Review 12-19

d

A system of recording the receipt and sale of each item as it occurs is called: A. microinventory. B. periodic inventory. C. point-of-sale system. D. perpetual inventory.

C

A(n) _____ is simply a record of transactions that are similar in nature. A. report B. description C. account D. narrative

a

According to Jill Kickul's research, which of these factors is most important to employees? A. Autonomy and growth B. Benefits C. Rewards and opportunities D. Job security

c

For periodic inventory, the time between counts is usually: A. one quarter. B. six months. C. one business year. D. 30 days.

a

There are two broad types of training: A. on-the-job and off-the-job methods. B. free and paid methods. C. online and offline methods. D. in-house and outsourced methods

C

There are two difficulties that arise in understanding and interpreting the income statements. One is the disagreements about what exactly should be reported as revenues and the other is A. whether to report the revenues. B. what should be considered as expenses. C. disputes over when to recognize revenues. D. the preferable tax rate to incorporate

c

This is the amount needed for a person to meet the basic necessities of life from a single job. A. Fair wage B. Employee benefits C. Living wage D. Benefit plans

d

This method defines utility as being the net cash inflows that the asset will produce. A. Future cash flow valuation B. Investment cash flow valuation C. Financing cash flow valuation D. Discounted cash flow valuation

D

This methodology comprises estimating the changes in revenues and expenses from current operating results that will occur if each alternative is taken. A. Variance analysis B. Net present value analysis C. Accounting analysis D. Differential revenues and expenses

D

To make good decisions, we need all of these EXCEPT A. good information. B. efficient ways to condense information so it is understandable. C. methods to help compare alternatives. D. certainty situation

a

To really understand what he wants the person hired to do, Uncle Bob needs to develop a _____ which defines and discusses all the essential knowledge, skills, and abilities that are needed to fill the position. A. job description B. job analysis C. job prospect D. job training

D

What do you call a decrease in owners' equity caused by consuming your product or service? A. Opportunity cost B. Cost C. Owners' equity D. Expense

b

When you hire employees, typically, a probationary period lasts A. 180 days. B. 90 days. C. 30 days. D. 1 year.

a

Which of these tools is useful in conducting a situation analysis? A. SWOT analysis B. Marketing research C. Sales forecasting D. Ethnographic research

B

"_____" means that the value of the item can be realized, or must be paid as cash within one year, while "_____" means that the asset will still be valuable more than one year in the future, or that the business may take longer than one year to pay the amount owed. A. Dated, current B. Current, long-term C. Current, dated D. Long-term, current

d

) All of the following are examples of long term incentives to employees that help retain valuable team members EXCEPT A. profit-sharing plans. B. stock options. C. stock grants. D. employee bonuses.

d

401(k) plans are relatively _____ to administer and are _____ expensive than traditional pension plans. A. difficult; more B. easy; less C. complex; less D. easy; more

b

A Web-based program that uses artificial intelligence technique to automate tasks such as searches is called a(n) A. e-tailer. B. bot. C. blogger. D. tag identification.

b

A _____ is the population segment or segments that are likely to buy your product or service. A. trade area B. target market C. test market D. national market

a

A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called: A. ROI. B. return on sales. C. current ratio. D. NPV.

A

A comprehensive budget is otherwise known as the A. master budget. B. sales budget. C. purchases budget. D. universal budget.

b

A data collection method using a questionnaire is called A. secondary research. B. a survey. C. a focus group. D. ethnographic research

B

A financial plan for the future based on a single level of operations is called a(n) A. balance sheet. B. budget. C. income statement. D. statement of cash flows.

d

A firm is planning to introduce a new product in the market. Which of the following strategy includes determining the ideal medium through which the customers should be educated? A. Product B. Placement C. Pricing D. Promotion

a

A form of data gathering from a small group led by a moderator is called A. focus group. B. survey methodology. C. ethnographic research. D. secondary research.

a

A general term for real estate, but that can also be applied as a legal term for anything owned or possessed is called: A. property. B. plant. C. equipment. D. inventory.

a

A(n) _____ should be filled out and returned to you before the scheduled performance review so that you can learn the employees' goals, interests, and self-evaluation when you are crafting your comments. A. appraisal form B. application form C. enrollment form D. online form

b

A(n) _____ strategy is used when a firm chooses one particular segment on which to focus all its efforts. A. undifferentiated B. concentrated C. differentiated D. cost-leadership

c

A(n) _____ strategy is used when there is more than one market segment likely to need a product or service. A. undifferentiated B. concentrated C. differentiated D. cost-leadership

a

A(n) _____ strategy is useful when there is really no difference in the reasons why consumers buy your products. A. undifferentiated B. concentrated C. differentiated D. demographic segmentation

C

Amounts owed to vendors for merchandise or services purchased on credit is called: A. receivables. B. demand deposits. C. payables. D. charge back.

A

Amounts that are owed to a business for merchandise that was sold on credit refers to: A. receivables. B. demand deposits. C. payables. D. charge back.

D

An accounting system should accomplish all of the following tasks EXCEPT A. provide a simple, easy-to-understand user interface. B. have an exhaustive context-sensitive help function. C. enforce security measures to reduce the opportunity for employee misuse or fraud. D. avoid the export of financial data

d

An automobile company has different categories of cars for different types of customers. The have segmented it as: speed cars, safety cars, capacity cars etc. Customers can choose their cars accordingly. Which of the following best explains this type of segmentation? A. Demographic B. Geographic C. Personality D. Benefit

a

An example or photo of your product or service is a great visual aid in helping you sell your plan in your written market plan. This is an example of A. defining your product. B. defining your product price. C. using a promotional tool for your product. D. defining a distribution system for your product.

A

Approximately 55 percent of small businesses that fail do so because of: A. cash flow problems with an immediate impact. B. lack of profitability. C. missing the mark on product demand. D. sour banking relationships.

B

As Tammy always ended up writing more checks than the money she had in her checking account, her son recommended that she establish with her bank to _____ her account so that her checks could be paid. A. partial close B. overdraft C. demand deposit D. float

c

Assets that are expected to provide economic benefits for periods of time greater than one year are called: A. accounts receivable. B. short-term investments. C. capital assets. D. cash and cash equivalent assets.

A

Assets that may be quickly converted to cash is called: A. cash equivalent. B. inventory. C. receivables. D. payables.

C

Barb needs to know that accounting is important to her business because of all of these EXCEPT A. it provides easy to understand plans for business operations. B. it shows how much her business is worth. C. it is the bakery industry requirement. D. she can't know what her business is doing without it.

D

Barb will need all of these commonly used financial statements EXCEPT A. income statement. B. balance sheet. C. cash flow statement. D. depreciation statement.

