Second half of semester SB
All of the following are factors that led to the poor financial condition of the Bakery Barn, except
he started baking cookies for other companies.
the primary purpose of accounting is to
help stakeholders evaluate the financial condition of the firm
The importance of business ___ is not new, but the need to manage it like any other asset is
knowledge, information, or intelligence
A tax accountant has specialized and learned tax _______ and is responsible for preparing tax returns.
law
A specialized accounting book in which information is accumulated into specific categories and posted so managers can find all information about one account in the same place is a
ledger
What is another name for debts?
liabilities
The debt a firm owes to others is called a(n) ______.
liability
The ease with which an asset can be converted to cash is called ___
liquidity
___ refers to how fast an asset can be converted into cash
liquidity
The importance of information is not new, but the need to ___ it is a new development
manage and share
Money is considered to have a time value because ___
money has more value in your possession today than at a later point in the future
Title VII of the Civil Rights Act
prohibits discrimination in employment and created the Equal Employment Opportunity Commission
Statement of cash flows
provides a summary of money coming into and going out of the firm. It tracks a company's cash receipts and cash payments (net change in cash and cash balance)
Will Hopkins is an accountant who works for a number of businesses as a consultant. He has helped to design an accounting system, provides accounting services, and has analyzed the financial strength of many of his clients. Will is working as a
public accountant
The formula for the costs of goods sold is ___
purchase price + freight charges + storage costs
accumulated earnings from a firm's profitable operations that are kept in the business and not paid out to stockholders are called
retained earnings: the accumulated earnings from a firm's profitable operations that are reinvested in the business and not paid out to stockholders in dividends.
What is the term for all resources that come into the firm from operating activities
revenue
the monetary value of what a firm received for goods sold, services rendered, and other payments such as rents received, is referred to as
revenue
The role of an auditor is to ___
review and evaluate a company's financial information
The strategy of making work interesting and motivating employees by moving them from one job to another is called job
rotation
A firm that puts something of value, like a piece of property, up for collateral is applying for a(n) ______ loan.
secured
Computer ___ is facing more threats than ever due to mobility of data
security
An extranet is a(n) ___ network that lets a group of organizations access the same information
semiprivate or controlled
A(n) ___ forecast predicts revenues, costs, and expenses for a period of one year or less
short term
Short-term financing is more important to a small business than long-term financing because ___
small businesses are more concerned with funding day to day operations
which statement describes how the emergence of social media has transformed the way we do business
social media has enhanced the way businesses interact and collaborate with their customers
An advantage of the use of computers to maintain and compile accounting information is ___
speed
Cash receipts and disbursements related to operations, investments, and financing, are reported on the ___
statement of cash flows
Small businesses that are just getting off the ground often have problems with the difference between cash coming into the business and cash going out of the business. For example, if the company allows far too lenient credit sales terms, customers do not pay on time, which could cause cash to come in too slowly. That's why the ___ is a key financial statement of any business.
statement of cash flows
In a public corporation, the ownership is held by
stockholders, shareholders, or investors
___ are shares of ownership in a company
stocks
which activity is associated with accounting?
summarizing and interpreting company financial information
The primary role of business technology during the 1970s was to
support existing business by improving the flow of financial information
A ___ accountant is trained in tax law and is responsible for preparing tax returns or developing tax strategies
tax
Computer security is facing more threats today because data is more ___
Accessible
The relationship among assets, liabilities, and owner's equity can be written as the ___ equation.
Accounting
What is consideration to be the "language of business"?
