Final Review

Which of the following terms refers to a formal evaluation of the fairness and reliability of a client's financial statements?

Audit

___ is a statement of a firm's position on a particular date and is known as a statement of financial position.

Balance Sheet

A company that is highly leveraged is considered to have ___.

High Debt

Accounts receivable refers to ___.

The money owed to a firm by its customers

___ refers to a multidimensional review in which a person is given feedback from subordinates, peers, superiors, and possible outside stakeholders such as customer and business partners.

360-degree Review

Public accountants are professionals who provide ___.

Accounting services to businesses and individual needs for a fee.

___ is an accounting method in which revenue is recorded when a sale is made, and an expense is recorded when it is incurred.

Accrual Basis

A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment is termed as a(n) ___.

Agile Organization

In Herzberg's two-factory theory, hygiene factors are ___.

Associated with dissatisfying experiences.

A ___ is a planning and control tool that reflects expected revenues, operating expenses, and cash receipts and outlays.

Budget

___ refers to the rate at which the company is using up the funds from its initial investors.

Burn Rate

Hedging refers to forming contracts that allow a company to ___.

Buy supplies in the future at designated prices.

___ is an accounting method in which revenue is recorded when payment is received and an expense is recorded when money is paid.

Cash Basis

Organizations the focus decision-making authority near the top of chain of command are said to be ___.

Centralized Organizations

___ is defined as a pathway for the flow of authority from one management level to the next.

Chain of command

What is the advantage of outsourcing significant functions of an organization?

Companies can concentrate on core competencies.

Which of the following is a risk of using outsourcing?

Control

A(n) ___ reports to the CFO and is the highest-ranking accountant in the company, responsible for overseeing all accounting functions.

Controller

What do systems do?

Convert inputs into desired outputs.

A supply chain ___.

Coordinates the flow of goods and materials.

___ are those activities in which a excels and has the potential to create competitive advantages.

Core competencies

___ refers to training workers to perform multiple jobs and rotating them through these various jobs to combat boredom or burnout.

Cross-training

___ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

Depreciation

Which of the following is a characteristic of effective teams?

Disagreements are discussed in the interest of task accomplishment.

The various characteristics and experiences that define individuals is called ___.

Diversity

___ refers to a state of physical and emotional exhaustion that can result from constant exposure to stress over a long period of time.

Employee Burnout

According to McGregor, Theory X-oriented managers believe that ___.

Employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards

An employee's rational and emotional commitment to his or her work is termed as ___.

Engagement

Employee retention programs ___.

Ensure a steady supply of experienced employees for new opportunities.

___ suggest that employee satisfaction depends on the perceived ratio of inputs to outputs.

Equity Theory

___ connects an employee's efforts to the outcome he or she thinks will result from those efforts.

Expectancy Theory

Independent accounting firms provide auditing services for public companies are called ___.

External Auditors

Which of the following can be used as an alternative to short-term debt financing when a firm is faced with a shortage of working capital relative to growth needs?

Factoring

Flextime allows two employees to share a single full-time job and split the salary and benefits.

False

Revenue obtained through selling assets is an example of an external source of income.

False

Theory X-oriented managers believe that most employees are motivated by intrinsic rewards.

False

Turnover rates refers to the percentage of the workforce that is hired every year.

False

Successful financial management starts with an outline of funds needed for a period of time, along with sources and intended uses of those funds, referred to as a(n) ___.

Financial Plan

___ refers to combining accounting and investigating skills to assist in legal and criminal matters.

Forensic Accounting

___ proposed a model that divides motivational forces into satisfiers ("motivators") and dissatisfiers ("hygiene factors").

Frederick Herzberg

Grouping workers according to their similar skills, resource use, and expertise is called a ___ structure.

Functional

The ___ is a metaphor for discriminatory practices that have prevented women and minorities from advancing to executive level jobs.

Glass Ceiling

___ refers to a supposed effect of organizational research, in which employees change their behavior because they are being studied an given special treatment.

Hawthorne Effect

Quality of hire measures ___.

How closely incoming employees meet the company's needs.