A

Breakeven point A. is the point at which total costs equal gross revenue. B. is the point at which fixed costs equal variable costs. C. is the point at which total costs equal profit. D. is the point at which variable costs equal gross revenue

a

Capital assets are otherwise known as: A. operating assets. B. inventory. C. intangible assets. D. current assets.

A

Cash can come from all of these sources for a small business EXCEPT: A. cash flow from subsidy. B. cash flow from operations. C. cash flow from investing. D. cash from financing.

B

Cash is composed of all of these forms of money that can be immediately used to make payments EXCEPT: A. currency. B. receivables. C. demand deposits. D. traveler's checks.

C

Cash payments received before product is completed or delivered is called: A. noncore payments. B. payables. C. deposits and progress payments. D. discounted payments.

c

Companies that provide alternates that are dissimilar to your product/service that consumers might choose to meet a similar need are called A. direct competition. B. simulators. C. indirect competition. D. promotional marketers.

b

Compensation, training time, employee tax, and accounting costs are some of the additional expenses involved in adding A. part-time employees. B. full-time employees. C. contract employees. D. temporary employees

c

Consider these alternative methods to hire an employee at no cost if your budget does not allow for a paid employee EXCEPT A. volunteers. B. barter. C. virtual employees. D. internships.

b

Cost incurred in the activities necessary to get rid of an asset is called: A. whole of life costs. B. cost of disposition. C. cost of owning. D. cost of operation.

a

Creating a(n) _____ plan is the first step in putting together your business plan. A. marketing B. operational C. financial D. human resource

c

Data gathered by simple observation seeing what customers do rather than asking them refers to A. focus group. B. survey methodology. C. ethnographic research. D. secondary research.

A

Estimated or hypothetical financial statements are called A. pro forma statements. B. assumed income statements. C. tentative balance sheets. D. annual report statements

c

Ethan is a marketing research executive for Coca Cola. Recent sales figures suggest that the sales for Coke have fallen drastically in Cincinnati, Iowa. The regional manager wants Ethan to conduct a market research in Cincinnati. Which of the following research should Ethan use? A. Post secondary B. Secondary C. Primary D. Closed

A

Every business that maintains inventory has an optimal level that minimizes the total cost of all of the following EXCEPT: A. frequent purchases. B. carrying inventory. C. processing orders. D. losing sales due to being out of stock.

c

Examining the current situation includes all of the following EXCEPT A. what your existing competition is doing. B. how you define your product or service. C. how will you solve employee grievances. D. to whom will you sell.

B

Fixed asset accounting A. ensures that payroll and employment taxes are kept current. B. automatically calculates and accumulates depreciation. C. records if your business keeps surplus cash invested in securities. D. records if your business has made improvements to leased property or equipment

a

Identify the form of questions that gives you several predetermined groups from which to choose. A. Categorical questions B. Scalar questions C. Dichotomous questions D. Open-ended questions

a

Identify the management philosophy of selecting and promoting people based on family ties. A. Nepotism B. Capitalism C. Meritocracy D. Democracy

A

Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize profits. A. Cost-volume-profit analysis B. Marginal revenue costs analysis C. Break even analysis D. Cash flow analysis

c

JIT inventory system attempts to reduce inventory levels to the absolute minimum by all of the following EXCEPT: A. accepting inventory only as it is sold. B. assembling product in the absolute minimum time possible. C. keeping safety stock in case sales might be greater than forecast. D. shipping product to the customer immediately upon completion.

d

Jeff is a market research executive who has prepared questionnaires' for his respondents. The questionnaires allow respondents to answer in either a "Yes" or a "No." This questionnaire can be categorized under which of the following question type? A. Open-ended B. Categorical C. Scalar D. Dichotomous

c

Job training is a psychological contract item described under which factor category by Jill Kickul? A. Job security and work responsibilities B. Work facilitation C. Rewards and opportunities D. Autonomy and growth

a

Laws, regulations, and the requirements of GAAP require that _____ value be used for financial reporting and income tax purposes. A. book B. fair market C. replacement D. disposal

C

Lenders use operating income specifically A. as a measure of how well management achieved sales. B. as an indication of future sales. C. as a measure of how much debt a business can support. D. as an indication of a business's ability to control costs.

a

Making no distinction between sick, vacation, and personal days and allowing employees a set number of days off each year to be used at their discretion A. prevents employees from abusing sick days. B. causes employees to lie more often when they need to take the day off. C. increases absenteeism in the workplace. D. reduces workplace satisfaction.

b

Maya runs a business of home-based new born baby wear through the Internet called "First Memories". She targets her business at all first time mothers around the globe. Identify the type of marketing strategy involved. A. Differentiated strategy B. Concentrated strategy C. Undifferentiated strategy D. Cost leadership strategy

d

Meaningful work is a psychological contract item described under which factor by Jill Kickul? A. Job security and work responsibilities B. Work facilitation C. Rewards and opportunities D. Autonomy and growth

A

Money held in checking and savings accounts are called: A. demand deposits. B. marketable securities. C. commercial papers. D. receivables.

A

Money in the end is a form of: A. information. B. paper. C. plastic. D. culture.

a

One of the first steps in developing a compensation plan is A. to determine your organization's salary philosophy. B. to develop a job description. C. to create job analysis. D. to pay an above-market salary to create loyalty.

a

One of the most important pieces of the marketing plan that determines your profitability and ultimately whether you will stay in business or not is A. knowing what your sales will be. B. regulations that affect your business. C. estimating the human resource need. D. having the succession plan in place

c

Open-ended questions are best for all of these EXCEPT A. gathering preliminary information. B. when samples are small. C. comparing groups and statistical analysis. D. when there are data that is difficult to get any other way.

c

Operational control depends on all of the following types of feedback EXCEPT: A. informational feedback. B. corrective feedback. C. interpretive feedback. D. reinforcing feedback.

B

Percentage discounts from gross invoice amounts provided to encourage prompt payment is referred to as: A. core discount. B. trade discount. C. non cash incentives. D. consignment.

c

Pledging receivables will get you about _____ of the amount that can be collected, where as, factoring can get you _____ percent of the amount due. A. one-fourth; 90-95 B. one-fifth; 40-45 C. one-half; 75-80 D. three-fourth; 20-25

c

Potential buyers and investors are most interested in _____ value of your assets. A. book B. fair market C. replacement D. disposal

a

Products that are held for sale to customers are called: A. inventory. B. layaways. C. accounts receivable. D. equipments.

a

Questions that allow respondents to express themselves as they choose are called _____ questions. A. open-ended B. categorical C. dichotomous D. scalar

c

Questions that have only two possible choices are called _____ questions. A. open-ended B. categorical C. dichotomous D. scalar

d

Renting capital assets provides all of these advantages EXCEPT: A. it requires little or no cash investment. B. it does not require extensive paperwork. C. it protects you from unexpected repairs. D. it usually results in higher sales revenues due to repeat business.

