BFounds Shat

In capsim foundation production runs can be scheduled in _______ shifts

1 or 2

What is the major drawback to the use of a short term debt financing

A debt increases financial risk to the firm

In capsim foundations the finance department can use which of the following methods to acquire capital for companies activities.

Current debt, stock issues, bond issues and profits.

How do distribution channels improve product distribution

Distribution channels reduce the number of transactions needed to get the product from the manufacturer to the customer

The formula to get desired production is

Estimated sales + desired ending inventory - actual beginning inventory

In capsim what happens to a products perceived age when it is repositioned in R&D

It is reduced by half

The process of initially recording a business transaction is called

Journalizing

The market price of a security is below the equilibrium price the quantity supplied will be

Less than the quantity demanded resulting in a shortage

If you or your team decides to introduce a new sensor product in capsim when should capacity and automation be purchased

One round prior to product release

Supplies purchased on account were incorrectly recorded as office equipment the correcting entry would be

Supplies debit office equipment and credit

The goal of inventory management is

To track off profit from lost sales against the cost of additional inventory.

The three main types of unsecured short term loans are

Trade credits, bank loans and commercial paper

A chart of accounts is

Usually a listing of accounts in financial statement order

Revenue should be recognized

When the service is performed

In which of the following types of accounts are increases recorded by debits?

assets, expenses

A secured ban requires that the borrower pledge specific asset to secure a loan. The assets are called

collateral

3) Which of the following is not an example of a fringe benefit

commission

Entries recorded the payment or an account payable

debit account

Not an element of promotional mix

distribution

Expenses follow the same debit and credit roles as

dividends

The first step in performance planning and appraisal is to

establish performance standards

The process of transferring the journal entries to the accounts is known as

posting

With our efficient equipment we can produce the cheapest products on the market. This is more than likely a statement from the top management of company that uses the _____ concept.

production

Which of the following types of accounts have a normal credit balance.

revenues and liabilities

Is an advantage of automation

Automation reduces labor cost

All of the following occur with a double entry accounting system except

Each business transaction will have only two entries

In capsim foundation the primary buying criteria for each segment is

Price for low tech and positioning for high tech

When amounts of a transaction are entered on the left side of and account they are said to be

debits

Is not one of the stages in the product life cycle

development

The debit side of the two columns for an account

left

The two main new product pricing strategies are

price skimming and penetration pricing

Which of the following entries records the receipt of a utility bill from the water companies

Debit utilities expense, credit accounts payable

In seeking a balance between the opportunity for profit and the potential for loss a financial manager is dealing with the concept of _________ trade off.

Risk- Return