BADM Final Flashcards Table View


A prepaid expense would be classified as ___ An asset
The leadership style advocating that a leader involve subordinates in most decisions as well as the assignment of tasks is called Democratic
Which of the following statements does not describe the U.S economy as we enter the new millennium? Service businesses will continue to employ more than half of the American workforce
What is the primary disadvantage of both a sole proprietorship and a partnership corporation Unlimited liability
Once a manager has identified a problem, he/she can generate alternatives to that problem. After this is done the manager: Determines the best alternative
A distribution of earnings to the stockholders of a corporation is a: Dividend
___ resources include the funds needed to pay wages, purchase raw materials, and operate a business Financial
The info. provided by managerial accounting is of most benefit to a firm's Managers
The economic term used to describe the gvt's influence on savings & changing the levels of gvt. spending is Fiscal Policy
Which of the following is necessary for starting a sole proprietorship? No specific legal documents
Although the long term trend for Brazil may show economic growth, this growth fluctuates from year to year as a part of the... Growth cycle
Tragemark and goodwill are both Intangible assets
A voluntary association of two or more people acting as co-owners of a business is known as a: Partnership
Revenues, proceeds from stock sales and loans from banks are____ resources for Sears. Monetary
The broadest set of plans developed as a guide for major policy setting and decision making is called a: Strategic Plan
Unless specified in the charter, a corporation has a: Perpetual Life
Motorolla offers its employees many training classes on topics such as basic accounting...Managers believe that their efforts will assist their workers to: Be better employees
Glenn owns and operates a large hardware store in Missouri that employs about 50 ppl. He delegates some of the decision making but remains the only owner. Glenn's business is organized as a: Sole Proprietorship
An example of a command ecconomy is Communism
The most liquid asset is: Cash $$$
From 1950 to 1960 Americans experienced a period of A rising standard of living
Beginning inventory + net purchases - ending inventory= Cost of goods sold
A manager who has the abilities to relate to other ppl. understand their needs, and show compassion has___skills. Interpersonal Skills
____resources are used to meet obligations to investors and creditiors. Financial
The value of a firm's stock + any retained earnings that have accumulated to date is reffered to as Owner's Equity
Examples of command ecconomies include: Socialism and Communism
The economic term used to describe the Federal Reserve's actions to determine the size and supply of money in the nation and the level of interest rates is: Monetary Policy
A manager who has the ability to see the big picture of an organization can fit together has_____skills. Conceptual
A type of exam that emphasizes not only accounting but also decision making and critical thinking skills is the Certified Management Accounting Exam (CMAE)
Which of the following is not a disadvantage of sole proprietorships: Double taxation
All of the following are material resources for Toyota except: Money
The ratio obtained by dividing net income after taxes and net sales is the: Return on sales ratio
In France, income taxes are reduced so that individuals will have more income to spend, which will in turn stimulate the ecconomy. This is an example of: Fiscal policy
(Refer to Christine's first job) When Christine explained the steps in the accounting cycle, she identified which of the following as the 1st step in the accounting cycle? Analyzing the source documents
The rivalry among businesses for sales to potential customers... Is reffered to as a competition
A price at which the demanded quantity is equal to the produced qty. of that product is called the____price. Market
In Adam Smith's view, which of the following is not the role of gvt. in business? Regulating business activity
The use of the factory system in the U.S helped to usher in the Industrial Revolution
___is a necessary and extermely important by product of free enterprise Competition
The debts of a business that will be paid in one year or less are called its current liabilities.
When starting a corporation, people submit articles of incorporation to a secretary of state.
Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work. Chris seems to value more free time.
Monopolistic competition is a market situation in which similar but not identical products are available.
Refer to Home Inspirations. Hailey's goal of offering products with unique features and special services is called product differentiation.
A book of original entry is called the general journal.
Scott is in charge of managing, selling, and distributing the company's products. Scott is a(n) ____ manager. operations
Planning, organizing, leading/motivating, and controlling make up the four basic functions in the management process.
The system in which raw materials are distributed by entrepreneurs to homes in which family members process those materials into finished products is referred to as an apprenticeship
France, a socialist economy, does not have which of the following goals? Reduction of government regulations
What are the three activities according to which a statement of cash flows is organized? Operating, investing, financing
Debts owed by a business are called liabilities.
Which of the following situations is most likely to increase the United States' productivity? Increased number of people in the workforce
The study of an individual's economic decisions would be an example of microeconomics
How might a sole proprietorship have a possible tax advantage? It does not pay special state and federal taxes that corporations pay
Resources that a firm owns are called assets.
Salaries payable, accounts payable, and taxes payable are examples of current liabilities.
Commonly used in accounting analysis, a ____ shows a relationship between two elements of a firm's financial statements. financial ratio
____ is the study of how wealth is created and distributed. Economics
The form of business organization that experiences double taxation is the corporation.
Perfect competition is characterized by many buyers and many sellers.