A

Revenue-producing tasks and activities related to, but not part of the primary strategy of a business is called: A. noncore projects. B. discontinued tasks. C. factoring receivables. D. off-the-books strategy.

C

Tammy insists that cash for her business can come from all of these sources. Her Son should point out that _____ is not one of the sources for Tammy's cash needs. A. cash flow from operations B. cash from financing C. cash flow from subsidies D. cash flow from investing

D

Tammy needs to know that the time that is required for her to acquire resources, convert them into craft products, sell the products, and receive cash from the sale is called: A. accounts payable cycle. B. reconciling. C. demand deposits timeframe. D. cash-to-cash cycle.

b

The Age Discrimination in Employment Act prohibits employment discrimination against individuals who are _____ years old and older. A. 30 B. 40 C. 50 D. 60

D

The _____ budget shows the number of units that are expected to be acquired during the budget period. A. cash receipts B. labor C. sales D. purchases

d

The direct cost incurred in using an asset for the purpose for which it was intended is called: A. cost of disposition. B. cost of owning. C. whole of life cost. D. cost of operating.

C

The financial state of having more debt than assets means, you are A. rich. B. profitable. C. bankrupt. D. solvent.

C

The first step in preparing a master budget is to prepare a _____ budget. A. production B. direct materials C. sales D. direct labor

C

The information in the balance sheet is used to determine all of these EXCEPT A. liquidity. B. financial flexibility. C. profitability. D. financial strength

d

The key component in your situation analysis is to consider your A. employees. B. suppliers. C. distributors. D. competitors.

C

The key in controlling receivables is to have them _____, by sorting them into groups of those that are 30, 60, 90, and over 90 days past due. A. recorded B. cataloged C. aged D. classified

d

The level of education required to perform a particular job would be mentioned under which section of the job description? A. Special requirements B. Define the duties and responsibilities C. Knowledge, skills, and abilities D. Credentials and experience

b

The match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employees is called A. employee referral. B. employee fit. C. job description. D. job analysis.

B

The most common noncash incentive(s) is/are: A. autonomy. B. stock options. C. added vacation days. D. compensating time off.

D

The most commonly used small business accounting systems include all of these EXCEPT A. Quickbooks. B. Peachtree. C. Great Plains. D. TaxCut.

d

The numbers and data offered to Fred by the Chambers of Commerce and Department of Economic Development are called A. open-ended research. B. primary data. C. close-minded figures. D. secondary data.

B

The practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being sold is called: A. bartering. B. consignment. C. noncash incentive. D. reconciling.

c

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called: A. book value. B. disposal value. C. fair market value. D. replacement value.

a

The primary advantage of replacement value is: A. accuracy. B. high cost. C. low taxes. D. low cost.

D

The primary criteria for a small business's record keeping system are all of these EXCEPT A. simplicity of use. B. accuracy of detail. C. timeliness of reports. D. economical in cost.

a

The primary disadvantage of leasing is that: A. it usually costs more than would purchasing. B. assets tend to have more breakdowns. C. it requires extensive paperwork than would purchasing. D. it generates fewer dollars in revenue sales.

b

The process of physically counting business assets on a set schedule is called: A. microinventory. B. periodic inventory. C. point-of-sale system. D. perpetual inventory.

A

There are two formats for income statements, a(n) A. single-step and multiple-step format. B. revenue-only and revenue and expense format. C. owners' equity and balance sheet format. D. cash flow and retained earnings format.

d

There are two parts to a formal performance appraisal: A. the self-appraisal and the review by the supervisor. B. the internal review and the external review. C. the review of past accomplishments and the setting of future objectives. D. the performance review and the pay review.

D

There are two primary causes of float: A. book balance float and bank ledger float. B. bank ledger balance and bank available balance. C. reconciling float and charge back float. D. availability float and processing float

B

There are two purposes of money: A. to buy and to accumulate. B. to make exchanges and to keep track of wealth. C. to buy and to sell. D. to save and to accumulate

C

These are also referred to as master budgets. A. Cash disbursements budget B. Cash receipts budget C. Comprehensive budget D. Cash budget

c

These beliefs are based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy, time, and technical skills. A. Open-book policy B. Work facilitation C. Psychological contract D. Autonomy

d

These encourage companies to post openings to their job bank to recruit at both the undergraduate and the graduate levels. A. Professional groups B. Company Web sites C. Internet recruiting D. Career service offices

b

These questions provide data that are more difficult to tabulate and the answers can be difficult to compare. A. Categorical questions B. Open-ended questions C. Scalar questions D. Dichotomous questions

a

These should be handled formally with guidelines such as following-up on leads within 24 hours even by small businesses. A. Employee referrals B. Internet recruiting C. Networking D. Outsourcing

a

This form of survey has the lowest return rate and does not allow for much flexibility. A. Mail B. Face To Face C. Telephonic D. Internet

C

To factor your receivables your _____ must have good credit ratings. A. suppliers B. business C. customers D. agents

b

To treat family and nonfamily as similarly as possible, it is important to A. have separate personnel policies for family and nonfamily members. B. create career ladders for nonfamily members. C. provide favorable treatment to nonfamily members. D. guarantee the possibility of employee ownership.

d

Uncle Bob can hire an individual with a probationary period. This probationary period typically lasts A. 30 days. B. one year. C. six weeks. D. 90 days.

b

Under this type of arrangement, a small business may buy only that share that it can reasonably use during the course of business. A. Partnership B. Fractional ownership C. Joint Ventures D. Limited company

A

Using methods to appear to be paying bills on time, when in fact payment is being delayed or avoided is called: A. gaming the payment process. B. growth trap. C. charge back. D. cash-to-cash cycle.

A

What becomes a standard against which performance can be measured, once it has been established? A. Budget B. Liquidity C. Balance sheet D. Statement of cash flows

B

Which of these statements would describe what Barb's Bakery owns, what it owes to others, and how much value Barb has invested in it? A. Income statement B. Balance sheet C. Statement of retained earnings D. Statement of owner's equity

D

Which of these techniques is not one that Tammy can use to increase her cash inflows? A. Taking deposits and progress payments. B. Asking for her money from customers. C. Taking on noncore paying projects. D. Offering discounts for deferred payments.

a

_____ is an accounting term that describes the difference between the original acquisition cost of capital assets and the amount of depreciation expense that has been recognized for them. A. Book value B. Disposal value C. Fair market value D. Replacement value

a

_____ is one method used to reduce the cost of perpetual inventory system. A. Bar coding B. Periodic inventory C. Microinventory D. JIT

b

A general term for the facilities of a business is called: A. property. B. plant. C. equipment. D. inventory.

d

A lease in which at the end of the lease period the asset becomes the property of the lessee, possibly with an additional payment is called a(n): A. operating lease. B. short-term lease. C. reverse lease. D. capital lease.

d

A marketing plan examines all of these areas EXCEPT A. target market. B. current situation. C. marketing strategy and objectives. D. employee issues involving product creation.

