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Study Resources (Business Management)

  81.A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n) _____ lease.  A.leveraged B.operating C.finance D.capital 82.A lease in which at the end of the lease period the asset becomes the property of the lessee, possibly with an additional payment is called a(n) _____.
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  Multiple Choice Questions  21.Which of the following is true of financing small businesses?  A.There are several resources available for financing start-ups. B.Funding is only important when a business is just starting. C.A business has fixed financial goals in all stages of its development. D.The most popular source of financing for start-ups is from commercial banks. 22.The.
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  11.Equifax is one of the four primary CRAs in the United States.  12.A company's goodwill is its best collateral.  13.Reduced taxes are the most common form of institutional gift financing.  14.The SBIR and the STTR programs require that every U.S. agency that makes research grants provide a minimum of 2 percent of its.
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  Multiple Choice Questions  21._____ refers to money that is owed to a business by its customers who purchased a product on credit.  A.Pledging receivable B.Accounts receivable C.Factoring receivable D.Accounts payable 22.Which of the following is an advantage of providing credit to customers?  A.It reduces the need to borrow money. B.It speeds up the receipt of cash. C.It reduces the.
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  51.Which of the following is a difficulty that arises in understanding and interpreting the income statements?  A.There is difficulty deciding whether to report the revenues. B.There is difficulty deciding what should be considered as expenses. C.There are disputes over when to recognize revenues. D.There are disputes over the preferred tax rate to incorporate. 52._____ is.
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  True / False Questions  1.Small businesses never experience any cash flow problems.  2.Cash-to-cash cycle is also referred to as operating cycle.  3.Many small businesses experience problems in cash flow management because of the mismatch between the timing of the receipt of cash and the timing of the need to expend cash.  4.All money is.
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  61.Crowdfunding refers to:  A.approaching several foundations to acquire grants to fund a business. B.approaching several commercial banks to fund a business. C.funding a business through partnerships with several companies. D.funding a business online through gifts made to the business. 62._____ refers to the percentage expense of obtaining future funds.  A.Risk B.Cost of capital C.Rate on investment D.Return on investment 63.The.
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  82.Training and flexible hours are a part of the _____ strategy used to control money that is expected to leave the firm.  A.noncash incentive B.trade discount C.barter system D.gaming payment 83._____ refers to the practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being.
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  11.The bank available balance and the bank ledger balance will always show the same value.  12.Delays in transferring money among banks due to internal procedures is called processing float.  13.Reconciling the differences between the bank and book balances gives a corrected bank balance and a corrected book balance which are identical.  14.A cash.
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  42.Cash that can be obtained from stocks, bonds, land, buildings, or equipment that a business has is called:  A.cash flow from operations. B.cash from financing. C.cash flow from subsidy. D.cash flow from investing. 43.A(n) _____ refers to the sum of cash inflows and cash outflows recorded in a firm's accounting records.  A.company book balance B.bank ledger balance C.overdraft.
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  51._____ is an arbitrary, but regular and systematic, method used to take asset value as an expense for the purpose of calculating net income or loss.  A.Inventory valuation B.Capital budgeting C.Benchmarking D.Depreciation 52.Depreciation is based on which of the following assumptions?  A.The period of utility of an asset is not fixed or determinable. B.The value of an.
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  71.Which among the following is an example of a variable cost?  A.Lighting B.Security C.Shipping D.Cleaning 72._____ is the idea that it is cheaper (per item) to make many of an item than few.  A.Inventory turnover B.Economy of scale C.Breakeven point D.Historical value 73.Breakeven point is the point at which:  A.total costs equal gross revenue. B.fixed costs equal variable costs. C.total costs equal profit. D.variable.
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  81.A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.  A.business interruption insurance B.credit insurance C.surety bond D.fidelity bond 82._____ repay employers for losses caused by dishonest or negligent employees.  A.Credit insurance B.Business interruption insurance C.Surety bonds D.Fidelity.
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  Multiple Choice Questions  22.According to the poll conducted by the National Federation of Independent Business (NFIB), small business faced cash flow problems because of:  A.delayed payments from customers. B.lack of seasonal fluctuation in sales. C.delayed payments from vendors. D.unexpected increases in taxes. 23.The time required for a business to acquire resources, convert them into a product,.
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  32.A _____ is a form of money that can be immediately used to make payments.  A.debt investment B.marketable security C.commercial paper D.traveler's check 33.Currency is a form of cash represented by:  A.stocks and bonds. B.bills and coins. C.commercial paper. D.demand deposits. 34.Debt investments that mature in less than three months are an example of _____.  A.currency B.cash equivalents C.demand deposits D.traveler's checks 35._____ make up.
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  51.Direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria are referred to as _____.  A.tax abatements B.grants C.tax credits D.debts 52.Gifts of money made to a business for a specific purpose are referred to as _____.  A.equities B.debts C.tax credits D.grants 53.The two largest governmental grant programs that are specifically intended for.
