Final Exam Business

Commercial paper is: accurately described by none of the above the same thing as accounts receivable recorded in the ledger a type of secured debt a type of IOU typically issued by stakeholders

a type of IOU

Secured short-term loans are usually secured by: accounts receivable and inventory inventory and raw material accounts payable and accounts receivable equipment and inventory buildings and equipment

accounts receivable and inventory

Which of the following is an example of a data security issue? unauthorized access and use deliberate damage software piracy introduction of a computer virus all of the above

all of the above

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within: eighteen months one year five years two years one month

one year

Dividends are: a) annual payments on bonds b) the earnings of the corporation c) payments to the shareholders from company earnings d) guaranteed payments to the common shareholders e) loans made to the shareholder

payments to the shareholders from company earnings

A network that connects computers at different sites via telecommunications media is called a(n): a) local area network b) Web-based network c) long-distance communications system d) wide area network e) in-house communications computer system

wide area network

The Federal Deposit Insurance Corporation (FDIC) insures deposits in commercial banks. The FDIC was created by the: a) Federal Reserve Act of 1913 b) Panic Banking Act of 1907 c) Banking Act of 1933 d) National Banking Act of 1936 e) Depression Recovery Act of 1930

Banking Act of 1933

When conflicts occur, try the K-I-N-D technique. Where D stands for: a) Direct b) Decision c) Demand d) Disable e) Definite

Definite

Which of the following is an example of an intangible asset for a manufacturer of padlocks? a) money owed to them by a do-it-yourself superstore chain b) a patent on titanium lock mechanism c) a machine for forming the locks out of sheet metal d) a warehouse for storing locks e) an office for company CEO

a patent on titanium lock mechanism

The three principal tools of the Federal Reserve System are: tax rate, margin requirements, and discount rate reserve requirements, discount rate, and open market operations discount rate, prime rate, and open market operations reserve requirements, consumer rate, and prime rate open market operations, discount rate, and tax rate

reserve requirements, discount rate, and open market operations

In finance, the opportunity for profit is called: a) return b) potential c) risk d) value e) maximization

return

____ are examples of wide area networks (WANs). Functional and process networks Personal and nonpersonal networks Functional and hierarchical networks Extranets and intranets Hierarchical and matrix networks

Extranets and intranets

How does unsolicited and unwanted e-mail pose a security risk to companies? Each e-mail requires a reply. Hackers enter systems through e-mail. Viruses spread through e-mail attachments. E-mail increases worker productivity. Firewalls can be breached by e-mails.

Viruses spread through e-mail attachments.

All careers have which of the following in common? a) Importance of societal problems b) You need to have a basic understanding of business c) The importance of understanding accounting d) Corporate hierarchy dictating the power distance e) Lack of money

You need to have a basic understanding of business

The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called: an open market operation making a general fund deposit/withdrawal a base market operation a prime transaction manipulating the discount rate

an open market operation

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future. a) trial balance b) firm summary c) annual report d) earnings report e) financial analysis

annual report

Term loans: can be secured or unsecured may be repaid on a quarterly, semiannual, or annual schedule are capital expenditure loans with a maturity of more than one year are available from commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries are accurately described by all of the above

are accurately described by all of the above

Organized stock exchanges operate like a(n): auction company warehouse company retailer wholesaler indirect distribution channel

auction company

Virtual private networks (VPNs): require a significant investment in Internet infrastructure in order to operate efficiently connect two or more private networks using a public network can dramatically increase a company's communications cost are least useful to people who regularly work outside of the office are accurately described by none of the above

connect two or more private networks using a public network

Which of the following is an example of a depository financial institution? commercial finance company pension fund credit union consumer finance company brokerage firm

credit union

Profitability ratios are used to: measure of the firm's ability to pay its current liabilities measure the degree and effect of a firm's use of borrowed funds on its operation determine how efficiently a company's manages its retained earnings show the speed with which resources can be converted to cash determine how efficiently a company is being managed

determine how efficiently a company is being managed

Computers can enhance accounting by: doing all of these controlling purchase orders providing a means to control inventory handling general ledger functions preparing tax returns

doing all of these

Financial intermediation is the process in which: savings are automatically deducted from checking accounts financial institutions act as intermediaries between the suppliers and demanders of funds discount rates are interpreted the Financial Reserve controls the supply of money the Federal Reserve establishes the prime rate

financial institutions act as intermediaries between the suppliers and demanders of funds

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as: financial accounting standards comparable accounting standards generally accepted accounting principles principled accounting procedures accounting rules and principles

generally accepted accounting principles GAAP

Office automation decisions are specifically designed to: a) replace costly experts b) analyze databases c) improve organizational communications d) maintain organizational culture e) make decisions with a higher degree of certainty

improve organizational communications

It is paramount for a dentist to provide the best patient care possible. The dental assistant, even though he or she may perform unskilled work such as fitting a patient with a bib, must also know the proper use of surgical and sterilization techniques to ensure patient safety. Formally educated dental assistants have the knowledge to understand the difference between sterilization and disinfection, and the relative importance of both. Since such are nearly always performed by dental assistants, a dental assistant can be correctly identified as a: knowledge shareholders information monitors transactional processors knowledge workers information technicians

knowledge workers

To stimulate the economy, the Federal Reserve can: a) lower the reserve requirement b) raise the prime rate c) raise the discount rate d) sell government bonds on the open market e) buy stocks listed on the New York Stock Exchange

lower the reserve requirement

The Sarbanes-Oxley Act: made fraudulent financial reporting illegal dealt with accounting issues relevant to NAFTA members mandated the use of international accounting standards set national requirements for becoming a practicing CPA restricts the types of nonaudit services auditors can provide audit clients

restricts the types of nonaudit services auditors can provide audit clients

Items that groups of people use as money must be _____ to be acceptable mediums of exchange. portable, sortable, profitable, and divisible compatible, durable, universal, sortable distributable, durable, comparable and valuable valuable, durable, compatible and scarce scarce, divisible, portable, and durable

scarce, divisible, portable, and durable

Capital budgeting: helps select new products allows managers to analyze profit and loss statements analyzes production costs selects asset proposals for maximum profitability combines all budgets into a master budget

selects asset proposals for maximum profitability