A

A negative balance in a depositor's bank account is referred to as: A. overdraft. B. float. C. ledger balance. D. reconciling.

D

A reduction in the bank account of a merchant by a credit card company refers to: A. reconciling. B. liquidity. C. overdrafting. D. charge back.

B

A regular and systematic reduction in income that transfers asset value to expense over time is called A. bankruptcy. B. depreciation. C. liquidity. D. opportunity cost

c

A relatively low-cost, although time-intensive method of recruiting that can include colleagues, business professionals, vendors, alumni, and advisory board members is referred to as A. internal job postings. B. internet recruiting. C. networking. D. outsourcing.

b

A small business owner who knows exactly what he or she wants can use filters to search vast numbers of résumés with pinpoint accuracy using this. A. Employee referrals B. Internet recruiting C. Networking D. Outsourcing

A

Accepting payments by credit card causes significant differences between the bank and book balances due to all of the following reasons EXCEPT: A. the service provider records the gross amount of each credit card sale. B. the service provider takes up to three working days to actually make the deposit to your account. C. the credit card service provider deposits to your account the sale amount less the credit card service fee. D. credit card clearing services also will reduce the amount deposited in the event of fraud.

C

Accounting is important to a small business for all of these reasons EXCEPT A. banks, creditors, development agencies, and investors require it. B. it provides easy-to-understand plans for business operations. C. it makes it difficult for others to acquire your business. D. it proves what your business did financially.

D

Accurate and timely _____ are essential for making decisions concerning the extension of credit. They also help produce accurate billing of customers, and thus help to maintain good customer relations. A. payroll records B. leasehold records C. accounts payable records D. accounts receivable records

A

Activities involved in producing and selling goods and services are called _____ activities. A. operating B. investing C. financing D. marketing

C

Activities through which cash is obtained from and paid to lenders, owners, and investors are called _____ activities. A. operating B. investing C. financing D. marketing

c

Adding employees A. decreases the amount of work that can be done. B. reduces the legal requirements faced by an employer. C. increases the demands on the owner. D. increases the business's profitability

B

Delays in the movement of money among depositors and banks is referred to as: A. overdraft. B. float. C. ledger balance. D. reconciling.

A

Delays in transferring money among banks due to internal procedures is referred to as: A. availability float. B. overdrafting. C. processing float. D. reconciling.

d

Depreciation is based on all of the following assumptions EXCEPT A. that the asset has a fixed, determinable period of utility. B. that the asset has a fixed, determinable value that will exist when the depreciation process is complete. C. that the value of the asset will decline in a continuous and predictable manner over the period of utility. D. that it is the cost incurred to replace one asset with an identical asset.

b

EOQ helps you think in terms of A. buying and selling. B. ordering costs and carrying costs. C. borrowing cost and kiting costs. D. ordering cost and lost sales.

d

Generally marketers choose one of these targeting strategies EXCEPT A. undifferentiated. B. concentrated. C. differentiated. D. cost-leadership

a

Giving a third party legal rights to debts owed your business in order to provide assurance that borrowed money will be repaid refers to: A. pledging receivable. B. factoring. C. EOQ. D. JIT inventory.

a

Harry needs to know that when it comes to providing credit, this is true. A. It reduces the cost of selling. B. It forces all customers to pay. C. It usually results in lower sales revenues. D. It accelerates the receipt of cash.

C

Information that the bank knows about your account that you do not know includes all of these EXCEPT: A. the amount of service charges taken from your account. B. the amount of any direct payments made to your account by your customers. C. the deposits you have made after bank closing. D. the amount of any interest received or charged

d

Noel is a management student who needs to conduct primary data for his project on "Retail Marketing." He goes to a local department store and observes customers. He makes a note of the different products the customers choose, and the time they spend in making decisions in choosing different products. Which of the following best explains this type of research? A. Focus group B. Survey C. Secondary D. Ethnographic

b

Selling the right to collect accounts receivable to an entity outside your business is called: A. pledging receivable. B. factoring. C. EOQ. D. JIT inventory.

b

Sharing ideas, working toward a common goal, analyzing one another's work, and communicating cross functionally are related to A. training. B. teamwork. C. recognition. D. work facilitation.

a

Snackos is a company that manufactures snacks. They advertise their products with the catch phrase "Snackos, snacks with nutritious value and more for your money". What kind of strategy are they following? A. Differentiated strategy B. Concentrated strategy C. Undifferentiated strategy D. Cost leadership strategy

d

The _____ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory. A. microinventory B. periodic inventory C. EOQ D. optimum stocking level

B

The _____ is the name given to the sum of cash inflows and cash outflows recorded in the firm's accounting records. A. bank ledger balance B. company book balance C. clearing house D. bank available balance

d

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is called: A. return on sales. B. net profit margin. C. ROI. D. payback period.

A

The amount owed to vendors from whom Tammy purchased the craft merchandise on credit is called: A. payables. B. demand deposits. C. receivables. D. inventory.

C

The basis to being able to control a business's money is to understand and be able to predict the patterns of cash flows. This is possible by preparing a: A. cash disbursements budget. B. comprehensive budget. C. cash receipts budget. D. cash budget.

A

The bills and coins printed by government to represent money refers to: A. currency. B. receivables. C. demand deposits. D. traveler's checks

b

The challenge in _____ is finding data. A. primary research B. secondary analysis C. ethnographic research D. focus group

a

The characteristic that separates one company from another in product, price, promotion and/or distribution, is referred to as A. differential advantage. B. sales forecasting. C. marketing research. D. ethnographic research.

C

The difference between an actual and budgeted revenue or cost is called A. liquidity. B. financial flexibility. C. variance. D. investing activities.

c

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer is called a(n) _____ inventory system. A. EOQ B. periodic C. JIT D. perpetual

A

The practice of trading goods and services without the use of money is called: A. bartering. B. consignment. C. noncash incentive. D. reconciling.

a

The primary disadvantage of the payback period is that: A. it disregards the time value of money. B. it is highly complex. C. it does not allow the comparisons of alternatives. D. it incorporates all cash flows that occur after the payback period.