Accounting
In factoring, the discount given depends on ___
Age of the accounts receivable The nature of business The condition of the economy
a Certified Public Accountant (CPA) is
An accountant who has met educational requirements and has passed exams established by the AICPA
The first step in the accounting cycle is to ___
Analyze source documents
The ___ ___ is the yearly statement of the firm's financial condition, progress, and expectations provided to stakeholders
Annual report
The ___ ___ provides information about a company's financial status to company managers, owners, government agencies and the general public
Annual report
Which three activities are part of the function of accounting
Answer: interpreting, classifying, and recording All functions: recording, classifying, summarizing, and interpreting financial events and transactions
the fundamental accounting equation is
Assets = Liabilities + Owner's Equity
Mcgregor's theory states that managers motivate workers based on the manager's ___ about workers' attitudes toward work
Assumption(s)
The statement of cash flows is a financial that shows ___
Cash receipts and disbursements
An intranet is a(n) ___-wide network that is closed to public access
Company or organization
An accountant's time is freed up to do more important tasks such as financial analysis due to the assistance provided by using ___
Computerized accounting programs
Historically, security officials in government and corporations were primarily concerned with fraud, credit card theft, and hackers. Since 9/11, however, officials are much more concerned with
cyberterrorism
The area of accountancy that is focused on arranging company financial information to give to managers to make decisions is
Managerial accounting
Needs for operating funds include ___
Managing day-by-day needs of the business Controlling credit operations Acquiring needed inventory Making capital expenditures
The internet is the heart of knowledge management by being a one-to-one and one-to-___ tool
Many
Examples of companies using social media information to change their processes include
McDonald's using customer feedback to change when their breakfast menu is available
What is the distinction between data and information
data is raw, unanalyzed facts and figures, while information is data that has been processed and summarized so that it can be used by decision makers
Business intelligence (BI) is defined as
The use of software applications to analyze an organization's raw data and derive useful insights from it.
Stockholders, or owners' equity represents ___
The value of the business that belongs to owners
in the accounting process, ledgers are used to compile information to complete
a trail balance
As information technology has grown in sophistication, IT professionals have learned how to utilize ___ to look for hidden patterns and previously unknown relationships among data which can lead to better decision making
data mining
in the 1970s, information technology was primarily concerned with ___, while today business intelligence analytics is the focus
data processing
___ financing is funding raised through various forms of borrowing that must be repaid
debt
A company that takes out a loan from a bank is using which type of financing?
debt financing
Borrowing money the company has a legal obligation to repay is ___
debt financing
Because of the many technological innovations, middle management positions have ______ in most corporations.
decreased
The information and analysis that comes from managerial accounting is used to ___
assist managers inside the organization with their decision making
Which of the following are considered disciplines within the accounting profession?
tax accounting managerial accounting financial accounting
Taylor's method was to
teach people the one best way to do their jobs study the most efficient way to do a task determine the one "best" way
Generation x managers
tend to focus more on results than on hours in the workplace.
what legislation created new government reporting standards for publicly traded companies?
the Sarbanes-Oxley Act
the accounting cycle is a six-step process that results in
the compilation of financial statements and their analysis
William Ouchi's Theory Z recognized ________.
the merits of a hybrid form of Japanese style management and American style of management
Advantages of using a credit card in small business financing include that
they save time cards are accepted in many places
Studies of the tasks performed in a job and the ___ needed for each is time-motion study.
time
Studies about which tasks must be performed to complete a job and the time needed to do each task are referred to as ___ studies
time and motion
The elements of scientific management include:
time, method, and rules of work
A firm that buys goods and services on a given day, but pays for them later is using a(n) ___ credit
trade
A journal is the place where ___
transactions are first recorded
in a private company's accounting system, inputs are ___ and outputs are ___.
transactions such as sales, payroll, and other expenses; financial statements
Marketing is the activities, sets of institutions, and processes that add ______ for customers.
value
A proces that allows software-based networked computers to run multiple operating systems and programs and share storage is called
virtual networking
A programming code inserted into other programming that causes unexpected or undesirable results is called
virus
a piece of programming code inserted into other programming that can cause some unexpected and usually undesirable event is a security threat called a
virus
Information technology (IT) has changed
where we do business and when we do business
Employment tests must
be directly related to performance on the job.
