Question 1 1 points Save

The most typical time frame for a budget is

one month.

three months.

six months.

one year.

five years.


Question 2 1 points Save

Which of the following is NOT a Core Competency in Accounting as identified by the CPA Vision Project?

skills in interpreting converging information

strategic and critical skills

technology skills

computational skills

communication and leadership skills


Question 3 1 points Save

The ____________ measures the average number of times that inventory is sold and restocked during the year.

inventory turnover ratio

current ratio

the restock factor

The Learning Effect

the acid test ratio

Question 4 1 points Save

As buildings and equipment wear out or become obsolete, their value decreases. To reflect decreasing value, accountants use

prepaid expenses.

subtracting methods.

depreciation.

licensing.

all of the above.

Question 5 1 points Save

_______________ is concerned with reporting the operations of the company as a whole to shareholders and the public.

Managerial accounting

Government accounting

Minor accounting

Financial accounting

Stock market accounting

Question 6 1 points Save

An expense, such as rent, that is paid before the upcoming period in which it is due is referred to as _________ on the balance sheet.

accounts receivable

futures

prepaid expenses

merchandise inventory

marketable securities

Question 7 1 points Save

__________ is also known as net profit or net earnings.

Operating income

Net income

Cash flow

Leverage

Selling income

Question 8 1 points Save

Subtracting income taxes from operating income reveals

operating income.

net income.

cash flow.

leverage.

selling income.

Question 9 1 points Save

Depreciation is

the process of distributing the cost of an asset over its useful life.

the amount paid for an existing business above the value of its other assets.

a debt that must be paid within the year.

additional money, above proceeds from a stock sale, paid directly to a firm by its owners.

a debt that is not due for at least one year.


Question 10 1 points Save

Which of the following statements is the most accurate?

All inventory turnover ratios should be five or above.

A "good" inventory turnover ratio depends upon the industry that a firm is in.

As a rule, any firm strives to achieve an inventory ratio below five.

Most firms pay no attention to inventory turnover.

Inventory turnover is a short-term solvency ratio.

Question 11 1 points Save

Along with the computer, Mega Computers has sent a document that states the promised payment date and amount. The buyer must sign it before taking the computer. This is a(n)

revolving credit agreement.

open-book credit.

promissory note.

trade draft.

line of credit.

Question 12 1 points Save

Financial control is

the process of checking actual performance against plans to ensure that desired financial results occur.

a firm's strategies for reaching some future financial position.

rules governing a firm's extension of credit to customers.

the granting of credit by one firm to another.

the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.


Question 13 1 points Save

Property insurance is

insurance covering income lost during times when a company is unable to conduct business.

insurance underwritten for a group as a whole rather than each individual in it.

insurance covering losses resulting from physical damage to or loss of the insured's real estate or personal property.

coverage provided by a firm to employees for medical expenses, loss of wages, and rehabilitation costs resulting from job-related injuries or disease.

insurance covering losses resulting from medical and hospital expenses as well as income lost from injury or disease.

Question 14 1 points Save

Cash-flow management is

the process of checking actual performance against plans to ensure that desired financial results occur.

a firm's strategies for reaching some future financial position.

rules governing a firm's extension of credit to customers.

the granting of credit by one firm to another.

the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.


Question 15 1 points Save

The mix of debt and equity funding that a firm uses is called its

capital structure.

long-term funding mix.

financial mix.

debt-to-equity ratio.

corporate capital mix.

Question 16 1 points Save

Credit policies are

the process of checking actual performance against plans to ensure that desired financial results occur.

a firm's strategies for reaching some future financial position.

rules governing a firm's extension of credit to customers.

the granting of credit by one firm to another.

the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

Question 17 1 points Save

A __________ is an arrangement in which a lender agrees to make funds available on demand and on a continuing basis.

line of credit

revolving credit agreement

commercial paper

factoring

trade acceptance

Question 18 1 points Save

_________ risks involve the possibility of gain or loss.

Acts of God

Market

Speculative

Pure

Financial

Question 19 1 points Save

__________ is uncertainty about future events.

Flow

Risk

Leverage

Liquidity

Hedging


Question 20 1 points Save

_______ are purchases of fixed assets such as land, buildings, and machinery.

Capital expenditures

Operating expenditures

Fixed expenditures

Budgeted expenditures

Investments

Question 21 1 points Save

Search engines such as Yahoo! serve as ___________, collections of business Web sites representing diverse products.

internet service providers

electronic storefronts

cybermalls

multi-level marketers

e-catalogs


Question 22 1 points Save

___________ help Internet customers by gathering and sorting information on products and prices.

Rack jobbers

Syndicated sellers

E-referrals

Shopping agents

Brokers

Question 23 1 points Save

Which of the following would violate FCC cross-ownership regulations?