B

The process of determining the effect of price and quantity changes on revenues and expenses refers to A. accounting analysis. B. variance analysis. C. pro forma budgeting. D. financial flexibility.

a

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service is called A. market segmentation. B. sales forecasting. C. marketing research. D. ethnographic research.

a

The purchase of inventory, very typical with Internet firms, only after a sale is made is called: A. microinventory. B. periodic inventory. C. perpetual inventory. D. point-of-sale system.

D

The quantity of goods sold times the price expected to be paid for each product is the calculation used for the A. overhead budget. B. sales budget. C. purchases budget. D. cost of goods sold budget.

B

The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is A. 3.0. B. 2.0. C. 1.0. D. 4.0

a

_____ refers to the concept that key employees should be able to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm. A. Open-book policy B. Autonomy C. Work facilitation D. Psychological contract

c

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan. A. ROI B. Payback period C. Capital budgeting D. Return on asset

b

_____ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented. A. Test period B. Probationary period C. Employee referral period D. Psychological contract period

a

_____ research is research gathered to answer a specific marketing question. A. Primary B. Post secondary C. Secondary D. Consumer

b

_____ training is delivered to employees while they perform their regular jobs. A. Online B. On-the-job C. Paid D. Off-the-job

d

All of these are primary inventories of manufacturing EXCEPT A. raw material. B. work in process. C. finished goods. D. presold goods.

B

A(n) ______ is something you owe someone else. A. asset B. liability C. owners' equity D. cash flow

b

After determining an organization's compensation philosophy, the next step in developing a compensation plan is A. to develop a job description. B. to find comparison factors for salary. C. to establish a total reward system. D. to structure the compensation plan.

c

All of the following are the disadvantages to rental EXCEPT: A. it requires that you make regular payments. B. the number of dollars paid in rent usually exceeds the number of dollars you would spend to own the asset. C. by renting capital equipment you incur ongoing costs if business conditions change. D. you do not have an ownership position.

B

All of the following provides savings in cash outflows EXCEPT: A. trade discounts. B. taking on noncore paying projects. C. barter. D. use of temporary agencies.

d

All of these are negative effects of extending credit to customers EXCEPT: A. it delays the receipt of cash. B. it creates a borrowing situation for the owners of the business providing credit. C. some customers with credit will not pay. D. it increases the cost of selling.

A

For small businesses, the key budget is the _____ budget. A. cash B. retained earnings C. sales D. marketing

C

Formal summaries of the content of an accounting system's records of transactions are called A. operating activities. B. investing activities. C. financial statements. D. variance analyses

a

Fred has received various different numbers from the local Chamber of Commerce and Economic Development office on how big the potential market is. Which of these can verify the size of the potential market for Fred? A. Marketing research B. Profit forecasting C. Market segmentation D. Location analysis

B

The sum of all profits and losses, less all dividends paid since the beginning of the business is called A. liabilities. B. retained earnings. C. net income. D. tax liability

B

Going concern is the A. legal obligation to give up things of value in the future. B. accounting concept that implies that a business may continue in business even if it is sold to other owners. C. difference between assets and liabilities of a business. D. value given up to obtain something that you want

d

Harry should be made aware that all of these are negative effects of extending credit to his customers EXCEPT: A. he may end up borrowing money to fill the gap. B. sometimes customers who use credit will not pay. C. it delays the receipt of cash. D. it increases the cost of selling.

A

Identify the budget that is a schedule of the amounts and timings of payments of cash out of a business. A. Cash disbursements budget B. Comprehensive budget C. Cash receipts budget D. Cash budget

c

Identify the term that refers to the privileges, services or even tangible items given to employees as part of the overall compensation and benefits package. A. Bonuses B. Long-term incentives C. Perks D. Health insurance

a

Identify the term used for an asset with a fixed determinable period of utility. A. Useful life B. Salvage value C. Book value D. Disposal value

c

Identifying the weaknesses of your competition would result in the identification of _____ for your firm. A. strengths B. weaknesses C. opportunities D. threats

c

If Fred decides to conduct a survey to collect data, compare groups, and statistically analyze data, which of these questions should he avoid? A. Scalar B. Dichotomous C. Open-ended D. Categorical

c

If Fred wants to find new niches and perfect his services before he opens Super Sports, he should focus on which of these questions? A. Scalar B. Dichotomous C. Open-ended D. Categorical

d

If Harry adopts a perpetual inventory system, _____ is one method that can be used to reduce the cost. A. periodic inventory B. JIT C. microinventory D. bar coding

b

If Harry adopts the practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer, it would be referred to as a(n) _____ inventory system. A. point-of-sale B. JIT C. EOQ D. periodic

c

If Harry were to use EOQ, it would help him in terms of: A. borrowing cost and buying cost. B. lost sales cost and shelf-life cost. C. ordering cost and carrying cost. D. buying and selling.

b

If you are asked a question: What is your ethnicity? White, African American, Hispanic, Asian, other, it reflects a _____ question. A. open-ended B. categorical C. dichotomous D. scalar

d

If you are offering assets as collateral, lenders are most interested in _____ value. A. book B. fair market C. replacement D. disposal

A

In _____ you may trade similar items without creating a taxable transaction. A. bartering B. consignment C. noncash incentives D. cash-to-cash cycle

d

In designing on-the-job instruction that gives an employee a method to complete a certain task in a job, it is important to A. use a bulleted list when the order in which tasks are to be performed is important. B. put notes, warnings, and prerequisite conditions after the list item to which they refer. C. present any necessary background information after the instructions. D. use a level of detail that is appropriate to the employees' skill level.

b

In developing his marketing plan, Fred should know that _____ should be his first step. A. conducting a situation analysis B. identifying the target market C. addressing the 4 Ps D. detailing the marketing strategy and objectives

c

In evaluating potential employees, a small business owner A. should hire a moderately qualified person in case filling the position is an urgent requirement. B. should ensure that only a single interviewer meets with a candidate in order to avoid conflicting evaluations. C. should design interview questions such that "yes" or "no" answers are not applicable. D. should accept the candidate's word that he or she possesses a certain skill or knowledge base.

c

In order to manage and foster productivity among virtual employees, small business owners A. should regularly communicate with them via e-mail. B. should attempt to micromanage them. C. should consistently review status reports with them. D. should hire students as interns.

a

In practice, managers of small businesses tend to use which of these when it comes to inventory? A. Heuristic B. EOQ C. Statistical analysis D. JIT analysis

b

In situation analysis, you need to consider those who provide the same product or service, otherwise known as A. promotional marketers. B. direct competition. C. your product distributors. D. indirect competition.

a

Independent contractors who provide specialized business services or support from a distance, through different methods of communication are known as A. virtual employees. B. temporary employees. C. job share employees. D. leased employees.

b

The term associated with objectively evaluating how well someone is doing their job is called A. line of appeal. B. job metrics. C. transparent procedures. D. job basics.