Why can loans obtained from families and friends be problematic
because all parties may not understand cash flow
The ___ line is another name for net income after taxes
bottom
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______.
business operations
During tough economic times, customers are happy when firms extend ______ for purchases.
credit
___ ___ are a form of financing where the merchant accepts payment immediately from the bank and the customer agrees to repay the bank
credit cards
The use of ___ creates concerns about privacy since it can be viewed by your company and others.
The central idea of MBO is that:
employees need to motivate themselves by participating in goal setting.
Equity theory looks at how
employees' perceptions of fairness affect their performance.
In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis
finance
In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget?
financial control
Which are considered to be the working areas of accounting?
financial, managerial, auditing, tax, and governmental and nonprofit
Some of the business security protections that hackers focus on breaking through are
firewalls, anti-spam programs, web filtering
Technology has eliminated many middle management functions and ___ organization structures
flattened
______ and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.
government
A financial institution or commercial back that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n)
Factor
Data processing is a term from the 1970s that refers to ___ information
Financial
which organization sets the principles of financial accounting and reporting that accountants must follow?
Financial Accounting Standards Board
The balance sheet, income statement, and statement of cash flow are the
Financial statements
The study that asked workers to rank a list of job-related factors in order of what motivated them most was a new direction taken by:
Frederick Herzberg
Individuals whose focus is to break through firewalls and other security features are
Hackers
Taylor's scientific method became the dominant strategy for improving productivity in the early 1900s. Other researchers who worked with him, included:
Henry L. Gantt Frank and Lillian Gilbreth
The amount a business borrows and for how long depends on which of the following?
How quickly it can resell the merchandise it purchases with the funds The type of business and industry it is in
In 2016 the US government agreed to give away its remaining ownership in ___
ICANN
If someone wanted to find out how much money a company made during a particular year, the best financial statement to use would be the
Income statement
Which financial statement summarizes revenues, costs, and expenses for a specific period?
Income statement
___ ___ is a term from the 1980s that shows that business technology is now out of the back room and in the center of the business
Information systems: technology that helps companies do business
___ is a private, very high speed, research-only network
Internet2
Careful control of a firm's ___ costs allows it to maintain correct levels of stock and product
Inventory
The main reason that the primary stakeholder of Goodwill is the general public is because it ___
Is a nonprofit organization
In the office, your email
Is not private, unless you have special software
Timeliness of information is important because:
It allows for prompt resolution of customer problems It can provide rapid feedback on product problems
An example of location-based services that use GPS and networks to tie messages to the location of the consumer would be:
McDonald's sending you a message at lunchtime with the directions to its nearest restaurant
Frederick Taylor was nicknamed the ___ of scientific management:
father
Dimitri owns stock in a U.S. publicly traded company. As a stockholder, Dimitri is a(n) ______ of the corporation.
owner
the advantages of cloud computing are demonstrated in the fact that software and hardware upgrades are minimalized. Another advantage important to IT professionals and just about anyone that accesses data on computers is
the automatic backup of data
Using ___ technology allows people to access information wherever they want it
Bluetooth
Determinants of how much money a firm should borrow include
- cash flow forecasts - speed with which they can turn the borrowed funds into cash
A(n) ___ is a financial plan that sets forth management's expectations and, on the basis of those expectations, allocates the use of specific resources throughout the system
Budget
Assets, liabilities, and owners' equity are the major accounts listed on ___
A balance sheet
The income statement shows ___
A firm's profit after costs, expenses, and taxes
Virtual networking is a:
A process that allows software-based networked computers to run multiple operating systems and programs, and share storage
What is a stock?
A share of ownership in a company
McGregor recognized that ________.
A. managers' attitudes toward workers affected how they motivated them.
Computer security is facing more threats today because data is more
Accessible
Bakery Barn eventually started to gross sales over $1 million. If the company were to seek out a loan, what would be its major source of information to determine if Bakery Barn were actually profitable?