Montrose Broadcasting owns newspapers in San Diego and San Francisco.

Wine Tarner owns one newspaper and one television station in Omaha.

Entertainment Systems owns a newspaper in Orlando and a radio station in Tampa.

All of the above.

None of the above.


Question 24 1 points Save

The Federal Communications Commission has regulations against ____________, ownership of more than one media outlet in the same market.

channeling

multi-plexing

cross-ownership

dual ownership

dual distribution


Question 25 1 points Save

The type of nonstore marketing used by Tupperware, Amway, and Avon is

direct selling.

video marketing.

electronic shopping.

telemarketing.

mail order.

Question 26 1 points Save

__________ generate large sales volume by offering goods at substantial price reductions. In recent years they have offered higher quality and a few department store services.

Discount houses

Warehouse clubs

Factory outlets

Off-price stores

Catalog showrooms

Question 27 1 points Save

In _________, the telephone is used to sell directly to consumers.

direct selling

video marketing

electronic shopping

telemarketing

mail ordering

Question 28 1 points Save

There are over _______ million retail establishments in the U.S.

10.0

7.5

5.0

2.5

1.6

Question 29 1 points Save

___________ distribution is a strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area.

Network

Exclusive

Selective

Matrix

Intensive

Question 30 1 points Save

Which of the following work on commission, do not take title to the goods they sell, and serve as sales reps to manufacturers who need them?

merchant wholesalers

merchant shippers

drop shipper

rack jobbers

agents and brokers

Question 31 1 points Save

Only corporations can issue ___________ bonds.

municipal

serial

callable

convertible

sinking fund


Question 32 1 points Save

A _______ is a bond for which no specific property is pledged as collateral.

bearer bond

debenture

registered bond

secured bond

callable bond

Question 33 1 points Save

Animal names have figured prominently in the stock market for years. Which animal listed below do we associate with a rising market?

lamb

tiger

bear

bull

panther

Question 34 1 points Save

What condition would lead an issuer to call a bond?

The coupon payments on the bond are high.

Prevailing interest rates are lower than the rate being paid on the bond.

Government regulation.

The coupon payments on the bond are low.

Prevailing interest rates are higher than the rate being paid on the bond.


Question 35 1 points Save

Which of the following are aspects of a short sale by an investor?

Borrowing of stock from a broker.

Required return of the stock to broker.

Hope for falling price on the stock sold short.

Money not required up front.

All of the above.


Question 36 1 points Save

On the stock pages of The Wall Street Journal, which column informs us as to how many shares of a given stock was sold during the market session reported on?

Vol 100s

Close

Net Chg

52-Week High

Div

Question 37 1 points Save

Among municipal bonds, which are backed by the issuer's taxing power?

obligation bonds

revenue bonds

supported bonds

commonwealth bonds

trans-issued bonds

Question 38 1 points Save

Through _________, the risk of loss is reduced by spreading the total investment across more stocks.

spreading

shorting

margin buying

asset allocation

diversification


Question 39 1 points Save

Typically, a state or local government will issue ___________ to fund new elementary and high schools.

obligation bonds

revenue bonds

supported bonds

commonwealth bonds

trans-issued bonds

Question 40 1 points Save

Which is the most widely cited U.S. stock market index?

Standard & Poor's Composite Index

the NYSE index

The New York Times index

Dow Jones Industrial Average

NASDAQ composite index


Question 41 1 points Save

Buyers fall into two groups: buyers of __________ and buyers of ___________.

shopping goods, convenience goods

temporary goods, permanent goods

quick goods, fast goods

consumer products, industrial products

cheap goods, expensive goods

Question 42 1 points Save

Companies often price their products to establish ______________, a company's percentage of the total market sales for a specific product type.

market share

fixed costs

sales percentage

variable costs

breakeven point

Question 43 1 points Save

Which of the following is most likely to generate profits to cover the expenses of developing new products?

price fixing

price skimming

penetration pricing

market pricing

price lining


Question 44 1 points Save

___________ is frequently used to stimulate sales.

Price fixing

Price discounting

Psychological pricing

Market pricing

Price lining


Question 45 1 points Save

Which of the following is NOT a function of packaging?

Serves as in-store advertisement.

Reduces risk of spoilage.

Increases the quality of the product inside.

Makes the product attractive.

Displays the brand name.


Question 46 1 points Save

___________ refers to the physical container in which a product is sold, advertised, or protected.

Labeling

Branding

Pricing

Packaging

Lining


Question 47 1 points Save

The three types of brand names are ________________ brands.

national, licensed, and private

large, medium, and small

local, regional, and national

nearer, farther, and farthest

numerical, logistical, and literal


Question 48 1 points Save

A ____________ is the tangible and intangible features that characterize a product.

product line

service package

service mix

prototype

product mix


Question 49 1 points Save

When companies extend their horizons and identify opportunities outside existing product lines, the result is

conglomeration.

multiple product lines.

ubiquity.

universalism.

global response.

