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Study Resources (Business Management)

  MULTIPLE CHOICE   32. The financial manager for a typical corporation is responsible for _____. a. designing the accounting system b. gathering, recording, and reporting financial information c. determining the most appropriate sources and uses of funds d. preparing operating budgets for various departments 33. In the context of the role of the financial manager, who among.
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MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c. Nasdaq d. Credit unions e. financial system f. call provision g. insider trading h. Federal Open Markets Committee (FOMC) i. Securities j. New York Stock Exchange k. Online banking l. limit order m. debentures n. primary market o. net savers 1. The _____ is sometimes referred to as the Big Board, the most.
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  52. Short-term assets are expected to be converted into cash within _____. a. a month b. a year c. four months d. six months 53. Which of the following assets would a firm most likely finance using long-term sources? a. Inventory b. Accounts receivable c. Marketable securities d. Another company 54. _____ would be the LEAST likely to obtain a.
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  89. An expert system is a computer program that imitates human thinking. 90. Credit card applications are often evaluated using executive systems. 91. DVD drives and monitors are examples of computer input devices. 92. An especially powerful midrange computer is called a supercomputer. 93. Mainframe computers have more storage capacity and are faster than.
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  89. _____ is defined as the use of material nonpublic information about a company to make investment profits. a. Underwriting b. Insider trading c. Thrift supervision d. Self-regulation 90. The ___ establishes and updates rules to ensure that member brokers perform their basic functions honestly and fairly. a. NASD b. NASDAQ c. NYSE d. FDIC 91. All market participants must.
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  49. Two factors determine the price of a bond: ____ and ____. a. risk; interest rate b. market; risk c. interest rate; call provision d. price of other bonds; the company selling the bond 50. Bonds with ratings of BBB and above are classified as ____. a. speculative bonds b. investment-grade bonds c. junk bonds d. convertible bonds 51. Other.
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  148. Underwriting is the process used by insurance companies to determine whom to insure and what to charge. 149. One of the Federal Reserve’s most important tasks is to help facilitate the clearing of checks. 150. The Federal Open Markets Committee sets policies regarding bank mergers and lending standards. 151. All federally insured.
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  70. Deciding how to prevent system failures along with the ability to continue operations if computer systems fail is called ________. a. disaster recovery planning b. information systems management c. advanced computer security d. virus protection 71. Which of the following is an unreasonable response to potential computer problems? a. using online storage services b. limiting computer.
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  39. Treasury bills have a minimum denomination of ____. a. $100,000 b. $10,000 c. $1,000 d. $100 40. _____ is a form of short-term financing sold by corporations, such as Raytheon, that mature from 1 to 270 days from the date of issue. a. Bonds b. CDs c. Treasury bills d. Commercial paper 41. A _____ is a time deposit.
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  MULTIPLE CHOICE   30. Professionals who are responsible for gathering, recording, reporting, and interpreting the financial information of an organization are known as _____. a. statisticians b. accountants c. IRS agents d. IRS agents’ managers 31. Mitchell works for a travel agency. Her job involves preparing financial reports and interpreting those reports to provide information for decision.
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  MATCHING Complete the following using the terms listed. a. Venture capitalists b. private placements c. factoring d. capital investment analysis e. debt capital f. Equity capital g. financial plan h. leveraged buyout i. private equity funds j. divestiture k. Marketable securities l. financial manager m. tender offer n. Trade credit o. leverage p. capital structure q. Asset intensity r. bonds 1. The technique of increasing the rate of return on.
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    TRUE/FALSE   98. Businesses are net savers, while households are net users of funds. 99. The financial system describes the process by which funds flow from savers to users. 100. Securities represent obligations on the part of issuers—businesses and governments—to provide purchasers with expected or stated returns on the funds invested or loaned. 101. The.
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  42. Major current assets include all of the following EXCEPT_____. a. accounts receivable b. stockholders’ equity c. marketable securities d. cash 43. All of the following actions result in equity capital EXCEPT _____. a. issuing bonds b. liquidating assets c. issuing stock d. reinvesting earnings 44. Kevin’s company needs to obtain funds in order to keep the business going; however,.
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  50. The _____ was created by the Sarbanes-Oxley Act of 2002. a. Securities & Exchange Commission b. Public Accounting Oversight Board c. GAAP d. FASB 51. Which of the following represents the accounting equation? a. Assets + Liabilities = Owners’ Equity b. Assets = Liabilities + Owners’ Equity c. Liabilities = Assets + Owners’ Equity d. Owners’ Equity –.
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  105. The Federal Bureau of Investigation is an example of a governmental agency that hires accountants. 106. Assets can include intangible possessions such as patents and trademarks. 107. The GAAP standard of relevance ensures that one firm’s financial statements can be compared with those of similar businesses. 108. The Securities and Exchange Commission.