Bakery Barn's financial statements
Currently, information technology replaced the term ___ ___ with its role being to change business methods
Business technology
Virtual networking is
Process that allows networked computers to run multiple operating systems and programs through one central computer at a time
Taylor's goal was to increase worker efficiency and ___ in order to benefit both the firm and workers
Productivity
Income statement
Summarizes revenues, cost of goods sold, and expenses (including taxes) for a specific period and highlights the total profit or loss the firm experienced during that period (revenues, costs of goods sold, advertising expense, insurance expense, income tax)
Managerial accounting is used to provide information ___
inside the firm
The belief that your work makes a difference and gives you satisfaction is an example of:
an intrinsic reward
Reviewing and evaluating records used to prepare a company's financial statements is referred to as:
auditing
Websites can send ____ to your computer that stay on your hard drive and can track your web movements.
cookies
if you were working as a bookkeeper, the first action you would take is to
divide transactions into meaningful categories
Finance is the function of acquiring and management of ___
funds
A(n) ___ is a record book or computer program where accounting data are first entered
journal
Data ______ is a computer technique for looking for hidden patterns and relationships among data.
mining
According to Maslow, needs that have already been satisfied no longer provide
motivation
The bottom line is another name for ___
net income or loss
Internet2 is a(n) ___ very high speed, research-only network.
private
Small business managers are more concerned with ___-term funds
short
An IPO is the first public offering of a corporation's
stock
Short-term forecasts generally cover up to a ____
year
In using the accounting equation, if assets = 40,000 and liabilities =30,000, then owners equity is equal to
$10,000 Equation: assets = liabilities + owner's equity
Items that are considered to be a capital expenditure
(Definition: major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks and copyrights) Buildings and equipment Patents and copyrights Land
What are the three most common reasons firms fail financially?
- undercapitalization - inadequate expense control - poor control over cash flow
It is better to go to banks instead of family and friends for business loans because
-loans from family can hurt family relationships -banks can assist the business in analyzing problems
All of the following things helped turn the Bakery Barn into a profitable company, except
appointing himself as CEO.
The accounting cycle
1. Analyze source documents (sales, slips, travel records, etc) 2. Record transactions in journals 3. Transfer (post) journal entries to ledgers 4. Take a trial balance 5. Prepare financial statements (balance sheet, income statement, and statement of cash flows) 6. Analyze financial statements
What are the three steps of financial planning
1. Forecasting the firm's short-term and long-term financial needs 2. Developing budgets to meet those needs 3. Establishing financial controls to see whether the company is achieving its goals
The concept of comparing assets to liabilities and owners' equity is found in which financial statement?
Balance sheet
When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n) ___ as the basis for making decisions
Budget: sets forth management's expectations for revenues and allocates the use of specific resources throughout the firm
A term from the 1970s that refers mostly to the flow accounting and financial information is ___ ___
Data processing: name for business technology in the 1970s
Businesses use social media to:
Develop new strategies for reaching customers Understand the latest consumer trends
A(n) ___ is a semiprivate network that lets a group of organizations access the same information
Extranet
Computer system ___ can disrupt shipments and can have a significant impact on business
Failure, failures, malfunction, bugs, errors, or instability
Fredrick Taylor was called the ____ of scientific management
Father
A theory X manager is likely to think that the primary motivators are ___ and ___
Fear; punishments
Making decisions about how Threadless should allocate its resources to both current and future product innovations is a process known as
Financial planning
Because they indicate a firm's financial health and stability, the use of ____ are key factors in management decision making
Financial statements
The best way to understand a firm's financial health and stability is to look at its ___
Financial statements
___ accounting generates financial information for people outside the firm, while ___ accounting generates financial information for people inside the firm
Financial, managerial
Achieving increased productivity to benefit the worker and the firm was the goal of:
Frederick Taylor
The "Principles of Scientific Management" was written by:
Fredrick Taylor
Which of the following are examples of factors that contributed to increased worker productivity during the Hawthorne studies
Management respect and interaction. Worker involvement in managerial decisions. Social group membership and informality.