The trial balance is the summary of the firm's general ledger accounts at the end of the accounting period.
During 20xx, Just-The-One Jewelry had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm's profit or loss amount? $700,000
The term ____ describes assets that can be quickly converted into cash or consumed in one year or less. current assets
If total liabilities were subtracted from total assets, the residual value would be owners' equity.
All of the following are classified as fixed assets except computers held for resale.
For the U.S. government to provide services, it collects revenue from both households and businesses in various forms of taxes.
Which of the following statements is false? Increased productivity is a concern for nations throughout the world.
The purpose of specialization is to increase the efficiency of industrial workers.
All of the following are current assets except office equipment.
____ is the process of developing a set of possible alternative solutions and choosing one alternative from among that set. . Decision making
Vince Martin has been described as a visionary. He has the ability to think in abstract terms and see how all the pieces of his company fit together. Vince has ____ skills. conceptual
When economists study the national economy or global economy, they are using a ____ approach. macroeconomics
When a manager identifies an opportunity, he or she generates alternatives to pursue the opportunity, selects one of them, implements it, and then evaluates the results. This manager is acting out the ____ process. decision-making
Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct? No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
In all states besides the one in which it is incorporated, a business is known as a(n) ?
A market or industry with only one seller is referred to as a monopoly.
Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society? Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.
The most effective form of business organization for raising capital is the corporation.
If Martin Jones, VP Finance, meets with Susan Sheridan, CEO, to discuss how much of the budget can be allotted to certain departments for next year's project plans, the two are engaging in financial planning
Fluctuations in a nation's economy are referred to as its business cycle
Most partnerships have ____ partners. b. two
Assets = liabilities + owners' equity is the equation for information reported on the balance sheet.
The total dollar value of all goods and services produced by all people within the boundaries of a country is called gross domestic product.
The relationship between sales and profits can be written as sales revenue − expenses = profit.
O. Sawyer discovered problems in coordinating the work flow going from her department to marketing. To solve the problem, she identified some situations that needed correction and asked employees to submit their suggestions for improvement. After their suggestions were summarized, the employees selected one for implementation. Next, a supervisor was given responsibility and authority to oversee implementation and to keep Sawyer informed. Sawyer's actions exhibit the ____ leadership style. laissez-faire
An outline of the actions an organization intends to take to accomplish its goals and objectives is called its plan.
Coordinating people and the other resources of an organization to achieve the goals of the organization is the process of organizing.
Grouping resources and activities to efficiently and effectively accomplish a result is called d. organizing.
The financial ratio obtained by dividing net income after taxes by owners' equity is called the return on owners' equity.
Working capital is the difference between current assets and current liabilities.
The process of influencing people to work toward a common goal is motivating.
The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as mixed
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy societies needs is called business.
The manager who provides overall guidance and leadership for the entire corporation is known as the ____ manager. administrative
The manager who provides overall guidance and leadership for the entire corporation is known as the ____ manager. administrative
Kayla purchases shares of ownership in General Electric. These shares are referred to as stock.
A(n) ____ is a type of plan designed to implement tactical plans. operational plan
Which of the following items is not a part of planning? Mission
Which of the following is an advantage of a sole proprietorship? There is one-person control of all aspects of the business.
Unlimited liability means the owner is responsible for all business debts.
____ is a market situation (or industry) in which there are few sellers. Oligopoly
____ is a loose, subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services. Standard of living
The leadership style advocating that a leader makes all decisions and tells subordinates what to do and how to do it is called authoritarian.
When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements a. affirmed. audited.
The purpose of an audit is to ensure that financial statements have been prepared according to generally accepted accounting principles.
When a firm's sales revenues are greater than its expenses, the firm has a profit.
The current technology environment changes the way business firms communicate with customers.
All of the following are advantages of the partnership form of organization except unlimited liability.
The investment decisions of many traders on Wall Street in the early 2000s led to the downfall of several investment companies, demonstrating that employee goals were not aligned with company goals. This indicates a failure of which basic managerial function? ?
According to economists, inflation is a general rise in the level of prices.
Which of the following is not a feature of laissez-faire capitalism? Guaranteed income
Productivity can best be described as the average level of output per worker per hour.
A certain chicken company decides that it will become the market leader in the poultry business in five years with a 40 percent share of the market. This statement would be classified as a(n) goal.
The work performed to produce goods and services is referred to as labor.
Andrew Cooper decides to become a part owner of a corporation. As a part owner, he expects to receive a profit as payment because he has assumed the risk of losing the money he has invested in the corporation and not receiving profits.
The purchase of one corporation by another is referred to as a merger.
Which form of business is the easiest to start? Sole proprietorship
When incorporating, a business may incorporate in any state it chooses.
All of the following are sections of the income statement for a business except liabilities.
Susan Montgomery works at an institutional bakery and is paid a wage dictated by the government. She does not like her job but is not allowed other options. Susan must purchase necessities for her family at fixed prices. The country Susan lives in can be described as a ____ economy. command
____ is called the first management function because all other management functions depend on it. Planning
Which of the following is true about CPAs? CPAs must participate in continuing education programs.