Question 50 1 points Save

A product __________ is a group of similar products intended for a group of similar buyers.

line

assortment

mix

shield

range

Question 51 1 points Save

The evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers is

quality/cost studies.

value-added analysis.

benchmarking.

getting closer to the customer.

statistical process control.

Question 52 1 points Save

Through _________, a firm compares its products and processes with those of competitors or even companies in other lines of business.

external benchmarking

quality improvement

failure management

internal benchmarking

process improvement


Question 53 1 points Save

Which of the following was used where GTE improved its over-the-phone business?

ISO 9000

reengineering

ROQ

Back to Basics

Six Sigma

Question 54 1 points Save

Business process reengineering is

the concept that all employees are valuable contributors to a firm's business, and should be entrusted with decisions regarding their work.

the redesigning of business processes to improve performance, quality, and productivity.

a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.

the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.


Question 55 1 points Save

A product with a very low defect rate would have high

quality control.

quality reliability.

quality circles.

total quality management.

performance quality.

Question 56 1 points Save

Productivity measures how much we produce with the _______ we use to produce it.

materials

labor

resources

dollars

time

Question 57 1 points Save

The process by which a company analyzes a competitor's product to identify desirable improvements in its own is called

competitive product analysis.

benchmarking.

quality/cost studies.

performance quality analysis.

quality reliability analysis.

Question 58 1 points Save

Employee empowerment is

the concept that all employees are valuable contributors to a firm's business, and should be entrusted with decisions regarding their work.

an ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction.

a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.

the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.

Question 59 1 points Save

A _________ could be used to analyze variations in the weight of cereal boxes.

process capability study

value-added analysis

benchmark

quality circle

quality/cost study

Question 60 1 points Save

Total quality management is

the principle that quality belongs to each person who creates it while performing a job.

the consistency of a product's quality from unit to unit.

the performance features offered by a product.

the sum of all activities involved in getting high-quality products into the marketplace.

the process by which a company analyzes a competitor's products to identify desirable improvements.


Question 61 1 points Save

Information is

the useful interpretation of facts and figures.

names and numbers from a large phonebook.

raw facts and figures.

proven facts.

controlled flow of words for a useful purpose.

Question 62 1 points Save

Netscape Navigator, Netscape Communicator, and Internet Explorer are

data communication networks.

Web links.

browsers.

Web servers.

connections.

Question 63 1 points Save

__________ need information to analyze trends in the business environment and overall company performance in order to make long-range plans.

Middle managers

Members of the board of directors

Top-level managers

First-level managers

Knowledge workers

Question 64 1 points Save

The ________ was originally commissioned by the Pentagon.

Fox News Channel

World Wide Web

National Public Radio

Federal Communications Commission

Internet


Question 65 1 points Save

_________ allows people in remote locations to work simultaneously on one document.

Videoconferencing

Voice mail

Data conferencing

Digital information service

An Internet service provider


Question 66 1 points Save

A(n) ________________ is a quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers.

application

decision support

executive support

expert

artificial intelligence


Question 67 1 points Save

Which of the following is a database management program?

Microsoft Access

Word Perfect

Lotus 1-2-3

A, b, and c

None of the above

Question 68 1 points Save

Robotics is a special category of

applied technology.

human support.

executive support.

an expert system.

artificial intelligence.


Question 69 1 points Save

Which of the following are spreadsheet packages?

Lotus 1-2-3

Quattro Pro

Microsoft Excel

All of the above

None of the above

Question 70 1 points Save

Lotus Notes and Netscape Communicator are __________ products.

groupware

data communication network

Internet

electronic conferencing

Internet service provider

Question 71 1 points Save

A nondeposit financial institution that pools funds from it members to provide retirement income for its members is a(n)

credit union.

securities dealer.

insurance company.

finance company.

pension fund.

Question 72 1 points Save

The _________ funds national improvements by making loans to build roads, schools, power plants, and hospitals.

Federal Reserve

World Bank

Import-Export Bank

European Union

International Monetary Fund

Question 73 1 points Save

Approximately ________ of all U.S. currency is held by residents of other countries who want the security of U.S. dollars.

10 percent

20 percent

25 percent

50 percent

75 percent


Question 74 1 points Save

Which of the following is a purpose of the International Monetary Fund?

Promote the stability of exchange rates.

Provide temporary, short-term loans to member countries.

Encourage members to cooperate on international monetary issues.

Encourage development of a system for international payments.

All are purposes of the IMF.


Question 75 1 points Save

Which of the following will result in an increase of the money supply?

