -protects brokers from bad-risk investors -is a mutual fund that invests in only profitable securities -is like an insurance company for online stock exchanges that sometimes experience technological difficulties beyond their control -protects investors up to $10,000 in the event of a bear market -"insures the accounts of customers of brokerage firms for up to $50,000 against a firm failure"

NOT is like an insurance company for online stock exchanges that sometimes experience technological difficulties beyond their control

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

reserve requirement

Academic advisement is unevenly provided in many high schools and colleges. There is a plan to provide advice to high school students and to college freshmen that are seeking a potential major. The on-demand consultation gathers information about a student's grades, interests, test scores, interests and aptitudes. It assesses student qualifications for a variety of majors. The _____ will then recommend six majors for them to consider and provides further information sources about the major.

expert

At the first level of a management support system is a(n) _____ system, which uses summary data collected by the transaction processing system to provide managers with decision-making information.

information reporting

Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?

distributing currency