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  True / False Questions  1.In the U.S., government programs are the number one source for financing small businesses.  2.A legal obligation to pay money in the future is called equity capital.  3.Money borrowed for the purpose of investment in a business is called debt capital.  4.Knowing one's personal worth is not important when starting.
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  31.Which of the following is the largest current asset that most manufacturing, wholesale, and retail firms generally have?  A.Copyright B.Equipment C.Inventory D.Patent 32.Which of the following is a statistical technique that determines the size of inventory that a business must hold to minimize total inventory cost?  A.Benchmarking B.Factoring C.Pull-push strategy D.Economic order quantity 33.Economic order quantity (EOQ) helps a business.
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  81.During the start-up phase of a business, the emphasis is on:  A.finishing all outstanding projects, collecting all money due, disposing of all business assets, and finally paying off any outstanding debt. B.removing all surplus cash and tightening the cash-to-cash cycle to the shortest time possible. C.piggybacking with other successful firms. D.conserving what little cash.
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  41.The purchase of inventory—typical with Internet-based businesses—only after a sale is made is called a _____.  A.periodic inventory B.micro inventory C.perpetual inventory D.point-of-sale system 42.A _____ is the process of physically counting business assets on a set schedule.  A.periodic inventory B.perpetual inventory C.just-in-time inventory D.micro inventory 43.Small businesses use the periodic inventory method because it:  A.gives instant access to accurate inventory.
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  72.A jewelry store promises to deliver custom-made wedding rings to a buyer within 2 weeks. However, it charges ten percent of the sales price in advance. In this example, which of the following techniques is the store using to increase cash inflows?  A.It is offering discounts to customers for prompt payment. B.It.
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  71.Borrowing money is a better alternative to investing additional personal funds because obtaining equity investment from others:  A.reduces the potential loss for any single investor. B.allows lesser debt to be included in the capital mix. C.increases the cost of capital for the business. D.increases the weighted average cost (WAC) of the business. 72.Restrictions imposed by.
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  True / False Questions  1.Current practice is for small businesses to only provide direct credit to customers.  2.In small businesses, providing credit to customers decreases the need to borrow cash.  3.One of the policies for managing customer credit requires business owners to maintain constant "aging" of accounts to quickly identify customers who become.
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  41.Private businesses that are authorized to make SBA insured loans to start-ups and small businesses are called _____.  A.community development organizations B.accelerators C.small business investment companies D.LLCs 42.An organization, usually associated with universities, that supports start-up technology businesses by providing inexpensive office space, a variety of support services, and resources is called a(n) _____.  A.LLC B.community development.
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  11.The periodic inventory method is the most expensive method of maintaining records.  12.Bar coding is used to reduce the cost of perpetual inventory systems.  13.Short-term assets are also known as operating assets.  14.An arm's length transaction is a business deal where the parties have a prior relation or affiliation, but where the business.
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  41.In the context of accounting functions, which of the following is true of accounts receivable?  A.It tracks what one owes and helps to make timely payments. B.It is independent of the extension of credit. C.It records all checks written and payments made. D.It records provision of credit to customers. 42.Which of the following accounting functions.
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  31.A business formed by an individual who is responsible for all debts and claims against the business is called a:  A.limited liability company. B.conglomerate. C.partnership. D.sole proprietorship. 32.Ownership of corporations is established by _____.  A.stock certificates B.share agreements C.member share certificates D.partnership share agreements 33.A charge for the use of money, usually figured as a percentage of the principal is.
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  61._____ refers to a type of periodic inventory that conducts a count of the entire inventory being held for sale at a specific point in time.  A.Factoring B.Perpetual inventory C.Physical inventory D.Benchmarking 62.The _____ is the total cost of substituting an asset with an essentially identical asset.  A.cost of disposition B.replacement cost C.cost of operating D.acquisition cost 63.The total cost.
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  52.A(n) _____ is a delay in transferring money among banks due to internal procedures.  A.overdraft B.availability float C.charge back D.processing float 53.A delay in delivering checks from the writer of a check to the recipient's bank is called _____.  A.processing float B.overdraft C.availability float D.charge back 54.Which of the following terms refers to the accounting process that identifies the causes.
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  True / False Questions  1.Risk is the probability that future economic state of the business will be better than expected.  2.The most common form of employee theft is the pilfering of items of small value.  3.The OSHA is a commission established to enforce the provisions of the Equal Employment Opportunity Act.  4.Employees whose experience.
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  61.Which of the following is more indicative of a business's financial strength?  A.Short-term investments B.Prepaid expenses C.Accounts payable D.Inventories 62.Which of the following statements is true regarding the balance sheet?  A.It is rarely useful to the owners and managers of businesses. B.It contains an exhaustive list of a business's assets and liabilities. C.It always contains exact amounts. D.it's values.
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  62.A(n)_____ identifies when, how, and why money is expected to come into the business, and when, how, and why it is expected to leave.  A.bearer B.overdraft C.charge back D.cash budget 63._____ is a schedule of the amounts and timings of the cash coming into a business.  A.Cash disbursements budget B.Cash receipts budget C.Comprehensive budget D.Capital budget 64.The _____ is a.
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