An increase in reserve requirements.

An increase in the discount rate.

A decrease in reserve requirements.

An increase in taxes.

Sale of securities by the Fed.

Question 76 1 points Save

David has a savings account and his home mortgage with this financial institution. In addition, he periodically receives a dividend check from them. He is invested with a

commercial bank.

finance company.

savings and loan associations.

mutual savings bank.

credit union.

Question 77 1 points Save

Which of the following is NOT part of the M-2 money supply?

time deposits

money market mutual funds

savings deposits

government bonds

currency

Question 78 1 points Save

Where will one find the most avid users of the smart card?

United States

Great Britain

North Africa

Europe and Asia

Scandinavia

Question 79 1 points Save

If today's currency wears out it can be replaced, thus demonstrating that it is

portable.

divisible.

stable.

durable.

valuable.

Question 80 1 points Save

Individual banks that need money can borrow from the Federal Reserve and pay interest on the loans, while the Fed provides storage for commercial banks. The preceding sentence describes which role of the Fed?

the government's bank

the bankers' bank

guardian of the currency

controlling the money supply

overseeing the economy

Question 81 1 points Save

Approximately ________ of the Gross Domestic Product is generated by the service sector.

20 percent

40 percent

60 percent

70 percent

80 percent

Question 82 1 points Save

The typical layout in automobile, food-processing, and computer assembly plants is the _______ layout.

process

customer

product

cellular

fixed-position

Question 83 1 points Save

Using a _________ chart, managers list all the activities needed to complete a job, estimate the time required for each step, and check the progress of the project against the chart.

lead time

Simon

MRP II

PERT

Gantt

Question 84 1 points Save

Lockheed Martin is using _________ to automatically inform their engineers and those of their subcontractors of changes to designs.

monthly updates

an electronic bulletin board

a product data management system

a newsletter

annual meetings


Question 85 1 points Save

The layout that is efficient and inexpensive because it simplifies work tasks and uses unskilled labor is the _______ layout.

process

customer

product

cellular

fixed-position

Question 86 1 points Save

Steve manages people who take various raw materials and pre-made assemblies and puts them together in a unique product that is sold to retail stores. Steve is involved in

service creation.

goods creation.

plant management.

manufacturing management.

operations management.

Question 87 1 points Save

Check processing at your local bank is a(n) ___________ system.

active

high-contact

low-contact

high-interaction

low-interaction

Question 88 1 points Save

Employment in the service sector accounts for approximately _________ of jobs in the United States.

20 percent

40 percent

60 percent

70 percent

80 percent

Question 89 1 points Save

The layout where the arrangement of production facilities is design to move families of products through similar flow paths is the _______ layout.

process

customer

product

cellular

fixed-position

Question 90 1 points Save

A _________ chart is a production schedule specifying the sequence and critical path for performing the steps in a project.

lead time

Simon

MRP II

PERT

Gantt

Question 91 1 points Save

The sending of fliers or other types of printed advertisements to consumer's homes is

magazines.

television.

newspaper.

radio.

direct mail.

Question 92 1 points Save

__________ indicate(s) that the buyer is interested and pinpoint(s) the parts of the presentation that trouble the buyer.

Approaching

Demonstrations

Objections

Closing

Qualifying


Question 93 1 points Save

To stimulate sales, drug companies use

educational events.

funding for medical research.

direct-to-consumer marketing.

promotional gifts.

all of the above.


Question 94 1 points Save

The owner of Billy Joe's Barbecue is looking at his advertising, sales promotion, and publicity programs. He is reviewing the company's ___________ mix.

communications

marketing

promotional

publicity

consumer information

Question 95 1 points Save

When New York Life advertises the safety and security of its products, it is using a _______ advertising strategy.

push

persuasive

comparative

pull

reminder

Question 96 1 points Save

As an example of adding value, Burger King cut back on advertising dollars and used those funds for

meat purchases in South America.

adding highly trained managers for their units.

customer discounts.

expansion of the chain.

none of the above.

Question 97 1 points Save

____________ allow companies to rent booths to display and demonstrate products to customers who have a special interest in them.

Premiums

Directional signs

Point-of-purchase displays

Trade shows

Coupon incentives


Question 98 1 points Save

During the postpurchase evaluation stage of the consumer buying process, the most effective promotional tool(s) is/are

advertising and sales promotion.

personal selling.

advertising and publicity.

sales promotion and personal selling.

advertising and personal selling.

Question 99 1 points Save

When selling new, innovative products the type of selling most likely needed is

order processing.

sales promotions.

creative selling.

missionary selling.

public relations.

Question 100 1 points Save

Which of the following make it easier for customers to find a product and eliminate competitors' products from consideration?

contests

POP displays

coupon

premiums

trade shows