An organization-wide network that is closed to public access and uses internet-type technology is called a(n)
Intranet: a company wide network, closed to public access, that used internet-type technology
Jake Nickell's crowdsourcing approach to his business initially kept the way business finances under control in all of the following ways except
It eliminated the need for fixed costs
What is the primary reason that many new businesses fail early on?
Lack of financial resources
Raising needed funds through borrowing to increase a firm's rate of return is called ___
Leverage
Helping customers find a restaurant they are looking for on their mobile device no matter where they are, is a function of ___ ___ services such as GPS
Location-based
When considering ___-___ financing options a financial manager must consider the organization's financial goals and objectives
Long term
Data mining is a technique where a company will
Look for hidden patterns and relationships in data
In the accounting equation, what is the term for the difference between assets and liabilities
Owner's equity
Which of the following are included in business process information?
Point of sale Enterprise resource planning systems Customer relationship management systems
Taylor's scientific management became the dominant strategy for improving ____ in the early 20th century
Productivity / efficiency / production
Government and nonprofit accounting involves working for organizations whose purpose is to serve ___
Ratepayers, taxpayers
Source documents would include items such as
Receipt, travel records, etc
Operating expenses include which of the following
Rent utilities supplies Rent salary supplies utilities and insurance
Balance sheet
Reports the firm's financial condition on a specific date (accounts receivable, land, patents, long-term liabilities, owners equity)
___ is the term for resources that come into the firm from operating activites
Revenue
Financial control is a process through which a firm periodically compares its budget to which of the following?
Revenues, costs, and expenses
Virtual networking is designed to
Run multiple operating systems and programs Remedy the crashes and viruses of individual computers Share storage
Advantages of using a credit card in small business financing include that it ___
Saves time and is convenient Provides a line of credit
Taylor's method of studying workers to find the most efficient ways of doing things and then teaching people those techniques is called ___ ___
Scientific management
Frederick Taylor believed the best way to improve worker productivity was to
Scientifically determine the most effective way to perform a task and then teach people exactly how to perform it.
Cash flows analysis is especially important for which of the following
Small businesses
Computer stability issues come from which of the following?
Software error Hardware error Human error through lack of training
According to Herzberg, which of the following is an example of a hygiene factor?
Supervisors
The primary users of government and nonprofit accounting information are ___
Taxpayers, legislative bodies, and special interest groups
Which management theory uses time-motion studies to find the one best method for workers to perform each task and then teaches them that method?
Taylor's scientific management
The term information systems from the 1980s refers to business ___ being at the center of business
Technology
Frederick Taylor wrote:
The Principles of Scientific Management
Which statements are true about factoring accounts
The firm that buys the accounts receivable collects the amount due It is the accounts receivable of a firm sold for a discount Small businesses often use it for financing in the short term
How do cash flow problems usually start
The firm uses up its credit.
An IPO is ___
The first public offering of a corporation's stock. (Initial public offering)
Because the internet is a network of computer networks that evolved from a one-to-one communications tool to a one-to-many broadcast tool, it is referred to as:
The heart of knowledge management
The ___ value of money is the idea that money in your possession today is worth more than money will be in your possession in the future
Time
___ is when business data reach managers when the information is needed and still relevant
Timeliness
the practice of buying goods and services now and paying for them later is termed
Trade credit
T or F: the US created the internet corporation for assigned names and numbers in 1998 that represented various stakeholders of the web
True
T or F: the entertainment industry has been greatly affected by information technology and its availability to people
True: I.e. people can now watch movies on demand at home instead of going to a movie theater.