D

Money that is immediately available to be spent is called: A. profit. B. sales. C. charge back. D. cash.

D

Which of these is NOT identified as a most basic accounting concept? A. Business entity B. Costs and expenses C. Going concern D. Buy and sell

a

The Americans with Disabilities Act A. requires that make employers make reasonable accommodation for limitations of qualified applicant or employee unless to do so creates undue hardship. B. prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin. C. prohibits employment discrimination based on national origin or citizenship status. D. prohibits employers from using polygraph results as basis for employment action.

d

The Family and Medical Leave Act requires employers to give employees up to _____weeks leave, paid or unpaid, without loss of position, seniority, or benefits, for a qualifying condition or event. A. 4 B. 6 C. 8 D. 12

b

The Immigration Reform and Control Act of 1986 A. requires payment of same wages to males and females. B. prohibits hiring of unauthorized aliens. C. includes a prohibition on harassment. D. governs confidentiality of medical information.

B

The _____ is a schedule of the amounts and timing of the receipt of cash into a business. A. cost of goods sold budget B. cash receipts budget C. sales budget D. payables budget

A

The _____ is also called the Statement of Financial Position. A. balance sheet B. income statement C. cash flow statement D. statement of retained earnings

D

The _____ is the actual cash value of the account. A. bank ledger balance B. company book balance C. clearinghouse D. bank available balance

C

The difference between revenue and expense is called: A. sales. B. interest. C. profit. D. overhead.

b

The practice of acquiring inventory only in response to a completed sale is called a(n): A. economic order quantity. B. pull-through system. C. periodic inventory. D. perpetual inventory.

a

The rule of thumb is that perks like these should take no more than _____of the annual personnel budget. A. 3 percent B. 5 percent C. 7 percent D. 10 percent

D

The small business owners in the NFIB Foundation poll reported that all of these were causes of cash flow problems EXCEPT: A. difficulty collecting money due from customers. B. seasonal variations in sales. C. unexpected decreases in sales. D. unexpected increases in taxes.

c

The sum of all costs of capital assets including acquisition, ownership, operation, and disposal refers to: A. cost of operation. B. cost of owning. C. whole of life cost. D. replacement cost.

B

The time that is required for a business to acquire resources, convert them into a product, sell the product, and receive cash from the sale refers to: A. seasonal sales. B. cash-to-cash cycle. C. hard-to-soft circle. D. charge back cycle.

B

The two forms of short-term financing are short term debt and: A. cash equivalent. B. commercial paper. C. marketable security. D. demand deposit.

d

The two most commonly used financial ratios for comparing investment alternatives are: A. current and quick ratios. B. return on sales and return on investment. C. operating profit margin and net profit margin. D. payback period and ROI.

B

The value of current assets divided by current liabilities is called A. inventory turnover ratio. B. current ratio. C. total asset to total liabilities ratio. D. quick ratio

d

The_____ requires employers to complete I-9 forms for each employee. A. Fair Labor Standards Act B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

A

What do you call the acquisition cost of the asset that is listed in a balance sheet? A. Historical value B. Financial strength C. Liquidity D. Depreciation

b

What is an arbitrary, but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss? A. Book value B. Depreciation C. Arm's length transaction D. Disposal value

a

What is the cost incurred in financing, insuring, taxing, or tracking an asset? A. Cost of owning B. Whole of life costs C. Cost of operating D. Cost of disposition

a

What is the difference between the gross amount of the receivables and the amount that is ultimately collected? A. Factor's profit margin B. Lock box C. Profit maximization D. Commission

C

What is the term used for delays in delivering checks from the writer of the check to the recipient's bank? A. Availability float B. Overdrafting C. Processing float D. Reconciling

D

When a business offers you a discount of 2 percent if you pay the bill in full within 7 days, it is called: A. noncore payments. B. progress payments. C. receivables discount. D. discount for prompt payments.

A

When exploring the accounting system software, Barb should know that _____ lists revenues and expenses and shows the amount of profit her business has made for a specified period of time. A. income statement B. balance sheet C. cash flow statement D. depreciation statement

a

When recruiting, once a job description is prepared, the next step is to A. develop questions for interviewing. B. create a job analysis. C. prepare a training module for employees. D. create a Web site.

d

When you divide the market you serve based on regions, such as, Northeast, Southeast, and Midwest, it is called A. personality segmentation. B. benefit segmentation. C. demographic segmentation. D. geographic segmentation.

c

When you divide your total market based on age and income, it is called A. personality segmentation. B. benefit segmentation. C. demographic segmentation. D. geographic segmentation.

c

Which among the following are the three key components of entrepreneurial leadership? A. Inspiration, vision, and innovation. B. Innovation, opportunities, and operations. C. Innovation, operation, and inspiration. D. Operations, vision, and opportunities.

b

Which among the following federal employment laws prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin, except where religion, sex, or national origin is a bona fide occupational qualification which is reasonably necessary to the conduct of a particular business? A. Fair Labor Standards Act B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Executive Order No. 11246

c

Which among the following federal employment laws requires employers to give 60 days advance notice prior to a plant shutdown or layoff of 50 or more employees? A. Executive Order No. 11246 B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

a

Which among the following federal employment laws requires employers to implement an affirmative action plan for hiring and promoting females and minorities? A. Executive Order No. 11246 B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

a

Which among the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill, effort, and responsibility in similar working conditions? A. Fair Labor Standards Act B. Immigration Reform and Control Act of 1986 C. Worker Adjustment and Retraining Notification Act D. Executive Order No. 11246

c

Which among the following is a method that has traditionally been used by businesses to hire employees? A. Employee referral B. Internet recruitment C. Help wanted ads D. Career service offices

d

Which among the following is a psychological contract term related to work facilitation? A. Career guidance and training. B. Continual professional training. C. A reasonable workload. D. Adequate equipment to perform the job.

C

Which among the following is a variable cost? A. Lighting B. Security C. Shipping D. Cleaning

c

Which among the following is an on-the-job training method? A. Lectures B. Case studies C. Coaching D. Role playing

a

Which among the following statements is true regarding virtual employees in small businesses? A. In the small business, virtual employees are not hired as full-time employees. B. Small business owners who work with virtual employees have to deal with taxes, unemployment insurance, sick leave, vacation pay, and benefits. C. Small business owners are required to provide additional office space for their virtual employees. D. Small business owners are responsible for the development and supervision of their virtual employees.