What is the result of a group spending too much time on decisions or losing sight of the ultimate goal?

Inefficiency

In systems view, an organizational department is viewed as a(n) ___.

Interconnected Element

___ refers to determining the right quantities of supplies and products to have on hand and tracking where those items are.

Inventory Control

Which of the following is an example of a company's assets?

Inventory in the warehouse.

Which of the following is a defining characteristic of a task force?

It is formed to work on a specific activity within a completion point.

Which of the following is a defining characteristic of a committee?

It typically deals with regularly recurring tasks, such as addressing employee grievances.

When evaluating job requirements, which of the following tries to identify the nature and demands of a position, and the best employee profile to fill the position?

Job Analysis

___ is the process of gathering information about the demands, responsibilities and worker requirements of each position in the organization.

Job Analysis

___ refers to a statement of the tasks involved in a given job and the conditions under which the holder of a job will work.

Job Description

Which of the following expands a job horizontally by adding tasks that are not necessarily more challenging?

Job Enlargement

___ is an arrangement in which a financial institution makes money available for use at any time after the loan has been approved.

Line of Credit

What is a company faced with when it doesn't have enough cash to meet short-term needs?

Liquidity Crisis

The ___ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period.

Matching Principle

___ refers to the combination of forces that moves individuals to take certain actions and avoid other actions.

Motivation

___ refers to informal standards of conduct that guide team behavior.

Norms

___ refers to transforming a part or all of a business function to a facility in another country.

Offshoring

A company can use a(n) ___ to identify all sources of revenue and coordinate the spending of those funds throughout the coming year.

Operating Budget

___ refers to overseeing all the activities involved in producing goods and services.

Operations Management

A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow is called a(n) ___.

Organization Chart

___ refers to contracting out certain business functions or operations to other companies.

Outsourcing

Assets - Liabilities = ___.

Owner's Equity

Group-think occurs when ___.

Peer pressures cause individual team members to withhold contrary or unpopular opinions.

___ refers to the acquisition of raw materials, parts, components, supplies, and finished products required to produce goods and services.

Procurement

Which of the following refers to the degree to which an employee intends to stay with his or her employer?

Rootedness

Which of the following is an internal source for obtaining funds for business?

Selling assets to obtain revenue

Equity financing refers to arranging funding by ___.

Selling ownership shares

Goal-setting theory of motivation suggests that ___.

Setting goals is an effective way to motivate employees.

An environment where one is made to feel uncomfortable by lewd jokes, remarks, or gestures could be considered to support ___.

Sexual Harassment

What can a manager do to benefit form systems thinking?

Solve problems instead of moving them to another subsystem.

The number of workers that a manager directly supervises is called the manager's ___.

Span of Management

A ___ budget identifies the money a new company will need to spend to launch operations.

Start-up

The term ___ represents workforce planning efforts that identify possible replacements for specific employees, usually senior executives.

Succession Planning

How do banks and suppliers use the accounting information gathered by an organization?

To determine creditworthiness.

Which of the following is an example of a fixed asset?

Transportation Equipment

A company that hires an outside firm to do its accounting and payroll function is outsourcing that function.

True

A financial plan outlines the funds needed for a certain period of time.

True

A self-managed team requires little supervision, controls the pace of its work and determines work assignments.

True

At the top of the Maslow's hierarchy is self-actualization need.

True

Bookkeeping is the clerical function of recording the economic activities of a business.

True

For goals to function as a motivator, the employee must believe in his or her ability to meet that goal.

True

System is an interconnected and coordinated set of elements and processes that converts inputs to desired outputs.

True

Work-life balance is the concept that employees need to juggle the competing demands of their professional and personal lives.

True

___ refers to the percentage of the workforce that leaves every year.

Turnover

How can managers avoid or eliminate reoccurring mistakes in the system?

Use mistakes as an opportunity to learn.

One of the most important skills a manager can develop is the ability to ___.

View the business from a systems perspective.

What is the advantage of using virtual communities or communities of practice over traditional team based environments?

Virtual team members can collaborate on a project no matter where they are located.