Question 1 (1 point)
Which of the following defines managerial accounting system?
Question 1 options:
Measures the cost of replacing an employee.
Provides the appropriate information to the external community.
Records transactions when money is either received or spent.
Provides information to the management of a business and aids in internal controls.
Records transactions when they occur.
SaveQuestion 2 (1 point)
Inventory embodies:
Question 2 options:
stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash “sit” in a bank account.
the amount of money due to a business from prior credit sales.
formal debts that will be paid to the company within a year.
payments made in advance of their actual occurrence.
tangible goods held by a business for the production of goods and services.
SaveQuestion 3 (1 point)
Current liabilities can be defined as:
Question 3 options:
debts and obligations that are to be paid within a year.
stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash “sit” in a bank account.
the amount of money due to a business from prior credit sales.
formal debts that will be paid to the company within a year.
tangible goods held by a business for the production of goods and services.
SaveQuestion 4 (1 point)
Which of the following defines marketable securities?
Question 4 options:
Stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash “sit” in a bank account.
The amount of money due to a business from prior credit sales.
A formal debt instrument that will be paid to the company within a year.
An accrual accounting term that represents payments made in advance of their actual occurrence.
Tangible goods held by a business for the production of goods and services.
SaveQuestion 5 (1 point)
Which of the following is the equation form of long-term assets?
Question 5 options:
cash + marketable securities + accounts receivable + prepaid expenses + inventory
investments + fixed assets – accumulated depreciation + intangible assets
notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
notes payable + accounts payable + other items payable – dividends payable + the current portion of long-term debt
long-term debt + pension fund liabilities + long-term lease obligations
SaveQuestion 6 (1 point)
Which of the following defines cash-based accounting system?
Question 6 options:
Measures the cost of replacing an employee.
Provides the appropriate information to the external community.
Records transactions when money is either received or spent.
Provides information to the management of a business and aids in internal controls.
Records transactions when they occur.
SaveQuestion 7 (1 point)
Which of the following is a cash inflow from investing activities?
Question 7 options:
Revenue from sale of good and services
Collection of the principle on loans
Sale of securities
Dividends from other companies
Issue debt instruments
SaveQuestion 8 (1 point)
Which of the following is the equation form of total current assets?
Question 8 options:
cash + marketable securities + accounts receivable + prepaid expenses + inventory
investments + fixed assets – accumulated depreciation + intangible assets
notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
notes payable + accounts payable + other items payable – dividends payable + the current portion of long-term debt
long-term debt + pension fund liabilities + long-term lease obligations
SaveQuestion 9 (1 point)
An income statement:
Question 9 options:
examines a business’s assets, liabilities, and owner’s equity at some particular point in time.
attempts to identify cash flows into a firm and cash flows from a firm for some future period.
examines the reinvested income in a business and which has not been paid out to shareholders as dividends.
examines the overall profitability of a firm over a particular period of time.
examines cash inflows and cash outflows for a business during a specified period of time.
SaveQuestion 10 (1 point)
Which of the following defines financial accounting system?
Question 10 options:
Measures the cost of replacing an employee.
Provides the appropriate information to the external community.
Records transactions when money is either received or spent.
Provides information to the management of a business and aids in internal controls.
Records transactions when they occur.
SaveQuestion 11 (1 point)
Trade credit involves:
Question 11 options:
no explicit obligation or expectation, on the part of the investors, to be repaid their investment.
purchasing supplies or equipment through financing made available by vendors.
pledging some assets-such as a home, real estate, machinery, and plant-as collateral.
guaranteeing a portion of the loan to partners that include private lenders, microlending institutions, and community development organizations.
business plan competitions hosted by colleges and universities or small business associations.
SaveQuestion 12 (1 point)
Which of the following is true about common stock?
Question 12 options:
Owners of common stock pledge some assets as collateral.
Owners of common stock have voting rights.
Owners of common stock remain under a legal obligation to repay the original debt plus interest.
Owners of common stock get a fixed amount of money within a given time frame while receiving interest payments on a regular basis.
Owners of common stock get a form of guaranteed dividend.
SaveQuestion 13 (1 point)
Which of the following SBA loan programs has a rapid turnaround time to support export-based activities and can provide for funds up to $500,000 worth of financing?
Question 13 options:
Export Working Capital Program
Special-purpose loans program
Community express program
Patriot express loan program
Export express program
SaveQuestion 14 (1 point)
Which of the following SBA loan programs aids companies negatively impacted by the North American Free Trade Agreement (NAFTA)?
Question 14 options:
Express and pilot program
Special-purpose loans program
Community express program
Export working capital program
Export express program
SaveQuestion 15 (1 point)
The term e-procurement:
Question 15 options:
refers to having software programs and databases located on an outsourced site.
involves purchasing of supplies through the Internet and timing of invoices to customers and from suppliers to improve the cash flow of a firm.
refers to a private network within a business that is used for information sharing, processing, and communication.
involves a Web page that can be viewed and modified by anybody with a web browser and access to the Internet unless it is password protected.
refers to the part of an intranet that is made available to business partners, vendors, or others outside a company.
SaveQuestion 16 (1 point)
Which of the following is a feature of equity financing?
Question 16 options:
It represents a legal obligation to repay the original debt plus interest.
It involves pledging some assets-such as a home, real estate, machinery, and plant-as collateral.
It involves no explicit obligation or expectation, on the part of the investors, to be repaid their investment.
It specifies the amount of money to be repaid within a specific time frame for a specific interest rate.
It guarantees a portion of the loan to its partners that include private lenders, microlending institutions, and community development organizations.
SaveQuestion 17 (1 point)
The S-corporation is:
Question 17 options:
a business composed of two or more owners who contribute the initial capital of the business and share in the profits and any losses.
a business that may have several general partners and several more limited partners who do not have unlimited liability.
a legal entity that must be chartered by the state in which it is headquartered, giving it the authority to enter into legal agreements with individuals and other corporations.
a special format that sets its limit to a hundred shareholders, although it can be created with just one shareholder.
an organizational form that can be limited to a single individual or several other owners or shareholders.
SaveQuestion 18 (1 point)
Which of the following factors of cloud computing means having multiple members of an organization successfully working together?
Question 18 options:
Scalability
Updates
Integration
Security
Customization
SaveQuestion 19 (1 point)
Which of the following is a reason for not increasing a business’s financial leverage?
Question 19 options:
It can have a positive impact on the business’s return on equity.
The business can be grown with someone else’s money.
The interest on debt has a deductible nature.
It may lead to an inability to pay the interest on the debt.
It decreases a business’s overall risk.
SaveQuestion 20 (1 point)
A breakeven analysis is used to:
Question 20 options:
determine the amount of sales volume a company needs to start making a profit.
utilize personal, family, or friends’ money to start a business.
represent a legal obligation to repay original debt plus interest.
raise money by selling a certain share of the ownership of the business.
purchase supplies or equipment through financing made available by vendors.