B

Which income statement format is preferred by most owners and managers of small bussinesses? A. Single-step B. Multiple-step C. Revenue-only D. Retained earnings

c

Which of following is the most expensive survey method? A. Mail B. Phone C. In-person D. On line

A

Which of the following accounting concepts makes it possible to separate business transactions from personal transactions? A. Business entity B. Costs and expenses C. Going concern D. Accounting equation

C

Which of the following accounting functions allows a business to keep track of what it owes, make timely payments in order to capture prompt pay discounts, and maintain a good credit rating? A. Credit card sales B. Accounts receivable records C. Accounts payable records D. Payroll records

c

Which of the following are the two major types of questions used in surveys? A. Formal and informal B. Primary and secondary C. Open-ended and close-ended D. Personal and professional

c

Which of the following is a management philosophy of selecting and promoting people based solely on their being the most capable person for the job? A. Nepotism B. Capitalism C. Meritocracy D. Democracy

b

Which of the following is a problem with secondary data? A. It may not be economical B. It may not be timely C. It may be too user-friendly D. It may be competitive

d

Which of the following is a psychological contract item that comes under the factor of job security and work responsibilities? A. Challenging and interesting work B. Freedom to be creative C. Career guidance and mentoring D. Well-defined job responsibilities

b

Which of the following is a statistical technique that determines the quantity of inventory that a business must hold to minimize total inventory cost? A. JIT B. EOQ C. Reorder point D. Microinventory

c

Which of the following is also known as competitive advantage? A. Marketing strategy B. Sales forecasting C. Differential advantage D. Marketing research

c

Which of the following is an informal approach and a good way to test your questions to make sure your audience understands exactly what you are asking? A. Ethnographic research B. Survey C. Focus group D. Branching

A

Which of the following is more indicative of a business's financial strength? A. Short-term investments B. Prepaid expenses C. Accounts payable D. Large inventories

d

Which of the following is not a benefit of leasing? A. You can usually obtain a very low down payment. B. The process of negotiating and closing a lease is usually less complicated and expensive than making a purchase and obtaining borrowed funds. C. It is usually much easier for you to replace leased assets than it is to replace assets you own. D. Leased assets have less number of restrictions on how they may be used, maintained, and disposed of.

d

Which of these is NOT one of the 4Ps? A. Product B. Price C. Place D. Plan

c

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes? A. Replacement value B. Salvage value C. Book value D. Disposal value

D

Which of the following is the term used for a financial crisis that is caused by a business growing faster that it can be financed? A. Cash-to-cash cycle B. Gaming the payment process C. Charge back D. Growth trap

D

Which of the following is usually called the cash account? A. Clearinghouse B. Bank available balance C. Bank ledger balance D. Company book balance

D

Which of the following is usually called the cash account? A. Clearinghouse B. Bank available balance C. Bank ledger balance D. Company book balance A bank ledger balance may vary significantly from the actual value of cash that the bank is holding for the depositor because of delays in collecting deposits and delays in making cash transfers.

b

Which of the following psychological contract item comes under benefits? A. Job security B. Tuition reimbursement C. Adequate equipment to perform job D. Increasing responsibilities

C

Which of the following ratios is used to estimate the liquidity of a firm? A. Inventory turnover ratio B. Total asset to total liabilities ratio C. Current ratio D. Quick ratio

C

Which of the following simply reconciles the net increase or decrease with the beginning cash balance and the ending cash balance? A. Net effect of foreign exchange rates B. Noncash investing and financing C. Net change in cash balance D. Noncash operating activities

B

Which of the following statements is true about fixed costs? A. They can be assigned to a specific item sold or manufactured. B. They are unaffected by changes in output. C. Fixed cost per item increases as the number of units produced increases. D. They include expendables.

D

Which of the following statements is true regarding the balance sheet? A. It has a limited impact on financial ratios. B. It contains an exhaustive list of a business's assets and liabilities. C. The balance sheet contains exact figures. D. All values listed in a balance sheet are historical values.

c

Which of the following steps in writing a job description specifies the basic qualities that an employee should possess to perform the job? A. Give a job overview B. Define the duties and responsibilities C. Knowledge, skills, and abilities D. Special requirements

d

Which of the following strategy is ideal while selling bottled water in a beach on a hot summer day? A. Benefit segmentation B. Concentrated C. Differentiated D. Undifferentiated

c

Which of these also refers to reorder point? A. Microinventory B. JIT C. Optimum stocking level D. EOQ

d

Which of these defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position? A. Job analysis B. Job prospects C. On-the-job training D. Job description

a

Which of these factors was least important to employees, according to Jill Kickul's research? A. Work facilitation B. Benefits C. Rewards and opportunities D. Autonomy and growth

B

Which of these is NOT a common financial statement? A. Statement of retained earnings B. Statement of depreciation C. Cash flow statement D. Balance Sheet

a

Which of these is NOT a recommended policy for managing accounts receivable? A. Maintaining constant "aging" of customers to quickly identify the ones who may become delinquent. B. Using your bank as a lock box for the receipt of payments. C. Enforcing significant late fees and interest on past due accounts. D. Discontinuing credit sales to customers who become significantly late in paying.

C

Which of these is NOT a strategy employed by small businesses for handling money shortages? A. Selling receivables B. Adjusting scheduled payments C. Filing for bankruptcy D. Selling investments

c

Which of these is NOT a suggested fair personnel policy guideline across family and non-family members? A. Hiring the best possible candidate for the position. B. Having clear performance expectations. C. Having clearly differentiated personnel policies for family and non-family members. D. Having clearly defined boundaries for each role.

B

Which of these is NOT a technique to increase cash inflows? A. Taking deposits and progress payments. B. Foregoing receivables. C. Asking for your money. D. Taking on noncore paying projects.

d

Which of these is NOT an accounting method to value capital assets? A. Disposal value B. Book value C. Replacement value D. Inflation value

B

Which of these is a statement of what a business owns, what it owes to others, and how much value the owners have invested in it? A. Income statement B. Balance sheet C. Cash flow statement D. Statement of retained earnings

d

Which of these is a suggested guideline for training? A. It should be provided only at the initial stage of employment. B. Employees should practice what they have learned on their own time. C. Have employees sign long-term contracts so they do not leave after receiving training. D. Think of it as an investment.

c

Which of these is an off-the-job training method? A. Orientations B. Apprenticeships C. Case studies D. Coaching

d

Which of these is not a close-ended question type? A. Scalar B. Dichotomous C. Categorical D. Subjective

d

Which of these is the final step of a marketing plan? A. Examining the current situation B. Discussing the target market C. Creating a detailed marketing strategy and objectives D. Addressing the 4 P's

d

Which of these is the first step Uncle Bob needs to start with, in crafting a job description? A. Duties and responsibilities B. Job training C. Job overview D. Job title

c

Which of these is the first step in crafting a job description? A. Job overview B. Duties and responsibilities C. Job title D. Credentials and experience

d

Which of these is the largest current asset that most manufacturing, wholesale, and retail firms have? A. Cash B. Property, plant, and equipment C. Accounts receivable D. Inventory

b

Which of these is the last step in crafting a job description? A. Job overviews B. Special requirements C. Credentials and experiences D. Duties and responsibilities

