GTB Test #2
Gross Sales vs. Net Sales
Gross sales are the grand total of all sale transactions reported in a period, without any deductions included within the figure. Net sales are defined as gross sales minus the following three deductions: Sales allowances. A reduction in the price paid by a customer, due to minor product defects
M1 VS M2
M1: includes moneys that can be spent imediately and against which chekcs can be written M2: all of M1 plus money market mutual fund balences, certificates of deposit, and Euro dollars
_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash. Accounts receivable Marketable securities Notes payable Owners' net contribution margins
Marketable securities
_____ is arrived at by subtracting current liabilities from current assets. Owners' equity Net profit Retained earning Net working capital
Net working capital
3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _____ strategy.
product
5 P's of marketing
product, price, place, promotion, people
Lee Robi has developed an electronic lice comb that tells whether head lice are present by emitting an audible sign. Robi has mailed promotional flyers on the lice comb to all the school districts in the nation. He has also run ads in several different women's magazine. This describes the _____ strategy that Robi used.
promotion
managerial accounting
provide financial info so managers can make decisions
Customer satisfaction:
refers to the customer's feeling that a product has met or exceeded expectations
_____ is a strategy that focuses on forging long-term partnerships with customers.
relationship marketing
Which of the following is an example of an asset that might be owned by a minor league baseball team? - salaries owed to its players - the cost of getting tickets printed - reputation as a winning team - the price made for advertising on local radio
reputation as a winning team
Liquidity ratios measure: short-term financial stability long-term financial stability annual sales and profits ability to pay dividends
short-term financial stability
Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:
target market
The _____ is a specific group of consumers toward which a firm directs its marketing efforts.
target market
discount rate - tool
the interest rate that the FED charges its member banks (tools for carrying out monetary policy)
open market operations - tool
the purchase and sale of U.S. government bonds by the Fed
FED's Mission
to oversee the nations monetary and credit system to support on going operation and americas private banking system
Purpose of the Statement of Cash Flows
to report cash receipts (inflows) and cash payments (outflows) during a period
Diapers is a product category in the maturity stage of its product life cycle. This means that the manufacturers of diapers:
are creating product line extensions
Things of value owned by a firm are called its:
assets
FED's Responsibilities
carrying out monetary policy setting rules on credit distributing currency making check clearing easier
reserve requirement - tool
cash in their vaults or in an account at a district bank
U.S. Money supply is made up of:
currency - cash demand deposits - consist of $ kept in checking accounts that CAN be withdrawn by depositors time deposits - are deposits at a bank that pay interest but CANNOT be withdrawn on command
Financial intermediation is the process in which:
financial institutions act as intermediaries between the suppliers and demanders of funds
financial accounting
focuses on preparing external financial reports that are used by outsiders
_____ is a summary of what a company has earned and spent over a given period. balance sheet income statement cash flow statement trial balance
income statement
The Federal Deposit Insurance Corporation (FDIC):
insures deposits in commercial banks
Trademarks, franchises, patents, and copyrights are carried on the company's books as: tangible assets intangible assets owners' equity long-term assets
intangible assets
Product Life Cycle
introduction, growth, maturity, decline - Establish awareness -> get new users and more market share -> extend life cycle by opening new markets (Iphone in india and china) -> no need to market product sells itself
_____ is the division of markets into different groups
market segmentation
The _____ is based on the five P's.
marketing mix
functions of money
medium of exchange, standard of value, store of value
After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number. negative liability net loss owners' negative equity net expense
net loss
Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.
pricing
There are two types of expenses recorded on the income statement. They are: - cost of goods sold and operating expenses - cost of goods sold and production costs - operating expenses and administrative expenses - sales expense and cost of goods sold
- cost of goods sold and operating expenses
Categories of Envir. Data that shape decisions
1. cultural/socail forces 2. demographic forces 3. economic forces 4. technological forces 5. political/legal forces 6. competitive forces
A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio? 1 time 1.5 times 2 times 3 times
2 times
Which of the following statements about the accounting profession is true? - Most CPAs first work for public accounting firms and later become private accountants or financial managers. - Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program. - Private accountants are also called corporate accountants. - All of the above statement about the accounting profession are true.
All of the above statement about the accounting profession are true.
Depository Institutions
Commercial banks and thrift institutions; financial institutions that accept deposits from the public
_____ is the company's ability to expense fixed assets over their useful life. Acceleration Depreciation Capital budgeting Maturation
Depreciation
_____ is the process in which a firm continuously collects and evaluates information about its external environment.
Environmental scanning
Managerial accounting provides information that would probably be most beneficial to: the IRS financial analysts a lending officer of the bank a middle manager of the company
a middle manager of the company
The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets. inventory acid-test net worth profitability
acid test
The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing. liability-to-asset debt-to-revenue liability-to-ownership debt-to-equity
debt-to-equity
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
deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales
The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?
demographic
Financial institutions can be divided into two broad categories. These are ______ institutions.
depository and nondepository
Accounting provides a framework for looking at: - past performance - current financial health - possible future performance - all of the above
ALL OF THAT ABOVE
The ratio of net profit to the number of shares of common stock outstanding is called the: earnings for profit earnings per share stock-to-earnings ratio equity earnings
earnings per share
The Financial Accounting Standards Board (FASB) is a:
private organization that is responsible for establishing financial accounting standards in the United States
Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:
reserve requirement
The marketing concept:
satisfies customer wants and needs legally and responsibly