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    ESSAY   19. What is accounting? Provide examples of tasks that accountants perform. 20. Explain the differences between public accountants and management accountants. 21. All organizations perform three basic business activities. List and describe these activities. 22. Define GAAP and explain its purpose.     .
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  TRUE/FALSE   85. Accounting is the language of business. 86. Accounting information can be as important to those outside the organization as it is to those inside the organization. 87. Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports. 88. Most.
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    TRUE/FALSE   79. Data alone are of limited value to a company. 80. Sales figures are an example of data. 81. Information is the result of processed data. 82. The heart of a management information system is the software. 83. Information overload is more of a problem today because of improved information technology. 84. The main purpose.
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  138. Virtually all developed countries and many developing countries have stock exchanges. 139. The NASDAQ is a computerized communications network that links member investment firms and is the world’s largest intranet. 140. Nondepository institutions include life insurance companies, such as Northwestern Mutual; pension funds, such as the Florida state employee pension fund;.
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  158. When the Fed buys government securities, it adds to the supply of money and credit, which causes a reduction in interest rates. 159. U.S. banks make few foreign investments due to regulatory restrictions. 160. The National Association of Securities Dealers (NASD) purpose is to ensure that brokers perform their basic functions.
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  60. Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in _____. a. August b. July c. September d. either July, August,.
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  128. Preferred stockholders receive fixed dividends. 129. In the long run stock prices tend to follow a company’s profits. 130. Convertible bonds pay lower interest rates than those lacking conversion features. 131. Sales of most corporate and municipal securities are made via auctions. 132. When a company offers stock for sale to the general.
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  40. Public accountants typically perform all of the following tasks for a business client EXCEPT _____. a. tax planning b. reviewing a firm’s financial statements c. developing the firm’s marketing strategy d. management consulting 41. Maxwell is not an employee of the Edith Corporation, but he was hired as a management consultant to provide unbiased.
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  95. Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant. 96. Investing activities focus on selling goods and services, but they also consider cost control as an important element of sound financial management. 97. A public accounting firm is prohibited from.
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  26. Describe the purpose of budgets in a business. 27. What is the purpose of the balance sheet? Explain how it is organized. 28. What is accrual accounting? How does depreciation affect net income and cash flow? 29. Explain how exchange rates influence international accounting practices. Why was the International Accounting Standards Committee.
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MATCHING Complete the following using the terms listed. a. certified public accountant b. International Financial Reporting Standards c. asset d. liability e. Owners’ equity f. accounting equation g. balance sheet h. income statement i. Foreign Corruption Practices Act j. accrual accounting k. open book management l. budget m. generally accepted accounting principles (GAAP) n. Financial Accounting Standards Board (FASB) o. profitability ratios p. International Accounting Standards Committee.
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  108. Bondholders are creditors, and therefore they have a claim on the firm’s assets that must be satisfied before any claims of stockholders in the event of the firm’s bankruptcy, reorganization, or liquidation. 109. Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond. 110. The Treasury sells.
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  11. Proponents of _____ allow employees to view sensitive financial information so that they better understand how their work contributes to the company’s success. 12. An organization’s overall financial performance is measured by its _____, which evaluates the ability to generate revenues in excess of operating costs and other expenses. 13. Financial.
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  109. Unlike viruses, worms don’t need host programs to damage computer systems. 110. A handful of users click on a link that reads “free unlimited Tetrisgame” to reveal a blank screen. They later find that information on their hard drive was also erased. The page that falsely advertised a free game.
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  99. A familiar example of wide area networks is long-distance telephone service. 100. In the context of wireless local networks, there are only a select number of hot spots in public locations today. 101. An intranet links a company to its suppliers and customers. 102. A firewall scrambles data and makes it difficult.
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  115. Assets are shown in ascending order of liquidity. 116. The right side of the balance sheet lists claims against assets. 117. The three principal financial statements are the balance sheet, income statement, and the statement of retained earnings. 118. When examining a statement of cash flows, investors obtain relevant information about a.
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  60. All Walmart stores have satellite dishes that link stores together with the company’s headquarters. Walmart is using a(n) ________. a. wide area network b. enterprise resource system c. expert system d. local area network 61. Rebecca is on a business trip. From her hotel, she uses her computer to access her company’s network, checking.
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  MULTIPLE CHOICE   29. In the U.S. financial system, which of the following is a net saver? a. households b. business c. the government d. financial institutions 30. One of the most important variables that determine how much a person saves is _____. a. what country he or she is from b. the person’s gender c. the person’s race d. the.
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  69. Which of the following financial institutions would typically invest the largest portions of its funds in home mortgage loans? a. Savings bank b. Credit union c. Commercial bank d. Life insurance company 70. Savings banks were originally established to make ________ loans. a. home mortgage b. business c. agricultural d. automobile 71. Which of the following is a nondepository.
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