T or F: business process information is gathered from daily operations for analysis to help improve how the business is working
True: this includes all transaction data gathered at the point of sale as well as information gained through operations like enterprise resource planning, supply-chain management and customer relationship systems
Web 2.0 allows people to build their own connections and share information on their own. A good example is:
A(n) ___ ___ ___ is a private network that creates secure connections over regular internet lines
Virtual Private Network
A private network that creates secure internet connections over regular internet lines is a(n)
Virtual private networks
A(n) ___ is a program inserted into other programming that can create unexpected or undesirable results
Virus
___ refers to the tools that allow people to build social and business connections
Web 2.0
Which are questions financial managers ask when considering long-term financing?
What are our organizations long-term goals and objectives What funds do we need to achieve the firm's long-term goals and objectives What sources of long-term funding (capital) are available, and which will best fit our needs
___ communication provides flexibility and mobility for laptop users to work wherever they can tap into a wireless network
Wireless
broadband technology refers to
a continuous connection to the internet that allows users to send and receive large data files faster than ever before
Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of ______ helps managers make good decisions about the firm's operations.
accounting
which would be considered a current asset
accounts receivable
major investments in either tangible long-term assets such as land, or intangible assets such as patents are considered to be ___ expenditures
capital
major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights
capital expenditures
Juanita is a sales professional travelling from boston to texas for a client presentation. her presentation is stored in an off-site data center. when she arrives in texas, she accesses her presentation via the internet to her laptop. this is an example of
cloud computing
The asset that backs a secured loan is called
collateral
The ___ of ___ ___ measures the cost of merchandise the firm sells or the materials and supplies used to manufacture them for sale
cost of goods sold/manufactured
Which is not an element of scientific management
human factors
The key of Web 3.0 technology include artificial intelligence, mobile web, and
immersive internet
What inventory management procedure helps a firm to control inventory costs?
implementing a just-in-time inventory control method
which financial statement shows the firm's bottom line -- that is, whether it has made a profit or is operating at a loss?
income statement
Firms will leverage (raise needed funds through borrowing) because it will ______.
increase a firm's rate of return on ownership's investment
In order for information to be meaningful, a firm's accounting processes and procedures should be certified as accurate by acceptable accounting standards. Companies hire ________ to provide unbiased opinions about the accuracy of a firm's financial statements.
independent auditors
technology that helps companies do business, such as voice mail systems or automated teller machines, are examples of
information systems
Since 1989, central savings bank has tried to use new technologies to exapnd the services it offers to its customers. for example, depositors can obtain updated information about their accounts and handle certain types of transactions....
information technology
___ ___ is the current term to show that business technology is now in a position to change business methods and the business
information technology
technology that enables ordinary objects to be connected to the internet by using sensors, cameras, software, databases, and massive data centers is called
internet of things
Wilson Manufacturing relies on extensive ___ system, where its employees share information between departments. For example, departments such as human resources can share payroll information with employees.
intranet
Feeling personal satisfaction because you perform well is which type of reward?
intrinsic reward
Debt financing refers to funds that ___
must be repaid
IT allows businesses and consumers to purchase materials and supplies ___ without leaving home or their own offices; saving travel time and money
online or conveniently
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ___
operating expenses
Funding day-to-day operations, acquiring needed inventory, and making capital expenditures are all needs for ___ funds in an organization
operating, operation, or operational
the statement of cash flows reports cash receipts and disbursements related to which three major activities of a firm
operations, investments, and financing
The major categories of the balance sheet are assets, liabilities, and ____
owner's equity
the amount of the business that belongs to the owners, minus the liabilities the business owes, is referred to as
owners' equity
Financial accounting and managerial accounting differ in terms of who uses the information. Financial accounting provides information primarily for ___
people outside the organization
Decisions about promotions, compensation, additional training, or firing should all be based on
performance appraisals
___ is a type of online threat in which a scammer will use a logo for a well-known company and make a message look authentic. When the victims click the link and give their personal information, it's then stolen.
phishing
Is it more common for a firm to fail due to lack of sales or poor financial management
poor financial management