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
