BA 101 Midterm #2 Recharge

The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ____________

business operations

Rent, salaries, supplies, utilities, and insurance are examples of _______________ expenses that are general expenses.

operating

_____________ ____________ planning helps to solve issues related to facility layout, facility location, and inventory control.

operations management

The check ________ function of the Federal Reserve enables banks to settle demand deposits between member banks.

clearing

The Federal Reserve banks serve as the national ________ for checks.

clearinghouses

Tremendous career opportunities exist in operations management as manufacturing and service companies attempt to remain _____________ in the global market.

competitive

Which are steps in the accounting cycle?

prepare a trial balance analyze transactions record transaction in the journal

The formula for the costs of goods sold is ___________

purchase price + freight charges + storage costs

___________ refers to consistently producing what the customer wants while reducing errors before and after delivery to the customer.

quality

Government and nonprofit accounting involves working for organizations whose purpose is to serve _____________

ratepayers, taxpayers

The _________ ___________ is a percentage of commercial banks' checking and savings accounts they must keep in the bank

reserve requirement

MRP is a computer based operations management system that uses __________ to make sure that needed parts and materials are available at the right time and place.

sales forecasts

Major duties of the Federal Reserve include ______.

setting reserve requirements buying and selling government securities collecting data on money policy

Cash flow analysis is especially important for which of the following?

small businesses

An advantage of the use of computers to maintain and compile accounting information is _______________

speed

The purpose of the Malcolm Baldrige National Quality Award is that it sets a(n) ______________ for overall company quality using several key areas for measurement.

standard

SO is a worldwide nongovernmental federation of national ___________ bodies

standards

The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as _________.

the reserve requirement

Return on equity is net income minus taxes divided by ____________

total owners' equity

True or false: Computers are used to design products when CAD is employed.

true

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

facility layout

The term __________ ___________ means selecting a geographic location for a firm's operations.

facility location

Because they indicate a firm's financial health and stability, the use of _____________ are key factors in management decision making.

financial statements

_______________ and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.

government

A condition characterized by a continual rise in prices for goods and services is termed _______________

inflation

The economic condition that results from a continual rise in prices, or what some people call "too much money chasing too few goods" is ____________

inflation

The saying "too much money chasing too few goods," is used to refer to ______.

inflation

Which three activities are part of the function of accounting?

interpreting financial transactions recording financial transactions classifying financial transactions

Using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise of ___________ ___________

lean manufacturing

The debt a firm owes to others is called a(n) ___________________

liability

Anything that can be used for payment of goods and services is defined as __________

money

What people generally accept as payment for goods and services is called ______.

money

The first step in the accounting cycle is to _____________

analyze source documents

Reviewing and evaluating of records used to prepare a company's financial statements is referred to as ______________

auditing

The key working areas of accounting include managerial accounting, financial accounting, tax accounting, government and nonprofit accounting, and ______________

auditing

Open-market operations consist of the buying and selling of government ______________

bonds

In using the accounting equation, if assets = $40,000 and liabilities = $30,000, then owner's equity is equal to

$10,000

List the steps in the accounting cycle from beginning to end.

1. Analyze source documents 2. Record transactions in Journals 3. Transfer journal entires to a ledger 4. Take a trial balance 5. Prepare Financial statements 6. Analyze financial statements

An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is:

3D Printing

What is falling dollar value?

A falling dollar value means you cannot buy as many goods and services in the global market

_____________ are economic resources owned by a firm.

Assets

The acronym for using computers to design products is referred to as

CAD

Arrangement of resources, including people, to most efficiently produce goods and services is referred to as

Facility Layout

True or false: ISO is a governmental body.

False

The _________ ___________ is the organization that has the most power over the currency in the United States.

Federal Reserve

Because of _________ ________ more flexibility in choice of business location has increased while allowing firms to remain competitive.

Information Technology

What are the steps of the production process in order?

Inputs, production control, outputs

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the ________________ thus, developing an inter-firm approach to operations management.

Internet

Overall company quality is outlined by the standards set by the ___________ ____________ ____________ quality award

Malcom Baldrige National

Which sector has lost more jobs due to technological changes?

Manufacturing

Ensuring that products are manufactured and delivered on time, on budget, and to specifications is the role of which manager in an organization?

Operations

Students who can see trends and have the skills to work in highly automated factories and modern service facilities have a future in:

Operations Management

____________ ___________ planning helps to solve issues related to facility layout, facility location, and inventory control.

Operations Management

Using factors like land, labor, and capital to create goods and services is referred to as ______________

Production

___________ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm. Multiple choice question.

Revenue

The methods the Federal Reserve uses to manage the economy include all except ______.

control the federal budget

The main idea behind mass production is to produce a large number of a limited variety of products at a very low ________

cost

Ordering a new suit that will be made specifically for you by a tailor is an example of which process?

customization

The interest rate the Fed charges for loans to member banks is called the __________ rate

discount

The interest rate the Federal Reserve charges for loans made to its member banks is called the _____ rate.

discount

When the Federal Reserve buys and sells government bonds it is ______.

engaging in open market operations

Return on ______________ is net income after taxes divided by total owners' equity.

equity

The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:

finished products, outputs

When machines are programmed to do multiple tasks in order to produce a variety of products, a firm is said to be employing ___________ ____________

flexible manufacturing

Companies sometimes spend millions to move location:

for proximity to customers

The amount of goods and services you can buy with a dollar in the global market ______.

increases with a rising dollar value

Choosing facility location has become more flexible for both companies and employees through the use of __________ __________ such as texting, teleconferencing, cell phones, and email.

information technology

Managerial accounting is used to provide information _________________

inside the firm

Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):

inter-firm process

Examples of a problem solved by operations management planning as it relates to manufacturing include:

inventory control, facility location

The type of production that does not concern itself with customer preferences, but instead focuses on making a large number of a few products is called ____________ production

mass

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ___________ requirement planning.

materials

The basic premise of just-in-time inventory is:

minimum inventory is kept on hand

A manager responsible for producing products, and delivering them on time, on budget, and to specifications is likely a(n) ___________ manager

operations

The statement of cash flows reports cash receipts and disbursements related to ___________ investments, and financing.

operations

Global competition grows stronger each year making the future of _________ _____________ robust with career opportunities.

operations management

Industrial robots can work 24 hours a day, seven days a week with great __________

precision

Which are considered to be the working areas of accounting?

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

The primary users of government and nonprofit accounting information are

taxpayers legislative bodies special interest groups

Users of managerial accounting information include ____________

the Chief Financial Officer, department managers

Throughout the history of the United States, central banks were created and disbanded with much controversy until ______ ensured that a central bank was needed.

the bank panic of 1907

Uses of sensors to control manufacturing processes include:

the measurement of the thickness of material, measuring humidity

The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as ______.

the reserve requirement

Setting the reserve requirement, setting the discount rate, and collection data on the money supply are all activities of ______.

The Federal Reserve

Assets, liabilities, and owners' equity are the major accounts listed on ________

a balance sheet

The income statement shows _____________

a firm's profit (or loss) after costs, expenses, and taxes

A major problem during the Great Depression created by a weak banking system was ______.

a run on and closure of many banks

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

Operations Management

Which term describes the act of buying of all materials needed by the organization?

Purchasing