Chapter 15 - Practice Quiz

________ are assets that are expected to provide economic benefits for periods of time greater than one year. Accounts receivables Hard assets Contingent assets Capital assets

Capital assets

Which of the following statements is true of documenting the operations of your business? Every business process does not have to be extensively documented. You will not have to give up any personal control of your business, even if you have employees. Businesses with no employees use a different process than do those businesses with employees. A typical start to the task of documenting the processes of an operating business is to start from the bottom up.

Every business process does not have to be extensively documented.

Which of the following is the cost incurred in financing, insuring, taxing, or tracking an asset? acquisition cost cost of owning cost of operating replacement cost

cost of owning

Selling the rights to collect accounts receivable to an entity outside the business is called factoring. pledging. reconciling. outsourcing.

factoring

Planning, organizing, and staffing are primarily the responsibility of operations management. true false

false

Short-term assets are also known as operating assets. true false

false

Which of the following is an advantage of providing credit to customers? it reduces the need to borrow money it speeds up the receipt of cash it reduces the cost of selling it ensures all customers make on-time payments

it reduces the cost of selling

The most commonly outsourced functions of small businesses are legal and accounting. packing and shipping. cleaning and maintenance. human resources and hiring.

legal and accounting.

Small businesses use the periodic inventory method because it gives instant access to accurate inventory records. records the receipt and sale of each item as it occurs. meets the requirements of local and federal taxing agencies. uses bar codes that are unique to each item of inventory.

meets the requirements of local and federal taxing agencies.

Economic order quantity (EOQ) helps a business to think in terms of factoring receivables. ordering costs and carrying costs. pledging receivables. ordering costs and operating lease.

ordering costs and carrying costs.

Which of the following is one of the disadvantages of the return on investment (ROI) analysis? profits received are not the same as cash calculations involved in the method are complex it does not consider annual profits in its calculations it does not rely on accounting information with which investors are comfortable

profits received are not the same as cash

The practice of acquiring inventory only in response to a completed sale is called a pull-through system. true false

true