Specific skills needed to accomplish specialized activities such as drafting and welding are known as ____ skills. technical
The earnings statement is another term for the income statement.
The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the cash flow statement.
An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy. market
Managers charged with managing the organization's formal human resources program are ____ managers. human resources
When Josh sold his Internet auction site to eBay, he received $2,000,000 more than the total value of his assets as listed on his balance sheet. How will eBay classify this $2,000,000? Goodwill
A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy. command
A limited-liability company is taxed like a partnership.
____ is the process of developing and promoting the differences between one's products and other similar products. Product differentiation
When a firm's expenses are greater than its sales revenue, the firm has a Loss
Exxon/Mobil and Shell are two of the relatively few sellers in the oil-refining industry. Due to the tremendous capital investment required to enter this industry, these companies are insulated significantly from the threat of new competitive entrants and thus have considerable control over price. This market situation is referred to as a(n oligopoly.
manager with ____ skills has the ability to deal effectively with people inside and outside the organization. interpersonal
Which of the following is not an advantage of a sole proprietorship? It has unlimited liability.
Refer to Dazzle Magazine. As a manager, Rosalea would have played all of the following roles except which one? Negotiator
Refer to Dazzle Magazine. The graduate student's assistance represents which step of the decision-making process? Select alternative
Refer to Dazzle Magazine. Now that Rosalea has real-world experience, she understands more than ever that certain personal skills are needed for any manager's success. These skills include all of the following except computer skills.
Refer to Dazzle Magazine. The graduate student's assistance represents which step of the decision-making process? Select alternative
Refer to Dazzle Magazine. Based on how Rosalea performed, how would her leadership style best be described? Democratic
Refer to Dazzle Magazine. What type of manager was Rosalea at Dazzle Magazine? Democratic
Raw materials, buildings, and machinery are ____ resources. material
The process of systematically collecting, analyzing, and reporting financial information is called accounting.
Refer to Centrum Springs, Inc. If Riley were to take this first step up the corporate ladder, he would be classified as a first-line manager.
Refer to Centrum Springs, Inc. The different resources available to all managers include all of the following except competitors.
Refer to Centrum Springs, Inc. When Riley learns all that it takes to be a manager, he will be involved in controlling, organizing, planning, and leading
All of the following are disadvantages of corporations except perpetual life.
Cash, marketable securities, notes receivable, and merchandise inventory are examples of current assets
A positive problem may be viewed as a(n) opportunity
For a business, stakeholders represent all of the different people or groups who are affected in some way by the business.
Olan Okowo recently moved to the United States with many hopes and dreams. However, he realizes that economic freedom includes all of the following except the right to guaranteed economic success.
For firms like Target and Wal-Mart, competition is a rivalry among businesses for sales to potential customers.
All of the following are acceptable ways of stating the accounting equation except owners' equity − liabilities = assets.
The value of a firm's reputation, location, earning capacity, and other intangibles that make th ebusiness profitable is called the goodwill
In the state in which it is incorporated, a business is known as a(n) resident corporation
atents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as intangible assets
The monetary contributions that the owners of IBM pay for shares of the company's stock are ____ resources for IBM. financial
Refer to Samantha's Dilemma. What would not be an advantage of Samantha's aunt's business? Unlimited liability
Refer to Samantha's Dilemma. What type of company does Samantha's friend operate? Partnership
Refer to Samantha's Dilemma. Based on the information provided, what type of business does Samantha's aunt operate? Sole proprietorship
Revenues − cost of goods sold − expenses = net income characterizes which financial statement? Income statement
What is the correct order for the balance sheet? Assets, liabilities, owners' equity
Increased competition from firms in other nations is an example of the global environment
When the management of a large grocery store heard that Super Wal-Mart might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop? Contingency
____ resources are the individuals who provide labor for an organization in exchange for wages. Human
Refer to Ridgley, Cooper, and Ross. If you applied for a job at RCR and were asked to state the accounting equation, which of these would you state? Assets = liabilities + owners' equity
Refer to Ridgley, Cooper, and Ross. What does GAAP stand for? Generally accepted accounting principles
Refer to Ridgley, Cooper, and Ross. In order to be successful in the accounting industry, RCR employees must know all areas of accounting and marketing
Which of the following would not be included in the gross domestic product of the United States? V alue of McDonald's sales for their T okyo locations
The first step in the managerial decision-making process is to identify an opportunity.
An organization's most important resource is its ____ resources. human
Which business environment impacts the ways today's businesses conduct business the most? All of the current business environments impact today's businesses equally.
Which of the following presents assets in the correct balance sheet order? Cash, inventory, equipment
A contract between a business and a state recognizing the business as an artificial person is known as the articles of incorporation
Verizon Corporation has the right to manufacture and market a product, redesign its stores, and acquire other firms because it operates in a(n) ____ system. free-enterprise
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