Business Administration Test 4 - Questions and Answers

BUS TEST 4 (CHAPTERS 14-17) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Accounting involves the _____ of the financial activities for firms. a. SUMMARIZING Managerial accounting provides information that would probably be most beneficial to: a. A MIDDLE MANAGER OF THE COMPANY _____ are independent accountants who serve organizations and individuals on a fee basis. a. PUBLIC ACCOUNTANTS Accountants employed within organizations are called: a. PRIVATE ACCOUNTANTS An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a: a. CERTIFIED PUBLIC ACCOUNTANTS Which of the following is NOT one of the six steps in the accounting cycle? a. PAYING ACCOUNTS PAYABLE A(n) _____ is a summary of what a company has earned and spent over a given period. a. INCOME STATEMENT The dollar amount of sales plus any other income received from sources like interest and dividends is called: a. REVENUES _____ are those expenses related to marketing and distributing of a company's products. a. SELLING EXPENSES A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year. a. STATEMENT OF CASH FLOWS ______ is anything (regardless of form) that is acceptable as payment for goods and services. a. MONEY Money is used as: a. ALL OF THE ABOVE The U.S. money supply is composed of: a. CURRENCY, DEMAND DEPOSITS, AND TIME DEPOSITS Which federal agency is responsible for processing and clearing checks between financial institutions? a. FEDERAL RESERVE To stimulate the economy, the Federal Reserve can: a. LOWER THE RESERVE REQUIRMENT Which of the following is an example of a depository financial institution? a. CREDIT UNION 17. Thrift institutions were formed specifically to encourage household savings and to: a. MAKE HOME MORTGAGE LOANS 18. A _____ is a nonprofit, member-owned financial cooperative. a. CREDIT UNION 19. Which of the following is an example of nondepository financial institutions? a. COMMERCIAL FINANCE COMPANIES 20. Finance companies that make loans to promising new businesses with little track record and to firms that are unable to get any more bank credit are _____ finance companies. a. COMMERCIAL 21. The two types of finance companies are: a. COMMERCIAL FINANCE COMPANIES AND CONSUMER FINANCE COMPANIES 22. _____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals a. FINANCIAL 23. Financial managers: a. ARE DESCRIBED BY NONE OF THE ABOVE 24. Financial managers constantly strive for a balance between: a. THE OPPORTUNITY FOR PROFIT AND THE POTENTIAL FOR LOSS 25. The three main types of unsecured short-term loans are: a. TRADE CREDIT, BANK LOANS, AND COMMERICAL PAPER 26. A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called: a. COLLATERAL 27. A(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period. a. UNSERCURED BANK LOANS 28. Which statement describes the major drawback to the use of debt financing? a. FINANCIAL RISK IS ALWAYS A POSSIBILITY WITH DEBT FINANCING 29. A(n) _____ loan is a long-term loan using real estate or other assets as collateral. a. MORTGAGE 30. _____ is the process of buying securities from corporations and governments and reselling them to the public. a. UNDERWRITING 31. _____ are the link between public companies and the investors interested in buying their stock. a. STOCKBROKERS 32. All careers have which of the following in common? a. YOU NEED TO HAVE A BASIC UNDERSTANDING OF BUSINESS 33. Amanda is interested in building her interpersonal skills. She should focus on all of these EXCEPT: a. SET A GOAL AND ACQUIRE KNWOLEDGE 34. When conflicts occur, try the K-I-N-D technique. Where K stands for: a. KIND 35. When conflicts occur, try the K-I-N-D technique. Where I stands for: a. INFORMED 36. When conflicts occur, try the K-I-N-D technique. Where N stands for: a. NEW 37. When conflicts occur, try the K-I-N-D technique. Where D stands for: a. DEFINITE 38. A(n) _______ is a method or process worked out in advance that leads to the achievement of some goal. a. PLAN 39. Which of the following is the second step of the planning process? a. ACQUIRE KNOWLEDGE 40. In selecting the right job, one should start with consideration to "FACTS" where "F" stands for: a. FIT