BUSINESS LAST TEST

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:

the sale of land adjacent to the manufacturer's administrative office building

A(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

unsecured bank loan

_____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Distribution

How do distribution channels improve product distribution?

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

Products that are bought after comparing price, suitability, quality, and style are called _____ products.

Shopping

Which of the following statements does NOT describe an advantage inherent in equity financing?

Interest is tax-deductible

A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?

2 times

Long-term debt would be used to:

do none of the above

Financial accounting; Managerial accounting

do not exist

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

Holiday Confections has the following balance sheet figures for the year ending December 31, 2018:Cash $1,000Marketable securities 5,000Inventory 3,000$9,000Accounts payable $2,000Notes payable 1,000$3,000Its net working capital is:

$6,000

CPM in advertising terms means:

cost per thousand

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

The brand name Cover Girl appeared in a young adult novel called Cathy's Book: If Found Call (650) 266-8233. One sentence in the book reads: "a killer coat of Lipslicks, a line of Cover Girl lip glosses. Procter &Gamble promoted the novel at beinggirl.com Web site in exchange for the mention. This is an example of"

product placement

In which stage of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

maturity

Which of the following is an example of in-store retailing?

none of the above

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

The Securities Act of 1933:

requires full disclosure of information about new securities issues

_____ has a group think of as many ways as possible to generate new-product ideas, vary a product, or solve a problem.

Brainstorming

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.

Brokers

_____ stock is a security that represents an ownership interest in a corporation and has voting rights.

Common

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

_____ is the number of times an individual is exposed to an ad.

Frequency

How has the Sarbanes-Oxley Act affected accountants?

It has eliminated many nonauditing tasks they use to provide for their customers.

The first step in the new products planning process is:

setting new-product goals

Which of the following is NOT a popular form of sales promotion?

advertising

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

agent

Industrial supplies:

are accurately described by all of the above

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt, which is called:

commercial paper

Radial tires installed on four-wheel drive vehicles are examples of:

component parts

The Securities Exchange Act of 1934 gave the SEC the power to:

control the organized exchanges

Which of the following is NOT an element of the promotional mix?

distribution

On an income statement, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.

general and administrative

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

generally accepted accounting principles

U.S. Carburetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:

gross profit

Which of the following is an example of nonstore retailing?

home shopping network

The two types of distribution channels are:

industrial and consumer

The _____ is a law that requires full disclosure of information on new issues and registration statements of financial information.

Securities Act of 1933

The Securities Investor Protection Corporation (SIPC):

insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n):

investment banker

For which of the following assets would a wholesale company use depreciation?

its warehouses

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

Customer value

The acceptable turnover ratio is:

different for each industry

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?

operating

Which of the following is an expense item for an independent bookstore?

order forms

Securities that are not traded on the organized stock exchanges are traded in the:

over-the-counter market

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

Another term for owners' equity is:

net worth

A kennel designed for boarding small dogs has current assets of $8,000, current liabilities of $2,000, and fixed assets of $25,000. The small company has a current ratio of:

4

A company in Maine builds portable drilling platforms used to locate new oil fields underwater. To build a platform, the company had to construct a specially designed dock with a large permanently-placed crane able to lift a twenty ton structure on to its floating base. This expensive dock and crane are examples of:

installations

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.

management

A manufacturers' representative is sometimes called a(n):

manufacturer' agent

In selling telephone service, AT&T tries to gather as much information as possible about the consumer's income, buying habits, service preferences, and occupation. AT&T is utilizing:

marketing research

In finance, the opportunity for profit is called:

return

Herschel George is a soybean farmer. He has arranged a business loan with terms that guarantee that he can borrow up to $30,000 whenever he needs it within the next year. He must pay interest only on the unpaid loan balance. George has arranged a:

revolving credit agreement

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

Personal selling costs can be adjusted by controlling the size of the sales force.

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

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?

2 times

An IOU is most similar to which type of bank loan?

a line of credit

Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called:

breaking bulk