Business Exam #4
The prime rate is the interest rate that the Federal Reserve charges member banks for loans.
False
Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.
False
Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.
False
_____ allows people with PCs or other types of machines connected to the Internet to donate processor cycles to the search for extraterrestrial life. This process involves sifting through the static of deep space on billions of radio channels looking for stray signals that are generated by alien civilizations.
Grid computing
Manegerial accounting provides all of the following financial information EXCEPT:
Income statements
Savings banks
are a type of thrift institution
In its role as lender to member banks, the Federal Reserve is called the:
banker's bank
State banks are:
chartered by the state in which they are based.
Virtual private networks (VPNs):
connect two or more private networks using a public network.
In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as
cost of goods sold
The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. A(n) _____ will be used to store, maintain, and acquire data from these records.
database management system
Bo Riley pays his rent and utility bills each month by writing checks. Riley is using a ________ account.
demand deposit
Profitability ratios are used to:
determine how efficiently a company is being managed.
Companies are adopting enterprise portals because the portals:
do all of the above
A _____ makes short-term loans for which the borrower puts up tangible assets (such as an automobile. inventory, machinery, or property) as security.
finance company
Assume a company has inventory valued at $50,000, its total current assets, including this inventory, total $90,000. Its total current liabilities total $20,000. Its quick ratio is:
2
Which of the following statements about computer networks is true?
A computer network is a group of two or more computers linked together by communications channels to share date and information.
Grainger Distribution Company sold Long Electronics ten circuit breakers for $179.00 each. Long Electronics will be allowed thirty days to pay the bill. Grainger will carry the $1790.00 on its books as a(n):
Account receivable
The operating license for a commercial bank is called a (n):
Bank charter
__________________is short- term unsecured debt issued by a financially strong corporation.
Commercial Paper
______ is cash held in the form of coins and paper money.
Currency
______ is the company ': s ability to expense fixed assets over their useful life.
Depreciation
Managerial accounting provides all of the following financial information. EXCEPT:
Production reports
A loan that requires the borrower to pledge specific assets as collateral is called a(n) _____ loan.
Secured
The _____ is a law that requires full disclosure of information on new issues and registration statements of financial information.
Securities Act of 1933
The power the Federal Reserve has to control credit terms on some loans made by banks and other lending institutions is called ______ controls.
Selective credit
______ are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty.
Time deposits
A current asset is one that can or will be converted into cash withing one year.
True
At the first level of a management support system is an information- reporting system.
True
By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy.
True
Consumer finance companies make loans to individuals, commercial finance companies make loans to businesses.
True
Independent accountants who serve organizations and individuals on a fee basis are called public accountants.
True
_____ is the process of buying securities from corporations and governments and reselling them to the public.
Underwriting
A shorth-term loan from a bank, supplier, or others that must be repaid within a year is a (n);
account payable
Financial institutions act as intermediaries between suppliers and demanders of funds. They accept savers' deposits and invest them in such things as business loans or mortgages. This process is called:
financial intermediation
The difference between net sales and cost sold is:
gross profit
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
A(n) ______ is a summary of what a company has earned and spent over a given period.
income statement
On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from operating activities would include:
increases in the manufacturer's inventory
Regulation FD was designed to eliminate:
insider trading
The Securities Investor Protection Corporation (SIPC):
insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure.
For which of the following assets would a wholesale company use depreciation?
its warehouses
Which of the following is an example of a liability that might be owned by an antique mall?
money owed to utility companies.
the financial accounting standards (FASB) board is a
private organization that is responsible for establishing financial accounting standards in the United States
The three principal tools of the Federal Reserve System are:
reserve requirement, discount rate, and open market operations
A(n) ______ is the financial statement that is used to assess the sources and uses of cash flow during the year.
statement of cash flows
___________ are the link between public companies and the investors interested in buying their stock.
stockbrokers
Hal Silverstein has a savings account, also called a _______, at his local credit union.
time deposit
Thrift institutions
were formed specially to encourage household savings
Net sales :
deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales.
_______ is the process of distributing the original cost of long-term asset over the years of its useful life.
Depreciation
A computer program that copies itself into other software and can spread to other computer systems is called a software infestation.
False
Credit unions are state-chartered banks that operate much like savings and loan associations.
False
Recent legislation has decreased the roles of the chief audit executive (CAE).
False
Sarbanes-Oxley allowed accountants to serve as both auditors and advisors for their clients
False
A good technology plan provides employees with the tools they need to perform their jobs at the highest levels of efficiency. The first step in developing a good technology plan is:
a general needs assessment
The U.S. money supply is composed of:
coins, paper money, and treasury bills
Ground water is a vital water resource in the Choushui River area of Taiwan. A significantly increased demand for water, resulting from rapid economic development, has led to large scale ground water extraction. Overdraft of ground water has considerably lowered the ground water level, and caused seawater intrusion, land subsidence, and other environmental damage. Sound ground water management thus is essential. Chinese government officials have set up a(n) _____ system that allows it to make water management decisions using interactive computer models based on real-world processes.
decision support
Cerner Corporation has created a(n) ______ that helps emergency room physicians make decisions about what kind of treatment to give their patients. The system contains the medical records of more than 400,000 people who received treatment at more than 200 different emergency rooms. By comparing inputted information about a patient with information stored in the system, doctors can get a diagnosis and suggestions as to possible treatments.
decision support system