B

Which of these is the number one strategy employed by small businesses for handling money shortages? A. Borrowing B. Using personal money C. Adjusting scheduled purchases D. Laying off employees

c

Which of these is true about providing credit? A. It usually results in lower sales revenues. B. It accelerates the receipt of cash. C. It reduces the cost of selling. D. It forces all the customers to pay

A

Which of these is used by managers for planning and controlling? A. Managerial accounting B. Tax accounting C. Financial accounting D. Market accounting

A

Which of these most commonly used accounting systems may be useful for Barb to keep records? A. Peachtree B. TaxCut C. TurboTax D. Checkpro

d

Which of these refer to employees' beliefs about the promises between the employee and the firm? A. Open-book policy B. Autonomy C. Work facilitation D. Psychological contract

C

Which of these refers to an entity that processes checks and electronic fund transfers for banks and other financial organizations? A. Credit unions B. Thrifts C. Clearinghouse D. Trade unions

d

Which of these refers to contracting with others outside your firm to do work that would otherwise be done within your firm? A. Networking B. Employee referrals C. Internet recruiting D. Outsourcing

C

Which of these refers to the ability of a business to survive adverse financial events? A. Liquidity B. Financial flexibility C. Financial strength D. Profitability

B

Which of these refers to the accounting process that identifies the causes of all differences between book and bank balances? A. Overdrafting B. Reconciling C. Charge back

C

Which of these refers to the concept that a business is expected to continue in existence for the foreseeable future? A. Business entity B. Costs and expenses C. Going concern D. Buy and sell

A

Which of these refers to the concept that information flows from the income statement through the statement of retained earnings, and of owners' equity to the balance sheet? A. Articulate B. Going concern C. Opportunity cost D. Leveraging

B

Which of these represent the accounting equation? A. Liabilities = Assets + Owners' Equity B. Assets = Liabilities + Owners' Equity C. Assets = Liabilities - Owners' Equity D. Owners' Equity = Assets + Liabilities

b

Which of these represent the first step of a marketing plan? A. Examining the current situation B. Discussing the target market C. Creating a detailed marketing strategy and objectives D. Addressing the 4 P's

a

Which of these represents the current practice for small businesses to provide credit? A. Providing credit by accepting bank-issued credit cards. B. Providing no credit. C. Providing direct credit to customers to build loyalty. D. Providing credit only when approved and backed by government agencies.

C

Which statement lists revenues and expenses, and shows the amount of profit a business makes for a specified period of time? A. Balance sheet B. Statement of retained earnings C. Income statement D. Cash flow statement

c

With _____ questions, it is much easier to compare groups and statistically analyze. A. informal B. open-ended C. close-ended D. subjective

B

_____ activities include the acquisition and disposal of property, plant, equipment, and investment securities of other firms. A. Operating B. Investing C. Financing D. Marketing

c

_____ allows you to search a resume database or post a job description on the web. A. Networking B. Employee referral C. Internet recruiting D. Outsourcing

B

_____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future. A. Liquidity B. Net present value C. Financial strength D. Budget

c

_____ are jobs in businesses offered to students, arranged through universities. A. Assignments B. Careers C. Internships D. Referrals

B

_____ are made up of stocks and bonds for which there is an active auction market. A. Demand deposits B. Marketable securities C. Commercial papers D. Receivables

C

_____ are notes issued by credit-worthy corporations. A. Demand deposits B. Marketable securities C. Commercial papers D. Receivables

b

_____ comprises both hardware and software to integrate inventory management directly into your accounting system. A. Microinventory B. Point-of-sale system C. Periodic inventory D. Perpetual inventory

C

_____ is a formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators. A. Managerial accounting B. Tax accounting C. Financial accounting D. Market accounting

D

_____ is a measure of how quickly a company can raise money through internal sources by converting assets to cash. A. Financial flexibility B. Profitability C. Financial strength D. Liquidity

A

_____ is a method of borrowing against receivables. A. Factoring B. Noncore project C. Discounted payment D. Reconciling

b

_____ is a method of estimating asset value by calculating the net amount that you would realize were you to sell the asset in an "arm's-length" transaction. A. Book value B. Disposal value C. Fair market value D. Replacement value

D

_____ is an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service. A. Differential revenues and expenses B. Net present value analysis C. Cost-volume-profit analysis D. Activity-based cost estimates

B

_____ is an indicator of the business's ability to manage cash flows so that the company has the financial ability to respond appropriately if an unexpected opportunity or problem arises. A. Liquidity B. Financial flexibility C. Financial strength D. Profitability

b

_____ is an underused, low-cost method which rewards your employees for recommending potential candidates that would be a great fit. A. Networking B. Employee referral C. Internet recruiting D. Outsourcing

b

_____ is money that is owed to your business by your customers. A. Inventory B. Accounts receivable C. Factor receivables D. Accounts payable

b

_____ is the fixed and determinable value of an asset that will exist when the depreciation process is complete. A. Useful life B. Salvage value C. Book value D. Disposal value

B

_____ is the idea that it is cheaper (per item) to make many of an item than few. Â. Inventory turnover B. Economy of scale C. Breakeven point D. Historical value

D

_____ is the most used item on the income statement. A. Net income B. Cost of sale C. Revenue D. Operating income

B

_____ make up most of the non currency cash. A. Marketable securities B. Demand deposits C. Commercial papers D. Receivables

d

_____ means having a way for the person who has failed to meet a metric, or made a mistake, or is facing firing to have their side of the story heard. A. Job basics B. Transparent procedures C. Lines of communication D. Line of appeal

c

_____ means letting employees make on-the-spot decisions for the companies' best interest. It requires giving employees permission to act, the knowledge to act, and the skill to act. A. Recognition B. Training C. Empowerment D. Teamwork

D

_____ must be paid in less than one year from the date of the financial statement on which it is reported. A. Commercial paper B. Receivables C. Marketable securities D. Short-term debt

c

_____ questions can help you find new niches and perfect your product or service before you introduce it. A. Categorical B. Dichotomous C. Open-ended D. Scalar

c

_____ refers to information already collected for some other purpose than the current problem. A. Primary data B. Open-ended research C. Secondary data D. Closed research

b

_____ refers to systematic collection and interpretation of data to support future marketing decisions. A. Marketing plan B. Marketing research C. Socialization D. Sales forecasting